1. INSURANCE
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2. What Is Insurance ?
►It is a tool in the management of risks –
a device through which the risks faced
by the individuals are pooled together
and thereby all the members of pool
will share the losses suffered by a few
individuals.
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3. Legal Perspective
► Insurance is an agreement (the insurance policy or
insurance contracts), by which one party, called
the policy owner, pays a stipulated consideration,
called premium, to the other party called Insurer in
return for which the insurer agrees to pay a
defined amount of money or provide a defined
service if a covered event occurs during the policy
term.
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4. Evolution and Growth
► The
business of organized insurance in India
started with the opening of Oriental Life Assurance
Company in 1818.
► The Bombay Mutual Life Insurance Society started
business in India. It was the first company to
charge same premium from both Indian and non
Indian lives.
► The General Insurance business in India was
started by Tritors Insurance company Ltd. which
was established in 1850 in Calcutta by the British
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5. ► Insurance
regulation formally began in India with
passing of the Life Insurance Companies Act
1912.
► The first comprehensive legislation was introduced
with the Insurance Act 1938.
► After Independence, although there were 245
insurance companies, but they were found serving
urban customers.
► Emergence of LIC in October 1956 was conformity
with the Government’s vision of state led planning
and development
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6. Insurance Sector Reforms
► Structure
► Competition
► Regulatory Body
► Investments
► Customer Service
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7. IRDA
► Reforms
in the Insurance sector were
initiated with the passage of IRDA Bill in
parliament in Dec 1999.
► Accordingly IRDA was established on 19th
April 2000 to protect the interest of the
insurance policy holders.
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8. Challenges
► Under market penetration
► Deepening Competitive Pressure
► Risk
Management
► Talent Crunch
► CRM
► Fund Management
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