1.
What is insurance?
• Insurance is a way to manage your risk. When you
buy insurance, you purchase protection against
unexpected financial losses. The insurance company
pays you or someone you choose if something bad
happens to you.

2.
• People get insurance not only to help with risks from
unexpected events but also to help pay for routine
things, such as annual medical checkups and dental
visits. In addition, insurance companies negotiate
discounts with health care providers, so their
customers pay those discounted rates.
• An insurance policy is a written contract between the
policyholder (the person or company that gets the
policy) and the insurer (the insurance company).

3.
• Life is uncertain there are no guarantees or predictions about what will
happen in one's life. Similarly, businesses also don't have any guarantee as
they face many unexpected losses or damages in the long run. Assets like
cars, bikes, etc. also don't have any certainty in their lifetime, they can get
stolen or damaged in the long run. One can fight all these risks with an
insurance cover.
Why do we Need Insurance?

4.
• Insurance acts as a financial back-up at the time of
emergency
• Insurance makes retirement secure
• Insurance helps in securing future
• Insurance encourages savings
• Insurance gives peace of mind
Why do we Need Insurance?

5.
The functions of insurance can be listed as follows:
• They provide certainty to the insured.
• They ensure the protection of the family.
• They are risk-sharing policies.
• They prevent the damages that can come from loss.
• It provides capital.
• It’s known for improving efficiency.
• It helps in boosting the economy.
Functions of Insurance

6.
Benefits of Insurance
Insurance policies benefit people as well as society as a
whole in various ways. Along with the obvious benefits
of insurance, others are not much discussed or talked
about.
• Provides Protection
• Provides Certainty
• Risk Sharing
• Value of Risk

7.
What are common types of insurance?

8.
• General insurance is an agreement between a policyholder and
insurer wherein the insurance company protects your valuable assets
from fire, theft, burglary, or any other unfortunate accident.
Following are some of the types of general insurance available in India:
• Health Insurance
• Motor Insurance
• Home Insurance
• Fire Insurance
• Travel Insurance
General Insurance:

9.
• Life insurance plans offer coverage against unfortunate events like death
or disability of the policyholder. Besides financial protection, there are
various types of life insurance policies that allow the policyholders to
maximize their savings through regular contributions into different
equity and debt fund options.
• Following are some of the types of life insurance available in India:
• Term life insurance
• Whole life insurance
• Endownment policy
• ULIPs
• Child plan
• Pension plan
Life Insurance:

10.
Although Life insurance coverage and its premiums depend upon
various factors, but some important ones are:
• 1. Age of the policyholder
• 2. Health conditions – both current and history
• 3. Occupation
• 4. Smoking and drinking habits
• 5. Type of insurance policy
• 6. Claim history
• 7. Location
Factors Defining Your Life Insurance
Coverage

11.
General Insurance
• It is an insurance that is not
covered under Life insurance.
• It is a contract of indemnity.
• It's a short term contract.
• Premium has to be paid lump
sum.
• Loss is reimbursed, or liability
will be repaid on the occurrence
of uncertain event.
• Must be present, at the time of
contract and loss both.
• The amount payable under life
insurance is confined to the actual
loss suffered.
Life Insurance
• It is an insurance contract, which
covers the life-risk of the person
insured.
• It is a form of investment.
• It's a long term contract.
• Premium has to be paid over the
year.
• Insurable amount is paid either on
the occurrence of the event, or on
maturity.
• Must be present at the time of
contract.
• It can be done for any value based
on the premium policy
Difference between general vs
life insurance

12.
• India is likely to become the sixth largest insurance
market in the world over the next decade.
• For the current year, Swiss Re expects India's life
insurance industry to record a growth rate of 6.6%
and a further rise to 7.1% in 2023.
• Swiss Re stated that country's insurance premiums in
India will grow by an average of 14% per annum in
nominal local currency terms over the next decade,
making India the 6th largest in terms of total premium
volume by 2032 from 10th largest in 2021.
Growth rate of Insurance in India

13.
Growth Rate

14.
• Insurance companies assist businesses in reducing
risk and protecting their employees.
• Insurance companies provide financial security to
customers
• Insurance companies help in the funding of economic
development projects
• Insurance has a favourable impact on the financial
system's stability
• Insurance contributes to an increase in GDP
How Does Insurance Help in Economic
Development?

15.
• The Insurance Regulatory and Development
Authority is the main organization or supervisory
body that regulates the insurance sector in the
country.
• Sets rules and regulations for the functioning of the
insurance industry.
• Protect the interest of policyholders.
• Advisories in case of changes to the rules and
regulations.
• Controlling the rates and other charges related to
insurance.
Understanding The Role of IRDA in
Indian Insurance Sector

16.
• To protect the policyholder’s interests.
• To provide long-term funds to speed up the nation’s
economy.
• To promote, set, enforce and monitor high standards of
integrity, fair dealing, financial soundness and
competence of the insurance providers.
• To prevent malpractices and fraud, the IRDA has set up
a grievance redress forum to ensure the policyholder is
protected.
Important Role of IRDA in the Insurance Sector
in India:

17.
• Agents
• Surveyors and loss assessors
• Brokers
• Third Party Administrators(TPA’s)
• Bancassurances
Insurance Intermediaries

18.
• Lack of trust
• Competition
• Mismanagement
• Economic instability
• Excessive politicization of the insurance
industry
Challenges for insurance companies

19.
List of top General Insurance companies
in India

20.
List of top Life Insurance companies
in India

21.
A 46-year-old man, believed to have "accidently" die last year
was known to have been killed by his friends with whom he was
plotting a murder to get insurance claim of Rupees 4 crore. The
person was found dead near the Indiranagar jogging track on
September 2 last year. Considering it to be a death due to an
accident, police had registered an FIR against an unidentified
motorist for causing death in a hit-and-run.
But later, his brother Deepak cast suspicion on Ashok's accidental
death believing that he was murdered after which he approached
the police requesting them to reinvestigate the case.
On Deepak's request, the police then checked the bank balance of
one Mangesh Savkar and a woman who had approached the
police claiming to be the deceased's brother and wife to complete
legal formalities.
Frauds in Insurance sectors
Man Plots Own 'Murder' With Friends For Insurance
Money, They Kill Him For Real

22.
The police found huge amount of deposits in bank accounts of both the people
and further investigation into the case revealed the involvement of four more
people.
All the six accused were arrested by the police.
"Bhalerao and Savkar had hatched a plan in 2018 or a year later under which
they bought an insurance policy in the former's name from 2019. The
conspiracy was to kill someone in an accident and pass off the victim as
Bhalerao and claim the insurance money. However, when they could not zero
in on a person to kill, Savkar and the other five people executed a plan in
September last year to eliminate Bhalerao himself. It is still not known how
they killed Bhalerao. Later family completed the last rites but did not know
that he had taken a term insurance plan of Rs 4 crore.

23.
BHARTI AXA GENERAL BUSINESS COMPANY LIMITED and ICICI LOMBARD
GENERAL INSURANCE COMPANY LIMITED MERGER DEAL
• Bharti AXA general insurance company limited signed a definitive agreement with
ICICI lombard general insurance company limited to merged as a single entity.
• The deal shall be completed by a share swap. The shareholders of Bharti AXA general
insurance receive two shares of ICICI Lombard general insurance for every 115 shares
held by them.
• The reason for the merger is for the benefit of policyholders of Bharti AXA. Through
this merger deal, the policyholders shall avail better service agencies and partners. There
will also better efficiency in distribution channels.
Merger/Acquisition in insurance sector

24.
• ICICI Bank has two successful joint ventures to offer a variety
of insurance and investment products to customers in India
and Indian citizens residing in various parts of the world.
• 1. ICICI Prudential Life Insurance Company Ltd is a joint
venture between ICICI Bank and UK-based Prudential
Corporation Holdings Limited.
• 2. ICICI Lombard is a joint venture between ICICI Bank and
Fairfax Financial Holdings Ltd of Canada.
Joint Ventures in Insurance sector

25.
• Conclusion
The benefit of having insurance is that it prevents burning a hole into
your pocket in unprecedented times. It gives you financial assistance
for your losses and damage. The basic function of all types of insurance
coverages is to provide damage control to the insured by bringing in a
lot of people who pay to cover their risks. The fund is further used for
capital formation through investment in the markets. This helps the
insurance companies to keep running and settle/adjust the claims of the
insured people. It also boosts the economy.

26.
• https://youtu.be/ehvKU5wM0a8
Video

27.
Thank You!