Insurance awareness in India 1.

Introduction

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 19 ! and "enera# Insurance $usiness %&ationa#isation' Act, 19(), Insurance *egu#atory and +eve#op,ent Authority %I*+A' Act, 1999 and other re#ated Acts. -ith such a #arge popu#ation and the untapped ,ar.et area of this popu#ation Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 1 /)0 per cent annua##y. Together with ban.ing services, it adds about ( per cent to the country1s "+2 .In spite of a## this growth the statistics of the penetration of the insurance in the country is very poor. &ear#y 803 of Indian popu#ations are without Life insurance cover and the 4ea#th insurance. This is an indicator that growth potentia# for the insurance sector is i,,ense in India. It was due to this i,,ense growth that the regu#ations were introduced in the insurance sector and in continuation 56a#hotra Co,,ittee7 was constituted by the govern,ent in 1993 to e8a,ine the various aspects of the industry. The .ey e#e,ent of the refor, process was 2articipation of overseas insurance co,panies with )!3 capita#. Creating a ,ore efficient and co,petitive financia# syste, suitab#e for the re9uire,ents of the econo,y was the ,ain idea behind this refor,. :ince then the insurance industry has gone through ,any sea changes. The co,petition LIC started facing fro, these co,panies were threatening to the e8istence of LIC .since the #ibera#i;ation of the industry the insurance industry has never

#oo.ed bac. and today stand as the one of the ,ost co,petitive and e8p#oring industry in India. The entry of the private p#ayers and the increased use of the new distribution are in the #i,e#ight today. The use of new distribution techni9ues and the IT too#s has increased the scope of the industry in the #onger run. ). 4istory of Insurance :ector

The insurance sector in India has co,p#eted a## the facets of co,petition < fro, being an open co,petitive ,ar.et to being nationa#i;ed and then getting bac. to the for, of a #ibera#i;ed ,ar.et once again. The history of the insurance sector in India revea#s that it has witnessed co,p#ete dyna,is, for the past two centuries appro8i,ate#y. -ith the estab#ish,ent of the =rienta# Life Insurance Co,pany in >o#.ata, the business of Indian #ife insurance started in the year 1818. I,portant ,i#estones in the Indian #ife insurance business 191)? The Indian Life Assurance Co,panies Act ca,e into force for regu#ating the #ife insurance business. 19)8? The Indian Insurance Co,panies Act was enacted for enab#ing the govern,ent to co##ect statistica# infor,ation on both #ife and non/#ife insurance businesses. 1938? The ear#ier #egis#ation conso#idated the Insurance Act with the ai, of safeguarding the interests of the insuring pub#ic.

19 !? )@

Indian and foreign insurers and provident societies

were ta.en over by the centra# govern,ent and they got nationa#i;ed. LIC was for,ed by an Act of 2ar#ia,ent, vi;. LIC Act, 19 !. It started off with a capita# of *s. fro, the "overn,ent of India. The history of genera# insurance business in India can be traced bac. to Triton Insurance Co,pany Ltd. %the first genera# insurance co,pany' which was for,ed in the year 18 0 in >o#.ata by the $ritish. I,portant ,i#estones in the Indian genera# insurance business 190(? The Indian 6ercanti#e Insurance Ltd. was set up which was the first co,pany of its type to transact a## genera# insurance business. 19 (? "enera# Insurance Counci#, an ar, of the Insurance Association of India, fra,ed a code of conduct for guaranteeing fair conduct and sound business patterns. 19!8? The Insurance Act i,proved for regu#ating invest,ents and set ,ini,a# so#vency #eve#s and the Tariff Advisory Co,,ittee was set up. 19()? The "enera# Insurance $usiness %&ationa#i;ation' Act, 19() nationa#i;ed the genera# insurance business in India. It was with effect fro, 1st Aanuary 19(3. crore and that too

10( insurers integrated and grouped into four co,panies vi;. the &ationa# Insurance Co,pany Ltd., the &ew India Assurance Co,pany Ltd., the =rienta# Insurance Co,pany Ltd. and the Bnited India Insurance Co,pany Ltd. "IC was incorporated as a co,pany. 3. Insurance awareness < 2resent?

The insurance sector was opened up for private participation four years ago. Cor years now, the private p#ayers are active in the #ibera#i;ed environ,ent. The insurance ,ar.et have witnessed dyna,ic changes which inc#udes presence of a fair#y #arge nu,ber of insurers both #ife and non/#ife seg,ent. 6ost of the private insurance co,panies have for,ed Doint venture partnering we## recogni;ed foreign p#ayers across the g#obe. There are now )9 insurance co,panies operating in the Indian ,ar.et < 1@ private #ife insurers, nine private non/#ife insurers and si8 pub#ic sector co,panies. -ith ,any ,ore Doint ventures in the offing, the insurance industry in India today stands at a crossroads as co,petition intensifies and co,panies prepare surviva# strategies in a detariffed scenario. There is pressure fro, both within the country and outside on the "overn,ent to increase the foreign direct invest,ent %C+I' #i,it fro, the current )!3 to @93, which wou#d he#p AE partners to bring in funds for e8pansion. There are opportunities in the pensions sector where regu#ations are being fra,ed. Less than 10 3 of Indians above the age of !0

receive pensions. The I*+A has issued the first #icence for a standa#one hea#th co,pany in the country as ,any ,ore p#ayers wait to enter. The hea#th insurance sector has tre,endous growth potentia#, and as it ,atures and new p#ayers enter, product innovation and enhance,ent wi## increase. The deepening of the hea#th database over ti,e wi## a#so a##ow p#ayers to deve#op and price products for #arger seg,ents of society. :tate Insurers Continue To +o,inate There ,ay be roo, for ,any ,ore p#ayers in a #arge underinsured ,ar.et #i.e India with a popu#ation of over one bi##ion. $ut the rea#ity is that the intense co,petition in the #ast five years has ,ade it difficu#t for new entrants to .eep pace with the #eaders and thereby fai#ing to ,a.e any i,pact in the ,ar.et. A#so as the private sector contro#s over )!.183 of the #ife insurance ,ar.et and over )!. 33 of the non/#ife ,ar.et, the pub#ic sector co,panies sti## ca## the shots. The country1s #argest #ife insurer, Life Insurance Corporation of India %LIC', had a share of (@.8)3 in new business pre,iu, inco,e in &ove,ber )00 . :i,i#ar#y, the four pub#ic/sector non/#ife insurers < &ew India Assurance, &ationa# Insurance, =rienta# Insurance and Bnited India Insurance < had a co,bined ,ar.et share of (3.@(3 as of =ctober )00 . ICICI 2rudentia# Life Insurance Co,pany continues to #ead the private sector with a (.)!3 ,ar.et share in ter,s of fresh pre,iu,, whereas ICICI Lo,bard "enera#

Insurance Co,pany is the #eader a,ong the private non/#ife p#ayers with a 8.113 ,ar.et share. ICICI Lo,bard has focused on growing the ,ar.et for genera# insurance products and increasing penetration within e8isting custo,ers through product innovation and distribution. *eaching =ut To Custo,ers < &o doubt, the custo,er profi#e in the insurance industry is changing with the introduction of #arge nu,ber of divergent inter,ediaries such as bro.ers, corporate agents, and bancassurance. The industry now dea#s with custo,ers who .now what they want and when, and are ,ore de,anding in ter,s of better service and speedier responses. -ith the industry a## set to ,ove to a detariffed regi,e by )00(, there wi## be considerab#e i,prove,ent in custo,er service #eve#s, product innovation and newer standards of underwriting. Intense Co,petition < In a de/tariffed environ,ent, co,petition wi## ,anifest itse#f in prices, products, underwriting criteria, innovative sa#es ,ethods and creditworthiness. Insurance co,panies wi## vie with each other to capture ,ar.et share through better pricing and c#ient seg,entation. The batt#e has so far been fought in the big urban cities, but in the ne8t few years, increased co,petition wi## drive insurers to rura# and se,i/urban ,ar.ets.

"#oba# :tandards < -hi#e the wor#d is eyeing India for growth and e8pansion, Indian co,panies are beco,ing increasing#y wor#d c#ass. Ta.e the case of LIC, which has set its sight on beco,ing a ,aDor g#oba# p#ayer fo##owing a *s)80/crore invest,ent fro, the Indian govern,ent. The co,pany now operates in 6auritius, CiDi, the B>, :ri Lan.a, &epa# and wi## soon start operations in :audi Arabia. It a#so p#ans to venture into the African and Asia/2acific regions in )00!. The year )00 continent. 4owever, with robust reinsurance progra,,es in p#ace, insurers have successfu##y ,anaged to tide over the crisis without any adverse i,pact on their ba#ance sheets. -ith #ife insurance pre,iu,s being Dust ). 3 of "+2 and genera# insurance pre,iu,s being 0.! 3 of "+2, the opportunities in the Indian ,ar.et p#ace is i,,ense. The ne8t five years wi## be cha##enging but those that can bui#d sca#e and ,ar.et share wi## survive and prosper. Insurance co,panies in India I*+A has ti## now provided registration to 1) private #ife insurance co,panies and 9 genera# insurance co,panies. If the e8isting pub#ic sector insurance co,panies are considered then there are present#y 13 insurance co,panies in the #ife side and 13 co,panies functioning in genera# insurance business. "enera# was a testing phase for the genera# insurance

industry with a series of catastrophes hitting the Indian sub/

Insurance Corporation has been sanctioned as the FIndian reinsurerF for underwriting on#y reinsurance business. Insurers Insurance industry, as on 1.@.)000, co,prised ,ain#y two p#ayers? the state insurers? Life Insurers? Life Insurance Corporation of India %LIC' "enera# Insurers? "enera# Insurance Corporation of India %"IC' %with effect fro, +ecG)000, a &ationa# *einsurer' "IC had four subsidary co,panies, na,e#y %with effect fro, +ecG)000, these subsidaries have been de/#in.ed fro, the parent co,pany and ,ade as independent insurance co,panies. The =rienta# Insurance Co,pany Li,ited The &ew India Assurance Co,pany Li,ited &ationa# Insurance Co,pany Li,ited Bnited India Insurance Co,pany Li,ited. List of Insurance co,panies in India LICH I&:B*H*: 2ub#ic :ector Life Insurance Corporation of India 2rivate :ector A##ian; $aDaD Life Insurance Co,pany www.a##ian;baDaD.co.in www.#icindia.co, -ebsites

Li,ited $ir#a :un/Life Insurance Co,pany Li,ited 4+CC :tandard Life Insurance Co. Li,ited ICICI 2rudentia# Life Insurance Co. Li,ited I&" Eysya Life Insurance Co,pany Li,ited 6a8 &ew Ior. Life Insurance Co. Li,ited 6etLife Insurance Co,pany Li,ited www.bir#asun#ife.co, www.hdfcinsurance.co, www.icicipru#ife.co, www.ingvysaya#ife.co, www.,a8newyor.#ife.co, www.,et#ife.co,

Life Insurance Corporation of India %LIC' Life Insurance Corporation of India %LIC' was for,ed in :epte,ber, 19 ! by an Act of 2ar#ia,ent, vi;., Life Insurance Corporation Act, 19 !, with capita# contribution fro, the "overn,ent of India. The then Cinance 6inister, :hri C.+. +esh,u.h, whi#e pi#oting the bi##, out#ined the obDectives of LIC thus? to conduct the business with the ut,ost econo,y, in a spirit of trusteeshipJ to charge pre,iu, no higher than warranted by strict actuaria# considerationsJ to invest the funds for obtaining ,a8i,u, yie#d for the po#icy ho#ders consistent with safety of the capita#J to render pro,pt and efficient service to po#icy ho#ders, thereby ,a.ing insurance wide#y popu#ar. :ince nationa#isation, LIC has bui#t up a vast networ. of ),0@8 branches, 100 divisions and ( ;ona# offices spread over the country. The Life Insurance Corporation of India a#so transacts business abroad and has offices in CiDi, 6auritius and Bnited

>ingdo,. LIC is associated with Doint ventures abroad in the fie#d of insurance, na,e#y, >en/India Assurance Co,pany Li,ited, &airobiJ Bnited =rienta# Assurance Co,pany Li,ited, >ua#a Lu,pur and Life Insurance Corporation %Internationa#' H.C. $ahrain. The Corporation has registered a Doint venture co,pany in )!th +ece,ber, )000 in >ath,andu, &epa# by the na,e of Life Insurance Corporation %&epa#' Li,ited in co##aboration with Eisha# "roup Li,ited, a #oca# industria# "roup. An off/shore co,pany L.I.C. %6auritius' =ff/shore Li,ited has a#so been set up in )001 to tap the African insurance ,ar.et.

:o,e Areas of Cuture "rowthKawareness Life Insurance The traditiona# #ife insurance business for the LIC has been a #itt#e ,ore than a savings po#icy. Ter, #ife %where the insurance co,pany pays a predeter,ined a,ount if the po#icyho#der dies within a given ti,e but it pays nothing if the po#icyho#der does not die' has accounted for #ess than )3 of the insurance pre,iu, of the LIC %6itra and &aya., )001'. Cor the new #ife insurance co,panies, ter, #ife po#icies wou#d be the ,ain #ine of business. 4ea#th Insurance 4ea#th insurance e8penditure in India is rough#y !3 of "+2, ,uch higher than ,ost other countries with the sa,e #eve# of econo,ic deve#op,ent. =f that, @.(3 is private and the rest is pub#ic. -hat is even ,ore stri.ing is that @. 3 are out of poc.et e8penditure %$er,an, 199!'. There has been an a#,ost tota#

fai#ure of the pub#ic hea#th care syste, in India. This creates an opportunity for the new insurance co,panies. Thus, private insurance co,panies wi## be ab#e to se## hea#th insurance to a vast nu,ber of fa,i#ies who wou#d #i.e to have hea#th care cover but do not have it. 2ension The pension syste, in India is in its infancy. There are genera##y three for,s of p#ans? provident funds, gratuities and pension funds. 6ost of the pension sche,es are confined to govern,ent e,p#oyees %and so,e #arge co,panies'. The vast ,aDority of wor.ers are in the infor,a# sector. As a resu#t, ,ost wor.ers do not have any retire,ent benefits to fa## bac. on after retire,ent. Tota# assets of a## the pension p#ans in India a,ount to #ess than B:+ @0 bi##ion. Therefore, there is a huge scope for the deve#op,ent of pension funds in India. The finance ,inister of India has repeated#y asserted that a Latin A,erican sty#e refor, of the privati;ed pension syste, in India wou#d be we#co,e %*oy, 199('. "iven a## the pros and cons, it is not c#ear whether such a who#esa#e privati;ation wou#d rea##y benefit India or not %:inha, )000'. 6ar.et :hare of Indian Insurance Industry The introduction of private p#ayers in the industry has added va#ue to the industry. The initiatives ta.en by the private p#ayers are very co,petitive and have given i,,ense co,petition to the on ti,e ,onopo#y of the ,ar.et LIC. :ince the advent of the private p#ayers in the ,ar.et the industry has seen new and innovative steps ta.en by the p#ayers in this sector. The new

p#ayers have i,proved the service 9ua#ity of the insurance. As a resu#t LIC down the years have seen the dec#ining phase in its career. The ,ar.et share was distributed a,ong the private p#ayers. Though LIC sti## ho#ds the ( 3 of the insurance sector but the upco,ing natures of these private p#ayers are enough to give ,ore co,petition to LIC in the near future. LIC ,ar.et share has decreased fro, 9 3 %)00)/03' to 81 3% )00@/0 '.The fo##owing co,panies has the rest of the ,ar.et share of the insurance industry. Tab#e 3 shows the ,ane of the p#ayer in the ,ar.et. Insurance $usiness? Insurance business is divided into four c#asses ? 1' Life Insurance )' Cire Insurance 3' 6arine Insurance and @' 6isce##aneous Insurance. Life Insurers transact #ife insurance businessJ "enera# Insurers transact the rest. &o co,posites are per,itted as per #aw. Legis#ation %as on 1.@.)000'? Insurance is a federa# subDect in India. The pri,ary #egis#ation that dea#s with insurance business in India is? Insurance Act, 1938, and Insurance *egu#atory K

+eve#op,ent Authority Act, 1999.

Life Insurance? 2opu#ar 2roducts? Hndow,ent Assurance %2articipating', and 6oney $ac. %2articipating'. 6ore than 803 of the #ife insurance business is fro, these products. "enera# Insurance? Cire and 6isce##aneous insurance businesses are predo,inant. 6otor Eehic#e insurance is co,pu#sory. Tariff Advisory Co,,ittee %TAC' #ays down tariff rates for so,e of the genera# insurance products %p#ease visit website of "IC for detai#s' Infor,ation About the insurance industry, the fo##owing docu,ents ,ay be he#pfu#? 6a#hotra Co,,ittee *eport %The *eport of the Co,,ittee on *efor,s in the Insurance :ector'J I*+AGs Cirst Annua# *eport / )001 Custo,er 2rotection and awareness? Insurance Industry has =,buds,en in 1) cities. Hach =,buds,an is e,powered to redress custo,er grievances in respect of insurance contracts on persona# #ines where the insured a,ount is #ess than *s. )0 #a.hs, in accordance with the =,buds,an :che,e. Addresses can be obtained fro, the offices of LIC and other insurers.

2rotection of the interest of po#icy ho#ders? I*+A has the responsibi#ity of protecting the interest of insurance po#icyho#ders. Towards achieving this obDective, the Authority has ta.en the fo##owing steps?

I*+A

has

notified

2rotection

of

2o#icyho#ders

Interest

*egu#ations )001 to provide for? po#icy proposa# docu,ents in easi#y understandab#e #anguageJ c#ai,s procedure in both #ife and non/#ifeJ setting up of grievance redressa# ,achineryJ speedy sett#e,ent of c#ai,sJ and po#icyho#dersG servicing. The *egu#ation a#so provides for pay,ent of interest by insurers for the de#ay in sett#e,ent of c#ai,. The insurers are re9uired to ,aintain so#vency ,argins so that they are in a position to ,eet their ob#igations towards po#icyho#ders with regard to pay,ent of c#ai,s. It is ob#igatory on the part of the insurance co,panies to disc#ose c#ear#y the benefits, ter,s and conditions under the po#icy. The advertise,ents issued by the insurers shou#d not ,is#ead the insuring pub#ic. A## insurers are re9uired to set up proper grievance redress ,achinery in their head office and at their other offices. The Authority ta.es up with the insurers any co,p#aint received fro, the po#icyho#ders in connection with services provided by the, under the insurance contract.

*ecent :cenario of Insurance Industry India with about )00 ,i##ion ,idd#e c#ass househo#d shows a huge untapped potentia# for p#ayers in the insurance industry. :aturation of ,ar.ets in ,any deve#oped econo,ies has ,ade the Indian ,ar.et even ,ore attractive for g#oba# insurance ,aDors. The insurance sector in India has co,e to a position of very high potentia# and co,petitiveness in the ,ar.et. Indians, have a#ways seen #ife insurance as a ta8 saving device, are now sudden#y turning to the private sector that are providing the, new products and variety for their choice. Consu,ers re,ain the ,ost i,portant centre of the insurance sector. After the entry of the foreign p#ayers the industry is seeing a #ot of co,petition and thus i,prove,ent of the custo,er service in the industry. Co,puterisation of operations and updating of techno#ogy has beco,e i,perative in the current scenario. Coreign p#ayers are bringing in internationa# best practices in service through use of #atest techno#ogies The insurance agents sti## re,ain the ,ain source through which insurance products are so#d. The concept is very we## estab#ished in the country #i.e India but sti## the increasing use of other sources is i,perative. At present the distribution channe#s that are avai#ab#e in the ,ar.et are #isted be#ow. +irect se##ing Corporate agents

 "roup se##ing $ro.ers and cooperative societies $ancassurance Custo,ers have tre,endous choice fro, a #arge variety of products fro, pure ter, %ris.' insurance to unit/#in.ed invest,ent products. Custo,ers are offered unbund#ed products with a variety of benefits as riders fro, which they can choose. 6ore custo,ers are buying products and services based on their true needs and not Dust traditiona# ,oneybac. po#icies, which is not considered very appropriate for #ong/ter, protection and savings. There is #ots of saving and invest,ent p#ans in the ,ar.et. 4owever, there are sti## so,e .ey new products yet to be introduced / e.g. hea#th products. The rura# consu,er is now e8hibiting an increasing propensity for insurance products. A research conducted e8hibited that the rura# consu,ers are wi##ing to do#e out anything between *s 3, 00 and *s ),900 as pre,iu, each year. In the insurance the awareness #eve# for #ife insurance is the highest in rura# India, but the consu,ers are a#so aware about ,otor, accidents and catt#e insurance. In a study conducted by 6A*T the resu#ts showed that near#y one third said that they had purchased so,e .ind of insurance with the ,a8i,u, penetration s.ewed in favor of #ife insurance. The study a#so pointed out the private co,panies have huge tas. to p#ay in creating awareness and

credibi#ity a,ong the rura# popu#ace. The perceived benefits of buying a #ife po#icy range fro, security of inco,e bu#. return in future, daughterGs ,arriage, chi#drenGs education and good return on savings, in that order. App#ication of Infor,ation Techno#ogy in Insurance :ector to ,a.e peop#e aware ? There is an evo#utionary change in the techno#ogy that has revo#utioni;ed the entire insurance sector. Insurance industry is a data/rich industry, and thus, there is a need to use the data for trend ana#ysis and persona#i;ation. -ith increased co,petition a,ong insurers, service has beco,e a .ey the issue. current 6oreover, va#ue custo,ers are they getting want increasing#y persona#i;ed sophisticated and tech/savvy. 2eop#e today don1t want to accept propositions, interactions and they #oo. for ,ore and ,ore features and add ones and better service The insurance co,panies today ,ust ,eet the need of the hour for ,ore and ,ore persona#i;ed approach for hand#ing the custo,er. Today ,anaging the custo,er inte##igent#y is very critica# for the insurer especia##y in the very co,petitive environ,ent. Co,panies need to app#y different set of ru#es and treat,ent strategies to different custo,er seg,ents. 4owever, to persona#i;e interactions, insurers are re9uired to capture custo,er infor,ation in an integrated syste,. -ith the e8p#osion of -ebsite and greater access to direct product or po#icy infor,ation, there is a need to deve#oping better techni9ues to give custo,ers a tru#y persona#i;ed e8perience.

2ersona#i;ation he#ps organi;ations to reach their custo,ers with ,ore i,pact and to generate new revenue through cross se##ing and up se##ing activities. To ensure that the custo,ers are receiving persona#i;ed infor,ation, ,any organi;ations are incorporating .now#edge database/repositories of content that typica##y inc#ude a search engine and #ets the custo,ers #ocate the a## docu,ent and infor,ation re#ated to their 9ueries of re9uest for services. Custo,ers can hereby use the .now#edge database to ,ange their products or the co,pany infor,ation and invoices, c#ai, records, and histories of the service in9uiry. These products a#so ,ay be ab#e to #earn fro, the custo,er1s previous .now#edge database and to use their infor,ation when deter,ining the re#evance to the custo,ers search re9uest.

-4AT I: LICH I&:B*A&CH I& I&+IAL Life insurance ,ade its debut in India we## over 100 years ago. Its sa#ient features are not as wide#y understood in our country as they ought to be. -hat fo##ows is an atte,pt to ac9uaint readers with so,e of the concepts of #ife insurance, with specia# reference to #ife insurance. It shou#d, however, be c#ear#y understood that the fo##owing narration is by no ,eans an e8haustive description of the ter,s and conditions of a #ife insurance po#icy or its benefits or privi#eges. Cor ,ore detai#s, p#ease contact our $ranch or +ivisiona# =ffice. Any #ife insurance Agent wi## be g#ad to he#p you choose the #ife insurance p#an to ,eet your needs and render po#icy servicing. Life Insurance sector is the fastest growing sector in India since )000 when the "overn,ent a##owed 2rivate p#ayers and C+I MCoreign +irect Invest,entN up to )!3. Life Insurance in India was nationa#i;ed by incorporating Life Insurance Corporation %LIC' in 19 !. A## private #ife insurance co,panies at that ti,e were ta.en over by LIC.

In )000, the #egis#ation a,ending the Insurance Act of 1938 and #egis#ating the Insurance *egu#atory and +eve#op,ent Authority Act of )000 was passed, where in the new#y appointed insurance regu#ator / Insurance *egu#atory and +eve#op,ent Authority MI*+AN started to issue #icenses to private #ife insurers. -hat is Life InsuranceL Life Insurance is a contract for pay,ent of a su, of ,oney to the person assured %or fai#ing hi,Oher, to the person entit#ed to receive the sa,e' on the happening of the event insured against. Bsua##y the contract provides for the pay,ent of an a,ount on the date of ,aturity or at specified dates at periodic interva#s or at unfortunate death, if it occurs ear#ier. A,ong other things, the contract a#so provides for the pay,ent of pre,iu, periodica##y to the Corporation by the assured. Life insurance is universa##y ac.now#edged to be an institution which e#i,inates Gris.G, substituting certainty for uncertainty and co,es to the ti,e#y aid of the fa,i#y in the unfortunate event of death of the breadwinner. $y and #arge, #ife insurance is civi#isationGs partia# so#ution to the prob#e,s caused by death. Life insurance, in short, is concerned with two ha;ards that stand across the #ife/path of every person? that of dying pre,ature#y #eaving a dependent fa,i#y to fend for itse#f and that of #iving to o#d age without visib#e ,eans of support. -hy is it superior to other for,s of :avingsL 2rotection? :avings through #ife insurance guarantee fu## protection against ris. of death of the saver. In #ife insurance, on death, the fu## su, assured is payab#e %with bonuses wherever app#icab#e' whereas in other savings sche,es, on#y the a,ount saved %with interest' is payab#e. Aid To Thrift? Life insurance encourages GthriftG. Long ter, saving can be ,ade in a re#ative#y Gpain#essG ,anner because of the Geasy insta#,entG faci#ity bui#t into the sche,e %,ethod of paying pre,iu, either ,onth#y, 9uarter#y, ha#f year#y or year#y'. Ta.e, for e8a,p#e, our :a#ary :aving :che,e popu#ar#y .nown as :::. This sche,e provides a convenient ,ethod of paying pre,iu, each ,onth by deduction fro, oneGs sa#ary. The deducted pre,iu, is re,itted by the e,p#oyer to the LIC. The :a#ary :aving :che,e can be introduced in an institution or estab#ish,ent subDect to specified ter,s and conditions.

Li9uidity? Loans can be raised on the so#e security of a po#icy which has ac9uired #oan va#ue. $esides, a #ife insurance po#icy is a#so genera##y accepted as security for even a co,,ercia# #oan. Ta8 *e#ief? Ta8 re#ief in Inco,e Ta8 and -ea#th Ta8 is avai#ab#e for a,ounts paid by way of pre,iu, for #ife insurance subDect to Inco,e Ta8 rates in force. Assessees can avai# the,se#ves of provisions in the #aw for ta8 re#ief. In such cases the assured in effect pays a #ower pre,iu, for his insurance than he wou#d have to pay otherwise. 6oney -hen Iou &eed It? A suitab#e insurance p#an or a co,bination of different p#ans can be ta.en out to ,eet specific needs that are #i.e#y to arise in future, such as chi#drenGs education, start/in/#ife or ,arriage provision or even periodica# needs for cash over a stretch of ti,e. A#ternative#y, po#icy ,oneys can be so arranged to be ,ade avai#ab#e at the ti,e of oneGs retire,ent fro, service to be used for any specific purpose, such as for the purchase of a house or for other invest,ents. :ubDect to certain conditions, #oans are granted to po#icyho#ders for house bui#ding or for purchase of f#ats. -ho Can $uy A Life Insurance 2o#icyL Any person who has attained ,aDority and is e#igib#e to enter into a va#id contract can ta.e out a #ife insurance po#icy for hi,se#f and on those in who, he has insurab#e interest. 2o#icies can a#so be ta.en out, subDect to certain conditions, on the #ife of oneGs spouse or chi#dren. -hi#e underwriting proposa#s, factors such as the state of hea#th of the #ife to be assured, the proponentGs inco,e and other re#evant factors are considered by the Corporation. Insurance =n -o,en. 2rior to nationa#i;ation %19 !', ,any of the private insurance co,panies used to offer insurance to fe,a#e #ives with so,e e8tra pre,iu, or on restrictive conditions. After nationa#i;ation of #ife insurance, the ter,s under which #ife insurance is granted to fe,a#e #ives have been reviewed fro, ti,e to ti,e. At present, wo,en with earned inco,e are treated on par with ,a#e #ives. In other cases, a restrictive c#ause is i,posed and that too on#y if age of the fe,a#e is up to 30 years and if she does not have an inco,e attracting Inco,e Ta8. 6edica# And &on/6edica# :che,es. Life insurance is nor,a##y offered after a ,edica# e8a,ination of

the #ife to be assured. 4owever, to faci#itate greater spread of insurance and a#so as a ,easure of re#a8ation, LIC has been e8tending insurance cover without any ,edica# e8a,ination, subDect to certain conditions. -ith 2rofit And -ithout 2rofit 2#ans. An insurance po#icy can be GwithG or GwithoutG profit. In the for,er, bonuses disc#osed, if any, after periodica# va#uations are a##otted to the po#icy and are payab#e a#ongwith the contracted a,ount. In GwithoutG profit p#an the contracted a,ount is paid without any addition. The pre,iu, rate charged for a GwithG profit po#icy is therefore higher than for a GwithoutG profit po#icy. >ey,an Insurance. >ey,an Insurance is ta.en by a business fir, on the #ife of .ey e,p#oyee%s' to proDect the fir, against the finance #oss which ,ay occur due to the pre,ature de,ise of the >ey,an. Life Insurance is the fastest growing sector in India since )000 as "overn,ent a##owed 2rivate p#ayers and C+I up to )!3. Life Insurance in India was nationa#ised by incorporating Life Insurance Corporation %LIC' in 19 !. A## private #ife insurance co,panies at that ti,e were ta.en over by LIC. In 1993 the "overn,ent of *epub#ic of India appointed *& 6a#hotra Co,,ittee to #ay down a road ,ap for privatisation of the #ife insurance sector. -hi#e the co,,ittee sub,itted its report in 199@, it too. another si8 years before the enab#ing #egis#ation was passed in the year )000, #egis#ation a,ending the Insurance Act of 1938 and #egis#ating the Insurance *egu#atory and +eve#op,ent Authority Act of )000. The sa,e year that the new#y appointed insurance regu#ator / Insurance *egu#atory and +eve#op,ent Authority I*+A // started issuing #icenses to private #ife insurers. List of Life Insurers %as of :ept, )008' Apart fro, Life Insurance Corporation, the pub#ic sector #ife insurer, there are )0 other private sector #ife insurers, ,ost of the, Doint ventures between Indian groups and g#oba# insurance giants. Life Insurer in 2ub#ic :ector

1. Life Insurance Corporation of India

Life Insurers in 2rivate :ector 1. :$I Life Insurance ). 6et#ife India Life Insurance 3. ICICI 2rudentia# Life Insurance @. $aDaD A##ian; Life . 6a8 &ew Ior. Life Insurance !. :ahara Life Insurance 7. Tata AI" Life 8. 4+CC :tandard Life 9. $ir#a :un#ife 10.>ota. Life Insurance 11.Aviva Life Insurance 1).*e#iance Life Insurance Co,pany Li,ited / Cor,er#y .nown as A62 :an,ar LIC 13. I&" Eysya Life Insurance 1@.:hrira, Life Insurance 15. $harti APA Life Insurance Co Ltd 1!.Cuture "enera#i Life Insurance Co Ltd 1(.I+$I Cortis Life Insurance 18. AH"=& *e#igare Life Insurance 19.+LC 2ra,erica Life Insurance )0.CA&A*A 4:$C =rienta# $an. of Co,,erce LICH I&:B*A&CH Coreign +irect Invest,ent %C+I' 2o#icy in Insurance :ector As per the current %6ar 0!' C+I nor,s, foreign participation in an Indian insurance co,pany is restricted to )!.03 of its e9uity O ordinary share capita#. The Bnion $udget for fisca# )00 had reco,,ended that the cei#ing on foreign ho#ding be increased to @9.03. The govern,ent approved the ,uch/awaited co,prehensive Insurance $i## that see.s to raise foreign direct invest,ent %C+I' cap in private sector to @9 per cent fro, )! per cent. Indian life insurance industry overview A## #ife insurance co,panies in India have to co,p#y with the strict regu#ations #aid out by Insurance *egu#atory and +eve#op,ent Authority of India %I*+A'. Therefore there is no ris. in going in for private insurance p#ayers. In ter,s of being

rated for financia# strength #i.e internationa# p#ayers, on#y ICICI 2rudentia# is rated by Citch India at &ationa# Insurer Cinancia# :trength *ating of AAA%Ind' with stab#e out#oo. indicating the highest c#ai,s paying abi#ity rating. Life Insurance Corporation of India %LIC', the state owned behe,oth, re,ains by far the #argest p#ayer in the ,ar.et. A,ong the private sector p#ayers, ICICI 2rudentia# Life Insurance%AE between ICICI $an. and 2rudentia# 2LC' is the #argest fo##owed by $aDaD A##ian; Life Insurance Co,pany Li,ited %AE between $aDaD "roup and A##ian;'.A,ong others, >ota. Life Insurance e,erging as a one of the best product provider in the current ,ar.et.It has been esti,ated that custo,er growth of >ota. Life Insurance is better than any private insurance co,pany in India. The private co,panies are co,ing out with better products which are ,ore beneficia# to the custo,er. A,ong such products are the BLI2s or the Bnit Lin.ed Invest,ent 2#ans which offer both #ife cover as we## as scope for savings or invest,ent options as the custo,er desires.Curther, these type of p#ans are subDect to a ,ini,u, #oc./in period of three years to prevent ,isuse of the significant ta8 benefits offered to such p#ans under the Inco,e Ta8 Act. 4ence, co,parison of such products with ,utua# funds wou#d be erroneous. Co,,ission O inter,ediation fees The ,a8i,u, co,,ission #i,its as per statutory provisions are? Agency co,,ission for retai# #ife insurance business?
o

(/ 903 for 1st year pre,iu, if the pre,iu, paying ter, is ,ore than )0 years (/ 103 for 1st year pre,iu, if the pre,iu, paying ter, is ,ore than 1 years (/ 103 for 1st year pre,iu, if the pre,iu, paying ter, is #ess than 10 years (3 / yr ) and 3rd year and 3. 3 / thereafter for a## pre,iu, paying ter,s.

In case of 6utua# fund re#ated / Bnit #in.ed po#icies it varies between 1. 3 to!3 on the pre,iu, paid.

Agency co,,ission for retai# pension po#icies (. 3 for 1st year pre,iu, and ). 3 thereafter

6a8i,u, bro.er co,,ission / 303 *eferra# fees to ban.s < 6a8 3 for regu#ar pre,iu, and 103 for sing#e pre,iu,. 4owever in any case this fee cannot be ,ore than the agency co,,ission as fi#ed under the product. 4owever, the above co,,ission ,ay be further subDect to the product wise #i,its specified by I*+A whi#e approving the product

Infor,ation K awareness of ,aDor insurance po#icy 6isce##aneous insurance 6isce##aneous Insurance e8ists to he#p peop#e gain a good understanding of the various .inds of insurance coverageGs that are avai#ab#e to peop#e today. Insurance has beco,e a very i,portant part of ,any peop#eGs #ives as they rea#i;e the need to provide protection for different areas of their everyday #ife. There is a wide variety of types of insurance coverage avai#ab#e today. The dictionary defines insurance as Fcoverage by contract whereby one party underta.es to inde,nify or guarantee another against #oss by a specified contingency or peri#F. This ,eans that an individua# enters into an agree,ent with an insurance co,pany that wi## pay a set a,ount of ,oney in case of a #oss in a specified area. There are a nu,ber of inc#usions and e8c#usions invo#ved in each insurance po#icy with a## .inds of variab#es that ,ust be ta.en into consideration before purchasing the po#icy.

=ne of the ,ost i,portant things to re,e,ber is that an insurance po#icy is a contract between the insurance co,pany and their custo,er. The insurance co,pany agrees to pay certain a,ounts of ,oney in case of #oss and the custo,er agrees to pay the insurance pre,iu,s that are re9uired to .eep the po#icy in p#ace. If the custo,er fai#s to pay the pre,iu,s due, the insurance ,ay be revo.ed, #eaving the custo,er vu#nerab#e. The contract specifica##y ,a.es the insurance co,pany #iab#e to pay for any #oss that is specifica##y stated in the insurance po#icy. 6ost po#icies wi## accurate#y describe the types of #osses covered and the a,ount of ,oney that the co,pany wi## pay for those #osses. -ith the increase in pub#ic awareness and the conse9uent thrust of the Insurance Industry in the areas of 4ea#th Insurance, Liabi#ity Insurance and other persona# #ines of insurances, the ,isce##aneous portfo#io of Insurance is poised to be a sunrise portfo#io of "enera# Insurance.

Q 2ersona# Accident Insurance Q 6oney Insurance Q "o#fer Insurance Q "enera# 2ub#ic Lega# Q $urg#ary Insurance Liabi#ity Insurance Q H#ectronic H9uip,ent Q Contract -or.s Insurance Insurance Q -or.,en Q Cide#ity "uarantee Co,pensation Insurance Insurance Q "#ass Insurance

Q 6achinery Insurance Q Trave# Accident Insurance Q $oat Insurance

Q Aviation Insurance Q A## *is.s Insurance

Thus ,isce##aneous insurance is an addition to your e8isting insurance giving you an e8tra security. 6anage,ent of 6isce##aneous Insurance $usiness

$ac.ground -ith the increase in pub#ic awareness and conse9uent thrust of the Insurance Industry in the areas of 4ea#th Insurance, Liabi#ity Insurance and other persona# #ines of insurances, the ,isce##aneous portfo#io of Insurance is poised to be the sunrise portfo#io of "enera# Insurance business. This progra,,e has been designed .eeping in ,ind these deve#op,ents in the ,ar.et and atte,pts to address the need for increased awareness of the ,u#tidi,ensiona# ,isce##aneous portfo#io.

=bDectives To enhance the participants understanding of the ,isce##aneous portfo#io To ac9uaint the, with various aspects of 4ea#th and Liabi#ity Insurance in conte8t with the Current scenario 4e#p the, e8p#ore the potentia# of rura# insurance in #ine with the regu#atory guide#ines.

To e,phasi;e the i,portance of and e8p#ore the potentia# of persona# #ine of business under ,isce##aneous portfo#io.

Contents Ana#ysis of the ,isce##aneous insurance products 4ea#th Care 6anage,ent / Indian and "#oba# 2erspective

T2A1s an Hffective :ervice 2rovider Lega# fra,ewor. and Liabi#ity Insurance 2roducts *ura# and :ocia# :ector / regu#ations, product and ,ar.eting 2ersona# #ine products / potentia# and ,ar.eting, distribution channe#s :cope and Coverage of &ew 2roducts Credit +efau#t Cover $an.ers Inde,nity InsuranceO Aewe#ers $#oc. CoversJ :toc. $ro.ers O Insurance $ro.ers Inde,nity 2ac.aging K 2roduct +eve#op,ent :pecia# Contingency Covers

2articipants1 2rofi#e H8ecutives hand#ing Technica# +epart,ents and =ffice In/charge of operating offices of "enera# Insurance Co,panies.

Accident Insurance Accident insurance provides a cash cover to a po#icyho#der when sOhe suffers inDuries as a resu#t of an accident. -hi#e insurance he#ps a po#icyho#der pay off hospita# and ,edica# bi##s in case of accident inDuries, it provides cash benefits to fa,i#y ,e,bers if the po#icyho#der dies in the accident. This insurance, app#icab#e )@ hours a day, 3! days a year, is a#so co,,on#y referred to as persona# accident insurance. Types of 2ersona# Accident Insurance 2o#icies Bnder persona# accident insurance, the po#icyho#der, if inDured, receives cash benefits every ,onth, Dust #i.e inco,e, for as #ong as sOhe is unab#e to wor. due to the accidenta# inDuries. This inco,e is non/ta8ab#e and does not e8ceed the po#icyho#der1s after/ta8 earnings ,inus the state benefits sOhe can c#ai,. In case of death of the po#icyho#der due to an accident, the fa,i#y receives a specific #u,p/su, a,ount.

There are eight co,,on types of persona# accident insurance po#icies?

Individua#? This po#icy can be ta.en by any individua#. The benefits usua##y enc#ose partners and chi#dren. :ince severa# activities are e8c#uded fro, this po#icy, it is not as usefu# for peop#e who #ove adventurous sports, #i.e ,ountaineering and roc. c#i,bing. Chi#dren? The purpose of this po#icy is to provide financia# he#p to parents if they are unab#e to wor. or if they incur e8penses as a resu#t of an accident. "roup? This po#icy is used by co,panies to cover e,p#oyees for e8penses re#ated to accidents. :e#f/e,p#oyed? :ince se#f e,p#oyed individua#s are not e#igib#e for e,p#oyee benefits, they are worse off when inDured in an accident. Tea,? Through a tea, accident insurance po#icy, organi;ers can see. cover for a## the ,e,bers of a sports tea,. 2rofessiona#? This po#icy is specifica##y for se#f e,p#oyed professiona#s, such as a sportsperson, actor, #awyer or doctor, who have specia# re9uire,ents. =ver 0? This po#icy targets peop#e over 0 years of age, as accidents can cause ,ore grievous inDuries to the,. Trave# accidents? This po#icy offers benefits in case the po#icyho#der ,eets with an accident whi#e trave#ing.

There are varied accident insurance po#icies to suit different needs. =ne shou#d understand and choose the po#icy with ut,ost care.

$urg#ary Insurance

-ith the increase in ,ateria#istic wea#th and boo,ing econo,y, the chances of burg#ary in business pre,ises are a#so increasing. To counteract the situation and protect the hard earned wea#th of the businesspersons, ,any insurance co,panies have co,e up with attractive insurance p#ans that pro,ise to provide cover against the rise of #oss or da,age in the business pre,ises, due to burg#ary. In India, a burg#ary insurance %business pre,ises'

po#icy genera##y covers contents of business pre,ises, against the ris. of #oss or da,age by burg#ary and housebrea.ing. It is very i,portant to .now the basic c#ause of the insurance p#ans, a#though they ,ay vary fro, co,pany to co,pany. In this artic#e, we have provided the basic infor,ation that you need to .now, before opting for a burg#ary insurance p#an. $urg#ary Insurance 2o#icy The #oss of ,ateria#istic wea#th in a business organi;ation, due to burg#ary, is rei,bursed by a burg#ary insurance po#icy. The insurance co,panies provide insurance against nothing but burg#ary, in the business pre,ises. The property insured is covered on#y if #oss or da,age ta.es p#ace, whi#e contained in the insured pre,ises and not in any other pre,ises. Loss of or da,age to deeds, bonds, bi##s of e8change, pro,issory notes, cash, treasury notes and ban. notes, che9ue, securities for ,oney sta,ps, sta,p co##ections, boo.s of account, docu,ents of any .ind, ,anuscripts, ,eda#s and coins, ,otor vehic#es, and #ive stoc. cannot be c#ai,ed under office burg#ary insurance po#icy in India. +a,age to property by burg#ars is covered on#y when the insured is ,ade good. In other words, da,age to own pre,ises are not covered. -ith regard to cash in #oc.ed safe, the .ey to the safe or strong roo, shou#d not be #eft in the pre,ises overnight or at #east anywhere near the safe. App#icants need to sub,it the proposa# for, furnishing detai#ed infor,ation on the #ocation of the ris. and c#ai,s history. =ften inspection of the pre,ises and its neighborhood is carried out by agents or bro.ers or ,ar.eting officers of the insurance co,pany. 2re,ises #ocated in iso#ated areas or the adDoining pre,ises are those, which are not occupied in the night. These ,ay inc#ude educationa# institution or a p#ace of worship, which usua##y do not find favor with the insurers. In order to substantiate a burg#ary insurance c#ai,, one ,ust produce the CI* and non/detection report fro, the po#ice.

The insurers wi## depute and obtain a survey report even on the sto#en goods, to deter,ine the pro8i,ate cause of the #oss and the 9uantu,. :toc. boo.s and other accounts are a#so verified before furnishing the insurance cover. In so,e insurance p#ans, the theft is not va#id, if it has been conducted by an interna# staff, or a person who didnGt brea. into the business pre,ises.

6otor insurance

Eehic#e insurance %a#so .nown as auto insurance, car insurance, or ,otor insurance' is insurance purchased for cars, truc.s, and other vehic#es. Its pri,ary use is to provide protection against #osses incurred as a resu#t of traffic accidents and against #iabi#ity that cou#d be incurred in an accident. Lega##y, no ,otor vehic#e is a##owed to be driven on the road without va#id insurance. 4ence, it is ob#igatory to get the vehic#e insured. 6otor insurance po#icies cover against any #oss or da,age caused to the vehic#e or its accessories due to the fo##owing natura# and ,an ,ade ca#a,ities. &atura# Ca#a,ities? Cire, e8p#osion, se#f/ignition or #ightning, earth9ua.e, f#ood, typhoon, hurricane, stor,, te,pest, inundation, cyc#one, hai#stor,, frost, #ands#ide, roc.s#ide. 6an ,ade Ca#a,ities? $urg#ary, theft, riot, stri.e, ,a#icious act, accident by e8terna# ,eans, terrorist activity, any da,age in transit by road, rai#, in#and waterway, #ift, e#evator or air. 6otor insurance provides co,pu#sory persona# accident cover for individua# owners of the vehic#e whi#e driving. =ne can a#so opt for a persona# accident cover for passengers and third party #ega# #iabi#ity. Third party #ega# #iabi#ity protects against #ega# #iabi#ity arising due to accidenta# da,ages. It inc#udes any per,anent inDury O death of a person and da,age caused to the property. The vehic#es are insured at a fi8ed va#ue ca##ed the InsuredGs

+ec#ared Ea#ue %I+E'. I+E is ca#cu#ated on the basis of the ,anufacturerGs #isted se##ing price of the vehic#e %p#us the #isted price of any accessories' after deducting the depreciation for every year as per the schedu#e provided by the Indian 6otor Tariff. If the price of any e#ectrica# and O or e#ectronic ite, insta##ed in the vehic#e is not inc#uded in the ,anufacturerGs #isted se##ing price, then the actua# va#ue %after depreciation' of this ite, can be added to the su, insured over and above the I+E. In case the vehic#e is fitted with C&" O L2", the C&"OL2" .it fitted to the vehic#e is to be insured separate#y at an additiona# pre,iu,.

"H&H*AL I&:B*A&CH -hat is "enera# InsuranceL

Insurance other than RLife Insurance1 fa##s under the category of "enera# Insurance. "enera# Insurance co,prises of insurance of property against fire, burg#ary etc, persona# insurance such as Accident and 4ea#th Insurance, and #iabi#ity insurance which covers #ega# #iabi#ities. There are a#so other covers such as Hrrors and =,issions insurance for professiona#s, credit insurance etc.

&on/#ife insurance co,panies have products that cover property against Cire and a##ied peri#s, f#ood stor, and inundation, earth9ua.e and so on. There are products that cover property against burg#ary, theft etc. The non/#ife co,panies a#so offer po#icies covering ,achinery against brea.down,there are po#icies that cover the hu## of ships and so on. A 6arine Cargo po#icy covers goods in transit inc#uding by sea, air and road. Curther, insurance of ,otor vehic#es against da,ages and theft for,s a ,aDor chun. of non/#ife insurance business.

In respect of insurance of property, it is i,portant that the cover is ta.en for the actua# va#ue of the property to avoid being i,posed a pena#ty shou#d there be a c#ai,. -here a property is underva#ued for the purposes of insurance, the insured wi## have to bear a rateab#e proportion of the #oss. Cor instance if the va#ue of a property is *s.100 and it is insured for *s. 0O/, in the event of a #oss to the e8tent of say *s. 0O/, the ,a8i,u, c#ai, a,ount payab#e wou#d be *s.) O/ % 03 of the #oss being borne by the insured for underinsuring the property by 03 '. This concept is 9uite often not understood by ,ost insureds.

2ersona# insurance covers inc#ude po#icies for Accident, 4ea#th etc. 2roducts offering 2ersona# Accident cover are benefit po#icies. 4ea#th insurance covers offered by non/#ife insurers are ,ain#y hospita#i;ation covers either on rei,burse,ent or cash#ess basis. The cash#ess service is offered through Third 2arty Ad,inistrators who have arrange,ents with various service providers, i.e., hospita#s. The Third 2arty Ad,inistrators a#so provide service for rei,burse,ent c#ai,s. :o,eti,es the insurers the,se#ves process rei,burse,ent c#ai,s.

Accident and hea#th insurance po#icies are avai#ab#e for individua#s as we## as groups. A group cou#d be a group of e,p#oyees of an organi;ation or ho#ders of credit cards or deposit ho#ders in a ban. etc. &or,a##y when a group is covered, insurers offer group discounts. Liabi#ity insurance covers such as 6otor Third 2arty Liabi#ity Insurance, -or.,en1s Co,pensation 2o#icy etc offer cover against #ega# #iabi#ities that ,ay arise under the respective statutes S 6otor Eehic#es Act, The -or.,en1s Co,pensation Act etc. :o,e of the covers such as the foregoing %6otor Third 2arty and -or.,en1s Co,pensation po#icy ' are co,pu#sory by statute. Liabi#ity Insurance not co,pu#sory by statute is a#so gaining popu#arity these days. 6any industries insure against 2ub#ic #iabi#ity. There are #iabi#ity covers avai#ab#e for 2roducts as we##. There are genera# insurance products that are in the nature of pac.age po#icies offering a co,bination of the covers ,entioned above. Cor instance, there are pac.age po#icies avai#ab#e for

househo#ders, shop .eepers and a#so for professiona#s such as doctors, chartered accountants etc. Apart fro, offering standard covers, insurers a#so offer custo,i;ed or tai#or/,ade ones. :uitab#e genera# Insurance covers are necessary for every fa,i#y. It is i,portant to protect one1s property, which one ,ight have ac9uired fro, one1s hard earned inco,e. A #oss or da,age to one1s property can #eave one shattered. Losses created by catastrophes such as the tsuna,i, earth9ua.es, cyc#ones etc have #eft ,any ho,e#ess and penni#ess. :uch #osses can be devastating but insurance cou#d he#p ,itigate the,. 2roperty can be covered, so a#so the peop#e against 2ersona# Accident. A 4ea#th Insurance po#icy can provide financia# re#ief to a person undergoing ,edica# treat,ent whether due to a disease or an inDury. Industries a#so need to protect the,se#ves by obtaining insurance covers to protect their bui#ding, ,achinery, stoc.s etc. They need to cover their #iabi#ities as we##. Cinanciers insist on insurance. :o, ,ost industries or businesses that are financed by ban.s and other institutions do obtain covers. $ut are they obtaining the right coversL And are they insuring ade9uate#y are 9uestions that need to be given so,e thought. A#so organi;ations or industries that are se#f/financed shou#d ensure that they are protected by insurance. 6ost genera# insurance covers are annua# contracts. 4owever, there are few products that are #ong/ter,. It is i,portant for proposers to read and understand the ter,s and conditions of a po#icy before they enter into an insurance contract. The proposa# for, needs to be fi##ed in co,p#ete#y and correct#yby a proposer to ensure that the cover is ade9uate and the right one.

Conc#usion There is a probabi#ity of a spurt in e,p#oy,ent opportunities. A nu,ber of web/sites are co,ing up on insurance, a few financia# ,aga;ines e8c#usive#y devoted to insurance and a#so a few training institutes being set up hurried#y. 6any of the universities and ,anage,ent institutes have a#ready started or are conte,p#ating new courses in insurance. Life insurance

has today beco,e a ,ainstay of any ,ar.et econo,y since it offers p#enty of scope for garnering #arge su,s of ,oney for #ong periods of ti,e. A we##/regu#ated #ife insurance industry which ,oves with the ti,es by offering its custo,ers tai#or/ ,ade products to satisfy their financia# needs is, therefore, essentia# if we desire to progress towards a worry/free future. Awareness K2rogress =f Life insurance in India since )000 to )01)