Insurance Companies In India.docx

Insurance companies in india

Leading Insurers in India          

Following are the leading insurers in India: Life Insurance Corporation of India Tata AIG General Insurance Bajaj Allianz General Insurance New India Assurance ICICI Prudential Life Insurance IFFCO TOKIO General Insurance ICICI Lombard General Insurance Oriental Insurance Birla Sun Life Insurance HDFC Standard Life Insurance

Life Insurance Corporation of India     

Life Insurance Corporation (LIC) is the biggest life insurer in India and totally owned by the union government. It specializes in individual life insurance, pension plans, and group insurance plans. It has several subsidiaries including the following: Life Insurance Corporation of India International LIC Housing Finance LIC Nepal LICHFL Care Homes LIC Lanka The organization has in excess of 12 million policyholders and more than 9 lakh agents. Till date it has issued in excess of 120 million policies. A major reason for the organization’s success over the years has been its adaptability. It was introduced to computers during 1964 and since then has been utilizing information technology for serving its customers. It is also a rewarding option when it comes to work opportunities, especially for sales agents who are provided training at par with international standards, and a lot of independence for working. In all, the financial prowess of this insurer is yet to be matched.

Tata AIG General Insurance One of the major reasons behind the growth of Tata AIG General Insurance has been its employees. The organization regards its employees as valuable assets and takes pride in the fact that it has one of the finest workforces in the general insurance industry. Tata AIG General is regarded as one of the major names in the general insurance sector of India and has recently won the 5th position among the top companies to work for in the financial services and banking sectors. This was done in a survey done by PeopleStrong, a well known HR consultancy, on behalf of Business Today. In fact, it was the only general insurer to be featured in that survey.

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One of the major reasons why employees loved working at Tata AIG was the growth and career opportunities afforded by the organization followed by the remuneration and other financial benefits. As per its employees Tata AIG also offers other benefits like: Performance evaluation Creating the proper balance between work and life HR initiatives Brand image Efforts made by line managers to connect and engage with the employees on a consistent basis to make sure they are developing personally and professionally Competent process for performance management Employee development, inter-personal relationship building, team building, and skill enhancement programs on a regular basis

Bajaj Allianz General Insurance Bajaj Allianz General Insurance has the backing of Allianz, which is one of the leading insurers of the world and Bajaj, which is among the top motorcycle manufacturers in India. It is a leading name when it comes to property insurance.

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Bajaj Allianz offers a wide range of general insurance products and services through a network that comprises 200 offices across India. Following are some areas where it operates: Auto Health Homeowners Travel Commercial Majority of its yearly revenue comes from automotive insurance. It was established during 2001 and since then has become one of the leading names in the general insurance sector.

New India Assurance New India Assurance is one of the leading names in the Indian insurance industry thanks to its pioneering efforts in several areas such as satellite insurance. Yet another reason of its current stature is its presence – it has a substantial amount of offices in India as well as outside the country. The skill levels among the employees of the insurer are commendable enough and the organization also has 1068 offices in India that are totally automated. It also enjoys a good capital position and operating performance that have helped it create a strong position in the market. At present the organization has also extended its wings outside India with offices in areas such as Japan, Fiji, UK, Australia, and the Middle East.

ICICI Prudential Life Insurance ICIC Prudential Life Insurance has a big network comprising more than 1900 branches, which includes 1074 micro offices and more than 210,000 advisors. It is one of the earliest life insurers to have received the AAA (Ind) National Financial Strength rating from Fitch. For three straight years it has been voted the Most Trusted Private Life Insurer – a testament of its performance and growth over the years.

IFFCO TOKIO General Insurance IFFCO TOKIO has a good network comprising 110 offices across the country and 51 Strategic Business Units. It is also the sole insurer in India that has a totally owned distribution channel named IFFCO-TOKIO Insurance Services Ltd for catering its retail clients. At present it operates in 350 odd towns with approximately 1400 employees. It is also among the first insurers to have underwritten big policies for automobile and fertilizer companies. The policies were based on global rates and provided clients a proper level of premium outflow.

ICICI Lombard General Insurance ICICI Lombard General Insurance operates in various domains such as general insurance, insurance claims management, reinsurance, and investment management and is also the biggest general insurer among the privately held companies of India. ICICI Lombard has risen to the top of the pile in a short time span. It is also the first India based organization to have received the ISO 9001:2000 official recognition. ICRA has given it the iAAA rating, which indicates that it has the highest level of capability when it comes to paying claims.

It is also the first organization to have provided digitally signed documents via its web based interface. ICICI Lombard has also been awarded several times for its functioning and quality of its products.

Oriental Insurance Oriental Insurance is positioned fairly well when it comes to rankings and has received top honors from some of the leading credit rating agencies of India. AM Best, an international rating agency has given it a B++ rating, which is a good ranking. It has 26 regional offices and at least 900 operating offices in India. Besides, it functions in locations such as Nepal, Dubai, and Kuwait.

Birla Sun Life Insurance Birla Sun Life Insurance has always been a major contributor to the development and growth of India’s life insurance sector and is presently rated as one of the top 5 private life insurers in the country. It is also the first financial services provider to have come up with business continuity plans, Unit Linked Life Insurance plans and free look facilities in India. The organization believes in values like passion, commitment, and support for consumers and assists people with their risk management. It caters to both individual as well as institutional clients.

HDFC Standard Life Insurance HDFC Standard Life Insurance (now, HDFC Life) is one of the leading names among the private enterprises functioning in India. It deals in both group and individual insurance products. They also possess sufficient financial capability to take care of long term investments in a resourceful and safe manner. Principles of Insurance

Seven Insurance Principles 1) Principal of Utmost Good Faith   

Both parties, insurer and insured should enter into contract in good faith Insured should provide all the information that impacts the subject matter Insurer should provide all the details regarding insurance contract

For example - John took a health insurance policy. At the time of taking policy, he was a smoker and he didn't disclose this fact. He got cancer. Insurance company won't pay anything as John didn't reveal the important facts. 2) Principle of Insurable Interest 

Insured must have the insurable interest on the subject matter

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In case of life insurance spouse and dependents have insurable interest in the life of a person. Corporations also have insurable interests in the life of it's employees In case of life or marine insurance, insured must be the owner both at the time of entering of entering into the insurance contract and at the time of accident.

3) Principle of Indemnity   

Insured can't make any profit from the insurance contract. Insurance contract is meant for coverage of losses only Indemnity means a guarantee to put the insured in the position as he was before accident This principle doesn't apply to life insurance contracts

4) Principle of Contribution 

In case the insured took more than one insurance policy for same subject matter, he/she can't make profit by making claim for same loss more than once

For example - Raj has a property worth Rs.5,00,000. He took insurance from Company A worth Rs.3,00,000 and from Company B - Rs.1,00,000. In case of accident, he incurred a loss of Rs.3,00,000 to the property. Raj can claim Rs. Rs.3,00,000 from A but after that he can't make profit by making a claim from Company B. Now Company A can make a claim from Company B to for proportional loss claim value.

5) Principle of Subrogation After the insured gets the claim money, the insurer steps into the shoes of insured. After making the payment insurance claim, the insurer becomes the owner of subject matter.

For example :- Ram took a insurance policy for his Car. In an accident his car totally damaged. Insurer paid the full policy value to insured. Now Ram can't sell the scrap remained after the scrap.

6) Principle of Loss Minimisation 

This principle states that the insured must take all the necessary steps to minimize the losses to inured assets.

For example - Ram took insurance policy fo his house. In an cylinder blast, his house burnt. He should have called nearest fire station so that the loss could be minimised.

7) Principle of Causa Proxima  

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Word "Cause Proxima" means "Nearest Cause" An accident may be caused by more than one cause. In case property insured for only one cause. In such case nearest cause of the accident is found out. Insurer pays the claim money only if the nearest cause is insured

Types of insurance Life Insurance – Pays out a specified figure to the insured or specified beneficiaries on a specific event such as death of the insured. [More: Types of Life Insurance]

Personal Accident Insurance – This will compensate you if at any single time an external violent event causes you disability, injury or death.

Medical and Health Insurance – You’ll need it to ascertain continued flow of income if you fall sick or get injured to the extent that you can’t work

and earn as before. It also covers cost of medication, hospitalization and surgery. [More: Types of Health Insurance]

Vehicle Insurance – If you own a car, motor cycle or any other motor vehicle, this insurance covers it against accident or theft. A compressive package covers all possible losses as well as damages to third parties such as pedestrians. [More: Types of Car Insurance]

Home Insurance – Take this cover to insure your home against loss or damage as a result of fire, electricity fault, plumping malfunction, flood, etc.

Travel Insurance – When travelling alone or with your family, this cover ensures you’re compensated for any loss, damage, injury, sickness or inconvenience that comes up as a result. It may cover personal accidents, hijackings, travel delays and more.

Burial Insurance – This is a practical way to ease the burden of your funeral expenses on your family and the loved ones you leave behind in the unfortunate event of death. The cover addresses all your funeral costs.

Wedding Insurance – The cover comes in handy when certain aspects of your wedding go wrong. For instance, if a caterer you already paid goes out of touch when approaching the wedding day, the cover will provide an alternative.

Dog Bite Insurance – An aggressive dog may bite children, the elderly or even postal carriers within your home compound. Thus, you need this insurance to protect your assets if sued for dog bite.

Portable Electronic Device Insurance – This covers portable devices such as cell phones, laptops or tablets. The cover ensures replacement or repair of such devices if they’re stolen, lost or damaged.

Crime Insurance – This covers you or your business against loss or damage as a result of criminal acts of third parties. Covered risks include loss of funds through embezzlement by employees.

Political Risk Insurance – This cover protects your business against loss or damage arising from politically-related conditions such as civil unrest, coups, riots and revolutions.

Workers Compensation – An employer takes this policy on behalf of their employees to cover loss of income or medical expenses resulting from a work-related injury or sickness.

Disability Overhead Insurance – This is a cover against overhead expenses for business owners who are unable to work.