Things you need to set up an Auto Insurance Policy

Money is an obvious one. And, of course, having a vehicle to ensure and garaging address is another. The completed application signed by all policies. In addition, each company has to develop its own unique guidelines you will need. Finally, the legal requirements are changing in different jurisdictions.

payments to start a political mostly by check or credit card. Many policyholders now a days use of electronic payment methods. Credit and debit card account number, expiration date and the security code is required. The electronic funds transfer bank account and bank routing numbers. In both cases, the account holder, which is not always the insured is obliged to license.

Before the policy can start with the exact chassis number or VIN (17 digit alphanumeric) is required. Securing the year, make and model is not appropriate. Each car unique VIN to identify the characteristics of the car. The controlled airbags, antilock brakes and other vehicle information. indicates CLUE reports (Claims Loss Underwriting Exchange) vehicle claims history require the correct VIN.

did not provide a computer-generated reports, such as the MVR and CLUE required to fill out an application and issue (first) policy. Get ready for the names and addresses of all the leaders of the employer (school). If the car payments, the name and address of the bank or leasing company is needed. Payment must be signed and approved under the application.

The various companies are often required supporting documentation to the policy. Proof of prior insurance or school transcript typical discounts. Photos of the vehicle or policyholder picture identification rarer. If there are various different vehicles belonging to the household insurance you may be asked to prove. Not all jurisdictions have the same legal requirements. For example, seven counties in Florida have mandatory vehicle inspections when starting a new policy that includes physical damage coverage.

Most, but not all, the information generated by the policy reports in the name, address, driver's license and VIN number. It is imperative that the 17-digit VIN number gives correct. Complete information, payment details, specific requirements, and signatures should be set up in the policy stuff.

Source by Clifford J Schimek

Introduction to Bank of America

Bank of America is the largest bank in the United States. According to the 2010 annual report of the bank more than $ 150.450 billion revenue and net income of $ 2.238 billion. This is easily the largest employer in the banking sector, as well as more than 286 951 employees in 2010, the bank is quite healthy as the total asset worth more than $ 2.265 trillion, the equity is only $ 231.444 billion.

Bank of America is not only the top five companies in the United States, but also the second largest company, which is not related to the oil business. The forbs and Fortune 500, BOA third best organization working in the banking sector in the world. The share of banks in the local deposit market is more than 12.2%. The BOA holding includes the prestigious institutions like Merrill Lynch, which earned the 2008

which BOA in 1904 by Amadeo Giannini as the Bank of Italy. This modest organization in San Francisco purpose of banking services to immigrants. During the 1906 San Francisco earthquake was struck. The fire burned the building of the organization, but the bank began work shortly after the resources of the vaults that survived. The start of the banking system was fairly simple.

The first official BOA is quite modest, because only by drums in two makeshift tables. The bank grew and in 1918 the bank changed its name to Bank of America and Italy. The next chapter in the BOA history happened in 1927 when it became the largest institution after consolidation Liberty coast of Los Angeles

has seen an increase in the later years of the BOA western states of California base. The BOA also began working institution at this time as well. In 1956, the insurance business was separated as a result of Banking & Holding Act. Transamerica was the insurance partner of BOA, which is constantly working to make the business after the separation.

BOA was the first bank to introduce the Visa credit cards massive way in 1975 using a consortium of other banks. 1980s the BOA moved beyond the California and started working as a national bank. The prestige and economy, the company also increased after the acquisition of companies like Bancorp.

The bank dealt with a number of problems, including a large loss in 1983 as well. The result is the next few years led to the sale of the fighting organizations of the Deutsche Bank in 1987, was the next important step in the merger of AGO and Nations Bank, the largest bank which is a very successful organization.

Source by Chris J Anderson

Insurance Law – An Indian perspective

introduce a "must buy insurance to protect you against misfortune, which would otherwise be financially devastating."

In simple terms, insurance allows someone who suffers a loss or accident should be compensated for the effects of the disaster. This allows you to defend yourself from everyday risks to health, home and financial situation.

Insurance in India started without the control of the nineteenth century. This is a typical story of a colonial epoch: few British insurance companies dominate the market in the best cities. After it became independent, it took a theatrical turn of events. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then in the general insurance business was nationalized in 1972, only in 1999 that private insurers were released back into the business of insurance, up to 26% foreign holding.

"The insurance industry is vast and can be quite daunting. Insurance is sold almost anything and everything you can imagine. Determining what is good for you can be a very daunting task."

had gone beyond the terms of insurance coverage of fixed assets. Now, because of the risk of losses sudden changes in exchange rates, political disturbance, negligence and liability covers damages as well.

But if a person thoughtfully invests in insurance assets prior to any unexpected contingency then he will be able to compensate for the loss, as shall be determined by the extent of the damage.

entry to the State Bank of India with its proposal to guarantee bank brings a new dynamic to the game. The common experience of other Asian countries have already deregulated markets and allowed foreign companies to participate. If the experience of other countries any guide, the dominance of the Life Insurance Corporation and General Insurance Corporation will not disappear anytime soon.

The aim of all insurance to offset losses from the owner against a variety of risks, we expect that the life, property and business. Insurance is mainly of two types: life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance and employer's liability insurance for motor vehicles, livestock and crops.

Life insurance INDIA

"life insurance is the heartfelt love letter ever written.

This calms the crying of a hungry baby at night. Relieves the heart of a grieving widow.

This is the comforting whisper in the dark silent hours of the night. "

Life insurance made its debut in India more than 100 years ago. Salient features of our country is not as widely known as it should. There is no statutory definition of life insurance, but it has been defined in the insurance contract, in which the insured agrees to pay said specific amounts prizes at the specified time, and taking into account these insurance agreed to pay certain amounts of money to certain conditions sand, as laid down occurs at a specific event depending on the duration of human life.

Life insurance is superior to other forms of savings!

"there is no death. Life Insurance exalts life and defeats death.

This premium we pay after the free living death."

Savings life insurance guarantee full protection against the risk of death in savior. In life insurance, the death, the total amount of insurance paid (bonuses where applicable) and other savings plans, only the amount saved (with interest) to be paid.

The essential features of life insurance a) human life of the contract, which b) provides for the payment of a lump sum and c) the amount to be paid after the expiry of a certain period or on death of the insured. The very objective and policies of the insured life insurance companies participating in the interests of your dependents. The wife and children as the case may be, the result of an early death of the insured on the happening of any event. A life insurance policy is generally recognized as safe, even for a commercial loan.


"value and the business of general insurance related to protecting all assets are economic assets."

is not outside of life insurance is a life insurance of insurance, such as fire, marine, accident, medical, motor vehicles and home insurance. Tools have been created through the efforts of the owner, which can be in the form of buildings, vehicles, machinery and other tangible properties. Since tangible property has a physical shape and consistency, it will fire a lot of risks, allied perils of theft and robbery.

There are few general insurance policies

Property Insurance: The home is the most valuable possession. The policy is designed to cover various risks under a single policy. It protects the property and interests of the insured and the family.

Health insurance: provides coverage that takes care of the medical costs of hospital following a sudden illness or accident.

Personal Accident Insurance: This insurance provides compensation danger of death or injury caused by an accident (partial or permanent) by. This includes reimbursement of the costs of treatment, and the use of hospital medical care.

Accident Insurance: This policy covers the insured against various eventualities during travel abroad. This includes against the insured accident, medical expenses and repatriation, loss of checked baggage, passport etc.

Liability Insurance: This policy does not compensate for loss claims arising against the Directors or Officers or other professionals against any unlawful act in an official capacity.

Motor Insurance: motor vehicles Act states that every motor vehicle plying on the road has been connected to at least liability only policy. Two types of policy one of the law on liability, while other covers insurers all liability and damage caused to one's vehicle.

through adolescence baby!

Historical Perspective

The history of life insurance in India dates back to 1818, when he was born as a tool to make the British widows. It is interesting then to pay a higher premium Indian lives than the non-Indian lives as Indian lives was considered riskier coverage.

The Bombay Mutual Insurance Association began its activities in 1870 was the first company to spend the same support for both Indian and non-Indian life. The Oriental Assurance Company was founded in 1880, the general insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Almost completely by the end of the nineteenth century insurance business in the hands of foreign companies.

Insurance regulation formally began in India goes by the Life Insurance Act 1912 and the Provident Fund Act of 1912. A number of scams during the 20's and 30's desecrated insurance business in India. In 1938, 176 insurance companies. The first comprehensive legislation was introduced under strict state control of the Insurance Act 1938 required insurance business. The insurance business grew at a faster pace after independence. Indian companies confirmed on hold in the enterprise, but in spite of that growth was observed, insurance remained an urban phenomenon.

The Indian government in 1956 brought together more than 240 life insurance companies and was nationalized monopoly corporation and Life Insurance Corporation (LIC) in the period. Nationalization was justified on the grounds that it created the necessary resources for rapid industrialization. This was in line with the government's chosen path of the state's leading design and development.

The (non-life) business will continue to prosper in the private sector in their operation till 1972 was limited to organized trade and industry in large cities. In 1972 the general insurance was nationalized and merged four companies grouped in nearly 107 insurers – National Insurance Company, New India Assurance Company, Oriental Insurance and United India Insurance. These were subsidiaries of General Insurance Corporation (GIC).

The life insurance industry was nationalized Life Insurance Corporation (LIC) Act of India. In some ways, the LIC has been very prosperous. Whether it is a monopoly, there are a few 60-70000000 bondholders. Given the fact that the Indian middle class of 250-300 million LIC has managed to capture around 30 percent is strange. About 48% of the customers of the LIC are in rural and semi-urban areas. This probably would not have happened had the charter of the LIC not specifically defined purpose to serve in rural areas. The high savings rate in India is one of the external factors that have helped the LIC to grow rapidly in recent years. Despite the high savings rate in India (as in other countries with similar levels of development), Indians display high degree of risk aversion. Thus, nearly half of the investments in physical assets (such as property and gold). Around twenty three percent are in (low yielding but safe) bank deposits. In addition, about 1.3 percent of GDP in savings life insurance vehicles. This number has doubled

from the perspective of the world between 1985 and 1995 – Life Insurance in India

Many countries already providing the same savings. In many developed countries, a significant part of domestic savings in the form of donation insurance plans. This is not surprising. In the foreground, some developing countries is even more surprising. For example, the area of ​​South Africa in the number two spot. India is nestled between Chile and Italy. This is all the more surprising because of the level of economic development in Chile and Italy. Thus it can be said that there is an insurance culture in India despite a low per capita income. This promises well for future growth. Specifically, when the income level improves, insurance (especially life) is likely to grow rapidly.

reform of the insurance sector

Commission reports an unknown, an anonymous!

Although Indian markets were privatized and opened to foreign firms in several sectors in 1991, he left the security of the borders on both counts. The government wanted to proceed with caution. The pressure of the opposition, the government (at that time dominated by the Congress Party) decided to set up a committee headed by Mr. RN Malhotra (the then Governor of the Reserve Bank of India).

Malhotra Committee

liberalization of the Indian insurance market suggested the report was released in 1994, the Committee Malhotra, indicating that the market should be opened to private competition, and ultimately, the foreign private sector competition. He also studied the satisfaction level of the customers of the LIC. Curiously, customer satisfaction was that big.

In 1993, Malhotra Committee – headed by former Finance Secretary and RBI Governor Mr. RN Malhotra – was formed to evaluate the Indian insurance industry, and we recommend that in the future, of course. The Malhotra committee was set up with the aim of which is complementary to the initiated reforms in the financial sector. The aim of the reforms is suitable for a more efficient and competitive financial system, bearing in mind the needs of the economy, structural changes currently taking place and, realizing that insurance is an important part of the entire financial system, which was necessary to address the need for such reforms. In 1994, the committee submitted its report and some key recommendations:

o structure

government's stakes in insurance companies must be brought down, 50%. Government take over of farms GIC and its subsidiaries, affiliates responsible for these independent companies. All insurance companies are given greater freedom to operate.


private enterprise as a minimum paid-up capital of Rs.1 billion should be allowed to participate. No Company should be addressed by both Life and General Insurance in a single unit. Foreign companies may be in cooperation with the industry, the domestic companies. Postal Life Insurance should be allowed to work in the rural market. A single state-level Life Insurance Company should be allowed to operate in each state.

o regulatory body

The insurance law should be changed. An Insurance Regulatory body should be established. Controller Insurance – a part of the Finance Ministry- should be independent.

o Investments


Mandatory Investments LIC Life Fund in government securities decreased by 75% to 50%. GIC and its subsidiaries do not hold more than 5% for each company (there current holdings brought down this level for a while).

o Customer Service

LIC should pay interest on delayed payments beyond 30 days. Insurance companies should be encouraged to set up unit linked pension plans. Computerization of operations and updating technology to carry out the insurance sector. The committee emphasized that in order to improve their customer services and increased insurance policies, industry should be opened up to competition. But at the same time, the Committee felt the need to be cautious, as any failure on the part of new competitors could damage the public's confidence in the industry. It was therefore decided to compete in a limited way, may have the minimum capital requirement of RS.100 crores.

The committee felt the need to provide greater autonomy to companies in order to improve their performance and their economic motive which is responsible for independent companies. For this purpose, he suggested setting up an independent regulatory body – the Insurance Regulatory and Development Authority.

Reforms in the insurance sector started in the passage of the IRDA Bill in Parliament since December 1999. IRDA installation of the statutory body in April 2000, has been meticulously stuck to its schedule of framing regulations and registering the private sector insurance companies.

as set up as a separate legal entity under the IRDA has globally compatible regulations. The other decision taken however, that the support systems of the insurance industry, especially life insurance companies was the launch of the issue and renewal of licenses to IRDA online service agents. The approval of the transfer agent training institutions also ensured that the insurance companies have a skilled workforce of insurance agents in place to sell their products.

The Government of India to liberalize the insurance sector in March 2000 with the passage of Authority, the Insurance Regulatory and Development (IRDA) Bill, lifting all entry restrictions on private players and allowing foreign players to the market some limits on direct foreign ownership It is. The current directives, there is a 26 percent equity cap foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent.

The opening of the sector are more likely to spread and deepening of insurance in India and it is also the restructuring and revitalization of public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. operating in a number of private insurance companies, both life and non-life insurance segment started selling insurance since 2001

Mukherjee Commission

Immediately after the publication of the report of the Malhotra Committee, a new committee, Mukherjee Committee was set up to make specific plans for the requirements of the newly formed companies. Recommendations of the Committee Mukherjee will never be made public. But it became clear that the information that filtered the Committee recommended that in order to ensure a certain proportion of the company's balance sheet to ensure transparency in accounting. But the Finance Minister objected and claimed him, perhaps on the advice of some potential competitors, it could affect the prospects for developing the insurance company.

Law Commission of India REVISION OF Insurance Act 1938 – 190th Law Commission Report

Committee on Legal Affairs June 16, 2003 published a consultation paper on the review of the Insurance Act 1938, the current practice is to adjust the insurance Act, 1938, conducted in 1999 at the time of enactment of the insurance regulatory Development Authority Act, 1999 (IRDA Act).

the Commission has undertaken this exercise in the context of the political changes made it possible for private insurers both life and non–Life sectors. This was felt to tighten the regulatory mechanism, while simplifying the existing legislation in order to eliminate the parts that have become obsolete as a result of the recent changes.

Changes in the main areas, the consultation document suggested that the next

a. Merging the provisions of the IRDA Act, the Insurance Act to avoid multiplicity of proceedings;

b. deleting unnecessary and transitional provisions of the Insurance Act 1938

c. Amendments reflect the changed policy allows private insurance companies and strengthen the regulatory mechanisms

d. 'Own funds' investments and imposing strict standards by maintaining both the public and private sector insurance companies

e. It provides a full range of grievance redressal mechanism that includes the following:

o the Constitution Grievance redressal authorities (GRAS), which is a judicial and two technical Member complaints management / claims against customers' insurance (GRAS is expected to replace the current appointed Ombudsman insurance system)

by officers acting

o appointment of determination and fees IRDA penalties on defaulting insurers, insurance brokers and insurance agents,

o Provides appeal IRDA, grass and examined against decisions an appellate court security officers (IAT), a judge (sitting or retired) of the Supreme Court / chief Justice of the High Court presiding officer and two members with experience of insurance matters;

o Provides a legal appeal against the decisions of the Supreme Court of the IAT.

LIFE + NON-LIFE INSURANCE – Development and Growth!

of 2006 turned out to be a year for the insurance industry regulator the Insurance Regulatory Development Authority Act, established the free pricing general insurance in 2007, while many companies announced to attack the sector.

both domestic and foreign players vigorously strive to increase the long-pending demand for FDI limit of 26 per cent to 49 per cent, and towards the end of the year, the government sent a comprehensive insurance Bill Group of Ministers amid considered strong reservations from the left parties. The Bill is likely to pick up the budget session of Parliament.

The extent of the infiltration of health and other non-life insurance in India is much the international level. These facts show enormous growth potential of the insurance sector. A tour of the FDI limit was 49 percent last year, as proposed by the government. This is not operationalized, legislative changes are needed for such tours. Since the opening of the insurance sector in 1999, foreign investment of Rs. 8700000000 would have been poured into the Indian market and 21 private companies were allowed.

The involvement of the private insurance industry in different segments increased due to both capture a part of the business, which was previously undertaken by the public sector insurers, as well as create additional business avenue. To this effect, the public sector insurers have been unable to draw upon the inherent strengths accept additional premium. In 2004-05, 66.27 per cent growth in premium has been captured by the private insurers despite a 20 percent market share.

recorded a premium income of the life insurance industry Rs.82854.80 crore for the current financial year 2004-05 against Rs.66653.75 crore in the previous financial year, recording an increase of 24.31 percent. The contribution of the first year premium, single premium and renewal fee of the total insurance premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 per cent). In the year 2000-01, when the industry was opened to private players, the life insurance premium was Rs.34,898.48 crore which constitutes Rs. 6996.95 crore of first year premium of Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore one-time fee. Post opening, one-time fee is reduced Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 withdrawal of the guaranteed return policies. Although slightly from Rs.5936.50 crore in 2003-04 (4.62 percent growth) 2004-05, however, witnessed a significant shift in the single premium income rising Rs. 10336.30 crore showing growth of 74.11 per cent in 2003-04.

The size of the life insurance market has increased the strength of economic growth and at the same time increasing income per capita. Consequently, the favorable growth and a total premium LIC (18.25 percent) and the new (147.65 percent) 2004-05. Higher growth should be seen in the context of the low base in 2003- 04. However, the new insurers have improved market share in 2003-04 to 4.68 in 2004-05 to the new 9:33 insurers.

segment wise break-up of the fire, marine and other segment for the public sector insurers was Rs.2411.38 crore and Rs.982.99 crore Rs.10578.59 crore, that is, increase (-) 1.43 per cent, 1.81 per cent and 6.58 per cent. The public sector insurers reported growth in Motor and Health segments (9 to 24 percent). These segments accounted for 45 and 10 percent of business undertaken by the public sector insurers. Fire and "Others" accounted for 17.26 and 11 per cent premium underwritten. Aviation, responsible for "Other" and fire a negative growth of 29, 21, 3.58 and 1.43 percent. No other country, which opened in time for India's foreign companies were able to capture 22 percent market share in the life segment, around 20 per cent in the general insurance segment. Foreign insurers competing Asian markets is no more than 5.10 percent.

The life insurance sector grew new premium at a rate not seen before while the general insurance sector grew at a faster pace. Two new players entered into life insurance – Shriram Life and Bharti Axa Life – taking the total living Player 16 was a new entrant in the form of non-life branch standalone health insurers – Star Health and Allied Insurance, taking the non-life players 14

a number of companies, mostly nationalized banks (about 14), such as Bank of India and Punjab National Bank, announced that to enter the insurance sector and some of them have also formed joint ventures.

the proposed amendment of the FDI cap is part of a comprehensive amendment of insurance laws – the Insurance Act 1999, LIC, 1956 and IRDA Act, 1999, after the proposed amendments in the insurance laws LIC would be able to maintain reserves while insurance companies are able to would not raise equity funds.

About 14 bank queue to enter the insurance sector and during 2006, several joint venture announcements others scout partners. Bank of India has teamed up with Union Bank and Japanese insurance major Dai-ichi Mutual Life while PNB tied foraying into life insurance, Vijaya Bank and the driver. Allahabad Bank, Karnataka Bank, Indian Overseas Bank, Dabur Investment Corporation and Sompo Japan Insurance Inc. has been contracted to develop non-life insurance company, while Bank of Maharashtra tied Shriram Group and South Africa Sanli group of non-life insurance venture.


It seems cynical that the LIC and GIC will wither and die in the next two decades. The IRDA has "a snail's pace" approach. It has been very cautious in issuing permits. It has set up fairly strict standards in all aspects of the insurance business (with the possible exception of the disclosure requirements). The regulators always walk a fine line. Too many regulations kill the motivation of the newly; too loose can induce regulatory failure and fraud, leading to nationalization in the first place. India is not unique to developing countries where insurance business is opened to foreign competitors.

a critical stage in the insurance business in India. Over the next few decades are likely to witness significant growth in the insurance sector, namely for two reasons; financial deregulation always speeds up the development of the insurance industry and the growth of GDP per capita will help the insurance business to grow.

Source by Sowmya Suman

The Importance of Insurance Reviews

Most people reach out to insurance agents or underwriters, if there is a major event in their lives, which require new or revised risk coverage – perhaps when they purchase a new home, or it's time to trade in old cars -A. However, far fewer people remember to review the insurance at regular intervals or if the coverage requirements of the subtle changes occur.

regularly reviewing insurance coverage will help to ensure that you expect to be the unfortunate fact that a complaint should be. It also helps in making informed decisions about coverage and proactive to minimize the cost of insurance.

There are many different circumstances that may change the coverage requirements and it is a call from an insurance expert review. The following examples identify some cases where you might want to review your coverage

  • Renovations – When finally renovation of the house, it is likely that you will also increase its value. Whether it's a new kitchen, bathroom, pool, or even expensive landscaping, remember to check the political boundaries to ensure that they remain appropriate for the event insured losses. If newly renovated basement note, it is very likely that the damage be assessed security review.
  • Already accumulating wealth – Have you done a home inventory recently? Most people have more personal items than people think. It estimated the total value of the content is vital to help ensure the limits are adequate.
  • You have purchased a high-value product – Remember that your personal belongings must be scheduled to ensure properly. Jewelry, antiques, collectibles, wine and art collections are some examples of items that may need additional coverage.
  • new coverage became available – The insurance industry often adapts to changing market conditions and provides coverage in areas that did not happen in the past. The homeowners, insurance, land, and water damage home repair issues (such as a broken furnace) recently published some insurers in some areas. In addition, legal expenses insurance, travel insurance and pet insurance from brokers looking to cover more of the risk and insurance needs.
  • Change laws to more or less choice – Changes in the automobile accident benefits mean that the specified values.
  • become eligible for additional discounts – Changes in personal circumstances may affect your eligibility policy discounts. For example, if you install the alarm system is likely to be eligible for a discount on homeowner's policy. If winter tires of the vehicle, many insurers discount on your car insurance. If you are over the age of 50-55, it becomes eligible for a mature driver discounts.
  • If you change jobs, and a shorter commute – It should report it to the insurance broker of leadership typically less coincides with lower risk and less expensive premiums. If there is a particular work session, you can qualify for lower insurance premiums.
  • You started a home business – Another use of the home, not strictly residential, business insurance, require proper liability risks.
  • personal circumstances change – If you are married or a child, you may want to review your coverage to ensure coverage levels are adequate to take care of dependents in the event of an accident.
  • The children get a driver's license – Always check that the child can be added to the policy. This is often the cheapest option by providing them to drive. If they get in their car, you are likely eligible for several car discount.
  • If your child moving away to attend college or university – Make sure that homeowners coverage can be extended to protect the child's property while away at school. Perhaps more cost-effective to buy a stand-alone renters insurance.
  • If you have not had insurance review for over a year – The coverage levels may be outdated. One key example is the home insurance. value and replacement costs of property can be easily rises to the point that the existing coverage limitations do not permit a complete reconstruction of your home in the event of a total loss.

Taking the time to talk to your insurance professional is always time well spent. Even if you do not save on insurance costs after the call, there is no substitute for having the coverage you expect demand becomes necessary. Since one year, it's a good idea to talk to an insurance professional prior to the annual renewal of insurance policies coverage for most of the duration.

Source by Tom Lum

Impact of Liberalisation insurance industry


The way the insurance liberalization process in India has been more than seven years. The first major milestone on this path was the passing of Insurance Regulatory and Development Authority Act, 1999 with amendments to the Insurance Act 1983 LIC and GIC Acts paves the way for the entry of private players and possibly the privatization of state monopolies have LIC and GIC. Opening the insurance private sector including foreign participation as a result of the various opportunities and challenges.

The concept Insurance

In everyday life, it is uncertain if there is risk involvement. The instinct against security threats such determination is a fundamental motivators of human behavior. As a sequel to this mission of security, the concept of insurance have been born. The urge to provide and protect against life and property should be promoted people to willingly in order to achieve some kind of sacrifice for the collective security and cooperation. In this sense, the story of the insurance is probably as old as the history of mankind.

Life insurance provides specific protection against the risk of premature mortality in the population earning member. Life insurance can provide protection in modern times the life of other related risks, for example, that a long life (ie the risk of outliving your source of income) and risk disability and disease (health insurance). The products ensure the longevity of pensions and annuities (insurance against old age). Non-life insurance protection from accidents, damage to property, theft and other liabilities. Non-life insurance contracts are typically shorter in duration, such as life insurance contracts. Tying together with the protection and saving individual life insurance. Life insurance provides protection and investment.

insurance is a boon to business concerns. The insurance of short-range and long-term relief. protection of short-term relief directed to loss of property and life, to divide between the loss of a large number of people through the mediation of the professional liability insurance carriers, such as insurance from the insured. This allows a businessman to face an unexpected loss, and therefore, you do not have to worry about the potential loss. The long-term goal is for the economic and industrial growth, massive availability of resources for investment in the country's insurance industry is organized and trade.

nationalization general insurance industry before

General Insurance

Act 1973, the GIC on Parliament in 1971, but entered into force in 1973 were 107 general insurance companies, including branches of foreign companies in the country working after nationalization, these companies are amalgamated and grouped into the following four subsidiaries of GIC as the National Insurance Co.Ltd, Calcutta.; The New India Assurance Co. Ltd, Mumbai; The Oriental Insurance Company, New Delhi, India and the United Insurance Co. Ltd., Chennai and now unmounted.

General insurance business in India is widely distributed marine and other GIC, apart from directly managed by Aviation and reinsurance business managed in accordance with the Comprehensive Crop Insurance Scheme, Personal accident insurance, social security system, etc. GIC and its subsidiaries have the goal of nationalization extended fire, he the message security and breadth of insurance protection for the weaker section of the society, efforts are being made with new flooring and popularize other non-traditional business.

liberalization of insurance

providing comprehensive regulation of business in India has been the effect of the enactment of 1983 attempted to create a strong and powerful supervisory and regulatory authority to control security powers to direct, advise, investigate the Insurance Act register and liquidate insurance, etc. However, due to the nationalization of insurance business, most of the regulatory functions of the control was taken away, and the insurance is in the hands of insurance companies as well. the Indian government, a high-powered committee set up in 1993 RNMalhotra, former Governor, Reserve Bank of India to look into the structure of the insurance industry, and propose amendments in order to be more efficient and more competitive given the structural changes in other financial system in the country.

Commission Recommendation Malhotra

the Committee submitted its report in January 1994, it recommended that private insurers will be allowed to co-exist with the government companies like LIC and GIC companies. This recommendation has been encouraged by a number of factors, such as being greater depth insurance in the economy, and on a much larger scale mobilization of resources in the economy, and on a much larger scale mobilization of economic resources for infrastructure development. Liberalization of the insurance sector, at least in part the need to tap on the large fiscal reserves of savings in the economy. Commission's recommendations were as follows:

o LIC and GIC attention capital base of up to Rs. 200 crores to the Government kept calm and was sold to the public to make reservations for suitable employees.
o private sector in the insurance industry paid-up capital of at least Rs. 100 crores.

o foreign insurance company may float an Indian preferably in a joint venture with Indian partners.

o Steps initiated to set up a strong and effective insurance regulatory law as an autonomous body on the lines of SEBI.

o be made in the sector allows a limited number of private companies. But no firm is allowed in the sector. But no firm can operate in both the insurance industry (life and non-life).

o Tariff Advisory Committee (TAC) is Delinked form an independent body operating under the GIC sculptures for the oversight of the insurance regulatory authority.

oAll insurance companies are treated on a par with and governed by the provisions of the Insurance Act. No special dispensation is given by the government companies.

oSetting a strong and effective regulatory body, independent source of financing, before allowing private companies into sectors.

competition in the government sector

government companies now face competition from the private sector insurers not only to the issuing of insurance products in Korea but also in terms of the different aspects of customer service channel, effective techniques for selling your products etc. privatization of the insurance sector has opened the door to innovation in business can be transacted.

insurers embarking on a new era of new concepts and cost-effective way of doing business transaction. The idea is clearly to cater to the largest businesses avoid the expense. And slowly the time the old norm prevalent in government companies to expand by setting up branches seems lost. Among the techniques that seem to be catching up fast alternative to cater to rural and social sector insurance hub and spoke arrangement. Besides, the participants of non-governmental organizations and self-help groups (SHGs) have made the most sales in the rural and social sector policies.

The biggest challenge to commercial banks, which are huge branch network. In this regard, it is important to note that the LIC signed an agreement with Mutual Benefit Corporations Bank Mangalore-based infrastructure utilized 27 percent of the acquisition of a strategic stake in the insurer monolithic, Corporation Bank has decided to abandon plans to promote life insurance company. The bank will act as a corporate agent of LIC in the future and get a commission through the branches sold policies. LIC branch network of nearly 2100 offices will allow Bank Corporation created the extension centers. ATM or branch stationary premises. Corporation Bank, however, introduce effective Cash Flow Management System for IBM.

IRDA Act, 1999

Preamble IRDA Act 1999 reads "The law is the establishment of a protection authority in the interests of the holders of insurance policies to regulate to promote and ensure orderly growth of the responsibility of the insurance industry and those associated with or incidental.

§ 14 IRDA lays duties, powers and functions of law aa authority. Its powers and functions of the authority. Its powers and functions of the authority is as follows.

o Problem that the applicant a certificate of registration to renew, modify, revoke, suspend or terminate such registration.
in all matters relating to nomination
o protect policyholders in the political, policy surrender value of f ensures interest, settlement of insurance claims, other terms and conditions of insurance contracts.

o grant the necessary qualifications and practical training of insurance intermediaries and agents.

o Enter the code of conduct for surveyors and loss assessors.

o promote the effective conduct of insurance business

o support and regulation of professional regulations related to the insurance and reinsurance business.

o specify the form and manner in which the accounting is maintained and provided reports to insurance companies and insurance brokers.

o Adjudication of disputes between insurers and intermediates.

by the percentage o Enter life insurance and general and general business conducted on the insurance provided for in the rural and social sectors, etc.

§ 25, to the Advisory Committee on Insurance will be set up and consists of not more than 25 members.Section 26 provides that the Authority, in consultation with the Advisory Committee consists of insurance regulations to this Act and the rules made there under, to carry the objective of the first phase in 1938 defined this way Act.Section 29 seeks to modify certain provisions of insurance law. The amendments empower IRDA to effectively regulate, promote and ensure orderly growth of the insurance industry to the Insurance Act as a consequence.

modification 30. §-31seek LIC Act 1956 and GIC Act 1972


While the nationalized insurance companies have performed commendable job by extending the opening of the volume of business insurance sector private players is a necessity within the framework of the liberalization of the financial sector. If the traditional semi public goods and infrastructure industries, such as banking, airlines, telecommunications, energy, etc. a significant private sector presence, continued state monopoly of insurance was indefensible, and therefore the privatization of insurance has been previously discussed. The effect has been to create a variety of opportunities and challenges visible form.


is first eliminated from the Privatization Insurance monopolistic business Life Insurance Corporation of India. This can help to cover a wide range of general insurance and life insurance risk. It helps to have a new range of products.

2. It may also result in better customer service and improve the variety and the price of insurance products.

3. The entry of new players will accelerate the spread of both life and general insurance. This will increase the insurance penetration and density measure.

4. Admission to the private operators to ensure the mobilization of funds that can be used for the purpose of infrastructure development.

5. Allowing commercial banks to mobilize funds to help the insurance business in rural areas because of the availability of huge branches of the banks.

6. Most important, not least, will create huge employment opportunities in the field of insurance, which is a burning issue today is the presence issues.

current scenario


opening of the insurance private sector, leading to various private companies including joint ventures entered into the fields to provide both life and non-life business. Tata – AIG, Birla Sun Life, HDFC Standard Life Insurance, Reliance General Insurance, Royal Sundaram Alliance Insurance, Bajaj Auto Alliance, IFFCO Tokio General Insurance INA Vysya Life Insurance, SBI Life Insurance, Dabur CJU Life Insurance and Max New York Life. SBI Life Insurance has launched three products Sanjeev, Sukhjeevan and Young Sanjeev so far, and has already sold 320 policies within the framework of the plan.


The above discussion leads to the conclusion that it is necessary to the entry of private operators insurance business and is justified in order to enhance the efficiency of operations, greater density and insurance coverage in the country, and greater mobilization of long-term savings, long-gestation infrastructure prefect. New players should not be treated as a rivalry in government companies but also their objective to complement the growth of the insurance business in India.

Source by Subbiah B