Globlization and its impact on the insurance industry in India


The "fear" only four alphabets, like love, but both are very different in this sense. Whatever man (mishap) woman have families that love always begins with the background of fear. In general, so many have been asking themselves what would happen if we were not there, but continued to ask, rather than doing something about it. Time is precious, you do not stop at all and we live in a world of uncertainty; the uncertainty of work, the instability of the currency, the instability of the property and so the story continued throughout the life of a man.

a thriving insurance sector is vital to any modern economy. On the one hand, it encourages the habit of saving, and secondly because it provides a safety net in rural and urban enterprises and productive individuals. And perhaps most importantly, to generate long-term sources of invisible infrastructure building. The nature of the insurance business is to provide the cash flow of companies, until the payment is deferred and emergency-related.

This feature allows the business to insurance companies are the largest investors in long-gestation infrastructure development projects, all developed and emerging countries. This is the most compelling reason why the private sector (and foreign) companies, which will spread the habits of social insurance and consumer interests are urgently needed in this vital economic sector. Opening the insurance private sector including foreign participation as a result of a variety of opportunities and challenges in India.

life insurance market

The life insurance market in India is underdeveloped market, which just tapped the state-owned LIC till the entry of private insurers. After the penetration of life insurance products and 19 percent of the total population of 400 million can be ensured. insurance tax as the state-owned LIC sold a means, not a product that protection. Most customers were provided with low elasticity or lack of transparency in the products. The entry of private insurers in the rules of the game have changed.

The 12 private insurers in the life insurance market has been gripped by nearly 9 percent of the market for premium income. The new business premium of 12 private operators Rs 1000 crore tripled in 2002 to 03 last year. Meanwhile, having regard to the state-owned LIC new premium business fell.

Innovative products, smart marketing and aggressive marketing. This triple whammy combination that has enabled fledgling private insurance to sign up Indian customers faster than anyone had expected. Indians, who have always seen life insurance tax saving device suddenly turns to the private sector and snapping up new, innovative products to offer.

The growing popularity of private insurers prove otherwise. They are squeezing money from new niches to which they preside. State-owned enterprises still dominate segments like endowments and money back policy. But the pension or annuity products business, private insurers have been twisted more than 33 percent of the market. And the popular unit-linked insurance schemes are practically a monopoly, more than 90 percent of customers.

Private insurers also seem to have great defense in other ways- persuading people to make up the larger policy. For example, the average size of about a life insurance policy before privatization Rs 50,000. It has grown to about Rs 80,000. But the private insurance companies ahead in this game, and the average size is around Rs 1.1 lakh policies Rs 1.2 lakh- way higher than the industry average.

Buoyed by a faster than expected success, rapid transmission of nearly all private insurers in the second phase of the expansion plans. There is no doubt that the aggressive stance of private insurers is already paying rich dividends. But the rejuvenated LIC is also trying to fight to woo new customers.

Insurance today

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor RN Malhotra, was formed to evaluate the Indian insurance industry and suggests a future direction. The Malhotra committee was set up with the aim of which is complementary to the initiated reforms in the financial sector.

setting, the Insurance Regulatory Development Authority (IRDA) started reforms in the insurance sector. Then it became necessary, if we compare the insurance premium per capita penetration and per capita will be far behind the rest of the world. The above table gives the statistics for the year 2000

The expected growth in the per capita income of 6% in the next 10 years and the improvement in the level of awareness, the demand for insurance is expected to increase.

As an independent consulting firm, Monitor Group estimates that the growth form Rs. Rs 218 billion. 1003 billion in 2008 estimations seem feasible than the performance of 13 life insurance players in India in the years 2002 to 2003 (up to October based on the first year premium) of Rs. 66683000 LIC that the greatest extent of Rs. 59 187 million. Since LIC now has 2050 branches in 7 zones 5,60,000 strong team of agents.


While the nationalized insurance companies have performed commendable job expansion of the business volume, opening up the insurance industry's own players were needed in the context of the globalization of the financial sector. If the traditional semi public goods and infrastructure industries, such as banking, airlines, telecommunications, energy, etc. The presence of significant private sector continued state monopoly on insurance was indefensible, and that the globalization of the insurance has been previously discussed. The effect has been to create a variety of opportunities and challenges visible form.

The introduction of private sector actors added to the muted colors of the industry. The initiatives of the private players are very competitive, and I have a huge competition in the market monopoly of LIC time. Since the advent of private players in the industry has seen new and innovative measures taken by the players in the sector. The new players have improved the quality of service of insurance. As a result, LIC years of falling down her career. Market share was divided among the private players. While LIC is still 75% due to the impending nature of the insurance sector to private operators enough to compete more of LIC in the near future. LIC's market share decreased from 95% (2002-03), 81% (2004-05). The company is following the rest of the market share in the insurance sector.



player's name in market share (%)

82.3 LIC


2.56 Birla Sun Life






AVIVA 0.79

OM Kotak Mahindra 0.51

ING Vyasa 0.37

AMP Sanmar 0.26

MetLife 0.21

in this case, globalization

a tough battle to expand the market share of private sector life insurance industry, which 14 life insurance companies, 26% lost 3% market share in the state-owned life insurance Corporation (LIC) in the domestic life insurance industry in 2006-07. According to data published Insurance Regulatory and Development Authority, the total fee of 14 companies went up 90% Rs 19,471.83 crore in 2006-07 Rs 10, 252 crore.

LIC total premium of Rs 55 934 crore mobilization was able to maintain a market share of 74.26% during the reporting period. Overall, the life insurance industry in the first year premium grew 110% over Rs 75, 406 crore in 2006-07. The 2006-07 performance threw a few surprises in the ranking of private sector life insurance companies. New entrants such as Reliance Life and SBI Life has shown tremendous growth over 381% and 210% during the year. Reliance Life, which became one of the top five companies in the premium of Rs 930 crore during the year of the year.

Although ICICI Prudential Life Insurance has remained as the No 1 private sector life insurance company during the year. Bajaj Allianz has overtaken ICICI Prudential Monthly terms of market share in March, for the first time. Private operators are not one-time fee Bajaj's market share in March was 29.1% vs. ICICI Prudential 23.8%. Bajaj gained 4.6 percentage points of market share in the distribution of the private sector in FY07.

among private players, SBI Life and Reliance Life is still good, everything is becoming a 4% market share in FY07. SBI Life ascendance growing contribution of ULIP premiums. Another notable developments in the 2006-07 performance has been the expansion of the retail markets for life insurance comapnies. Bajaj Life Insurance Alliannz has added 20 lakh policies while ICICI Prudential has expanded over 19 lakh policies during the year.

Most life insurance policies in force in the world, insurance happens to be a mega facility in India. This is a business growing at the rate of 15-20 percent per year, currently the order of Rs 450,000,000,000th Together with banking services, it adds about seven per cent of the country's GDP. Gross premium collection to-GDP ratio and the available funds by nearly 2 percent to 8 percent of GDP investment in LIC.

Still, nearly 80 percent of the Indian population does not cover life insurance, while health insurance and non-life insurance also falls short of international standards. And this part applies to the population of poor social security and pension systems were just the security of retirement income. This in itself indicates that the enormous growth potential for the insurance sector.

developed and evolved insurance sector is needed for economic development as it provides the long-term resources for infrastructure development and also strengthen the risk-taking ability. It is estimated that India would be in the magnitude of $ 1000000000000 investments needed over the next ten years. The insurance sector to some extent is to enable infrastructure projects to sustain economic growth in the country.

insurance is a federal subject in India. There are two laws that govern the insurance sector of the IRDA ACT 1938 and ACT 1999 The insurance sector in India has become a full circle from being an open competitive market to nationalization and back again in a liberalized market. Follow developments in the Indian insurance sector reveals a 360-degree turn over witness for almost two centuries.

An important milestone in the life insurance business in India

1912: The Indian life insurance companies which are legally, as a first statutes to regulate the life insurance business.

1928: the Indian Insurance Companies Act brought order to the government to collect statistical information on both the life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended the Insurance Act with the aim of protecting the interests of the insurer.

1956: 245 Indian and foreign insurance companies and the central government took over and nationalized. created by Act of Parliament- LIC LIC Act of 1956 capital contribution of Rs. 5 crore to Government of India.

a tough battle to expand the market share of private sector life insurance industry, which is providing 14 life insurance companies, 26% have lost 3% market share in the state-owned Life Insurance Corporation (LIC) in the domestic life insurance industry in 2006-07. According to data published Insurance Regulatory and Development Authority, the total fee for the 14 companies shot up 90% Rs 19,471.83 crore in 2006-07 Rs 10, 252 crore.

LIC premium to mobilize a total of Rs 55 934 crore has been able to maintain its market share of 74.26% during the reporting period. Overall, the life insurance industry in the first year premium grew 110% over Rs 75, 406 crore in 2006-07. The 2006-07 performance threw a few surprises in the ranking of private sector life insurance companies. New entrants such as Reliance Life and SBI Life has shown tremendous growth over 381% and 210% during the year. Reliance Life, which became one of the top five companies in the premium of Rs 930 crore during the year of the year.

Although ICICI Prudential Life Insurance has remained as the No 1 private sector life insurance company Bajaj Allianz has overtaken ICICI Prudential Monthly terms of market share during the year in March, for the first time. Private operators are not one-time fee Bajaj's market share in March was 29.1% vs. ICICI Prudential 23.8%. Bajaj gained 4.6 percentage points of market share in the distribution of the private sector in FY07.

among private players, SBI Life and Reliance Life is still good, everything is becoming a 4% market share in FY07. SBI Life ascendance growing contribution of ULIP premiums. Another notable development in the 2006-07 performance has been the expansion of the retail markets for life insurance companies. Bajaj Life Insurance Alliannz has added 20 lakh policies while ICICI Prudential has expanded over 19 lakh policies during the year.


– a state monopoly little incentive or a wide range of innovative products. It can be seen the lack of categorization of individual products portfolio of LIC and GIC is not a more robust risk products, such as health insurance. More competition in this business incentive for companies to offer several new products and more complex and detailed risk rating.

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

– the entry of new actors to accelerate the spread of both life and general insurance. Measure the spread of insurance penetration and insurance density measure.

– The entry of private institutions, it is expected that the insurance business year roughly 400 billion rupees, more than 20 percent year even if we disregard the relatively underdeveloped sectors of health insurance, pen More importantly, it also provides a great mobalisation the funds can be used for the purpose of infrastructure development, which is a factor taken into globalization insurance.

– more importantly, it also provides a great moblisation the funds can be used for the purpose of infrastructure development, which is a factor taken into globalization insurance.

– it allows the economic interests of foreign companies either itself or its subsidiary or candidates not exceeding 26% of paid-up capital of Indian partners will be operated on as a result of supplementing domestic savings and increasing economic development in the nation. Agreements with various companies has been discussed later in this paper.

– It is estimated that the growth of the insurance sector for more than three times the growth of the economy in India. Thus, business or domestic companies try to invest in the insurance sector. In fact, the growth of the insurance business in India is 13 times the growth of insurance in developed countries. So it is natural that foreign companies will cultivate a very strong desire to invest something in the insurance business in India.

– the most important in the least will create huge employment opportunities in the field of insurance, which is a pressing problem in today's contemporary issues. BEFORE


when new companies started business discussed earlier. Some of these companies have been able to float 3 or 4 products only to achieve a target level of 8 or 10 products. Currently, these companies are not in a position to pose a challenge LIC and all the other four companies operating in the general insurance sector, but if we see the quality and standards of products they issue, it is undoubtedly a challenge for the future. Because of these challenges throughout the environment caused by the challenges of globalization and liberalization of the sector before.

– The current insurer, LIC and GIC, we have created a large group of dissatisfied customers due to the poor quality of service. So there will be no change in the number of large customers LIC and GIC private insurers.

– a large number of LIC policies against the transfer problem, the new insurers to woo them to offer innovative products at lower prices.

– for corporate customers and payments systems group savings schemes may shift their allegiance LIC private insurers.

– there is a probability of exit dynamic young executives in the private insurer LIC, as will be higher than the pay package.

– LIC is overstaffing and the introduction of full computerization of many employees will be redundant. However, they can not be closed ,. Thus, the operating costs can not be reduced LIC. It will be a disadvantage in the competition, as the new insurers will work in small offices and high technology reduce operating costs.

– GIC and four subsidiary companies will face more challenges because the administrative costs are very high due to additional staff. Not because they can reduce their number of service rules.

– Manage your debts strain on the financial resources, GIC and its subsidiaries because it does not meet the mark.

– LIC products and GLC over 60, more than 180 products in its kitty, which has become obsolete in the present context, because they are not suited to the changing needs of customers. Not only that, it is not competent enough to complete the new products offered by foreign companies in the market.

– Reaching the consumer expectations on par with foreign firms such as improved yield and better quality of service, particularly in the area of ​​claims management, issue of the new policy, transfer policy and revival of the policy of a liberalized market is very difficult to LIC and GIC.

– Strong competition for new insurance for consumers gain more -Distribution channels, including agents, corporate agents, bank branches, affinity groups and direct marketing through telesales and interest.

– The market very soon flooded with a large number of products rather large number of insurers operating in the Indian market. Even a limited range of products offered by LIC and GIC, consumers confuse the market. The confusion continued to increase in the face large number of products on the market. The current level of consumer awareness of insurance products is very low. This is so because only 62% of the Indian population is literate, and less than 10% are trained. Even educated consumers are not familiar with a variety of insurance products.

– Insurers face a serious problem for redressal of grievances of consumers' lack of products and services.

– increasing awareness will be completed by a number of legal cases, consumers, insurers are expected to increase substantially in the future.

– Major challenges canalizing the growth of the insurance sector, product innovation, distribution network, investment management, support and education.

Essentials challenges

– Indian insurance industry to the next, to meet the global challenges

– understanding the customer better enable determination of products of insurance companies designing appropriate prices correctly and increase profitability.

– Selection of the right type of sales channel mix together with prudent and effective management of FOS [Fleet On Street].

– an effective CRM system that is ultimately sustainable competitive advantages and build a long term relationship

– or the insurance companies follow the best investment practices and should be a strong asset management companies to maximize their returns.

– insurers need to increase the customer base, semi-urban and rural areas, which offer huge potential.

– Promoting health insurance and e-brokerage business increased.


This is the last one based on the above discussion we can conclude that there is a need to increase justified by the private sector entries operational efficiency, higher density and insurance coverage in the country and greater mobilization of long-term savings, long-gestation infrastructure projects. In the wake of such competition it is essential that government monopolies (LIC and GIC) to quickly add or existing technology, transforming themselves more efficient business lines and operate in a wide. 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.

* Associate Professor, Department of Commerce, Bharathiar University, Coimbatore-46

e-mail –

** Ph.D Scholar, Department of Commerce, Bharathiar University, Coimbatore. E-mail –

Source by Bala Murugan

Maritime fraud

What is fraud? International trade operations in many semi-exporter, the importer, the ship's owner, charterer, master of the vessel, officers and crew, insurance, banker, broker or freight forwarder. Maritime fraud occurs when one of the parties unfairly favoring other goods or money. In some cases, several of these parties attest to defraud others of collusive behavior. Banks and insurers are often the victims of such scams.

The sinking ship provided over into a high-value non-existent cargo at regular intervals. In periods of economic and political upheaval and depression, the shipping business, events were unusual losses. In the past few years, these and other factors have led to a significant increase in the number of incidents that can be called "maritime fraud."

The types of fraud

Maritime fraud in many of its manifestations and methods open to endless variations. The majority of these crimes can be divided into four categories, such as:

o scuttling ships

o Documentary fraud

o Cargo Thefts

o Fraud in rental boats

scuttling ships

also known as "rust bucket" fraud, it involves fraud against the interests of the meaning of the deliberate sinking ship cargo and hull. The occasional exceptions, these crimes shipowners in a situation where the ship is approaching or at the end of economic life, taking into account the age of the ship, its condition and the prevailing freight market. The offense is intended to the hull insurers alone or against both hull and cargo interests.

For example, the shower may approach it is dishonest exporters and offered to bring the next big freight of ships. The exporter is to arrange the contract and the proposed buyer to open the letter of credit to pay for them in his favor. actually delivered or to be delivered, but the ship owner agrees to supply bills of lading indicate that the goods are loaded on a ship is not goods. bills of lading, together with such other documents as are necessary to negotiate the letter of credit presented to the bank. The banker pay against the documents, not goods. After stating that the cargo description meets the requirements stipulated in the L / C, the bank, under normal circumstances, release of funds under the terms of the L / C

The ship is no longer paid, but non-existent goods leaves port. It does not reach its destination, of course, because they need to lead this lack of cargo immediately to the discovery of the fraud. To avoid this, finally, the ship intentionally sunk in an appropriate place, so as to remove the evidence of a non-existent delivery is too prospect of the end of each test.

The shipowner entering the insurance claim in her hull underwriters and he can share in the revenue from letters of credit from the exporter, so the hapless buyer to proceed losses / non-compliance with the insurance claim to the cargo.

documentary fraud

This type of fraud involving the sale of goods o documentary credit conditions and some or all of the documents specified to be provided by the buyer, the seller to the bank in order to receive payment counterfeited. Bankers' pay against documents. The forged documents to try to cover up the fact that the goods actually do not exist, or that the quality is not ordered by the buyer. If the hapless buyer of goods belatedly aware that no goods arrive, start control, only to find that the ships, or the alleged transport does not exist or some other problem loading port at that time.

Banks deal with documents and goods are not affected them. The bank, which accepts letters of credit under a series of documents, which seems to be a regular on their face, are not bound to the client if the documents turn out to be false or contains false allegations. Thus, the confirming bank is entitled to request documents against the issuing bank and the issuing bank is entitled to receive them from the buyer. Thus, the loss is usually borne by the buyer.

This is precisely to discourage the export-related activities of fraudsters cargo ship that formed GIC approval system. This has been extended to a full load of cargo is imported. The boats usually used by fraudsters: -vessels

flags of convenience


for 15 or 20 years of age

-Usually small vessels 7,000 GRT 10000

[19459002vessels] for having changed their names and owners a few months before the last trip.

Cargo thefts

many versions of the operating mode of the cargo thefts. In a typical example, the ship, having loaded a cargo, and a different path to a port convenience. Such ports of Tripoli, Beitun, Almina, Jouneih, Ras Salaata and others along the coasts of Greece, Lebanon and Suria. The cargo can only discharges and the wharf or in a more sophisticated manner. Such an act is often accompanied by c changed to the name or subsequent scuttling of the ship to hide the evidence of the theft. The whole process of investigation proved difficult as the time of the loss is known, the cargo disappears and the actual recovery products is unlikely. The owners of such vessels are "on paper" set a few days before the surgery.

related fraud rent boats

This is also known as Charter parts fraud. "Creating the rental company is obliged to modest initial financial commitment and are usually subject to little regulation. Depressive conditions shipping market, there is no need for tonnage and the owners are anxious to be avoided in their boats tend to charter them without unknown companies require substantial financial performance guarantee of the lease.

cheat rented turn this situation to his advantage. Having rented a boat on an unsuspecting owner, chartered canvases cargo, knowing that in a depressed economy, shippers will be willing to cut corners in hopes of reducing transport costs and making savings on freight to those goods more affordable tenant provides a basic low freight charges prepaid . you can afford to do as he has no intention of completing the journey.

Shortly after the ship sails in the port of Chartered disappear. You may have paid the first month's rent or maybe you have not paid rents that are due to him. Meanwhile, the ship's owner finds himself meeting with major accounts of the port authorities, ship's itinerary, as well as staff salaries availability and use of the ship. Even worse, you may find that the owner of the ship to ship, failing to load the recipients, they have been arrested, and this leads to lengthy and expensive legal wrangle.

In order for the goods to the destination, suppliers also undertake to pay the shipping plus or agree to cover the costs of diversion and sale of the goods, and then enter the export process from the beginning. Sometimes, when there is no such compromise can be reached, the owner instructs the master to divert his ship and sell the cargo, where it can, and it will be as much a criminal as a tenant.

Prevention precautionary fraud

There are sea against certain basic precautions fraud that commercial interests as an exporter and importer, should be banks and insurance companies, aware and be able to to implement.

exporters and importers

controls and precautions to buy, and sellers can implement the following:

o Caution should be exercised when dealing with unknown party for the first time. Careful studies need to be fixed and their integrity before a binding agreement.

o be proven delivery boat service. In India, GIC approved by ships should be preferred.

o the cargo owners to take care of

    – If the freight is too attractive

    – If the shipowner is owned by one of the ship's only9 & # 39; singleton)

    – If the boat has more than 15 years old.

    – If the ship passed through the various owners.

o Payment irrevocable, confirmed the bank's sale country provides the best assurance of the seller. If the seller has any doubts about the authenticity of the letter of credit, he immediately contact your bank before parting with the goods.

o As for the buyer, it must be ensured that receives the documents he provided in his letter of application.

o as far as the buyer, you need to ensure that he receives the documents stipulated film credit application. Therefore, the buyer must be examined carefully to see which documents are required. For example, an independent "certification loading" significantly increase the protection would be detailed guidance to shipping or freight forwarder to use it. It must be on board at the time of loading of controlling shipments close as possible.

o order to ensure that the theme of cargo is actually loaded in the specified ship, the buyer may require a "report on the ship" an independent third party.

o Meeting of lading or national lines and need to use the sign of "prepaid" clearly the amount of freight bill of lading.

o services of a reliable and well-known freight forwarders, who are also members of the national associations, should be involved.

o buyers and sellers should try to determine whether the ship charter, and who babblers and the owners and are used only to hire agents and reputable institutions.


banks should take the following precautions to maritime fraud.

    o make us Bankers Lloyd shipping index. Important points to check with regard to the ownership of the ship, age, size and main position of the vessel when the bill of lading dated.

    o If such controls are not considered difficult for the bank, because the amount of work involved, it might be a "super service" in additional costs should be considered as an external agent or agents by the actual checks to consumers remains an annual fee.

    o It is necessary to examine ways to improve the use of credit operations computerized and modern business methods.


The marine insurers have to take the following precautions against fraud.

    o If the name of the ship is not known at the point where the insurance is taken, to insure the Institute Classification Clause and the requirement that the ship carrying the goods comply with the provisions of the clause.

    o The insured is obliged to notify the insurers the name of the ship, as it is known. If the ships meet the requirements of clause classifications, paid the standard rate fee. Otherwise, more attracted to the premium of over-age, under capacity, not the classification and registration of FOC.

    o In India, exporters are encouraged to "approved by GIC" export cargo ships to carry out. This system also applies if the import cargo ship brings the total import cargo loads India imports vessels in Singapore, Malaysia and the Far East (excluding Japan and China).

Source by Latha Sundar

Twelve Secrets and Tricks to Buy Life Insurance

first secret you do not spend too much time in a life insurance quote.

Do not be fooled by the low price offers and that – they do not apply to you if you are very healthy. Statistically, only 10% of people who apply actually get the lowest-priced policy. The premium you pay nothing at the end of the initial quote you get online or an agent. Amazing to me how often I see people getting duped an agent who quotes the company X at a lower price than the other agent.

Life insurance policies are the same price no matter who buys! One of the agents or the website quoted a lower premium does not mean anything. Rates are based on a policy of age and health. There are some exceptions to this, however, it is beyond the width of this article.

Most life insurance companies based on a variety of health 10-20 / price, and not an agent or website can assure you the quote given is accurate. It should be applied, then a check up, and then go through underwriting (that is, if the entire mini-exam sister's home, then the company's control medical records and reviews, as well as "gold" for health care) that the real price of the policy. Remember that the health assessment may also play a role in your family history, driving record and the type of occupation there. Only quotes to narrow down the choices to the largest companies. It may be worth without a load or low politics. The more to save on commissions, the more money you accumulate in politics. Whether you buy term insurance without a load, and save a lot of awards. You can not get help from the drug, which is worth something, if you are very good.

The most important factor that determines the price is appropriate for the health history of the company's most niche. For example, Company X may be best for the smokers, cancer survivors Company Y, Company Z, who have high blood pressure, etc.

2. Secret Ignore the hype, the term versus permanent cash value insurance.

go crazy reading what everyone says buy term insurance versus whole or universal life insurance. Big name websites advise that I think borders on fraudulent. Simply put, there is no simple answer is that you need to buy a permanent policy cash value or term insurance.

But I think there is a simple rule – buy term insurance needs of the temporary and permanent cash value insurance needs. I have read various magazines and run my math equations, which basically shows that if there is a need for security after 20 years, it is worth a certain amount of permanent insurance. This is due to the increase in the tax allowance in cash value in a permanent policy. I am divorced and took care of my children I die. Maybe you do not need as much insurance as now. I have earned great return policy, and unpaid taxes. I no longer pay the fees, because we have so much cash in the policy. I let my policy pay for themselves. I would not call most of the life insurance is a good investment. Because I was the right policy, and paid almost no sales commission policy was probably the best investment. I do not own them, so if I die beneficiaries and the money tax-free, tax-exempt property.

Since most people are short-term needs, such as your mortgage or your kids need a home run. In addition, most people want some life insurance in force throughout his life to pay for burial, helping unpaid medical bills and property taxes and so bought with a fixed-term political policy.

3. Secret consider the two companies at once.

Life insurance companies really do not like this "trick" because it gives them the race and increase the subscription costs.

Secret # 4: Avoid prison for life insurance agents.

Find a life insurance agent who represents at least fifty life insurance companies and ask them if more companies showing the best price quotations to each other. Some people try to reduce the agent and only online submissions. Just remember not to save so because the committees are generally obtained only hold the agent of the insurance company or the insurance company's website without having to reduce the premium.

Plus a good agent can help you maneuver through some of the complexity by completing the application that created the beneficiaries, avoid errors by selecting who the owner is, the best way to pay the premium, and will be there to give out the check and help loved ones if life insurance is ever used.

Secret # 5: Consider refinancing old life insurance.

most companies will not tell you, but the price you pay for the old policy will probably come down drastically if in good health. Over the past few years, the life insurance companies updated their predictions about how long people live. Since live longer, they lower their rates quite dramatically. Beware that the agent can obtain the new Commission, so make sure it really makes sense.

really am amazed at how often we see that customers of the old policy twice as expensive as a new. If you need a new life insurance is "refinancing" of the old politics and the old politics of the savings to pay for new policies – so there is no extra out-of-pocket costs. We like to think of this process of "refinancing of life insurance" – just like you can refinance your mortgage.

Secret # 6: Feedback life insurance companies target niches that are constantly changing.

One day the company "X" will give a good price that people who are a little overweight, and next month they are super strict. Company & # 39; Y & # 39; be lenient with diabetes because diabetics are not many books – which means giving a good price for diabetics. However, the company has a "W" may be very high, people with diabetes because they provide a lot of diabetics and fear that too great a risk to the area – which means giving a bad rate of new diabetes patients who apply.

Unfortunately, when applying for a life insurance company will not say, "Hey, we just raised our prices with diabetes." They are just happy to take your money if you are not smart enough to shop around. This is the number one area of ​​an intelligent agent can come in handy. Since continuously use a good multi-company multi-agent deal with the company he will be good, who is currently the least you subscribe to a given situation. The problem is that it is hard work and a lot of agents, or too busy, or not configured to effectively shop around the various signatories immediately and who would be the best deal. This is much harder than just running a quote online.

Secret # 7: Do not forget customer service.

Most people focus on buying insurance with the lowest price and the best financial rating. Unfortunately I know several A + rated companies at a low price who was not affected by the ten-foot pole simply because it is easier to give birth to a porcupine day, then that customer service from them.

before you understood this, I used a life insurance company that gave a customer a high rate, but two years later the client called and said: "I have mailed my payments on time, but only received a notice saying that the policy is gone. " It turned out that the company has been making a lot of mistakes and lost the back office to the charge!

we were able to fix it because the problem is caught so early. But if the customer happens to be dead a short period, the policy is passed, the family might have had a hard time proving that the insurance premium is paid on time, and you may not get the life insurance money – the loss of hundreds of thousands of dollars in case.

Secret # 8: Apply 3-6 months prior to the time you need to ensure, if possible.

do not hurry to make a policy if you already have some coverage in force. But he knew immediately apply to be necessary, shop around for months, if not the first company to get a good rate. Despite the fact that the life insurance industry is becoming automated application still often held up for weeks or months while the insurance company is waiting for the doctor's office for them to mail you a copy of medical records.

If you are in a hurry and buy a makeshift "non-subscription" policy does not go through the entire health checks and underwriting the majority of life insurance company requires, you end up paying 20% ​​-50% more for the insurance company will automatically charge the higher rates because they do not know how healthy or is about to die the next day.

Secret # 9: Avoid buying extra life insurance through work, if healthy.

I'm sure there are exceptions to this "trick", but I rarely agree. By all means keep the free life insurance from the employer. But if you are healthy and you pay through payroll deductions supplementary life insurance will almost certainly paying too much. What happens is that the "overpayment" ends support for unhealthy people in the company who buy life insurance through payroll deduction.

Generally, the life insurance company cut a deal with the employer and forgo the necessary medical examination of all the staff – all the staff were interested only in the average price for one or two offers and the proportion of males and females of a given age. Life insurance companies can pick up a lot of unhealthy clients in this way, so Jack up the price of all that healthy people eventually overpaying to unhealthy employees can get a cheaper policy. Furthermore, contrary to offer the guaranteed term policies, most buy life insurance through work will become more expensive as you get older.

is group life insurance are generally not portable when you retire or change jobs means that if you retire or change jobs you may have to re-apply, even if it is older and probably not so healthy, it risks He rejected the policy. If the group does not plan allows portability is generally limited by the conversion options and force you to go into the expensive cash value plans.

I remember someone help assess the additional life insurance. He was sure that it was a better deal than any of the policy could be found. You did not know that the price of the group's plan would go every year? What would retire the premium rose to more than $ 10,000 / year. I found him a policy for about $ 1000 / year, which will never go up. Also, unlike the old group life insurance could make the individual policy with him when he changed jobs or retired.

Secret # 10: There is a trial application on the basis of the COD payment.

only send money to the request, if you need life insurance coverage immediately. Send a check for the application of a conventional agents used to practice – I think mostly because they have commissions faster. If you send money to claim you usually get temporary coverage right away, but if you already have plenty of cover, and just trying to get better prices check with your agent to do a test application on the basis of the COD so you only pay if the policy is approved. If you do not give money, and then you die before the policy pays no coverage.

Secret # 11: Wear shoes when the nurse to measure the height.

When the insurance company will send a nurse to the condition does not attempt to be as high as possible if you are overweight? In most states it is allowed to wear shoes, and if you are a bit overweight the higher height / weight ratio a little better the signatories, who determine the health rating and the political price. Also not in the exam early in the morning is not the food – it's going to get your cholesterol number and variety of health care at the best rates.

Secret # 12: Be careful, extra benefits and riders.

most of the policy options comes as accidental death benefit, child rider, riders handicap, etc. If you do not return the premium mathematics, most of these "extras" are usually not smart financial sense. Life insurance companies to make money, and these drivers are usually profitable because they do not cover something that rarely happens, or is so severe that the board does not get paid. For simplicity, and in particular the acquisition of a life insurance to cover your life without a lot of it. Again, a good agent can help you weigh the benefits of the extra riders. But be wary of an agent who is trying in every possible direction extra rider.

Source by L Lance Wallach

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