INSURANCE Inoovation

INNOVATIVE EYE OF INSURANCE
CHAPTER. 1 INSURANCE
Insurance protects and safeguards the interest of the individuals and businessmen. It also creates diversification of risk among specialized professional agencies called Insurance companies. Insurance promotes rate of saving and investment and leads to capital formation in the economy. Our family counts on you every day for financial support, Food, shelter, transportation, education, and much more. Insurance provides you with that unique sense security that no other form of investment provides. It gives you a sense of financial support especially during that time of crisis irrespective of the fluctuation in the stock market. Insurance provides for your career goals right from childhood years.
V.E.S COLLEGE OF ARTS, SCIENCE &COMMERCE (1)
The document which contains the contract is called the Insurance Policy. The person who is insured is called the Insured and the firm which insures is called as the insurer.
DEFINITION:Insurance is a form of contract or agreement under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make good a loss, damage, or injury to something of value, as a result of some uncertain event in which the insured has pecuniary interest.
CHAPTER.2 EVOLOUTION OF INSURANCE

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 : Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
INNOVATIVE EYE OF INSURANCE The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
CHAPTER.3 INSURANCE SECTOR REFORMS 1)MALHOTRA COMMITEE

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms" In 1994, the committee submitted the report and some of the key recommendations included:
1) Structure

Government stake in the insurance Companies to be brought down to 50%. All the insurance companies should be given greater freedom to operate. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.
2) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to operate in each state.
3) Regulatory

Body
The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.
4) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).
5) Customer

Service
LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerisation of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition.
2.)
IRDA
ACT
Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956. The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company; The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.
The Authority has notified Regulations on various issues: Registration of Insurers,
INNOVATIVE EYE OF INSURANCE Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc.
Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.
Insurance companies:
IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian reinsurer" for underwriting only reinsurance business. Some of the life insurance companies and general insurance companies including their web address are given below:
LIFE INSURERS Public Sector

Life Insurance Corporation of India
Websites
www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Companywww.allianzbajaj.co.in Limited Birla Sun-Life Insurance Companywww.birlasunlife.com Limited HDFC Standard Life Insurance Co.www.hdfcinsurance.com
INNOVATIVE EYE OF INSURANCE Limited ICICI Prudential Life Insurance Co.www.iciciprulife.com Limited
Om Kotak Mahindra Life Insurance Co.www.omkotakmahnidra.com Ltd.
GENERAL INSURERS Public Sector

National Insurance Company Limited New India Assurance Company Limited Oriental Insurance Company Limited www.nationalinsuranceindia.com www.niacl.com www.orientalinsurance.nic.in
Private Sector
Bajaj Allianz General Insurance Co.www.bajajallianz.co.in Limited
Reliance General Insurance Co. Limited
www.ril.com
REINSURER
General Insurance Corporation of India www.gicindia.com
Protection of the interest of policy holders:

IRDA has the responsibility of protecting the interest of insurance Policyholders. Towards achieving this objective, the Authority has taken the following steps:
IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim. The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims. It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public.
CHAPTER.3 GLOBALIZATION IN INSURANCE

While nationalized insurance companies have done a commendable job in extending the volume of the business, opening up insurance sector to private players was a necessity in the context of globalization of financial
INNOVATIVE EYE OF INSURANCE sector. Its impact has to be seen in the form of creating various opportunities and challenges. The introduction of private players in the industry has added colours to the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in the sector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining in its career. The market share was distributed among the private players. Though LIC still holds 75% of the insurance sectors the upcoming nature of these private players are enough to give more competition to LIC in the near future. LIC market share has decreased from 95 %( 2002-03) to 81% (2004-05).
The following company holds the rest of the market share of the insurance industry:-
MARK S ARE % ET H
LIC
ICICI PRUDENTIAL BIRLA SUN LIFE BAJA ALLIANZ SBI LIFE HDFC STANDARD TATA AIG MAXNEW YORK AVIVA OM KOTAK MAHINDRA ING VYASA AMP SANMAR METLIFE
Nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This it is an indicator that growth potential for the insurance sector is immense. Global insurance premiums grew by 3.4% in 2008 to reach $4.3 trillion. For the first time in the past three decades, premium income declined in inflation-adjusted terms, with non-life premiums falling by 0.8% and life premiums falling by 3.5%. The insurance industry is exposed to the global economic downturn on the assets side by the decline in returns on investments and on the liabilities side by a rise in claims. So far the extent of losses on both sides has been limited although investment returns fell sharply following the bankruptcy of Lehman Brothers and bailout of AIG in September 2008. The financial crisis has shown that the insurance sector is sufficiently capitalized. The vast majority of insurance companies had enough capital to absorb losses and only a small number turned to government for support. Advanced
INNOVATIVE EYE OF INSURANCE economies account for the bulk of global insurance. With premium income of $1,753bn, Europe was the most important region in 2008, followed by North America $1,346bn and Asia $933bn. The top four countries generated more than a half of premiums. The US and Japan alone accounted for 40% of world insurance, much higher than their 7% share of the global population. Emerging markets accounted for over 85% of the worlds population but generated only around 10% of premiums. Their markets are however growing at a quicker pace.
CHAPTER.4
PRIVATISATION
Privatization is the process involving private sector in the ownership and operation of state owned enterprises.It implies introduction of private management and control in public sector enterprises. The India government nationalized private insurance companies in 1956 [life insurance Corporation of India (LIC) followed by general insurance in 1972] to bring this sector under government control. The concept of privatization became popular in mid 1980s and since then it has spread all over the world. Western Europe and the US find Indian market as having greater growth potential than their domestic markets. The basic reason for privatization is growing disappointment with the functioning of public sector enterprises. In India, public sector enterprises have contributed tremendously in the development of the economy. They have created strong industrial ways in the country. They have generated tremendous employment opportunities and have also helped in achievement of national objective like distribution of wealth, removal of poverty, economic growth and development, etc. In spite of all these the public sector enterprises cannot perform all economic and developmental activities single handedly. Private sector had to be involved in various industries of the economy. Private sector has also contributed for the development but they face problems like higher cost of production, delay in delivery, labour indiscipline, political interference, etc. The insurance sector could not neglect changes taking place in the economy like liberalization, privatization, deregulation and globalization. It had to cope up with these new challenges. After 40 years of government protectionism of this massive sector, the new government initiated the process of opening this sector to private Indian houses as well as international players. Many international players are eyeing the vast potential of the Indian market. The entry of the foreign players in the sector with more financial resources, better experience and lower operational costs will have an advantage over the Indian companies involved in the business. The bigger private players claim that opening up insurance will give policy V.E.S COLLEGE OF ARTS, SCIENCE &COMMERCE (14)
INNOVATIVE EYE OF INSURANCE holders better product and services. The domestic insurance industry will as a result, have to face a greater competition. However, the Indian insurers due to their extensive branch networking and long-standing association with the client still have an advantage. With the entry of private and global players like HDFC Standard life, ICICI Prudential, Kotak Mahindra Club Insurance, Hindustan Times Commercial Union to name a few, the insurance industry is going to provide to provide many jobs and is going to witness phenomenal.The insurance industry in Indian has been lot of changes since the opening of this sector for private population. Innovation on the service front include providing call centre facilities, providing personalized planning looks, e- servicing of products and the most recent is the introduction of third party administrations.
They are: -
1.
Brokers.
An independent agent who represents the buyer, rather than the insurance company, and tries to find the buyer the best policy by comparison shopping.
An insurance broker acts as an intermediary between clients and insurance companies. Clients may be either individuals or commercial V.E.S COLLEGE OF ARTS, SCIENCE &COMMERCE (15)
INNOVATIVE EYE OF INSURANCE businesses and organizations. Brokers use their in-depth knowledge of risks and the insurance market to find and arrange suitable insurance policies. Insurance brokers, unlike tied agents, are independent and offer products from more than one insurer to ensure that their clients get the best deal.
Insurance policies range from motor insurance, required by law to drive a vehicle in the UK, to public, employers or product liability insurance, which pays compensation on the basis of the assessment of legal liability for damage, injury or harm.
2. Surveyors and loss Assessors.

Surveyors and loss Assessors are independent professionals appointed by the insurance company in order to assess the loss or damage, whenever a claim is noticified under a policy issued by them. An insurance surveyor must be duly licensed by the IRDA.
3. Third party Administration.

There are new breed of intermediaries in the health insurance sector which facilitate the access of the policy holders to a network of hospitals. TPAs maintain the database of policy holders and the issue them identity cards with unique identification number and handle all the post policy issues including claim settlements. They run a 24 hour toll-free number which can be accessed from anywhere in the country.
CHAPTER.6 CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Since most insurance companies are not adequately equipped to help their agents deal with customer centered problems CRM insurance enables insurance organizations to survive in a tough economic climate by using the data the insurance company has on the existing customers and then use it to increase the level of profitability. It manages to enhance your customer relationships based on customer's unique requirements. Customer data is available but insurance companies do not have it readily assessable nor is it coherent. CRM insurance software creates a holistic view of the customer which helps eliminate customer irritation experienced due to this, when they need to identify themselves repeatedly. Insurance CRM assists Customer Service Representatives when they are not able to properly access customer data. Having ample customer information on hand enables a CSR to be more confident of dealing with the client. It removes the chance of errors.
CRM enables customers themselves to do research on products, have answers to their questions etc. In addition to this policyholders or beneficiaries can check their claim status, change their account information, submit complaints etc. Insurers find that CRM is assisting them in their marketing efforts as well through a comprehensive understanding of the client base. CRM aids the insurance companies by ensuring that campaigns are more affective.
ADVANTAGES OF CRM:-
1. Targeted marketing 2. Customer retention 3. Increased growth 4. Increased policy sales 5. Increased insurance market share
INNOVATIVE EYE OF INSURANCE 6. CRM Insurance integrates marketing with other operations 7. Efficient distribution channels are secured 8. CRM provides the chance to reduce operating expenses 9. It provides for more effective and efficient communication 10.It improves the response time 11.It increases customers satisfaction 12. Insurance application queries/ claim status queries can be answered sooner 13.It reduces the time that is normally taken for printing 14.It decreases overall costs 15.Aids the call centre activities
CHAPTER.7 INNOVATIVE INSURANCE AGENCY

Innovative insurance service is one of the growing company in Insurance and Reinsurance brokers, established in Delhi, India in the year2006 and has been operating/servicing in the domestic market. Innovative insurance service provides their professional services in the area of insurance and Reinsurance broking/consultancy as well as Risk Management and Insurance Claims setting consultancy services. Innovative insurance service has developed a considerable amount of knowledge and experience in the field of insurance, reinsurance and Risk Management in the course of handling the insurance and risk management portfolio of different business organizations and individuals
Fact Sheet Year Establishment Legal Firm Status of : of : 2004
Professional Association Service Provider Up to 10 People Up to US$ 0.25 Million (or up to Rs. 1 Crore Approx.) Indian Subcontinent The Member of IRDA, LIC of India, Kotak life insurance and Reliance life insurance.
Nature of Business: Number Employees Turnover Major Markets Trade Membership of : : : :
The group that doesnt believe in waiting for the innovation, but creating it. Setting trends, writing success stories and adapting to an evolving
INNOVATIVE EYE OF INSURANCE country. We had always rewritten the rules, but never lost sight our Indian values. The innovative group motto is to provide every service in the most profitable and complete manner.
SERVICES
No matter what you are looking for, you will find it within the innovative group. At ii in se, you can trust for all financial needs .for your apparel needs, there is always Innovative Fashions. If you are in need of any computer service, head over to Raccord system. If its for home and construction, no look further than balaji Properties. And if you just want wellness and health, come over to forever Living Products, USA. It is no wonder that the Innovative Group is one of the success stories in the country.
1. LIFE INSURANCE
Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.
2. HEALTH INSURANCE
Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical areas, the standard insurances V.E.S COLLEGE OF ARTS, SCIENCE &COMMERCE (21)
INNOVATIVE EYE OF INSURANCE exclude certain types of disasters, such as flood and earthquakes that require additional coverage. Maintenance-related problems are the homeowners' responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household, including pets.[
3. VEHICLE INSURANCE.
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:
1) Property coverage pays for damage to or theft of your car. 2) Liability coverage pays for your legal responsibility to others for bodily injury or property damage. 3) Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
4. BUSINESS INSURANCE.
Business insurance is a risk management tool that enables businesses to transfer the risk of a loss to an insurance company. By paying a relatively
INNOVATIVE EYE OF INSURANCE small premium to the insurance company, the business can protect itself against the possibility of sustaining a much larger financial loss. All businesses need to insure against riskssuch as fire, theft, natural disaster, legal liability, automobile accidents, and the death or disability of key employeesbut it is especially important for small businesses. Many large corporations employ a full-time risk management expert to identify and develop strategies to deal with the risks faced by the firm, but small business owners usually must take responsibility for risk management themselves. Though it is possible to avoid, reduce, or assume some risks, very few companies can afford to protect themselves fully without purchasing insurance. Yet many small businesses are either underinsured or uninsured.
5. GENERAL INSURANCE
General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. It is called property and casualty insurance in the U.S. and Non-Life Insurance in Continental Europe.
6. Mutual funds
A mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. Money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. Incomes earned through these investments are shared by its unit holders in proportion to the number of units owned by them. Mutual fund was established by UTI in India in 1963.
CHAPTER. 7 TYPES OF LIFE INSURANCE POLICIES

Life insurance is all about making sure your family has adequate financial resources to make those plans and dreams come true. It provides financial protection to help your family or business to manage after your death.
W O EL E H L IF P L Y O IC
C IL R N H DE P L IE O IC S E D W ET N O MN P L IE O IC S
T P SO L E Y E F IF IN U A C SRNE P L IE O IC S
P N IO E S N SHM S CE E M NY O E BC AK P L IE O IC S
U IT N PA S LN
1. Whole life policy cover the insured for life. The insured does not
receive money while he is alive; the nominee receives the sum assured plus bonus upon death of the insured.
2. Endowment policies cover the insured for a specific period. The

insured receive money on survival of the tern and is not covered thereafter.
3. Money back policies the nominee receives money immediately

on death of the insured. On survival the insured receives money at regular intervals during the term. These policies cost more than endowment with profit policies.
4. Children policies-
the nominee receives a guaranteed amount of money at a pre determined time and not immediately on death of the insured. On survival the insured receives money at the same pre determined time. These policies are best suited for planning childrens future education and marriage costs.
5. Pension schemes-
are policies that provide benefits to the insured only upon retirement. If the insured dies during the term of the policy, his nominee would receive the benefits either as a lump sum of or as a pension every month.
6. Unit plans these are the best selling products these days. You can
mix n match stability of endowment and gain form share market. These are investment plans for those who realize the worth of hard earned money. These plans help you see youre saving yield rich benefits and help you save tax even if you dont have consistent income.
LIFE INSURANCE PRODUCT AVAILABLE FROM COMPANIES OTHER THAN LIC OF INDIA.
H D F C S ta n d a rd L ife In s u ra n c e C o m p a n y L td is o n e o f In d ia 's le a d in g p v t In s u ra n c e
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in d iv id u a l a n d g ro u p in s u ra n c e s o lu tio n s . It
V A S T T A L E NT PO O L L O W O P E R A T I NG C O S T T E C H NO L O G Y F O C U S ST R O NG C O R PO R A T E R E L A T I O NS H I P
is a jo in t v e n tu re b e tw e e n H o u s in g D e v e lo p m e n t F in a n c e C o r p o ra tio n L im ite d , In d ia 's le a d in g h o u s in g fin a n c e in s titu tio n a n d a G ro u p C o m p a n y o f th e S ta n d a r d L ife P lc , U K . A s o n F e b r u a r y 2 8 , 2 0 0 9 H D F C L td . h o ld s 7 2 .4 3 % a n d S ta n d a r d L ife (M a u ritiu s
H o ld in g ) 2 0 0 6 , L td . h o ld s 2 6 .0 0 % o f e q u ity in th e jo in t v e n tu r e , w h ile th e r e s t is h e ld b y O th e rs .
Vision
'Th e m ost su ccessfu l an d adm ired life in su ran ce com pan y, w h ich m ean s th at w e are th e m ost tru sted com pan y, th e easiest to deal w ith , offer th e best valu e for m on ey, an d set th e stan dards in th e in du stry'. 'Th e m ost obviou s ch oice for all'.
Values
V alues that we observe wh ile we work : 1 . I n tegrity 2 . I n n ovation 3 . C u stom er cen tric 4 . P eop le C are O n e for all an d all for on e 5 . Team w ork 6 . J oy an d S im p licity
KEY STRENGTHS:V.E.S COLLEGE OF ARTS, SCIENCE &COMMERCE (29)
Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.
Range of Solutions
They have a range of individual and group solutions, which can be easily customised to specific needs. Their group solutions have been designed to offer you complete flexibility combined with a low charging.
PRODUCTS OFFERED:-
1) PROTECTION PLANS:Protection Plans help you shield your family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness. Securing the future of ones family is one of the most important goals of life.
Types of Protection Plans

1) 2) 3)
HDFC Term Assurance Plan HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan
2) SAVINGS & INVESTMENT PLANS

As a judicious family man, our priority is to secure the well-being of those who depend on us. Not just for today, but also in the long term. More importantly, we have to ensure that our familys future expenses are taken care, even if something unfortunate were to happen to us. A big factor that we need to consider while building our wealth is inflation. It has a dual impact on your hard-earned savings. Sample this: An 35 Year individual needs to invest Rs. 36,000/- per year with 8% returns to build a corpus of Rs. 10,00,000/- by the age of 50 Years.
However, Rs. 10,00,000/- after 15 years would be worth roughly around half of what it is today once adjusted for inflation at the rate of 4%. Therefore, an individual will need to save nearer to Rs 50,000/- annually to reach our targeted savings at the age of 50 Years, if we consider inflation.
TYPES OF SAVINGS & INVESTMENT PLANS

Type Conventional Plans Unit Linked Insurance Plans HDFC Endowment Super HDFC Endowment Supreme HDFC SimpliLife HDFC Endowment Super Suvidha HDFC Endowment Supreme Suvidha
Regular Premium
HDFC Endowment Assurance Plan HDFC Money Back Plan HDFC Assurance Plan# HDFC Savings Assurance Plan
3.RETIREMENT PLANS
Retirement Plans provide us with financial security so that when our professional income starts to ebb, you can still live with pride without compromising on your living standards. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. Indias average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years. Life spans have been increasing due to better health and sanitation conditions in the country. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of post-retirement years. Accordingly, it has become necessary to ensure regular income for life after retirement, so that we can live with pride.
PRIORITIES AT DIFFERENT STAGES OF LIFE:-
TYPES OF RETIREMENT PLANS

Type Regular Premium Single Premium/ Investment Conventional Plans Unit Linked Insurance Plans HDFC Personal Pension Plan HDFC Pension Super HDFC Pension Supreme HDFC SL Pension Champion HDFC SL Unit Linked Pension Maximiser II
5. CHILD PLANS
Being a parent is one of the joys of life. Your child looks up to you and depends on you for love, protection and support. You want to provide your child with the best in life. They help you to save systematically so that you can secure your childs future needs. Be it higher education, his or her first home or any other requirement, you will always be there for your child when he or she needs you.
TYPES OF CHILDRENS PLANS

Conventional Plans
Unit Linked Insurance Plans HDFC YoungStar Super HDFC YoungStar Supreme HDFC YoungStar Super Suvidha HDFC YoungStar Supreme Suvidha
HDFC Children's Plan
6. GROUP PLANS
As an employer, they believe in providing the best opportunities for employees while keeping the interests of the company in mind. They offer a win-win solution with Solutions for Groups. Not only are the employees covered for life from accidents and disablements, you can also efficiently manage their future with gratuity and pension plans.
TYPES OF GROUP PLANS

Group Term Insurance Plan Group Variable Term Insurance Plan Group gratuity plan
2. ICICI PRUDENTIAL LIFE INSURANCE
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide reach includes 1,960 branches (inclusive of 1,096 microoffices), over 237,000 advisors; and 6 bancassurance partners.
3.Birla Sun Life Insurance Company Limited
Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group, a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc, leading international financial services organization from Canada. The local knowledge of the Aditya Birla Group combined with the domain expertise of Sun Life Financial Inc., offers a formidable protection for its customers future. With an experience of over 9 years, BSLI has contributed significantly to the growth and development of the life insurance industry in
INNOVATIVE EYE OF INSURANCE India and currently ranks amongst the top 5 private life insurance companies in the country.
4. Kotak Life Insurance Company
Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual. A company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products, helping them in taking important financial decisions at every stage in life and stay financially independent. The company is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. Kotak Life Insurance employs around 5,565 people in its various businesses and has 197 branches across 141 cities.
5. Reliance Life Insurance Company Limited

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India's leading private sector financial services companies, which ranks among the top 3 private sector financial services and banking companies. Reliance Life Insurance is not only one of India's fastest growing life insurance companies, but also counts among the top 4 private sector insurers. In just 2 years, the Company has crossed the mark of 1.7 Million policies. RLIC launched around 600 branches in 10 months, taking the overall branch network above to 740.
CHAPTER.8 BANCASSURANCE
Bancassurance is the marketing of insurance products by Banks. Banks, apart from their regular products of deposits, advances, investments etc., are also engaged in selling insurance products, both life and non life, in order to increase their fee based income, and to leverage their inherent advantages as well established financial supermarkets.
The Benefits of Bancassurance:

1. Banks enjoy several advantages compared to insurance companies that make them ideal vehicles to carry the message of insurance to the masses, across a wide cross section of society, and in the process
INNOVATIVE EYE OF INSURANCE increase their business. By marketing a whole range of insurance products in the life and non life sectors, Banks, not only spread awareness of these products and facilities among the people, but also make a handsome amount of money by extending this service.
2. It is felt that Banks have a more personal relationship with the public and a better understanding of their financial needs. Hence people are more responsive to their Banker's advice.
3. Bank personnel are familiar and comfortable with financial language and terminology, and so can easily learn the subject of insurance, in order to sell these products. Further they are good at number crunching and making a sales pitch that gives them a distinct advantage.
4. Banking and Insurance products can often be combined to offer a better product mix to the consumer, in order to leverage the benefits of both the products and services.
5. The provision of insurance products through the banking channel enables the insurance companies to depend less upon the agents to sell their products. It costs the insurance companies a lot to select, train, motivate, and remunerate the insurance agents to push their products.
6. Banks get an additional source of income from commissions and fees from their insurance business. Especially the excessive competition for interest based products has affected the bottomline of the Banks who
INNOVATIVE EYE OF INSURANCE are trying to build up alternative sources of income, through provision of non banking products and services.
7. Banks cater to both categories of customers- the classes and the masses. Insurers can take advantage of this by pushing relevant products through these distribution channels. Simple products for the masses, and more sophisticated ones for the classes.
The Flip side of Bancassurance:

1. Bancassurance is not rosy all the way for both Bankers as well as insurers. There are several issues that both of them are concerned about.
2.
One of the most important issues and indeed the fear of Bankers are losing business to the Insurers, in relation to similar products. For instance, a basic banking product like a fixed deposit may be placed at a disadvantage compared to a money market related insurance product that offers both growth as well as insurance cover.
INNOVATIVE EYE OF INSURANCE 3. Insurers have their own perceptions of Bankers as their marketers and feel that often Bankers do not do enough to push their products.
4. Banks feel that insurers gain more from Bancassurance, as they do not incur expenditure on infrastructure, manpower, etc., whereas, the returns accruing to Banks from this business are not worth the trouble taken by them.
5. Banks also stand the risk of facing the wrath of the customers for poor follow up service, like claim settlement, etc., on part of the insurers.
6. Bankers may not appreciate certain finer points of insurance products they sell, and consequently face administrative and legal hassles from the customers.
CHAPTER.9 TECHNOLOGY
In todays highly competitive financial services environment, effective organization employ technology in a strategic role to achieve competitive edge. Technology plays an important role in aiding design and administering of products, as a well in efforts to build lifelong customer relationships. At the same time, technology investment will only help as long as firms find the right people: people with the right attitude, values, and ethics, commitment to excellence, and focus on customer service
1. Internet
INNOVATIVE EYE OF INSURANCE As a distribution channel, the internet facilities information flow, negotiation flow, service flow, transaction flow and promotion flow. Compared to the traditional channels, the net is definitely better for conducting research on consumer information seeking and search behaviours, for getting feedback from consumers in a short period of time, and for creating communities online. Internet sales will experience explosive growth this is due to the fact the every $ 100 in first year premiums collected by insurance company about $ 139 is spent on agents in the form of commission and other overhead expenses in the u.s. the same policy sold over the internet would cost just a fraction of the cost at about $ 15 for every $ 100 premium earned. Due to its low cost, almost all the Insurance Company in India has resorted to Internet. The future use of internet as a distribution channel is likely to be driven more by the insurance and its technology suppliers the by consumers themselves.
2. Advertisement
The insurance services depend on effective promotional measures. Creation of awareness is found very instrumental in the generation of impulse buying. In a country like India the rate of illiteracy rate is high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal strategies. Advertising and publicity measures, organization of conference and seminars, incentive to policy holders are impersonal communication.
3. Information technology
The process should be customer friendly in insurance industry the speed and accuracy payment is of great importance. The processing method should be easy and convenient to the customers. IT and data warehousing will smoothen the process flow. Information technology will help in servicing large numbers of customers efficiently and bring down overheads. Technology can either complement or supplement the channels of distribution cost effectively. It can also help to improve customer service levels.
CHAPTER. 10 GROWTH OF THE INSURANCE SECTOR

India's insurance sector is zooming to show an unprecedented
progressive growth of more than 200% by the period of 2009-10. The Associated Chambers of Commerce and Industry of India has clocked out the fact that during this period, private players in the industry will see a growth of about 140 per cent, owing to the adoption of the aggressive marketing techniques in comparison of the growth rate of 35 per cent-40 per cent achieved by the state owned insurance companies.
INNOVATIVE EYE OF INSURANCE The chamber is expected to poise the business of insurance to reach at Rs.2000 billions in coming 2 years from the present level of Rs. 500 billion. With the result of adoption of the intense marketing strategies by the private players, the declination has been witnessed in respect of the share of the state owned insurance companies captured in the market. The market share fallout has been noticed in context of such companies like GIC, LIC, which have come down to nearly 70 per cent in the past 4-5 years from the 97 per cent. The experts have fore casted the more severe competition in the insurance sector likely to be occurred in the near future. Till recently, insurance sector was majority driven by the government sector players but now many private sector multinational players have come into the picture. Like HDFC, ICICI, Kotak, Mahindra and Birla Sunlife. Insurance sector has been characterized as the booming sector of the Indian arena, which has shown the growth rate of more than 15 per cent to 20 per cent. Insurance in India is put under the federal subject and is governed by the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business(Nationalization) Act, 1972, Insurance Regulatory and Development Authority(IRDA) Act, 1999 and by various other acts.
CHAPTER.11 CONCLUSION
The insurance landscape in India is undergoing a major change.
Insurance protects and safeguards the interest of the individuals and businessmen.
With the liberalization, privatization, deregulation and globalization of this sector, several new players have entered the scene.
Competition will surely cause the market to grow beyond current rates and offer additional consumer choices through the introduction of new products, services, and price options.
The domestic insurance industry, have to face a greater competition. However, the Indian insurers due to their extensive branch networking and long-standing association with the client still have an advantage.
At the same time public and private sector companies have to work together to ensure healthy growth and development of the sector.
The insurance sector reforms such as malhotra committee and IRDA act were established for the growth of the insurance sector. The malhotra committee aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy, whereas IRDA was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry.
INNOVATIVE EYE OF INSURANCE Bancassurance is a win-win model for insurance companies and banks. Insurance companies, with their relatively limited infrastructure, are able to sell their products throughout the country by using the distribution channel of bank branches. At the same time, banks, without investing in additional resources or infrastructure, were able to earn a fee-based income, to supplement their core lending activities.
Technology such as Internet, advertisements and information technology plays an important role in aiding design and administering of products, as a well in efforts to build lifelong customer relationships.
India's insurance sector is zooming to show an unprecedented
progressive growth of more than 200% by the period of 2009-10. Thus Insurance sector has been characterized as the booming sector of the Indian arena, which has shown the growth rate of more than 15 per cent to 20 per cent.
CHAPTER.12 RECOMMENDATION
1) Simple new product which should be economical and result oriented should be introduced. 2) Provide new product with competitive prices. 3) Focus on aggressive advertising for the success of insurance companies. 4) Provide proper training facilities to the intermediaries in order to increase their efficiency. 5) Appoint trained, skilled and professional agents as intermediaries to develop and expand insurance market. 6) Analyze the challenges and market opportunities in order to achieve the targets. 7) Provide after sale service at the time of processing a claim, documentation and settlement of claims. 8) Build up a large network of office in order to take insurance close to the insurance public. 9) Use innovative technology to design and administer insurance products.

INSURANCE Inoovation

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INNOVATIVE EYE OF INSURANCE

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CHAPTER.2 EVOLOUTION OF INSURANCE

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CHAPTER.3 INSURANCE SECTOR REFORMS 1)MALHOTRA COMMITEE

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The Authority has notified Regulations on various issues: Registration of Insurers,

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LIFE INSURERS Public Sector

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Om Kotak Mahindra Life Insurance Co.www.omkotakmahnidra.com Ltd.

GENERAL INSURERS Public Sector

Reliance General Insurance Co. Limited

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Protection of the interest of policy holders:

CHAPTER.3 GLOBALIZATION IN INSURANCE

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2. Surveyors and loss Assessors.

3. Third party Administration.

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CHAPTER.6 CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

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CHAPTER.7 INNOVATIVE INSURANCE AGENCY

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Fact Sheet Year Establishment Legal Firm Status of : of : 2004

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Nature of Business: Number Employees Turnover Major Markets Trade Membership of : : : :

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CHAPTER. 7 TYPES OF LIFE INSURANCE POLICIES

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2. Endowment policies cover the insured for a specific period. The

3. Money back policies the nominee receives money immediately

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