About Us

Insurance is related to the protecting economic value of assets. Every asset has a value. When such asset gets loss or made non-functional due to unfortunate event like accident, the owner suffers loss. Insurance helps to reduce the burden of such adverse event.

Human Life is also an Income generating asset. This asset also can be lost through unexpected as early death or disabilities caused by an accident.

Accident may or may not happen. Death will happen, but the time is uncertain.

If you think the bread winner of the family died accidentally, the family loses the income. At that time they need an alternate arrangement to tack care. Insurance is a best alternate to save the family. Thus Insurance Sector acts as a Best Protector to you and your Family.

1.2. How Insurance works?

Insurance is based on sharing of loss. A group of persons shares loss of a single family. People facing common risk come together and makes small contribution to a common fund. When risk occurs, the fund can be used.

The contribution amount that is called as premium. The premium amount is calculated by taking into an account of Mortality, Interest, Expenses and Past Experience.

CHAPTER 2 PRINCIPLES OF INSURANCE

Insurance is a legal contract made between a person and an Insurer. Insurance contracts having some principles called ‘Utmost Good faith and principles of lnsurable Interest”.

2.1. Utmost Good Faith

The person should follow utmost good faith in filling the proposal form. He gives material information like Date of Birth, Age, family details, health details etc. Otherwise the contract may cancel.

2.2. Insurable Interest

All risks are not insurable. The risk must be capable of financial measurement, there must be sufficient number of similar risks. There must be insurable interest in the property to be insured / risk to be covered.

2.3. Insurance Contract

Insurable interest in his won life is unlimited. Spouses have insurable interest in each other. Partners can insure each other’s lives. A creditor may lose financially, if a debtor dies before repaying a loan. Employers have insurable interest in the life of employees.

Insurance is very important need for all. Insurance industry is a fast growing industry. In India till now only 10% of the population is insured. But according to our population, more than 70% is insurable populations. Lack of insurance leads to our country in poverty. Insurance is having more faces like savings, life protection, national development and poverty.

In December 1999, the act was passed in the Parliament for regulating insurance activities. Accordingly In the year 2002, IRDA (Insurance Regulatory and Development Authority) been established in India.
IRDA have the powers and functions of the Authority shall include.

1. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration.

2. Protection of the interests of the policy holders.

3, Specifying the code of conduct for surveyors and loss assessors;

4. Promoting efficiency in the conduct of insurance business.

5. Promoting and regulating professional organizations connected with the insurance and re-insurance business.

6. Levying fees and other charges for carrying out the purposes of this Act.

7. Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers.

Insurance Business is divided into four Classes : 1. Life Insurance, 2. Fire Insurance, 3. Marine Insurance, 4. Miscellaneous Insurance. Life Insurance transacts Life Insurance and General transacts the rest. Insurance industry, as on 1.4.2000, comprised mainly two players

2. General Insurers: General Insurance Corporation of India (GIC) (with effect from Dec’2000, a National Reinsure). GIC had four subsidiary companies, namely (with effect from Dec’2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies).

HDFC Standard Life Insurance Co. Ltd.

Max New York Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Co. Ltd.

Birla Sun Life Insurance Co. Ltd.

Tata AIG Life Insurance Co. Ltd.

SBI Life Insurance Co. Ltd.

ING Vysya Life Insurance Co. Pvt. Ltd.

Bajaj Allianz Life Insurance Co. Ltd.

Metlife India Insurance Co. Pvt. Ltd.

AMP SANMAR Assurance Co. Ltd.

Aviva Life Insurance Co. India Pvt. Ltd.

Sahara India Insurance Co. Ltd.

Royal Sundaram Alliance Insurance Co. Ltd.

Reliance General Insurance Co. Limited.

IFFCO Tokio General Insurance Co. Ltd.

TATA AIG General Insurance Co. Ltd.

Bajaj Allianz General Insurance Co. Ltd.

ICICI Lombard General Insurance Co. Ltd.

Cholamandalam General Insurance Co. Ltd.

Export Credit Guarantee Corporation Ltd.

HDFC-Chubb General Insurance Co. Ltd.

Agriculture Insurance Co. of India Ltd.

5.1 Vision of LIC of India

“A trans-nationally competitive financial conglomerate of
significance to societies and Pride of India”

5.2 Objectives of LIC of India

1. Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.

2. Maximize mobilization of people’s savings by making insurance-linked savings adequately attractive.

3. Bear in mind, in the investment of funds, the primary obligation to its policy-holders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.

4. Conduct business with utmost economy and with the full realization that the money belong to the policyholders.

5. Act as trustees of the insured public in their individual and collective capacities.

6. Meet the various life insurance needs of the community

7. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.

8. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

5.3 Mission of LIC of India

“Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.”

5.4 PRODUCTS OF LIC OF INDIA

5.4.1. Whole Life Plans

5.4.2. Term Assurance Plans :

ii. Money Back Plans

5.4.3. Annuity Plans (Pension Scheme)

5.4.4. Group Insurance Plans

Whole Life Assurance Plans

A low cost with profit insurance plan where the sum assured is payable on the death of the Life assured (table no: 2, 5 & 8) or on maturity claim after the life assured attains age 80 years. Subject to conditions.

Endowment Assurance Plan

Under this plan Sum assured is payable along with accrued bonuses on maturity or on the death of the Life


Chapter 1 Introduction to Insurance
Chapter 2 Principles of Insurance
Chapter 3 Insurance Regulatory and Development Authority (IRDA)
Chapter 4 Indian Insurance Industry
Chapter 5 Life Insurance Corporation of India Products
Chapter 6 Insurance Agents
Chapter 7 Salesmanship
Chapter 8 Personal Development
CHAPTER 1 INTRODUCTION TO INSURANCE
1.1. What is Insurance?
Insurance is related to the protecting economic value of assets. Every asset has a value. When such asset gets loss or made non-functional due to unfortunate event like accident, the owner suffers loss. Insurance helps to reduce the burden of such adverse event.
Human Life is also an Income generating asset. This asset also can be lost through unexpected as early death or disabilities caused by an accident.
Accident may or may not happen. Death will happen, but the time is uncertain.
If you think the bread winner of the family died accidentally, the family loses the income. At that time they need an alternate arrangement to tack care. Insurance is a best alternate to save the family. Thus Insurance Sector acts as a Best Protector to you and your Family.
1.2. How Insurance works?
Insurance is based on sharing of loss. A group of persons shares loss of a single family. People facing common risk come together and makes small contribution to a common fund. When risk occurs, the fund can be used.
The contribution amount that is called as premium. The premium amount is calculated by taking into an account of Mortality, Interest, Expenses and Past Experience.
CHAPTER 2 PRINCIPLES OF INSURANCE
Insurance is a legal contract made between a person and an Insurer. Insurance contracts having some principles called ‘Utmost Good faith and principles of lnsurable Interest”.
2.1. Utmost Good Faith
The person should follow utmost good faith in filling the proposal form. He gives material information like Date of Birth, Age, family details, health details etc. Otherwise the contract may cancel.
2.2. Insurable Interest
All risks are not insurable. The risk must be capable of financial measurement, there must be sufficient number of similar risks. There must be insurable interest in the property to be insured / risk to be covered.
2.3. Insurance Contract
Insurable interest in his won life is unlimited. Spouses have insurable interest in each other. Partners can insure each other’s lives. A creditor may lose financially, if a debtor dies before repaying a loan. Employers have insurable interest in the life of employees.
CHAPTER 3 IRDA
Insurance is very important need for all. Insurance industry is a fast growing industry. In India till now only 10% of the population is insured. But according to our population, more than 70% is insurable populations. Lack of insurance leads to our country in poverty. Insurance is having more faces like savings, life protection, national development and poverty.
In December 1999, the act was passed in the Parliament for regulating insurance activities. Accordingly In the year 2002, IRDA (Insurance Regulatory and Development Authority) been established in India. IRDA have the powers and functions of the Authority shall include.
1. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration.
2. Protection of the interests of the policy holders.
3, Specifying the code of conduct for surveyors and loss assessors;
4. Promoting efficiency in the conduct of insurance business.
5. Promoting and regulating professional organizations connected with the insurance and re-insurance business.
6. Levying fees and other charges for carrying out the purposes of this Act.
7. Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers.
8. Regulating investment of funds by insurance companies.
9. Regulating maintenance of margin of solvency.
10. Adjudication of disputes between insurers and intermediaries or insurance intermediaries.
11. Supervising the functioning of the Tariff Advisory Committee and etc.
CHAPTER 4 INDIAN INSURANCE INDUSTRY
Insurance Business is divided into four Classes : 1. Life Insurance, 2. Fire Insurance, 3. Marine Insurance, 4. Miscellaneous Insurance. Life Insurance transacts Life Insurance and General transacts the rest. Insurance industry, as on 1.4.2000, comprised mainly two players
1. Life Insurers : Life Insurance Corporation of India (LIC)
2. General Insurers: General Insurance Corporation of India (GIC) (with effect from Dec’2000, a National Reinsure). GIC had four subsidiary companies, namely (with effect from Dec’2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies).
a. The Oriental Insurance Company Limited
b The New India Assurance Company Limited
c. National Insurance Company Limited
d. United India Insurance Company Limited
At present following are the major registered Insurance Companies in India.
Life Insurers :
S.No	Reg. No.	Date of Reg.	Name of the Company
1	101	23.10.2000	HDFC Standard Life Insurance Co. Ltd.
2	104	15.11.2000	Max New York Life Insurance Co. Ltd.
3	105	24.11.2000	ICICI Prudential Life Insurance Co. Ltd.
4	107	10.01.2001	Kotak Mahindra Old Mutual Life Co. Ltd.
5	109	31.01.2001	Birla Sun Life Insurance Co. Ltd.
6	110	12.02.2001	Tata AIG Life Insurance Co. Ltd.
7	111	30.03.2001	SBI Life Insurance Co. Ltd.
8	114	02.08.2001	ING Vysya Life Insurance Co. Pvt. Ltd.
9	116	03.08.2001	Bajaj Allianz Life Insurance Co. Ltd.
10	117	06.08.2001	Metlife India Insurance Co. Pvt. Ltd.
11	121	03.01.2002	AMP SANMAR Assurance Co. Ltd.
12	122	14.05.2002	Aviva Life Insurance Co. India Pvt. Ltd.
13	127	06.02.2004	Sahara India Insurance Co. Ltd.
General Insurers :
S.No	Reg. No.	Date of Reg.	Name of the Company
1	102	23.10.2000	Royal Sundaram Alliance Insurance Co. Ltd.
2	103	23.10.2000	Reliance General Insurance Co. Limited.
3	106	04.12.2000	IFFCO Tokio General Insurance Co. Ltd.
4	108	22.01.2001	TATA AIG General Insurance Co. Ltd.
5	113	02.05.2001	Bajaj Allianz General Insurance Co. Ltd.
6	115	03.08.2001	ICICI Lombard General Insurance Co. Ltd.
7	123	15.07.2002	Cholamandalam General Insurance Co. Ltd.
8	124	27.08.2002	Export Credit Guarantee Corporation Ltd.
9	125	27.08.2002	HDFC-Chubb General Insurance Co. Ltd.
10	126	29.10.2003	Agriculture Insurance Co. of India Ltd.
CHAPTER 5 LIC OF INDIA PRODUCTS
5.1 Vision of LIC of India
“A trans-nationally competitive financial conglomerate of significance to societies and Pride of India”
5.2 Objectives of LIC of India
1. Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.
2. Maximize mobilization of people’s savings by making insurance-linked savings adequately attractive.
3. Bear in mind, in the investment of funds, the primary obligation to its policy-holders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.
4. Conduct business with utmost economy and with the full realization that the money belong to the policyholders.
5. Act as trustees of the insured public in their individual and collective capacities.
6. Meet the various life insurance needs of the community
7. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.
8. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.
5.3 Mission of LIC of India
“Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.”
5.4 PRODUCTS OF LIC OF INDIA
5.4.1. Whole Life Plans
5.4.2. Term Assurance Plans :
i. Endowment Plans
ii. Money Back Plans
5.4.3. Annuity Plans (Pension Scheme)
5.4.4. Group Insurance Plans
Whole Life Assurance Plans
A low cost with profit insurance plan where the sum assured is payable on the death of the Life assured (table no: 2, 5 & 8) or on maturity claim after the life assured attains age 80 years. Subject to conditions.
Endowment Assurance Plan
Under this plan Sum assured is payable along with accrued bonuses on maturity or on the death of the Life