(A) LIFE INSURANCE :

Term Life Insurance Permanent Life Insurance(B)

GENERAL INSURANCE
Fire Insurance Marine Insurance Accident Insurance

(A)Life Insurance
Life Insurance is a contract providing for payment of a sum of money to
the person assured or, following him to the person entitled to receive
the same, on the happening of a certain event. It is a good method to
protect your family financially, in case of death, by providing funds for
the loss of income.
A1. TERM LIFE INSURANCE : Under a Term Life contract, the
insurance company pays a specific lump sum to the designated
beneficiary in case of the death of the insured. These policies are
usually for 5, 10, 15, 20 or 30 years.
Term life insurance are the most popular in advance countries but were
not so popular in India. However, after the entry of the private
operators and aggressive marketing by few players this kind of policies
are becoming popular. The premium on such type of policies is
comparatively quite low when compared with other types of life
insurance policies, mainly due to the fact that these policies do
not carry cash value.
PLUS OF TERM LIFE INSURANCE MINUSES OF TERM LIFE INSURANCE
- If one survives the period of the policy,
he / she does not get any money at the
- The premium payable on these policies end of the policy.
is low as they do not carry any cash The premium on such policies keeps on
value.
increasing with age mainly because the
- One can afford for quite high value
risk of death of older people is more.
insurance policies
Over the page of 60, these policies
become difficult to afford.

A2. PERMANENT LIFE INSURANCE :

In a Permanent Life contract, a portion of the money paid
as premiums is invested in a fund that earns interest on a tax-deferred
basis. Thus, over a period of time, this policy will accumulate certain
"cash value" which you will be able to get back either during the period
of the policy or at the end of the policy.
Your need for life insurance can change over a lifetime. At any age, you
should consider your individual circumstances and the standard of
living you wish to maintain for your dependents. In most cases, you
need life insurance only if someone depends on you for support. Your
life insurance premium is based on the type of insurance you buy, the
amount you buy and your chance of death while the policy is in
effect. This type of policy not only provides protection for your
dependents by paying a death benefit to your designated beneficiary
upon your death, but it also allows you to use some part of the
money while you are alive or at the end of the policy. Some examples
of such policies are :- Whole Life, Universal Life and Variable-Universal
Life.
ENDOWMENT POLICIES
These policies provide for period payment of premiums and a lump sum
amount either in the event of death of the insured or on the date of
expiry of the policy, whichever occurs earlier.
MONEY BACK POLICIES
These policies provide for periodic payments of partial survival benefits
during the term of the policy itself. A unique feature associated with this
type of policies is that in the event of death of the insured during the
policy term, the designated beneficiary will get the full sum assured
without deducting any of the survival benefit amounts, which have
already been paid as money-back components. Moreover, the bonus on
such policies is also calculated on the full sum assured.
ANNUITY / PENSION POLICIES / FUNDS
This policies / funds require the insured to pay the premium as a single
lump sum or through installments paid over a certain number of
years. The insured in return will receive back a specific sum
periodically from a specified date onwards (the returns can can be
monthly, half yearly or annually), either for life or for a fixed number of
years. In case of the death of the insured, or after the fixed annuity
period expires for annuity payments, the invested annuity fund is
refunded, usually with some additional amounts as per the terms of the
policy.
Annuities / Pension funds are different from from all other forms of life
insurance as an annuity policy / fund does not provide any life
insurance cover but merely offers a guaranteed income either for life or
a certain period. Therefore, this type of insurance is taken so as to get
income after the retirement.
 Types of Insurance Policies
In general, there are 2 major types of insurance - general insurance and life insurance. However, some
other types of insurance are available as well. In India life insurance is the most availed form along with health
and accident based plans.

Insurance Policies - Categorization

General Insurance
1. Personal Insurance
2. Rural Insurance
3. Industrial Insurance
4. Commercial Insurance

Life Insurance
1. Whole Life Plan
2. Endowment
3. Money Back
4. Term plan
5. ULIP
Others
1. Home insurance
2. Travel insurance
General Insurance Policies
Personal Insurance
Personal insurance is essentially a plan availed by an individual to take care of various requirements like health
and coverage against death or injury by accident. There are several policies nowadays where there is an option
to cover the family members in an individual policy.

The different types of personal insurance may be mentioned as well:

Medical Insurance
Medical or health insurance is taken to cover against the chances of medical costs. These plans are created with
estimates of healthcare expenses a person may face in future and the premiums are determined on such
approximations.

Following are some of the leading health insurance policies available in India:

Provider Policy Name

Star Health Star Comprehensive

Apollo Munich Health Insurance Optima Senior

Bajaj Allianz Family Floater Health Guard Plan

Max Bupa Heartbeat

ICICI Lombard iHealth Plan

HDFC Ergo Health Suraksha

Accidental Insurance
The accidental insurance policies cover both death and any sort of disability arising from an accident. These
plans cover a wide range of situations but not ones arising from using alcohol or drugs.

The top accidental insurance policies available in India may be mentioned as below:

Provider Policy Name

ICICI Lombard Personal Protect

Apollo Munich Health Insurance Individual Personal Accident Plan

HDFC Ergo General Insurance Personal Accident

Tata AIG Insurance Group Personal Accident

Future Generali Future Accident Suraksha

Oriental Insurance Personal Accident Insurance Cover

Property Insurance
Property insurance provides coverage against risks to property arising from fire, weather damage, or theft to
name a few. This type of insurance can be further sub divided into fire insurance, earthquake insurance, flood
insurance, and boiler insurance for example. The Standard Fire & Special Perils policy of SBI General
Insurance is one of the major examples of such a policy.
Vehicle Insurance
Vehicle insurance is also referred to as auto insurance, car insurance, GAP insurance, and motor insurance. It
is primarily bought for securing road vehicles such as cars, motorcycles, and trucks from physical damage
from traffic accidents as well as any liability that may arise thereafter.

Following are the leading vehicle insurance policies available in India:

Provider Policy Name

ICICI Lombard Car Insurance

Bajaj Allianz Car Insurance Online

Reliance General Insurance Reliance Private Car Insurance

HDFC Ergo General Insurance Motor Insurance

ICICI Bank Car Insurance

Rural Insurance
Rural insurance is meant to cater to the requirements of rurally bases businesses or individuals. These policies
provide a wide range of coverage starting from life and health to protection against natural disasters that can
have a negative effect on business.

The leading rural insurance policies available in India may be mentioned as below:
Provider Policy Name
ICICI Family Health Insurance, Weather Insurance, Home Insurance, Shop Insurance Tractor
Lombard Insurance, and Artisans and Weavers

Tata AIG Motor Insurance, Health and Accident Insurance, Property, and Livestock
Insurance

New India Cattle Insurance, Sheep & Goat Insurance, Poultry Insurance Scheme, Dog Insurance
Assurance Scheme, Silk Worm Insurance Scheme, Honey Bee Insurance, Agricultural Pumpsets
Insurance Scheme, Hut Insurance, Lift Irrigation Insurance, Janata Personal Accident, and
Horticulture/Plantation Insurance

ICICI ICICI Pru Sarv Jana Suraksha, and ICICI Pru Anmol Nivesh
Prudential

Industrial Insurance

The industrial insurance policies are availed by various companies to get protection for important projects,
construction, contracts, and equipment from situations like fire, theft and any form of damage or loss.

The top industrial insurance policies of India may be mentioned as below:

Provider Policy Name

ICICI Lombard Boiler and Pressure Plant Insurance Policy, Machinery Loss of Profits Insurance Policy,
Electronic Equipment Insurance Policy, Contractors' All Risk Policy, Machinery
Breakdown Insurance Policy, Contractors' Plant & Machinery, and Erection All Risks

United India Boiler and Pressure Plant Policy, Electronic Equipment Policy, Contractors Plant and
Insurance Machinery Policy, Machinery Breakdown Policy, Deterioration of Stock, and Industrial
All Risk Policy

Royal Industrial All Risks Policy

Sundaram
General
Insurance

New India Fire Policy, Contractors All Risk Policy, Burglary Policy, Marine cum Erection / Storage
Assurance cum Erection Policy, Machinery Breakdown Policy, Advanced Loss of Profit / Delay in
Startup Policy, Electronics Equipment Policy, Contractor Plant and Machinery Policy,
Consequential Loss Policy, and Mega Package Policies

Commercial Insurance

Commercial insurance is availed in order to get security against theft, liability, and property damage. These
plans also help in cases of employee injuries and business interruption.
Following are the leading commercial insurance policies available in India:

Provider Name of Policy

National Burglary (Business Premises) Policy, Jewellers Block Policy, Shopkeepers Policy, Extended
Insurance Warranty Policy, Bankers Indemnity Policy, Directors and Officers Liability Policy, Office
Package Policy, Fidelity Guarantee Policy, Glass Insurance, Marine Cargo Insurance, and
Money Insurance

Tata AIG Commercial General Liability Insurance

Insurance

Life Insurance
Life insurance is taken primarily to secure oneself and/or one's family when the ability to earn is less or
provide for the dependents when the insured is either deceased or unable to earn a livelihood.

Following are the various types of life insurance:

Whole Life Insurance

Whole life insurance policies are taken for the entire duration of an insured's life. In these policies premium
has to be paid on a yearly basis as long as the policy lasts.

The leading whole life plans offered in India may be enumerated as below:

Provider Name of Policy

Life Insurance Corporation The Whole Life Policy, The Whole Life Policy - Limited Payment, The
of India Whole Life Policy - Single Premium

HDFC Life HDFC Single Premium Whole of Life Insurance Plan

Reliance Life Insurance Reliance Whole Life Plan

Kotak Life Insurance Kotak Eternal Life Classic Shield Plan, Kotak Eternal Life Premier Plan

Endowment Plans
The endowment plans are supposed to provide a lump sum once the policyholder dies or when the policy
matures. Certain endowment policies also provide payment in case of critical illnesses.

Following are the top endowment plans available in India:

Provider Name of Policy

Life Insurance Corporation of India Endowment Plus

Future Generali Future Generali Assure-With-Profit Endowment Plan

Money Back Plans
The money back plans are used as a form of investment that produces good financial returns in future for using
in various purposes, even recreational.

The top money back plans may be mentioned as below:

Provider Name of Policy

SBI Life Insurance Money Back Plan

Birla Sun Life Insurance BSLI Bachat (Moneyback) Plan

Reliance Life Insurance Reliance Life Insurance Guaranteed Money Back Plan

Max Life Insurance Life Pay Money Back

Life Insurance Corporation of India Money Back with Profit

Kotak Life Insurance Kotak Money Back Plan

HDFC Bank HDFC SL New Money Back Plan

Term Life Insurance

The term life insurance plans or term assurance plans are availed to receive a fixed payment rate over a period
of time, which is the term period. Once the period comes to an end the policy owner can discontinue the policy
or extend it.

Following are the leading term plans available in India:

Provider Name of Policy

ICICI Prudential ICICI Pru iCare

Kotak Life Kotak e-Term/e-Preferred Plan, Kotak Term Plan/Kotak Preferred Term

AEGON Religare AEGON Religare Level Term Plan

ULIPs
The ULIPs or Unit Linked Insurance Plans are one where the financial worth of a policy is dependent on the
present net asset value of the core investment assets related to it. These policies are both flexible and
protective, which is a unique feature. The premiums of these policies are used to buy investment asset units
selected by the policy owners.

The top ULIPs offered in India are:

Provider Name of Policy

Bajaj Allianz iGain III - Investment Plan
SBI Life SBI Life - Smart Performer, SBI Life - Unit Plus Super, SBI Life - Saral Maha Anand, SBI
Insurance Life - Smart Elite, SBI Life - Smart Scholar, SBI Life - Smart Horizon, and SBI Life -
SmartWealth Assure

Other Forms of Insurance

Home Insurance
Home insurance is also referred to as homeowner's insurance or hazard insurance and is primarily taken to
cover private homes against various forms of losses and liabilities.

Following are the leading home insurance policies available in India:

Provider Name of Policy

HDFC Ergo General Insurance Home Insurance

New India Assurance Householders Insurance

Reliance General Insurance Home Insurance

SBI General Insurance Long Term Home Insurance

Tata AIG Insurance Home Insurance

ICICI Lombard Home Insurance

Royal Sundaram General Insurance Home Insurance

Travel Insurance
Travel insurance policies can be availed to cover both long and short trips as well as trips within the country as
well as outside it. These plans cover medical and non medical expenses.

The leading travel insurance policies available in India may be mentioned as below:

Provider Name of Policy

ICICI Lombard Overseas Travel, Senior Citizen, and Annual Multi Trip

Reliance General Overseas Travel Insurance, Senior Citizen Insurance, and Annual Multi Trip
Insurance Insurance

Tata AIG Insurance Overseas Travel Insurance, Student Travel Insurance, and Domestic Travel
Insurance

HDFC Ergo General Travel Insurance

Insurance

Bajaj Allianz Individual Travel Insurance, Corporate Travel Insurance, Family Travel Insurance,
Travel Asia, Senior Citizen Travel, Swadesh Yatra, and Student Travel Insurance

IFFCO TOKIO Travel Insurance Policy

General Insurance
Life Insurance is one of the fastest growing sector in India since 2000 as
Government allowed Private players and FDI up to 26% and recently
Cabinet approved a proposal to increase it to 49%. In 1955, mean risk
per policy of Indian and foreign life insurers amounted respectively to
2,950 & 7,859[1] (worth 15 lakh & 41 lakh in 2017 prices). Life
Insurance in India was nationalised by incorporating Life Insurance
Corporation (LIC) in 1956. All private life insurance companies at that
time were taken over by LIC. In 1993, the Government of
India appointed RN Malhotra Committee to lay down a road map for
privatisation of the life insurance sector.[citation needed]
While the committee submitted its report in 1994, it took another six
years before the enabling legislation was passed in the year 2000,
legislation amending the Insurance Act of 1938 and legislating
the Insurance Regulatory and Development Authority Act of 2000. The
same year the newly appointed insurance regulator - Insurance
Regulatory and Development Authority IRDAstarted issuing licenses
to private life insurers.
Types of Life Insurance in India[edit]
Life insurance products come in a variety of offerings catering to the
investment needs and objectives of different kinds of investors.
Following is the list of broad categories of life insurance products:
Term Insurance Policies[edit]
The basic premise of a term insurance policy is to secure the immediate
needs of nominees or beneficiaries in the event of sudden or unfortunate
demise of the policy holder. The policy holder does not get any
monetary benefit at the end of the policy term except for the tax benefits
he or she can choose to avail of throughout the tenure of the policy. In
the event of death of the policy holder, the sum assured is paid to his or
her beneficiaries. Term insurance policies are also relatively cheaper to
acquire as compared to other insurance products.
Money-back Policies[edit]
Money back policies are basically an extension of endowment plans
wherein the policy holder receives a fixed amount at specific intervals
throughout the duration of the policy. In the event of the unfortunate
death of the policy holder, the full sum assured is paid to the
beneficiaries. The terms again might slightly vary from one insurance
company to another.
Whole life policies[edit]
A whole life insurance plan covers the insured over his life. The primary
feature of this product is that the validity of the policy is not defined so
the policyholder enjoys the life cover throughout his life.[citation needed]
Unit-linked Investment Policies (ULIP)[edit]
Main article: Unit-linked insurance plan
Unit linked insurance policies again belong to the insurance-cum-
investment category where one gets to enjoy the benefits of both
insurance and investment. While a part of the monthly premium pay-out
goes towards the insurance cover, the remaining money is invested in
various types of funds that invest in debt and equity instruments. ULIP
plans are more or less similar in comparison to mutual funds except for
the difference that ULIPs offer the additional benefit of insurance.
Pension Policies[edit]
Pension policies let individuals determine a fixed stream of income post
retirement. This basically is a retirement planning investment scheme
where the sum assured or the monthly pay-out after retirement entirely
depends on the capital invested, the investment timeframe, and the age at
which one wishes to retire. There are again several types of pension
plans that cater to different investment needs. Now it is recognized as
insurance product and being regulated by IRDA.
Foreign Direct Investment (FDI) Policy in Insurance Sector[edit]
Seeking to more investment in insurance sector, on March 18,2016
government allowed FDI upto 49% in insurance sector from 26% in
domestic insurance companies by overseas companies without the prior
approval. Earlier 26% FDI was approved through automatic route. For
FDI upto 49% approval of Foreign Investment Promotion Board is
required subject to the verification of insurance regularity authority of
India. There are 52 insurance companies in India out of which 24 are life
insurance companies and 28 are general insuranace companies.
Initial Public Offer (IPO) rules for Indian Life Insurance
Companies[edit]
A key piece of legislation impacting on the Life Insurance industries
capital raising abilities is the lock-in period of 10 years for investment to
be limited to promoter group equity investments. Under the Insurance
Guidelines, Indian Life Insurance companies can opt for a public issue
of equity through an Initial Public Offer (IPO) after 10 years of
operations.
In October 2010, the securities market regulator, Securities and
Exchange Board of India (SEBI), issued disclosure norms for Indian
Life Insurance Companies seeking to make an initial public offer for sale
of equity shares to the public.
Indian life insurance industry overview[edit]
All life insurance companies in India have to comply with the strict
regulations laid out by Insurance Regulatory and Development
Authority of India (IRDAI).
Life Insurance Corporation of India (LIC), the state owned behemoth,
remains by far the largest player in the market. The private companies
like Exide Life Insurance have come out with products called ULIPs
(Unit Linked Investment Plans) which offer both life cover as well as
scope for savings or investment options as the customer desires. These
type of plans are subject to a minimum lock-in period of five years to
prevent misuse of the significant tax benefits offered to such plans under
the Income Tax Act. Comparison of such products with mutual funds
would be erroneous.
Commission / intermediation fees[edit]

The maximum commission limits as per statutory provisions are:

Agency commission for retail life insurance business:

7- 25% for 1st year premium if the premium paying term is
more than 20 years
7- 10% for 1st year premium if the premium paying term is
more than 15 years
7- 10% for 1st year premium if the premium paying term is less
than 10 years
7% - yr 2 and 3rd year and 3.5% - thereafter for all premium
paying terms.
In case of Mutual fund related - Unit linked policies it varies between
1.5% to 6% on the premium paid.

Agency commission for retail pension
7.5% for 1st year premium and 2.5% thereafter
Maximum broker commission - 30%
Referral fees to banks Max 55% for regular premium and 10% for
single premium. However, in any case this fee cannot be more than
the agency commission as filed under the product.
However, the above commission may be further subject to the
product wise limits specified by IRDA while approving the product.