Insurance Products

Debi datta
 The business of insurance is to protect
the economic value of the asset and
every asset has a value.
 Asset are insured because they are likely
to be destroyed through accidental
occurrences.

 Only economic consequences can be

insured.if the loss is not financial
,insurance may not be possible.
 Life

Endowment Pension
Money Back
 Life insurance products usually
referred to as ‘plans’ of
insurance.These plans have two
basic elements .
 One is the ‘death cover’ providing
for the benefits being paid on the
death of the insured person within
a specified period.
 The other is the ‘survival benefit’
providing the benefit for being paid
on survival of a specific period.
 Plans for insurance that provide
only death cover are called ‘term
assurance plan’.Those that provide
only survival benefits are called
‘pure endowment’ plans.
 If the insured does not die within the
specified period ,no payment is made
under a term assurance plan.similarly,if a
insured dies within a specified period ,no
payment is made under a pure endowment
plan.both these are like fire insurance
policy.if the specified contingency does not
happen ,the policy holder des not get
anything from the insurer.
 All insurance plans are combination of
these two basic plans.A term assurance
plan with an unspecified period is called a
’whole life policy’ under which the SA is
paid on death,whenever it may occur.A
term assurance plan along with a pure
endowment when offered as a single
product is called as a endowment
assurance plan.
 money back
 Unlike ordinary endowment
insurance plans where the survival
benefits are payable only at the
end of the endowment period, this
scheme provides for periodic
payments of partial survival
benefits as follows during the term
of the policy, of course so long as
the policy holder is alive
 An important feature of this type of
policies is that in the event of death at
any time within the policy term, the
death claim comprises full sum assured
without deducting any of the survival
benefit amounts, which have already
been paid. Similarly, the bonus is also
calculated on the full sum assured
 In the case of a 20-year Money-
Back Policy (Table 75), 20% of the
sum assured becomes payable
each after 5, 10, 15 years, and the
balance of 40% plus the accrued
bonus become payable at the 20th
year.
 endowment
 An endowment policy is a life insurance
contract designed to pay a lump sum after a
specified term (on its 'maturity') or on earlier
death. Typical maturities are ten, fifteen or
twenty years up to a certain age limit. Some
policies also pay out in the case of critical
illness.
 Policies are typically traditional with-profits or
unit-linked (including those with unitised with-
profits funds).
 Endowments can be cashed in early (or
'surrendered') and the holder then receives
the surrender value which is determined by
the insurance company depending on how
long the policy has been running and how
much has been paid in to it.
 pension
 They are paid in periodic way and
till the death.But sometimes it is
also paid to the dependant after
the death of the policy holder.
 Non life

property liability health

Property:
Personal and business property
insurance that covers risks against
fire,marine,theft and burglary.
Home insurance
Business insurance
Liability:
This protects the insured against
injury or damage claims made by a
third party.
Automobile insurance
Aviation insurance
 Health:
In case of an illness or injury
suffered by the insured or his/her
dependents ,health insurance
covers their medical expenses
incurred.
 irda
 Insurance Regulatory & Development Authority is
regulatory and development authority under
Government of India in order to protect the interests
of the policyholders and to regulate, promote and
ensure orderly growth of the insurance industry. It is
basically a ten members' team comprising of a
Chairman, five full time members and four part-time
members, all appointed by Government of India. This
organization came into being in 1999 after the bill of
IRDA was passed in the Indian parliament
Powers and Functions of
IRDA
 It issues the applicants in insurance arena, a
certificate of registration as well as renewal,
modification, withdrawal, suspension or
cancellation of such registrations.
 It protects the interests of the policy holders in any
insurance company in the matters related to the
assignment of policy, nomination by policy holders,
insurable interest, and resolution of insurance
claim, submission value of policy and other terms
and proposals in the contract
 It also specifies obligatory credentials, code of conduct
and practical instructions for mediator as well as the
insurance company. Apart from this, it also defines the
code of conduct for the surveyors and loss assessors
involved with the insurance business.
 One of the major functions of IRDA includes endorsing
competence in the insurance business. Apart from
this, upholding and regulating professional
organizations in insurance and re-insurance business
is also a major duty of IRDA.
 IRDA is also entitled to for asking information,
undertaking inspection and investigating the audit of
the insurers, mediators, insurance intermediaries and
other organizations related to the insurance sector.
 It is also concerned with the regulation of the rates,
profits, provisions and conditions that may be offered
by insurers in respect of general insurance business if
it is not controlled or regulated by the Tariff Advisory
Committee.
 It is also entitled to supervise the functioning of the
Tariff Advisory Committee--Tariff Advisory
Committee controls and regulates the rates,
advantages, terms and conditions that may be offered
by insurers in respect of General Insurance Business
relating to Fire, Marine (Hull), Motor, Engg. and
Workmen Compensation
 -
 IRDA specifies the terms and pattern in which
books of accounts are to be maintained and
statement of accounts shall be provided by
insurers and other insurance mediators.
 It also regulates investment of funds by
insurance companies as well as the
maintenance of margin of solvency.
 is also empowered to be involved in the arbitration of
disagreements between insurers and intermediaries or
insurance intermediaries.
 It is meant to specify the proportion of premium income
of the insurer to finance policies.
 IRDA also specifies the share of life insurance business
and general insurance business to be accepted by the
insurer in the rural or social sector.
Impact Of IRDA On Indian
Insurance Sector

 The creation of IRDA has brought revolutionary

changes in the Insurance sector. In last 10 years of
its establishment the insurance sector has seen
tremendous growth. When IRDA came into being;
only players in the insurance industry were Life
Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC), however in last
decade 23 new players have emerged in the filed of
insurance. The IRDA also successfully deals with
any discrepancy in the insurance sector.