BBA

Semester V Elective Subject

Indian Banking and Insurance Service
UNIT 03

Introduction to Insurance:
Need and Scope of insurance - - Basic concept of risk, Life cycle needs including
solutions, Kinds of business risks, Principles of insurance - Types of insurance
and policies: Life and Non-life, Re-insurance - Risk and Return relationship.

Introduction to Insurance

Insurance is a contract, represented by a policy, in which an individual or

entity receives financial protection or reimbursement against losses from an insurance
company. The company pools clients' risks to make payments more affordable for the
insured.
Insurance policies are used to hedge against the risk of financial losses,
both big and small, that may result from damage to the insured or her property, or from
liability for damage or injury caused to a third party.

How Insurance Works

There is a multitude of different types of insurance policies available,
and virtually any individual or business can find an insurance company willing to insure
them—for a price. The most common types of personal insurance policies are auto, health,
homeowners, and life. Most individuals in the country have at least one of these types of
insurance, and car insurance is required by law.

Important Points

 Insurance is a contract (policy) in which an insurer indemnifies another against losses

from specific contingencies and/or perils.
 There many types of insurance policies. Life, health, homeowners, and auto are the
most common forms of insurance.
 The core components that make up most insurance policies are the deductible, policy
limit, and premium

Businesses require special types of insurance policies that insure

against specific types of risks faced by a particular business. For example, a fast-food
restaurant needs a policy that covers damage or injury that occurs as a result of cooking
with a deep fryer. An auto dealer is not subject to this type of risk but does require coverage
for damage or injury that could occur during test drives.

Insurance Policy Components

When choosing a policy, it is important to understand how insurance
works.
 A firm understanding of these concepts goes a long way in helping you choose the policy
that best suits your needs. There are three components (premium, policy limit, and
deductible) to most insurance policies that are crucial.

Premium :-
A policy's premium is its price, typically expressed as a monthly cost. The
premium is determined by the insurer based on your or your business's risk profile, which
may include creditworthiness.
For example, if you own several expensive automobiles and have a history of
reckless driving, you will likely pay more for an auto policy than someone with a single
mid-range sedan and a perfect driving record. However, different insurers may charge
different premiums for similar policies. So finding the price that is right for you requires
some legwork.

Policy Limit :-
The policy limit is the maximum amount an insurer will pay under a policy
for a covered loss. Maximums may be set per period (e.g., annual or policy term), per loss
or injury, or over the life of the policy, also known as the lifetime maximum.
Typically, higher limits carry higher premiums. For a general life insurance
policy, the maximum amount the insurer will pay is referred to as the face value, which is
the amount paid to a beneficiary upon the death of the insured.

Deductible :-
The deductible is a specific amount the policy-holder must pay out-of-
pocket before the insurer pays a claim. Deductibles serve as deterrents to large volumes of
small and insignificant claims.
Deductibles can apply per-policy or per-claim depending on the insurer and
the type of policy. Policies with very high deductibles are typically less expensive because
the high out-of-pocket expense generally results in fewer small claims.

Functions of an Insurance Company

1] Provides Reliability
The main function of insurance is that eliminates the uncertainty of an unexpected and
sudden financial loss. This is one of the biggest worries of a business. Instead of this
uncertainty, it provides the certainty of regular payment i.e. the premium to be paid.

2] Protection
Insurance does not reduce the risk of loss or damage that a company may suffer. But it
provides a protection against such loss that a company may suffer. So at least the
organisation does not suffer financial losses that debilitate their daily functioning.

3] Pooling of Risk
In insurance, all the policyholders pool their risks together. They all pay their premiums
and if one of them suffers financial losses, then the payout comes from this fund. So the risk
is shared between all of them.
 4] Legal Requirements
In a lot of cases getting some form of insurance is actually required by the law of the land.
Like for example when goods are in freight, or when you open a public space getting fire
insurance may be a mandatory requirement. So an insurance company will help us fulfil
these requirements.

5] Capital Formation
The pooled premiums of the policyholders help create a capital for the insurance company.
This capital can then be invested in productive purposes that generate income for the
company.

Need for Insurance

Insurance plans are beneficial to anyone looking to protect their family,

assets/property and themselves from financial risk/losses:

 Insurance plans will help you pay for medical emergencies, hospitalization,
contraction of any illnesses and treatment, and medical care required in the future.

 The financial loss to the family due to unfortunate death of the sole earner can be
covered by insurance plans. The family can also repay any debts like home loans or other
debts which the person insured may have incurred in his/her lifetime.

 Insurance plans will help your family maintain their standard of living in case you
are not around in the future. This will help them cover costs of running the household
through the insurance lump sum payout. The insurance money will give your family some
much needed breathing space along with coverage for all expenditure in case of
death/accident/medical emergency of the policy holder.

 Insurance plans will help in protecting the future of your child in terms of his/her
education. They will make sure that your children are financially secured while pursuing
their dreams and ambitions without any compromises, even when you are not around.

 Many insurance plans come with savings and investment schemes along with
regular coverage. These help in building wealth/savings for the future through regular
investments. You pay premiums regularly and a portion of the same goes towards life
coverage while the other portion goes towards either a savings plan or investment plan,
whichever you choose based on your future goals and needs.

 Insurance helps protect your home in the event of any unforeseen calamity or
damage. Your home insurance plan will help you get coverage for damages to your home
and pay for the cost of repairs or rebuilding, whichever is needed. If you have coverage for
valuables and items inside the house, then you can purchase replacement items with the
insurance money.

Scope of Insurance

The insurance sector has a huge potential not only because incomes are
increasing and assets are expanding but also because the increasing instability in the system.
In a sense, we are living in a extra risky world. Trade is becoming more and more global.
Technologies are changing and getting replaced at a faster rate. In this more uncertain
world, for which enough evidence is available in the recent period, insurance have an
imperative role to play in reducing the risk burden that the individuals and businesses have
to bear.
The approach to insurance should be in tune with the changing times.The
aim of the insurance sector in India is to extend the insurance coverage over a larger section
of the population and a wider segment of activities. The three guiding principles of the
industry must be to charge premium not higher than what is acceptable by strict actuarial
considerations, to invest the funds for obtaining maximum yield for the policy holders
consistent with the safety of capital and to render efficient and prompt service to policy
holders. With a creative corporate planning and an abiding commitment to improved
service, the mission of widening the network of insurance can be achieved.
There is a probability of a shoot in employment opportunities. A number
of web-sites are coming up on insurance, a few financial magazines exclusively devoted to
insurance and also a few training institutes are being set up. Many of the universities and
management institutes have already started or are contemplating new courses in insurance.
Life insurance has today become a mainstream of any market economy
since it offers plenty of scope for collecting large sums of money for long periods of time.
A well-regulated life insurance industry which moves with the times by offering its
customers specially 49 products to satisfy their financial needs is, therefore, essential to
progress towards a unstressed future. Thus, one can understand the term ‘insurance’ better
from its legal nature, principles and functions as discussed above and is the base for all the
types of insurances.

SCOPE OF COVER :

o COVERED
§ PHYSICAL HAZARDS (Like, accident, theft, etc.)
§ NATURAL HAZARDS (flood, typhoon, storm, etc.)
§ SOCIAL HAZARDS (Riot, Terrorism, etc.)

o EXCLUDED
§ MORAL HAZARD (Willful misconduct etc.)
§ NEGLIGENCE

.
Basic concept of risk
 Meaning of Risk:
In simple words risk is danger, peril, hazard, chance of loss, amount
covered by insurance, person or object insured. The risk is an event or happening which is
not planned but eventually happens with financial consequences resulting in loss. There is
saying higher the risk more the profit.
A risky proposal can on one hand bring higher profits but on the
other hand looming losses. The risk can never be certain or predictable. Therefore there is
need for the risk management.

The risk management is nothing but a method to prejudge the risk that may
come up sometime in future. It is not prediction but a process of reducing the risk to a
minimum level. Risk management involves a number of measures that are used to keep the
risk at possible minimum level.
In our day to day life also we take many steps to keep the risk at lower
level for example most people do not keep valuables at home and rather prefer to keep them
in a bank locker by paying certain locker rent to the bank.
Similarly risk of life, health or property is reduced by purchasing a
proper insurance. All these actions of individual persons are done under fear of uncertainty
and unpredictability of future. Likewise in business and commerce also an element of fear
of loss always exists if the risk components are not managed properly.
Risk is a fear of happening something adverse and in order to restrict
such adverse happenings a plan is envisaged to overcome such adverse happenings. Which
is called as risk management. In the field of Insurance such fears, uncertainties,
prejudgments of forthcoming risks and the size of risk and its potentiality is determined by
the Actuary appointed by the IRDA.
The first step towards arrested the risk or fear of risk is to identify the
risk. But how to identify it unless it is known what type of risk should looked into. Hence it
important to know the nature of the risk.

Types of Risk:

The risk can be of many types but it revolves around two main factors:

(i) Pure Risk:

Such risks are accidental in nature. Being accidental can bring
potentially in losses. Any accident brings in physical loss and therefore a pure loss is a
physical loss that the insured faces due to occurrence of an event that has been insured
against. Physical loss may be of any type be it a loss in business, due to fire hazards and
losing stocked goods, due damage to a property for any reason.

An accident of any type culminating into financial loss or loss of life are
some examples of pure risks. All types of physical risks are hard to be avoided. They may
occur due to human negligence or by natural calamities, Riots, strikes, sudden breakdown in
a manufacturing unit. Fall in prices of goods stored, and so many other reasons that
contribute to cause losses As per Prof. M Haller “The possibility that positive expectations
of a Goal Oriented System will not be fulfilled”.
 This definition of Prof. Haller is although not confined to the
definition of pure risk but is applicable to the whole term of “RISK”. It is important to note
that the pure risks or risk of trade are such that they can seldom be avoided buy t can be
insured against.

(ii) Speculative Risks:

Such types are always speculative may it be profit or loss in both
cases speculations works. Mostly speculation is done in the field of trade. There may un
accounted reasons for creation of risks in the field of trade may be price rise, inflation,
rotting of stock of goods or stagnations of stocks due to strike, terrorists threat, declaration
of war or the stock going out of use or fashion.

By the meaning of the word speculation one can understand

that speculation is type of purchase or sale of shares on an estimate of whether the share
value rise or fall, with intention of making profit, or avoiding a loss It is like gamble on
future price movements, whether in share, land, commodity or money. Gambling itself is a
speculative risk which cannot be relied upon. A gambler can never be certain of win
position and can never be trusted in the business of gambling.

The difference between the two risks is that the pure risks can
be insured but the speculative risks cannot be insured.
Only if for the purpose of going deep into identifying the factor
of risk it can be classified in the way depending on the way of how an individual or
accompany feels fears for the happenings in future. As such the classification can be
divided into as many reasons and as many companies that exist on the earth as on date.
There should be a specific limit of identifying a risk like Pure risk
and speculative risk. If one presumes risk can be a certain risk, uncertain risk, a visual risk
and un -visual risk, a temporary risk and a permanent risk etc. but there is no end of
identifying an actual risk.
It is therefore necessary that the track record of previous
happenings in every field of life is taken into account to estimate the future risks in a
particular field may it be a risk of life, health, industry, trading, business, commerce,
vehicles, home and so on.

Transfer of Risks:
Before we understand what is transfer of risk we must know what is
meaning of the word transfer. The meaning of transfer is to move from one place to another,
to covey property to another, or transfer any right/power/money/shares/liabilities or assets.
When we talk of liabilities one becomes much alert as everyone is
eager to transfer the liabilities to someone else the particularly pecuniary liabilities. And
what are those pecuniary liabilities. It may a debt due to a bank/others, liability of procuring
health services, liability of accidental events or otherwise. Every type of liability is
considered as a Risk.
The Insurance is a form of risk management. It is primarily used to
transfer risks of loss in exchange for payment of certain amount known as premium. The
insurer company is engaged in the business of selling the insurance, (willing to accept the
risk) the person desirous of purchasing the insurance (willing to transfer the risks).

In simple words when one feels unsecured and wishes to get secured by payment of
certain amount is known as transfer of risk. A person fearing attack on his life employees
Body Guards and pays them the monthly salary is an attempt to secure himself for loss of
his life. Likewise any uncertainty of economic loss is if secured by paying certain sum of
amount to an insurance company is transferring of risk.
However the insurance rate is a factor used to determine the amount to be charged for a
certain amount of insurance coverage. The insurance involves a pre known amount to be
born by the insured in the form of fixed premium as per the terms and conditions of
insurance agreement (say Insurance Policy). In exchange an insurance company promises to
compensate the insured in case of loss. Such losses are compensated as per the terms of the
insurance policy purchased.

Why the risk is transferred:

The risk that an individual or a any entity is not willing to bear is
preferred to be transferred to another entity. In brief it is called insurance. In exchange for
payment of an agreed amount say premium the insurer agrees to indemnify the insured for
losses that result from specified perils. Options and hedges also operate to transfer risk from
one party to another.
In some instances the counter parties may be entities specially
established to engage in the hedging or opinion trading, but in many instances they will be
entities whose risk arises from the opposite movement in a price or volume of supply.
Incase of infrastructure projects there are many mechanisms existing for transfer of risk
arising from the perceived uncertainties.

Stages of Life Insurance Cycle

25-35 years old clients – starting a career and/or marriage – during this period of life
people need the highest level of insurance which covers basic protection like life value and
general family income
35-45 years old clients – growing income and/or family – on this stage, people usually
need insurance for business planning purposes like buying/selling, deferred compensation,
business succession, etc. It also comprises tax-advanced strategies, private placement life
insurance, and access to an increase in policy cash value, etc.
45-55 years old clients – estate/retirement planning includes retirement planning
strategies, whole life, supplemental retirement stream, asset, and creditor protection.
55-64 years old clients – highest earnings/taxes – charitable giving, planned giving,
charitable lead trust.
65+ years old clients – estate planning – estate equalization, liquidity to offset, special
needs children planning.

Kinds of Business Risk

 What is insurance risk?
Business risk and insurance risk can be broken down into four
subsets. By fully understanding the different types of business risk, you can better
understand insurance risk and how insurance can protect your business from serious
problems.

 Operational: Operational risk addresses your business's day-to-day dealings. That

means handling equipment, workers, customers, and your overall product or service. By
insuring tangible assets like equipment and property, you can mitigate risk. By protecting
your business operations from outside events, like natural disasters, if the worst happens,
you are covered.

 Strategy: Strategic risk occurs when your business's strategy is diluted or usurped by
yourself or other businesses. By running a small business, you have to commit to a certain
strategy for your product or service and stick to it. If competitors undermine your strategy
by outperforming your product or service or undercutting your prices, you run the risk of
falling behind in your industry. Research your competitors and understand how you can
better protect your business.

 Compliance: Compliance risk pertains to your business's ability to adhere to certain

rules and regulations outlined by your industry or the government. This includes things like
tax burdens, municipal zoning and property laws, distribution laws, and other rules and
regulations related to your business (e.g., HIPAA, good manufacturing practices, etc.).
Eliminating compliance risk requires that you stay abreast of the latest rules in your
industry and business. While you can't purchase insurance related to taxes and other forms
of compliance risk, you should be aware of your obligations in staying informed and how
your business could be at fault.

 Reputational: The final type of business risk is reputational. That means protecting
your business from security problems, data privacy breaches and other cyber security
issues. It also involves taking steps to protect your brand and logo. You can insure your
business and customer data so in the event either is compromised, you are covered.

Types of insurance risk

01.Data breaches
Businesses across all industries have seen a huge increase in
cybersecurity problems in recent years. Chris Roach, managing director and national IT
practice leader of CBIZ Risk & Advisory Services, said data hacks have hit fast-food
retailers and e-commerce businesses particularly hard. However, he added that every
business that accepts credit cards should reevaluate and standardize its security practices to
protect against fraudulent activity.

What to do: If you have a brick-and-mortar store, one of the most important things you can
do is ensure that your credit card technology meets EMV standards to prevent fraud liability
from falling onto your shoulders, Roach said. Every business should also review its
compliance with Payment Card Industry Data Security Standards (PCI DSS), he said.
"Complying with PCI DSS protects a merchant against digital data security
breaches across their entire payment network, not just a single card," Roach said. "Failure to
comply can result in penalties and fines if a data breach does occur on your end."
Cyber insurance is also an important consideration for small businesses. Myles
Gibbons, president of select accounts at Travelers, said that more than half of data breaches
last year occurred in companies of 250 or fewer employees.
"Cyber coverage has grown increasingly important to all types of businesses and
can help to protect them from the costs of data breach notification, remediation, card
payment penalties, crisis management, and public relations," he said.

02. Property damage

Hurricanes, snowstorms, floods, fires and other events that damage
your business's physical property can throw a serious wrench in your business's ability to
operate normally. While your storefront or office may not have been destroyed, chances are,
you won't be able to run your business from that location while repairs are happening.
"Only 50% of small business owners have a written business continuity
plan, according to the Travelers Business Risk Index," said Scott Humphrey, second vice
president of risk control at Travelers. "Between severe weather events and the increasing
reliance on a complex network of technology and supply chains, the risks of business
interruption are plenty."

What to do: Your first line of defense against property theft or damage is insurance
coverage. Gibbons noted that some businesses aren't adequately insured to their true values.
"Ask yourself if you have enough coverage to rebuild a business after a total
loss," Gibbons said. "Business owners should make sure their building and its contents –
including shelving, displays, inventory, and any new equipment – are properly insured.
Properties should be insured to their full replacement value – not market value – including
any recent improvements."
Michael Freed, a business litigation attorney at Gunster law firm, urged
business owners to consider business interruption insurance to keep their cash flow going,
even if operations have been halted temporarily.
"Business interruption insurance provides coverage for lost revenues and
profits arising from uncontrollable interruptions in business operations, such as those
arising from natural disasters or a building fire," Freed said. "When that type of casualty
strikes, business owners need not only to rebuild where there has been physical damage but
to offset for missing revenues while they do so. This is particularly critical for businesses
with limited capital reserves."
Beyond that, Humphrey advised developing a plan so your business has a
protocol to follow should such an interruption occur.
"To develop a plan, businesses should identify threats or risks most likely to
occur based on historical, geographical, organizational, and other factors, [and] conduct a
business impact analysis [to] identify [what is] critical to the survival of your business," he
said. Then, "adopt controls for mitigation and prevention, which can include emergency
response, public relations, resource management, and employee communications," he said.
 03.Human capital costs
If you have employees, you have a significant amount of risk.
Whether an employee is performing a labor-intensive task, driving a company vehicle, or
interacting with the public, there is a risk to the company, said Bryan Robertson, equity
partner at Sihle Insurance.
"The need for industry-specific training and internal loss controls is
apparent now more than ever," he said. "The employee needs to understand how their
decisions and actions can tremendously affect the company's well-being, both positively
and negatively."
On the flip side, changing market dynamics can mean major cutbacks
across the board in certain industries, which can also be an unexpected financial risk, said
Tony Consoli, president of the mid-Atlantic region at CBIZ Insurance Services.
"Although making changes to the workforce is inevitable ... during tough
times, very few business owners know the risks involved with layoffs," Consoli said.
"Unemployment insurance costs can be an expensive burden on employers."

What to do: Workers' compensation insurance is mandatory for businesses with

employees, but there are other insurance coverages you can get to mitigate your risk as an
employer. Robertson advised looking into management liability and employment practices
liability insurance.
"This coverage protects the owners and managers from suits related to
discrimination to potential, current, and past employees, as well as third-party claims," he
said.
In terms of layoffs, thoroughly planning for employee departures is the best
thing you can do to avoid financial and legal recourse. Consoli recommended offering
benefits – such as severance packages, payment for unused time off and continuing health
insurance coverage – to laid-off employees. You should also focus on pending
workers' compensation claims that might be affected by layoffs and on conducting midyear
reviews of your resources to scale back when necessary, he said.

04. Professional service mistakes

Service providers like accountants, consultants and web
developers all face the continual risk of customers seeking legal recourse if their "product"
doesn't meet expectations. Kevin Kerridge, executive vice president of the direct and
partnership division at Hiscox, a small business insurer, said that a common challenge for
many small business owners is overcoming the mindset that their work is so good that no
client would need to sue them.
"A business doesn't have to make a mistake to face an allegation,"
Kerridge said. "One lawsuit, even if unwarranted, can cripple a small business in terms of
time and money."

What to do: Kerridge recommended that owners of any service-based businesses look into
professional liability insurance.
"This coverage protects a business in the event that they receive a lawsuit alleging that
they have made a mistake [and covers] defense costs and resultant damages up to an agreed
limit, typically $1 million," Kerridge said. "We see a range of claims on this, from tax
preparers making a mistake on a client's tax return to technology service providers
delivering a substandard work product."

05.International manufacturing and export/transit issues

Many companies utilize overseas factories to manufacture their
product or export products internationally, said Lou Camhe, vice president of CBIZ
Insurance Services. A lot can go wrong in the journey from factory to warehouse to
showroom to retail store, especially if it happens outside your home country, Camhe said.

What to do: Camhe recommended contingent business interruption insurance to soften the
financial impact of a problem with a vendor in your supply chain – a fire at your
manufacturer's factory, for instance.
Camhe also suggested foreign package policies to extend your insurance coverage to
international exposures you may have.

06.Building projects
According to the U.S. Census Bureau, U.S. construction costs
reached $1 trillion in 2015 – the highest they've been in nearly a decade. This industry
boom indicates that building projects are increasing, and many of those projects are
commissioned by businesses and educational organizations that want to expand, Consoli
said. However, that construction, he said, comes with a fair amount of risk that business
owners should consider before moving forward with a contract.

What to do: Consoli said proper planning is essential for construction projects. Business
owners should clarify the language in the contract to ensure you're not overpaying for the
builder's reimbursements. As for insurance, Consoli advised reading your policies to
understand what it does and doesn't cover in terms of damages or injuries that occur during
the project.
"Carefully review the insurance coverage and costs related to the project," he
said. "What if a worker is injured on the job? Who pays for water damage during a storm?
What happens if materials for a build are weeks late and this prolongs the entire project?
Make sure all of your ducks are in a row before the expansion. Doing so will guarantee
proper coverage while also mitigating financial risk to potential insurance overbillings."

What's your biggest risk?

Every industry and every individual business within an industry
contends with different levels of risk, both in terms of the probability of something
happening and the severity of the consequences, Kerridge said. However, ignoring those
risks is simply not an option, he said.
"There is no substitute for running a business professionally and not
cutting corners, but however careful you are, bad things happen," Kerridge said. "It's worth
buying as much insurance as your budget allows, as a backstop."
"Partner with an appropriate carrier that is invested in your company's
long-term success and provides the necessary loss-mitigation tools," Robertson added.
"Each carrier has its own industry specialization, and it is important [to work] with a broker
who will provide a complete risk management program, rather than merely a cost-based
approach."
To assess your level of risk, Freed advised selecting and building
relationships with a "dream team" of advisors: an attorney, accountant, insurance broker
and banker. Each has something valuable to contribute to minimizing risks efficiently and
effectively, he said.
"An advisory dream team, empowered to be proactive on your behalf,
can help anticipate and avoid pitfalls that befall many business owners," Freed said. "The
old adage is entirely true when it comes to risk mitigation: 'An ounce of prevention is worth
a pound of cure.'"

Principles of Insurance

Principle #1 – Principle of Utmost Good Faith

The principle of utmost good faith is the most basic and primary level principle of
insurance and it applies to all kind insurance policies. It simply means that the person who
is getting insured must willingly disclose to the insurer, all his complete & true information
regarding the subject matter of insurance.
The insurer’s liability exists only on the assumption that no material fact is hidden or
falsely presented by the person getting insured.
There is a process called as “Underwriting” in insurance industry which is the activity of
studying the risk and assigning the premium value for the case and it’s very important that
the person buying any kind of insurance tells all the facts correctly and does not hide it.
If you think about term plan or health insurance, you need to correctly mention things like
 If you are a smoker or drinker
 Your family illness history
 The Industry you work for
 Your Income
 Your Age
  Your current illnesses (which you are already aware of)
If you do not tell these things correctly, you are violating the “Principle of utmost good
faith” here and it can impact your insurance claim process in future.

Principle #2 – Principle of Insurable Interest

This principle says that the person who is taking insurance should have some insurable
interest in that thing which is getting insured. So if there will be financial loss to the person
if the insured object gets destroyed. If this is not the case, insurance cannot be taken
So when a breadwinner takes life insurance for his life, it makes sense because incase the
person dies, there will be financial loss to family .
In the same way, you can get your car, bike, home, gold insured because you have
insurable interest in that object. You can’t get your neighbor car insured and benefit
because you do not have insurable interest in that.

Principle #3 – Principle of Indemnity

Principle of Indemnity says that Insurance is not to make profit, but only to compensate
you against the losses incurred. It’s an assurance to restore the same position which was
there before the loss.
So the compensation paid cannot be more than the losses incurred.
In term plan, people ask why companies ask for income details. It’s to make sure that a
person takes limited insurance which goes with his financial status and is good enough to
restore back his family life style which was there in existence.
If a person earns Rs 1 lacs per month. Then Rs 2-3 crores is a good enough life insurance
for the person and they cannot take Rs 500 crore insurance even if they can pay the
premiums, because then the intention is not to cover your financial loss but to benefit/profit
from the insurance policy.
That’s exactly the reason why house-wife does not get very high insurance, because the
motive is to profit from the death of non-earning member and not replace the income which
that person was earning.

Principle #4 – Principle of Contribution

This principle is just a corollary of the principle of indemnity. As per this principle, the
insured company are liable to pay only their own contribution and they have right to
recover back the excess money paid from other insurer.
Let’s see how it works.
Imagine you have two health insurance policies A and B , both for Rs 5 lacs sum assured.
If there is a claim for Rs 4 lacs, then each insurer is liable to contribute Rs 2 lacs each for
this claim.
However in real life, you as insurer can go to any insurer and claim it from them or divide
it between insurers. So you can claim full Rs 4 lacs either from policy A or policy B or Rs 2
lacs from A and B each.
However if you claim Rs 4 lacs from company A, in that case company A can recover
back Rs 2 lacs from company B as per the principle of contribution.
 Principle #5 – Principle of Subrogation

As per this principle, once the insured is paid for the losses due to damage to his insured
property, then the ownership right of such property shifts to the insurer. So if your car / bike
/ house / valuables which you have insured is fully damaged and once you get
compensation from insurance company, then they get the ownership of the item and now
they can sell off the remains to recover their dues by that process
You can’t benefit from the remains of that item.
Imagine this scenario : You have car insurance and the car is stolen. The insurance
company will pay you the full claim amount. However now the ownership rights are
transferred to the insurance company and if the car is found in future by Police, it will be
owned by insurance company
Also, imagine a scenario where a car is insured and the car is badly damaged beyond the
use. In that case the insurance company will pay you the claim fully. Now you can’t say
that you will still sell off the car parts by getting it repaired because you lose the rights to
property.
One more thing ..
As per this principle, the insurer will try to recover their losses from other party later as if
they were at your place. Let me give you an example
Let’s say your house is insured for Rs 1 crore. Because of some reason, let’s say your
neighbor negligence there was a fire in your house and your house is fully damaged. In this
case you will claim from insurance company, and get the money.
But after that the company will try to recover the losses from the culprit in the way you
might have done it if there was no insurance. So might file a case against the neighbor’s in
court claiming for damages.

Principle #6 – Principle of Loss minimization

As per this principle, it’s the insured duty & responsibility to take all actions to minimize
the losses if it’s in their control. The insured person should take all necessary steps to
control and reduce the losses if possible
Imagine there is a small fire in the car for example. If the car is insured, the insured person
can’t just sit and relax thinking that the car is insured, he will get the claim for sure.
If it’s in his control, he can try to control the fire, call the fire department or take first level
steps like throwing water etc. If they don’t do it, it’s the violation of this principle.

Principle #7 – Principle of Causa Proxima (Nearest Cause)

This is a very important principle of insurance which an insured person should be aware
about.
As per this principle of causa proxima, when a loss if caused by more than one causes,
then the nearest or the closest cause should be taken into consideration to decide the
liability of the insurer.
The nearest cause should be insured by the insurer, only then the insurer liability comes
into picture and policy holder will be paid. Insurer will not be liable for the farthest cause.
One of the common examples given for this is this
 A cargo ship base was punctured by rats and because of that puncture, sea water entered
the ship. If you look at the events, there are two reasons for damage of ship
 Rats punctured the base of ship (farthest)
 Sea Water entered the ship (closest)
Here as the insurance company will have to pay because the ship was insured against sea
water entering the ship and that reason was closest.

Types of insurance and policies

Types of Life Insurance

Seven types of life insurance in India

 Term life insurance:

A term life insurance policy is one of the simplest and most affordable life insurance plans
that you can buy. It provides coverage for death risk for a specified period. In the event of
death of the policyholder, the sum assured amount is paid to the nominee in lump sum or as
monthly pay-outs. This type of life insurance gives you maximum coverage with minimum
premium. You can also widen up the coverage by buying additional riders.
Some insurance companies have come up with innovative term insurance plans where they
offer return of premiums to the insured at the end of the policy term. Future Generali Term
Plan with Return of Premium is one such term life insurance policy that returns you back up
to 115% of the premiums you have paid if you survive the end of the policy term (10-15
years).

 Unit linked insurance plans (ULIPs):

ULIPs give you the triple advantage of insurance, wealth creation and tax-saving
investment. In ULIPs the money that you pay as premium is partly invested on funds and
partly on risk cover. You can choose the funds to invest depending upon your risk appetite
and investment horizon. You can use a ULIP calculator to calculate the amount of corpus
you need based on the frequency of investment, amount and tenure.

 Endowment plans:

Similar to a ULIP, endowment plans are types of life insurance that offers a mix of
insurance coverage and investment opportunity. Sum assured is paid to the nominee or
family in case of death or sum assured amount plus accumulated bonus in case the insured
outlives the policy term.

 Money back policy:

As the term suggests, in this type of life insurance policy the insured receives a specified
sum in intervals during the policy term as well as sum assured amount on death or on
maturity. Investors also get accrued bonuses on maturity.

 Whole life insurance:

A whole life insurance covers the insured during the entire lifetime of the individual or in
some cases up to 100 years. Sum assured is paid to nominee on death of the policy holder.
In the rare event that the policyholder lives more than 100 years, the maturity amount is
paid to the insured.

 Child plan:

A child insurance plan helps to build capital for important events in a child’s life such as
higher education, overseas studies, marriage, etc. Most child plans provide one time pay-out
or annual payments after the child reaches 18 years of age. In case the parent passes away
during the policy term, payment is made to the child or family. Some insurance companies
waive off the premiums in case of death of the policyholder and make the payment after
maturity period.
  Retirement plan:

This type of insurance plan helps you build a substantial amount of capital to live a worry-
free retirement life. You can opt for annual payments or a single pay-out after the age of 60
years. In case of the death of the insured, payment is made to the nominee either based on
coverage, fund value or 105% of premiums paid.
These are the seven types of life insurance in India and each type of insurance policy is
geared towards meeting various life cover and investment goals. When you buy a life
insurance policy, don’t go buy hype, advertisements or what your friends or colleagues are
buying because your profile and requirements may be different. Don’t be lazy to carry out
some due diligence and research before your buy.

General Insurance (Non Life 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 is typically defined as any insurance that is not determined to be
life insurance. It is called property and casualty insurance in the United States and Canada
and non-life insurance in Continental Europe.

Commercial lines products are usually designed for relatively small legal
entities. These would include workers' compensation (employers liability), public liability,
product liability, commercial fleet and other general insurance products sold in a relatively
standard fashion to many organisations. There are many companies that supply
comprehensive commercial insurance packages for a wide range of different industries,
including shops, restaurants and hotels.
Personal lines products are designed to be sold in large quantities. This would include
autos (private car), homeowners (household), pet insurance, creditor insurance and others.

General insurance can be categorised in to following:

 Motor Insurance: Motor Insurance can be divided into two groups, two and four
wheeled Vehicle insurance.
 Health insurance: Common types of health insurance includes: individual health
insurance, family floater health insurance, comprehensive health insurance and critical
illness insurance.
 Travel insurance: Travel insurance can be broadly grouped into: individual travel
policy, family travel policy, student travel insurance, and senior citizen health insurance.
 Home insurance: Home insurance protects a house and its contents.
 Marine Insurance: Marine cargo insurance covers goods, freight, cargo, and other
interests against loss or damage during transit by rail, road, sea and/or air.
 Commercial Insurance: Commercial insurance encompasses solutions for all sectors
of the industry arising out of business operations.
  Accident Insurance :Accidents of different types are possible at any time ,at any
place and in case of any person or object .Persons and vehicles are more prone to accidents
causing injuries and damages.
 Fire Insurance :In order to get the asset ,stock or machines insured against fire ,a
proposal form is to be filled in and submitted to the insurance company .The Insurance
company examines the proposal with due regards to various factors and the periodical
amount of premium is fixed.a insurance policy is then issued in favour of the applicant
 Theft Insurance
 Property Insurance
 Aviation insurance
 Livestock insurance
 Crop insurance

Types of General Insurances in India

Almost everything is insurable. However, General Insurance in India is bifurcated as Fire,

Engineering, Marine and Miscellaneous Insurance. Let us look at them as per the use and
general acceptability. Following are the different types of General Insurances in India:
 Health Insurance
 Travel Insurance
 Motor Insurance
 Marine Insurance
 Home Insurance
 Commercial Insurance
Digit Insurance also offers insurance policies for Mobile, Bicycle, Shop Protection, and
others.

Health Insurance
The Health Insurance cover from Digit offers protection for the medical
expenses incurred due to hospitalization caused because of an accident or illnesses.
Although every policy is different, based on who it's being purchased for, it mainly covers:
 Accidental Hospitalization (pre & post)
 Accidental illness and hospitalization
 Daycare procedures
 Psychiatric Support
 Annual Health Checkups
 Daily Hospital Cash

The cover can be extended to cover the following with some predefined conditions:
 Maternity benefit with Infertility benefit
 Critical Illness
 Organ Donation
 AYUSH (Alternate Treatment)

The premium for the health insurance is charged on the basis of:
 Age
  Pre-existing illness
 Lifestyle Habits
 Type of coverage
 Your family health history

Travel Insurance
Travel Insurance covers your financial liability, if any, when you travel
within or beyond the Indian boundaries. The financial liability may arise due to medical or
non-medical emergencies.
The duration of the travel for one time can be 180 days at the maximum. The policyholder
can take more than one trip in a year. Your Travel Insurance will cover:
 Loss of Baggage
 Loss of Passport
 Hijacking
 Medical Emergencies
 Delayed Flights
 Accidental Deaths
 Adventure Sports

Digit’s Travel cover comes with worldwide support and special features like:
 Zero Deductibles.
 Smart phone enabled claim process.
 Customized Travel Plan Cover.
 Missed call claim facilitation.

Motor Insurance
A Motor Insurance Policy is mandatory to be able to drive legally in
India. Broadly there are two types a) Third-Party Liability b) Comprehensive Package
Policy.
A Third-Party Policy covers for losses faced in a situation where your vehicle damages
any third-party such as a public property, person or third-party vehicle. The same is the
minimum requirement to be able to drive legally in India, as stated by the Motor Vehicles
Act.
A Comprehensive Package Policy covers both third-party damages and liabilities and
damages/losses caused to you and your own vehicle. The losses may arise due to an
accident, theft, fire, natural calamities, and others.
Digit Insurance provides some add-ons under its Comprehensive Package Policies for Cars
and Bikes that act as additional shields to your vehicle, such as:
 Tyre Protect Cover
 Zero Depreciation Cover
 Return to Invoice
 Engine and Gearbox Protection
 Breakdown Assistance Cover
 Home Insurance
You build your home with your toil and hard earned money. Everything
you buy is a priceless possession for you and hence it needs to be protected. A Home
Insurance Policy protects your valuable and other assets. It is a comprehensive package
policy that covers all valuables.
Digit Insurance gives protection for Home against Burglary, Loss/Damage of Jewelry, Fire
and Natural Disasters.

Commercial Lines
The lines of insurance that affects the business operations in the real terms are categorized
under the Commercial Lines of Insurance. Type of the insurance covers that one can buy
may include:
 Property Insurance
 Engineering Insurance
 Liability Insurance
 Marine Insurance
 Employees Benefit Insurance
 Business Interruption
Depending on the type of occupation, risk exposure, and the money involved, the
insurance could be different for each industry or business. For example; an insurance that is
specific to a cement plant, versus one for an IT company will be different. The premium
charged for a cement plant will be higher than a showroom of air conditioner. Therefore,
Insurance is completely based on the level of the risk exposure. A worker in the cement
plant is more prone or susceptible to injury than to the one who is working in the
showroom.

Mobile Insurance
Simple as it reads. A mobile insurance protects the phone from
accidental damage. Under the mobile protection cover, Digit Insurance compensates for
repair of accidental screen damage to your phone. The buyers can have mobile insurance
for both an old or new phone. A very affordable insurance protection for the most expensive
phones you buy.

Bicycle Insurance
Not just the cars and two wheelers, people are now passionate for
expensive bicycles also. Call it a fashion or change of lifestyle, Bicycle Insurance is another
sought product these days. Digit Insurance offers cover against Personal Accident, Theft,
Accidental Damage, and Hospital woes.
“Insurance is to manage Cash Flow after a loss occur

Difference between General Insurance and Life Insurance

Difference Between Life and General Insurance based on Example

General Insurance Life Insurance

Applicabil Arun took a Fire Insurance Policy Arun took a Life Insurance Policy for
ity of claim for his factory. The Sum Insured Rs. 1 crore. He had to give an annual
for the factory was Rs.1 cr and the premium of Rs. 20000 for 50 years.
premium was Rs. 10 lakhs. In case After 10 installments, Arun met with
of fire or loss due to any peril, the an accident and passed away. Arun’s
insurance company will pay the family received an amount of Rs.1
claim amount after the deductible crore. The reimbursement under the life
(as applicable). insurance is made either at the time of
maturity or death.
Amount Sheela got her car insured for Rs.5 Sheela chose to buy a Life Insurance
of lacs. She got her car banged and Policy worth Rs.50 lakhs. The total
Reimburse her car’s bumper came off. The time for which she had to deposit the
ment repair charges for the bumper was premium was 10 years. After 10 years,
Rs.15,000/-. The insurance she received Rs. 50 lakh. The Life
company will pay off the amount Insurance Policy is an investment
after the deductible. General policy which is paid on maturity of the
insurance works as per the policy policy.
limits and conditions.
Functional Prakash bought a Fire Insurance Prakash bought an Endowment Policy
Period for his factory and got the building, which will pay him some proceeds on
equipment, and other fixtures. The the maturity or otherwise pay some
policy was issued on 2.03.2019 and amount to his family members in the
 will be renewed on 1.03.2020. The event of Prakash’s death. The Life
General Insurance Policies are Insurance Policy is issued for Life
issued for a period of 1 year. Time or till the time of the maturity
period.
Payment Madhur bought a car and got its Madhur bought a Money Back Policy
of Premium insurance also. The next year, he for 20 years. He will have to pay the
sold his car. He bought a bike and premium for 20 years with money
did not get the renewal for the car. being received after every 3 years. The
Under the General Insurance premium will be paid till the total term
Policy, the premium will be paid of the policy, that is, 20 years. Under
for one year till the renewal. the Life Insurance Policy, the premium
Madhur sold his car and hence, no will be paid for the total term of the
renewal or no payment of premium. policy.
Insurable Rikant bought a Tata Safari in the Rikant took a Term Plan and got his
Interest year 2018. He got its insurance at policy issued from ABC Life Insurer. It
the same time.The next year, he is important for Rikant to be present at
sold the car to Shweta and the the time of contract. Under the Life
policy was renewed again as the Insurance the individual who has the
vehicle will be in use. The policy insurable interest should always be
was renewed by Shweta and not present.
Rikant. Under the General
Insurance Policy, the insurable
interest of the policyholder should
be present at the time of renewal
and the loss.

Re-insurance - Risk and Return relationship.

Definition:
Reinsurance risk refers to the inability of the ceding company or the
primary insurer to obtain insurance from a reinsurer at the right time and at an appropriate
cost. The inability may emanate from a variety of reasons like unfavourable market
conditions, etc. Default risk by a reinsurer also affects the ceding insurance company in an
adverse manner as it may affect their profitability.

Description:
Insurers transfer a part of their portfolio to a reinsurer in exchange for a
premium. However, the unavailability of reinsurance at the right time and cost has
ramifications for the ceding company. A default on the part of the reinsurer can lead to
adverse impacts on the profitability and solvency of the ceding insurer. It may also lead to
an adverse affect on the underwriting abilities of the insurer as the default by the reinsurer
will augment the risk of the insurer. The ceding company has the onus of meeting the
insured's claims in the event of a default by the reinsurer.
 Why do insurers need reinsurance?
Just as people take insurance cover to ensure mishaps don’t cause a
financial dent in their lives, insurance firms, though they are in the business of paying
insurance claims, need to insure themselves to ensure that a catastrophic event doesn’t leave
them bankrupt. As such, insurance firms reinsure themselves to ensure they are able to pay
claims even in catastrophic events.
Being reinsured also means that insurance companies can insure newer
or much larger risks. However, just as people employ the services of a broker to get
insurance cover, insurance companies employ the services of an intermediary for
reinsurance.

Risk and Return

Insurance companies are in business to accept risks -- risk that an
automobile accident may occur, a house may burn down, or a business may flood.
Insurance companies restore the property to its original state before the loss occurred.
However, insurance companies require a return, or premium. That
premium is based on the risk. The higher the probability the loss will occur, the higher the
premium.

What Is Reinsurance?

Reinsurance is also known as insurance for insurers or stop-loss insurance. Reinsurance is

the practice whereby insurers transfer portions of their risk portfolios to other parties by
some form of agreement to reduce the likelihood of paying a large obligation resulting
from an insurance claim.

The party that diversifies its insurance portfolio is known as the ceding party. The party
that accepts a portion of the potential obligation in exchange for a share of the insurance
premium is known as the reinsurer.

How Reinsurance Works

Reinsurance allows insurers to remain solvent by recovering some or all amounts paid to
claimants. Reinsurance reduces the net liability on individual risks and catastrophe
protection from large or multiple losses. The practice also provides ceding companies,
those that seek reinsurance, the capacity to increase their underwriting capabilities in
terms of the number and size of risks.

According to the Insurance Information Institute, Hurricane Andrew caused $15.5 billion
in damage in Florida in 1992, causing seven U.S. insurance companies to become
insolvent.1

Benefits of Reinsurance
By covering the insurer against accumulated individual commitments, reinsurance gives
the insurer more security for its equity and solvency by increasing its ability to withstand
the financial burden when unusual and major events occur.2

Through reinsurance, insurers may underwrite policies covering a larger quantity or

volume of risk without excessively raising administrative costs to cover their solvency
margins. In addition, reinsurance makes substantial liquid assets available to insurers in
case of exceptional losses.2

Insurers are legally required to maintain sufficient reserves to pay all potential claims
from issued policies.2

Types of Reinsurance

Facultative coverage protects an insurer for an individual or a specified risk or contract. If

several risks or contracts need reinsurance, they a renegotiated separately. The reinsurer
holds all rights for accepting or denying a facultative reinsurance proposal.2

A reinsurance treaty is for a set period rather than on a per-risk or contract basis. The
reinsurer covers all or a portion of the risks that the insurer may incur.2

KEY TAKEAWAYS

 Reinsurance, or insurance for insurers, transfers risk to another company to reduce

the likelihood of large payouts for a claim.
 Reinsurance allows insurers to remain solvent by recovering all or part of a payout.
 Companies that seek reinsurance are called ceding companies.
 Types of reinsurance include facultative, proportional, and non-proportional.
Under proportional reinsurance, the reinsurer receives a prorated share of all policy
premiums sold by the insurer. For a claim, the reinsurer bears a portion of the losses
based on a pre-negotiated percentage. The reinsurer also reimburses the insurer for
processing, business acquisition, and writing costs.3

With non-proportional reinsurance, the reinsurer is liable if the insurer's losses exceed a
specified amount, known as the priority or retention limit. As a result, the reinsurer does
not have a proportional share in the insurer's premiums and losses. The priority or
retention limit is based on one type of risk or an entire risk category.

Excess-of-loss reinsurance is a type of non-proportional coverage in which the reinsurer

covers the losses exceeding the insurer's retained limit. This contract is typically applied
to catastrophic events and covers the insurer either on a per-occurrence basis or for the
cumulative losses within a set period.4

Reinsurance Deconstructed
Under risk-attaching reinsurance, all claims established during the effective period are
covered regardless of whether the losses occurred outside the coverage period. No
 coverage is provided for claims originating outside the coverage period, even if the losses
occurred while the contract was in effect.5

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Reinsurance Company in India General Insurance Corporation of India

GIC Re or GIC of India is a state owned enterprise in India. It was

incorporated on 22 November 1972 under Companies Act, 1956. GIC Re has its registered
office and headquarters in Mumbai. It was the sole reinsurance company in the Indian
insurance market until the insurance market was open to foreign reinsurance players by late
2016 including companies from Germany, Switzerland and France. GIC Re's shares are
listed on BSE Limited and National Stock Exchange of India Ltd. GIC Re was ranked in
Forbes'list of World's Best Employers and Top Regarded Companies in 2019.

Operations
All direct general insurance companies of India are required by law to cede a
mandatory percentage of every policy value to GIC Re subject to some limitations and
exceptions. This percentage of cession is decided by the IRDAIon an annual basis.
As GIC Re spreads its wings to emerge as an effective reinsurance solutions
partner for the Afro-Asian region and has started leading the reinsurance programmes of
several insurance companies in SAARC countries, South East Asia, Middle East and
Africa. GIC Re has its liaison/representative/branch offices in Delhi, Chennai, Dubai,
Malaysia, London and Moscow.
In April 2020, GIC Re’s Operations in Brazil got status upgrade from
'occasional reinsurer' to 'admitted reinsurer' by the Brazilian Superintendence of Private
Insurance (SUSEP). It was published in the Brazilian Gazette on 14 April 2020.

Current Condition in India

The Insurance Regulatory and Development Authority of India (IRDAI) was set up in
1999 as an autonomous body to regulate the insurance industry and a regime was
introduced for licensing and registration of insurers and insurance intermediaries. Currently,
the following have been granted licences to carry out insurance business in India:
 24 life insurers, 27 general insurers and seven stand-alone health insurers.
 One reinsurer and nine foreign reinsurance branches.
 25 third-party administrators, 444 insurance brokers, 25 web aggregators, four
insurance repositories, 695 corporate agents and numerous insurance agents.

List of Insurance Companies in India

01.Life Insurance
List is arranged chronologically based on their recognition by IRDAI
Headquarter Founde
# Company Sector
s d
1 Life Insurance Corporation of India Public Mumbai 1956
Privat
2 HDFC Standard Life Insurance Co. Ltd. Mumbai 2000
e
Privat
3 Max Life Insurance Co. Ltd. Delhi 2000
e
Privat
4 ICICI Prudential Life Insurance Co. Ltd. Mumbai 2000
e
Privat
5 Kotak Mahindra Life Insurance Co. Ltd. Mumbai 2001
e
Privat
6 Aditya Birla Sun Life Insurance Co. Ltd. Mumbai 2000
e
Privat
7 TATA AIA Life Insurance Co. Ltd. Mumbai 2001
e
Privat
8 SBI Life Insurance Co. Ltd. Mumbai 2001
e
Privat
9 Exide Life Insurance Co. Ltd. Bangalore 2001
e
Privat
10 Bajaj Allianz Life Insurance Co. Ltd. Pune 2001
e
Privat
11 PNB MetLife India Insurance Co. Ltd. Mumbai 2001
e
Privat
12 Reliance Nippon Life Insurance Company Mumbai 2001
e
Privat
13 Aviva Life Insurance Company India Ltd. Gurugram 2002
e
Privat
14 Sahara India Life Insurance Co. Ltd. Lucknow 2004
e
Privat
15 Shriram Life Insurance Co. Ltd. Hyderabad 2005
e
Privat
16 Bharti AXA Life Insurance Co. Ltd. Mumbai 2008
e
Privat
17 Future Generali India Life Insurance Co. Ltd. Mumbai 2007
e
Privat
18 IDBI Federal Life Insurance Co. Ltd. Mumbai 2008
e
Canara HSBC Oriental Bank of Commerce Life Privat
19 Gurugram 2008
Insurance Co. Ltd. e
Privat
20 Aegon Life Insurance Co. Ltd. Mumbai 2008
e
Privat
21 Pramerica Life Insurance Co. Ltd. Mumbai 2008
e
 List is arranged chronologically based on their recognition by IRDAI
Headquarter Founde
# Company Sector
s d
Privat
22 Star Union Dai-Ichi Life Insurance Co. Ltd. Mumbai 2008
e
Privat
23 IndiaFirst Life Insurance Co. Ltd. Mumbai 2009
e
Privat
24 Edelweiss Tokio Life Insurance Co. Ltd. Mumbai 2011
e

02.Non Life Insurance

As of October 2018, IRDAI has recognized 34 non-life insurance companies.
Headquarter Founde
Company Sector
s d
1 Acko General Insurance Private Mumbai 2016
2 Aditya Birla Health Insurance Private Mumbai 2015
Agriculture Insurance Company
3 Public New Delhi 2002
of India
4 Apollo Munich Health Insurance Private Gurgaon 2007
5 Bajaj Allianz General Insurance Private Pune 2001
6 Bharti AXA General Insurance Private Mumbai 2008
Cholamandalam MS General
7 Private Chennai 2001
Insurance
8 Cigna TTK Private Mumbai 1918
9 DHFL General Insurance Private Mumbai 2016
10 Digit Insurance Private Pune 2017
11 Edelweiss General Insurance Private Mumbai 2017
Export Credit Guarantee
12 Private Mumbai 1957
Corporation of India
13 Future Generali India Insurance Private Mumbai 2007
HDFC ERGO General Insurance
14 Private Mumbai 2002
Company
15 ICICI Lombard Private Mumbai 2001
IFFCO TOKIO General
16 Private Gurugram 2000
Insurance
Kotak Mahindra General
17 Private Mumbai 2015
Insurance
18 Liberty General Insurance Private Mumbai 2013
19 Magma HDI General Insurance Private Mumbai 2009
20 Max Bupa Health Insurance Private New Delhi 2008
21 National Insurance Company Public Kolkata 1906
22 New India Assurance Public Mumbai 1919
23 Raheja QBE General Insurance Private Mumbai 2007
 Headquarter Founde
Company Sector
s d
24 Reliance General Insurance Private Mumbai 2000
25 Reliance Health Insurance Private Mumbai 2017
Religare Health Insurance
26 Private Gurgaon 2012
Company Limited
Royal Sundaram General
27 Private Chennai 2000
Insurance
28 SBI General Insurance Private Mumbai 2010
29 Shriram General Insurance Private Jaipur 2008
30 Star Health and Allied Insurance Private Chennai 2006
31 Tata AIG General Insurance Private Mumbai 2001
32 The Oriental Insurance Company Public New Delhi 1947
33 United India Insurance Company Public Chennai 1938
Universal Sompo General
34 Private Mumbai 2007
Insurance Company

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