Brief History of Insurance

1.      With the establishment of the Oriental Life Insurance Company in Kolkata, the business of Indian life insurance started in the year 1818.
2.      LIC was formed by an Act of Parliament - LIC Act, 1956.
3.      In 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India. It was with effect from 1st January 1973.
4.      107 insurers integrated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC was incorporated as a company.
5.      In 1993, the Government of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector.
6.      General Insurance Corporation of India - GIC had four subsidiary companies, namely (With effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies)
a.   The Oriental Insurance Company Limited
b.   The New India Assurance Company Limited
c.    National Insurance Company Limited
d.   United India Insurance Company Limited.

Insurance Regulatory and Development Authority of India

1.      Headquarter - Hyderabad, Telangana.
2.      Chairman - Subhash Chandra Khuntia.
3.      Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act).
4.       As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry.

Insurance Repository in India

1.      The Insurance Repository in India is a database of insurance policies. It allows policy holders to make revisions to a policy with speed and accuracy. It launched on 16 September 2013. It is the world's first of its kind.
2.      India's Insurance Regulatory and Development Authority has issued licenses to five entities to act as Insurance Repositories: Central Insurance Repository Limited (CIRL) • SHCIL Projects Limited • Karvy Insurance repository Limited • NSDL Database Management Limited • CAMS Repository Services Limited

Life Insurance Corporation of India

1.      Headoffice – Mumbai
2.      Chairman - Shri V K Sharma
3.      Tagline - Yogakshemam Vahamyaham
4.      245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized in 1956. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. It started off with a capital of Rs. 5 crore and that too from the Government of India.
5.      LIC is governed by the Insurance Act 1938, LIC Act 1956, LIC Regulations 1959 and Insurance Regulatory and Development Authority Act 1999.
6.      As on 31st March, 2016, LIC has 8 Zonal Offices, 113 Divisional Offices, 2048 Branch Offices, 73 Customer Zones, 1401 Satellite Offices and 1240 Mini Offices in India.

General Insurance Corporation

1.      Headoffice – Mumbai
2.      Chairman - Alice G Vaidyan
3.      The General insurance industry was nationalized in 1972 and 107 insurers were grouped and amalgamated into four Companies – National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd.
4.      The GIC was incorporated in the year 1972 and the other four companies became its subsidiaries. In November 2000, GIC was notified as the Indian Reinsurer, and its supervisory role over its subsidiaries was brought to an end. 
5.      From 21 March 2003, GIC's role as a holding company of its subsidiaries also came to an end and the ownership of the subsidiaries was transferred to the Government of India.
6.      The Corporation has its head office in Mumbai and 3 liaison offices in India (Delhi, Kolkata and Chennai), 3 branches in foreign countries (London, Dubai and Kuala Lumpur) and 1 representative office in Moscow. It also has 2 foreign subsidiaries (GIC Re South Africa and GIC Re India Corporate Member Ltd. in UK).
7.      The authorized capital is Ra.1000 crore while the paid-up equity capital of the company is Rs.430 crore.

The New India Assurance Co. Ltd.

1.      Headoffice- Mumbai
2.      Chairman - G.Srinivasan
3.      Tagline - India’s premier general insurance company
4.      The company was founded by Sir Dorabji Tata on July 23rd, 1919 and nationalized in 1973 with merger of Indian companies. The Company has 2329 offices.  The authorized capital and paid-up equity capital of the company is Rs.300 crore and Rs.200 crore respectively.

National Insurance Company Limited (NICL)

1.      Headoffice- Kolkata
2.      Chairman – K Sanath kumar
3.      Tagline - a bright and better tomorrow
4.      The Company was incorporated in the year 1906. After nationalization it was merged, along with 21 foreign and 11 Indian companies, to form National Insurance Company Ltd. The Company has 1998 offices. The company provides insurance services to the customers catering to almost all segments of general insurance business. The authorized capital and paid-up equity capital of the company is Rs.200 crore and Rs.100 crore respectively.

United India Insurance Company Limited

1.      Headoffice – Chennai
2.      Chairman - KB Vijay Srinivas
3.      Tagline - Rest Assured with Us
4.      United India Insurance Company Limited was incorporated in 1938. With the nationalization of General Insurance business in India. The Company has 2080 offices. The company provides insurance services to the customers catering to almost all segments of general insurance business. The authorized capital and paid-up equity capital of the company is Rs.200 crore and Rs.150 crore respectively.

Oriental Insurance Company Ltd

1.      Headoffice - New Delhi
2.      Chairman –  A. V. Girija Kumar
3.      Tagline - Prithvi, Agni, Jal, Akash, Sabki Suraksha Hamare Paas
4.      The Oriental Insurance Company Ltd was incorporated in the year 1947. In 2003 all shares of the company held by the General Insurance Corporation of India were transferred to the Government of India. The Company has 1924 offices in the country. The company provides insurance services to the customers catering to almost all segments of general insurance business. The authorized capital and paid-up equity capital of the company is Rs.200 crore.

Agriculture Insurance Company Of India Limited

1.      Headoffice - New Delhi
2.      Chairman - Alamelu T. Lakshmanachari
3.      'Agriculture Insurance Company Of India Limited’ (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002. General Insurance Corporation of India (GIC), NABARD and four public sector general insurance companies have contributed towards the share capital of the Company.
4.      The Authorized Share Capital of the Company is Rs. 1500 crore with initial Paid-up Equity Share Capital of the Company of Rs. 200 crore.
5.      The Company having received approval from Insurance Regulatory & Development Authority (IRDA) commenced its business operations w. e. f. 1st April, 2003.
6.      It has its Head Office in New Delhi, 17 Regional Offices in various State Capitals and 3 one man offices at District levels.

Insurance Terms

1.      Actuarial Science - Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuarial science includes a number of interrelated subjects, including probability, mathematics, statistics, finance, economics, financial economics, and computer programming.
2.      Actuary - A person with expertise in the fields of economics, statistics and mathematics, who helps in risk assessment and estimation of premiums etc for an insurance business, is called an actuary.
3.      Annuity - A long-term contract sold by an insurance company designed to provide payments to the holder at specified intervals, usually after retirement.
4.      Banccasurance means selling of insurance products through banks.
5.      Beneficiary - A beneficiary is a person who is entitled to receive distributions from a trust, will or life insurance policy.
6.      Coverage - The range of protection provided under a contract of insurance; any of numerous risks covered by a policy. 
7.      Days Of Grace - It provides the policy holder with extra   days, after the due date, to make the payment of the premiums without any late fee, these extra days period is known as Days of Grace. 
8.      Death Benefit - It is the amount of benefit on a life insurance policy or pension that will be paid to the beneficiary in the event of the death of the insured person. 
9.      Deferment Period  -It is the period from the date of subscription to an insurance-cum-retirement policy till the date at which the first instalment of pension is received. Deferment period comes in minimum and maximum limit. 
10.  Endowment plan is a combination of insurance and investment. The insured will get a lump sum along with bonuses (if any) on policy maturity or on death event.

11.  Exclusions - It refer to certain detailed conditions or situations for which the policy will not provide benefits.
12.  In Term Plan which is a pure insurance there is no maturity benefit. It means if a person dies during the term of policy then only his beneficiaries will get some money otherwise at maturity, at the end of the term there is no benefit
13.  Insurability - All conditions concerning individuals that affect their health, susceptibility to injury and life expectancy; it is basically an individual's risk profile. 
14.  Lapse in Insurance - The policy for which all benefits to the policy holder cease and is terminated due to nonpayment of premium amount on the due date or even after the grace period is called a lapsed policy.
15.  Maturity claim - Maturity claim is a type of claim, wherein the insured fills a maturity claim form. It is sent along with the original policy document to the insurance company before the maturity date to get timely settlement from the insurance company as post datedcheque or ECS (Electronic Clearance Service) payment on the maturity date.
16.  Money-back policies provides life coverage during the term of the policy and the maturity benefits are paid in installments by way of survival benefits.
17.  Moral Hazard  - Moral hazard consist of various risk factors that affects the decision of the insurance company to accept the risk. They contain factors such as state of health, personal habits standard of living and income of insured person. 
18.  Mortality Charge - Mortality Charge is the amount charged every year by the insurer to provide the life cover to the policyholder on the life of the Life Insured. It is also called as Cost of Insurance.
19.  Nomination - An act by which the policy holder authorizes another person to receive the policy moneys. 
20.  Policy not in force - If the policy is lapsed i.e., the insured has not paid the policy amount before the grace period expires, then it is termed as policy not in force.
21.  Premium  - The payment or the regular payment of an amount to be paid by the policy holder for a contract of insurance in exchange for the coverage. 
22.  Reinstatement - The renewal of a lapsed policy to live status. 
23.  Riders are the supplementary benefits added in the primary life insurance policy purchased by the insured.
24.  Surrender Value - Surrender Value is the amount the policy holder will get from the insurance company if he decides to exit the policy before maturity. Surrender value is payable only after three full years premiums.
25.  Survival Benefit - Guaranteed survival benefits are benefits given to the policy holder during or upon completion of the policy tenure. In the case of money back policy,
26.  Third Party Administrators - Third Party Administrators or TPAs are a vital link between health insurance companies, policyholders and health care providers. The TPAs maintain databases of policy holders and issue them identity cards with unique identification numbers and handle all the post policy issues including claim settlements.
27.  Unit-linked Investment Policies (ULIP) - 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.
28.  Vesting Age - It is the age at which the policy holder starts receiving pension in an insurance-cum-pension plan. 

Important Scheme of LIC

1.      Jeevan Rakshak - This is a traditional endowment policy.
2.      Jeevan Shagun - Jeevan Shagun is a money back plan and single premium plan.
3.      Jeevan Sangam – Single Premium, endowment.
4.      ULIP - Samridhi Plus plan, Endowment Plus Plan, Wealth Plus Plan, Child Fortune Plus, Money Plus plan, Profit Plus Plan, Money Plus Plan, Future Plus Plan, Bima Plus Plan

------CHILDREN PLANS------
Jeevan Kishore
Komal Jeevan
Jeevan Anuraag
Child Career
Child Future
Jeevan Ankur
Jeevan Aadhar - Specially for Handicapped dependents, life insurance
Jeevan Vishwas – Specially for Handicapped dependants. Endowment plan
Jeevan Mitra
New Jana Raksha Plan
Jeevan Mitra
Jeevan Anand
Jeevan Shree
Jeevan Pramukh
Bima Nivesh
Jeevan Amrit
Jeevan Vriddhi
------HEALTH PLANS------
Health Protection Plus
Jeevan Arogya
------JOINT LIFE PLANS------
Jeevan Saathi - Double Cover Joint Life Plan
------MONEY BACK PLANS------
Jeevan Surabhi
Bima Bachat
Jeevan Tarang
Jeevan Bharati
Jeevan Varsha
Jeevan Akshay
------SPECIAL PLANS------
Jeevan Chhaya - Money Back Endowment Plan for the benefit of a child 
Jeevan Saral - Endowment policy 
New Bima Gold -  combination of a money back plan and endowment plan 
Anmol Jeevan - Offline Term insurance plan
Amulya Jeevan - Offline Term insurance plan
e-Term Plan - Online Term insurance plan.


Public Sector Insurance Company in India

Insurance Glossary  

Updated current affairs in insurance exam