CHANGING TIMES

1. Presented By
Sidharth Bijoor (42)
Rohit Pareek(51)
Smriti Chopra (52)
Sagar Jogani (53)
Sunil Kheria (55)
Rituparna Dutta (58)

2. INTRODUCTION OF THE INSURANCE INDUSTRY IN
INDIA
 Insurance in India has a deep rooted history. 1818 saw the advent
life insurance business in India with the establish of the oriental life
insurance company in India.
 In the year 1912, the Life Insurance Companies Act and the
Provident Fund Act were passed to regulate the insurance business.
 The Government of India issued an Ordinance on 19 January 1956
nationalising the Life Insurance sector and Life Insurance
Corporation came into existence in the same year.
 In 1914, the Government of India started publishing returns of
Insurance Companies in India.
An Ordinance was issued on 19th January, 1956 nationalizing the
Life Insurance sector and Life Insurance Corporation came into
existence in the same year

3. In India, since 2000, Government allowed Private players and FDI up to
26% and recently Cabinet approved a proposal to increase it to 49%.
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.
The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed
ownership of up to 26%.
Parliament passed a bill de-linking the four subsidiaries from GIC in
July, 2002.

4. LIBERALIZATION OF INSURANCE SECTOR
• Globalization will provide opportunities to the customers.
• Better production with more reasonable and affordable prices.
• The customer will get better services.
• It will enhance the saving rate.
• Long term funds for infrastructure development will be available to
the country.
• It will secure for India larger inflow of foreign capital need to sustain
our GDP growth

5. WHY INSURANCE IN INDIA?
We live in the information age. People are becoming
more aware of the importance of insurance in their
life.
Today, natural disasters on a large scale occur
regularly and even terrorism is increasing day by day.
Specialized software is used in actuarial science to
accurately predict life expectancy and mortality. But
natural disasters are difficult to predict.

6. When LIC was formed in 1956 through the amalgamation of
225 private companies, its business objectives
complemented its social objectives.
The main objective is to spread life insurance to every
nook and corner of the country especially rural areas, to
socially and economically backward classes and provide
them reasonably-priced financial cover against death.
Even today after 50 years, the core value of social
commitment has not changed. What have changed in recent
times are customers’ expectations and the environment in
which the life insurance sector operates.

7. Insurance companies in India:
IRDA has so far granted registration to 12 private
life insurance companies and 9 general insurance
companies.
If the existing public sector insurance companies
are included, there are currently 13 insurance
companies in the life side and 13 companies
operating in general insurance business.

8. KEY PRIVATE PLAYERS IN INDIAN LIFE INSURANCE INDUSTRY:
• ING. VYSYA LIFE INSDURANCE
• OM KOTAK MAHINDRA LIFE INSURANCE
• ICICI PRUDENTIAL LIFE INSURANCE
• BIRLA SUN LIFE
• AVIVA
• TATA AIG

9. INTRODUCTION OF LIC
LIC has an excellent money back policy which provides for
periodic payments of partial survival benefits as long as the
policy holder is alive. 20% of the sum assured is payable after
5, 10, 15 and 20 years and the balance 40% is payable at the
20th year along with accrued bonus.
LIC offers 66 different plans; plans are formulated for
specific occasions – whole life plans, term assurance
plans, money back plan for women, child plans, plans for the
handicapped individuals, endowment assurance plans, plans
for high worth individuals, pension plans, unit linked
plans, special plans, social security schemes – diversified
portfolio of products. HDFC SLIC could diversify its product
portfolio. It could add more plans for high worth individuals
and women.

10. Objective of LIC:
Spread Life Insurance widely and in particular to the rural
areas and to the socially and economically backward classes
with a view to reaching all insurable persons in the country and
providing them adequate financial cover against death at a
reasonable cost.
Maximize mobilization of people's savings by making insurance-
linked savings adequately attractive.
Conduct business with utmost economy and with the full
realization that the moneys belong to the policyholders.
Act as trustees of the insured

11. Mission/vision:
Mission "Explore and enhance the quality of life of
people through financial security by providing
products and services of aspired attributes with
competitive returns, and by rendering resources
for economic development."
Vision "A trans-nationally competitive financial
conglomerate of significance to societies and
Pride of India."

12. COMPANY PROFILE
HDFC Incorporated in 1977 with a share
capital of Rs 10 Crores, HDFC has since
emerged as the largest residential mortgage
finance institution in the country. The
corporation has had a series of share issues
raising its capital to Rs. 119 Crores.
The gross premium income for the year
ending March 31, 2007 stood at Rs. 2,856
Crores and new business premium income at
Rs. 1,624 Crores. The company has covered
over 8,77,000 lives year ending March 31,
2007.

13. GROUP COMPANIES
• HDFC Bank: World Class Indian Bank- among the top private banks in
India.
• HDFC AMC: One of the top 3 Amc’s in India- Preferred investment
manager.
Intel net Global: BPO services for international customers.
• CIBIL: Credit Information Bureau India Limited.
• HDFC Chubb: Upcoming Private companies in the field of General
Insurance.
• HDFC Mutual Fund
• HDFC reality. COM: Helps to search properties in all major cities in India
• HDFC securities

14. KEY STRENGTH:
Financial Expertise :a joint venture of leading
financial services groups
Range of Solutions:
HDFC has a range of individual and group
solutions, which can be easily customized to
specific needs

15. PRODUCTS & SERVICES
• Endowment Plan
• Money Back Policy
• Group Insurance Policy
• Term Insurance Policy

16. COMPARISON
Insurance: A promise of compensation for specific
potential future losses in exchange of a consideration.
•LIC and state owned general insurance companies have
limited policies to offer to their subscribers
•Private insurance companies offer many policies and the
premium amount as well as the maturity period is much
competitive as against those of government owned
insurance companies
•The private sector insurance players have started
exploring the rural markets in which until recently, the
state owned insurance companies had monopoly.India’s
life insurance premium, as a percentage of GDP is 1.8
percent

17. •Indian insurance sector is likely to register unprecedented growth of
200 percent and attain a size of more than INR 2000 billion by the
year 2012-13
•A private sector insurance business will achieve a growth rate of 140
percent as a result of aggressive marketing technique being adopted
by them against 35-40 percent growth rate of state owned insurance
companies
•In rural markets, the share of private insurance players would
increase substantially as these have been able to generate a faith
among their rural consumers

18. Term Life Insurance Plans (comparison)
Insurer LIC ICICI Prudential HDFC
Term 30 years 30 years
30
years
Sum
Assured INR 25 lakh INR 25 lakh INR 25 lakh
Smoking Non-smoker
Non-
smoker Non-smoker
Premium INR 7,300 INR 3,350
INR
4,200

19. Some hint details are at IRDA site.
COMPANY-----------------CLAIM REJECTION % (2009-10)
Aegone Religare - 44%
Aviva-9.75 %
Bajaj Allianz-5.20%
Bharti AXA-22.20%
Birla Sunlife-10.62%
Future Generali-29.36%
ING Vysya-4.26%
ICICI Prudential-3.27%
Max New York-12.31%
Reliance Life-7.05%
SBI Life-14.75%
Tata AIG-12.93%
HDFC- 2.75%
LIC-1.21%
Now it is your decision you like cheaper or fair claim.

20. Insurance Plans Comparison:
Attributes Birla Sun Life Insurance LIC Bajaj Allianz Life Insurance
Corporate Life Insurance
Group Protection Plans, Group Scheme
Plans, Group Term Insurance Plans
Group Critical Illness Rider, Group
Gratuity Plans, Group Leave
Encashment Plan, Group Mortgage
Redemption Assurance, Group Scheme
Plans, Group Term Insurance Plans,
Social Security Plan
Group Gratuity Plans, Group
Protection Plans, Group Scheme Plans,
Group Term Insurance Plans
Agent No No No
Affiliation Birla Sun Life Insurance Life Insurance Corporation (LIC) Bajaj Allianz
Types Life Insurance Life Insurance Corporation (LIC) Life Insurance
SMS Short Code 56161 - -
Individual Life Insurance
Children Plans, Endowment Assurance
Plans, Money Back Plans, Protection
Plans, Special Plans For Women, Term
Assurance Plans
Children Plans, Endowment Assurance
Plans, Joint Life Plans, Money Back
Plans, Plans For Handicapped
Dependents, Plans For High Worth
Individuals, Protection Plans,
Retirement Pension Plans, Special
Plans For Women, Term Assurance
Plans, Unit Linked Insurance Plans
(ULIPS), Whole Life Plans
Children Plans, Endowment Assurance
Plans, Money Back Plans, Protection
Plans, Retirement Pension Plans,
Savings And Investment Plans, Special
Plans For Women, Term Assurance
Plans, Whole Life Plans

21. SWOT ANALYSIS OF HDFC
STRENGTHS:
Domestic image of HDFC supported by standard life
international image is strength of the company.
Strong and well spread network of qualified
intermediaries and sales person.
Strong capital and reserve base.
The company provides customer service of the
highest order
WEAKNESS:
Heavy management expenses and administrative
costs.
Low customer confidence on the private players.

22. OPPORTUNITIES:
Insurable population –According to ING only 10% of the
population is insure which represents around 30% of the
insurable population. This suggests more than 300m
people, with the potential to buy insurance, remain
uninsured.
There will be inflow of managerial and financial expertise
from the world’s leading insurance markets. Further the
burden of educating consumers will also be shared among
many players.
THREATS
Reorganization of PSU’s. The all PSU’s have started to
redefine their services to attract customer’s attention.
A few foreign Insurance companies have been permitted to
increase their number branches and its entry has taken away
some business of the existing companies.

23. SWOT ANALYSIS OF LIC
STRENGTHS:
India’s top insurance company and best among
Public sector company.
Provide better infrastructure than any other Public
company.
WEAKNESSES:
Average waiting time for the customer is 15 to 20
minutes.
No separate customer care unit

24. OPPORTUNITIES:
Setup a marketing cell at the local branch.
Ensure that policies are diversified across
several customer segments
THEREATS:
Growth of private players has led to shifting
emphasis from public sector companies.

25. CONCLUSION
The products of HDFC Std. LIFE & LIC are no doubt very good
and it provides the customized solution to its customer the
products offerings are made so very flexible and adaptable
in order to get with the customer requirements.
All the products and the special offering at LIC loaded with
lot of benefits for the customer.
LIC is always there to serve its customers with great speed.
LIC has a wide network of branches amongst the private
sector insurance companies.