A Project Report on-

TYPES OF INSURANCE

A Project submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Banking & Insurance)

Under the Faculty of Commerce

By
Ms. Shivani Jaiswal

Under the Guidance of

Mr. Kishor Chauhan

JVM’s Mehta College

Plot no. 9, Sector 19, Airoli, Navi Mumbai 400708

March 2020
 DECLARATION

I the undersigned Ms. Shivani Jaiswal hereby, declare that the work embodied in this project
work titled “Types of Insurance”, forms my own contribution to the research work carried
out under the guidance of Mr. Kishor Chauhan is a result of my own research work and has
not been previously submitted to any other University for any other Degree/ Diploma to this
or any other university.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature

Certified by

Name and signature of the guiding teacher

 ACKNOWLEDGEMENT
To list who all have helped me in difficulty because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my principal, Dr. (Mrs.) Leena Sarkar for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our co-coordinator, Mr. Kishor Chauhan for his moral support
and guidance.

I would also like to express my sincere gratitude towards my project guide Mr. Kishor
Chauhan whose guidance and care made the project successful.

I would like to thank my college library JVM’s Mehta College, for having provided various
reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me throughout
my project.
 INDEX
SR. PARTICULARS PAGE
NO. NO.
Chapter 1 Introduction 1
1.1 Introduction To Insurance Sector 2
1.2 History 3
1.3 What Is Insurance 5
1.4 Definition Of Insurance 6
1.5 Historical Background Of LIC 7
1.6 Role Of An Agent Of Insurance 8
1.7 Features Of Insurance 9
1.8 Indian Insurance Market 11
1.9 Nature Of Insurance 12
1.10 Function Of Insurance 13
1.11 Principle Of Insurance 15
1.12 Benefits Of Insurance 20

Chapter 2 Types Of Insurance 21

2.1 Description 22
2.2 Evolution Of Insurance Industry 28
2.3 Insurance Companies In India 30
2.4 Non Life Insurance Companies 32
2.5 Insurance Regulatory & Development Authority 35
2.6 Auto Insurance 36
2.7 Types Of Auto Insurance 38
2.8 Commercial Insurance 43

Chapter 3 HDFC Life Insurance 51

3.1 Introduction 52
3.2 Corporate History 53
3.3 Products & Service 54
3.4 Child Insurance Plan 55
3.5 Benefits Of Child Insurance Plan 56
3.6 Health Insurance By HDFC Bank 57
3.7 Benefits Of Health Insurance 58
3.8 Factors To Be Considered 59
3.9 Women Insurance Plan 60
3.10 Need For Women Insurance Plan 61
3.11 Term Insurance Plan 63
3.12 Steps To Choose Suitable Term Plan 64
3.13 Saving And Investment Plan 65
3.14 Types Of Investment Plan 66
3.15 Pension And Retirement Plan 67
3.16 Types Of Pension Plan 68
3.17 Insurance Plan For Defense Personnel 70
3.18 List Of Discontinued Insurance Plan 71
Chapter 4 HDFC General Insurance 72
4.1 Home Insurance 73
4.2 Features Of Home Insurance 74
4.3 Travel Insurance 75
4.4 Critical Illness 76
4.5 Motor Insurance 77

Chapter 5 Conclusion 78
5.1 Conclusion 79

Chapter 6 Appendix 80
6.1 Questionnaire 81
6.2 Bibliography 83
INTRODUCTION

1
 INTRODUCTION TO INSURANCE SECTOR

Every risk involves the loss of one or other kind. In older time, the contribution by the
person was made at the time of loss. Today, only one business, which offers all walks of life,
is insurance business. Owing to growing complexity of life, trade and commerce, individual
and business firms and turning to insurance to manage various risks. Every individual in this
world is subject to unforeseen uncertainties which may make him and his family vulnerable.
At this place, only insurance helps him not only to survive but also recover his loss and
continue his life in a normal manner.

Insurance is an important aid to commerce and industry. Every business enterprise

involves large number of risks and uncertainties. It may involve risk to premises, plant and
machinery, raw material and other things. Goods may be damaged or may be destroyed due
to fire or flood. Some risk can be avoided by timely precautions and some are unavoidable
and are beyond the control of a business. These unavoidable risks can be protected by
insurance.

Insurance in India refers to the market for insurance in India which covers both the
public and private sector organisations. It is listed in the Constitution of India in the Seventh
Schedule as a Union List subject, meaning it can only be legislated by the Central
Government only.

The insurance sector has gone through a number of phases by allowing private
companies to solicit insurance and also allowing foreign direct investment. India allowed
private companies in insurance sector in 2000, setting a limit on FDI to 26%, which was
increased to 49% in 2014.] Since the privatisation in 2001, the largest life-insurance company
in India, Life Insurance Corporation of India has seen its market share slowly slipping to
private giants like HDFC Life, ICICI Prudential Life Insurance and SBI Life Insurance
Company

2
 HISTORY
Insurance in this current form has its history dating back to 1818 [], when Oriental
LifeInsurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of
European community. The pre-independence era in India saw discrimination between the
lives of foreigners (English) and Indians with higher premiums being charged for the latter.In
1870, Bombay Mutual Life Assurance Society became the first Indian insurer

At the dawn of the twentieth century, many insurance companies were founded. In the
year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to
regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary
that the premium-rate tables and periodical valuations of companies should be certified by
an actuary. However, the disparity still existed as discrimination between Indian and foreign
companies. The oldest existing insurance company in India is the National Insurance
Company, which was founded in 1906, and is still in 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.
The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers and also
75 provident societies—245 Indian and foreign insurers in all. In 1972 with the General
Insurance Business (Nationalisation) Act was passed by the Indian Parliament, and
consequently, General Insurance business was nationalized with effect from 1 January 1973.
107 insurers were amalgamated and grouped into four companies, namely National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd
and the United India Insurance Company Ltd. The General Insurance Corporation of India
was incorporated as a company in 1971 and it commenced business on 1 January 1973.

The LIC had monopoly till the late 90s when the Insurance sector was reopened to the
private sector. Before that, the industry consisted of only two state insurers: Life Insurers
(Life Insurance Corporation of India, LIC) and General Insurers (General Insurance
Corporation of India, GIC). GIC had four subsidiary companies. With effect from December
2000, these subsidiaries have been de-linked from the parent company and were set up as
independent insurance companies: Oriental Insurance Company Limited, New India
Assurance Company Limited, National Insurance Company Limited and United India
Insurance Company.

3
 The business of life insurance in India  in its existing form started in india in the year
1818 with the establishment of the  Oriental LIFE INSURANCE COMPANY in Calcutta 

 Some of the important milestones in the life insurance business in indiaare :

 1912 :The indian life ASSURANCE companies act enacted as the first status to
regulate the life insurances business .

 1928: The indian insurances company act enacted to enable the govertement to collect
statistical information about both life and non life insurances business  .

 1938:  The earilier legislation consolided and amended to by the insurance act  with
the objective of protecting the interest of the insuring public .

 1956: 245 Indian and foreign insurers provident societies  taken over by the central
government and nationalized LIC formend  by an ACT of patrliament , viz LIC act , 1956
with a capital contribution of rs 5 crore from the government of india 

 The geranal insurance business in india , on the other hand , can trace its roots to the
triton  insurance company LTD., the first gernal insurance company established in the year
1850 in culcutta by the british 

4
 WHAT IS INSURANCE?

Insurance may be defined as form of contract between two parties (namely insurer
and insured or assured) whereby one party (insurer) undertakes in exchange for a fixed
amount of money (premium) to pay the other party (Insured), a fixed amount of money on
the happening of certain event (death or attaining a certain age in case of life) or to pay the
amount of actual loss when it takes place through the risk insured (in case of property.

Everyone is exposed to various risks. Future is very uncertain, but there is way to
protect one’s family and make one’s children’s future safe. Life Insurance companies help us
to ensure that our family’s future is not just secure but also prosperous. Life Insurance is
particularly important if you are the sole breadwinner for your family. The loss of you and
your income could devastate your family. Life insurance will ensure that if anything happens
to you, your loved ones will be able to manage financially. This study titled “Study of
Consumers Perception about Life Insurance Policies” enables the Life Insurance Companies
to understand how consumer’s perception differs from person to person. How a consumer
selects organizes and interprets 

The primary regulator for insurance in India is the Insurance Regulatory and

Development Authority of India (IRDAI) which was established in 1999 under the
government legislation called the Insurance Regulatory and Development Authority Act,
1999.

The industry recognises examinations conducted by the IAI (for 280 actuaries), III
(for 2.2 million retail agents, 361 brokers, 175 bancassurers, 125 corporate agents and
29 third-party administrators) and IIISLA (for 8,200 surveyors and loss assessors). There are
9 licensed web aggregators. TAC is the sole data repository for the non-life industry. IBAI
gives voice to brokers while GI Council and LI Council are platforms for insurers. AIGIEA,
AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and NFIFWI cater to the
employees of the insurers. In addition, there are a dozen Ombudsman offices to address client
grievances.

5
 DEFINITION OF INSURANCE

Insurance has been defined to be that in, which a sum of money as a premium is paid
by the insured in consideration of the insurer’s bearings the risk of paying a largesum upon a
given contingency. The insurance thus is a contract whereby: I. Certain sum, termed as
premium, is charged in consideration, ii. Against the said consideration, a large amount is
guaranteed to be paid by the insurer who received the premium, iii. The compensation will be
made in certain definite sum, i.e., the loss or the policy amount which ever may be, and
iv. The payment is made only upon a contingency More specifically, insurance may be
defined as a contact between two parties, wherein one party (the insurer) agrees to pay to the
other party (the insured) or the beneficiary, ascertain sum upon a given contingency (the risk)
against which insurance is required. The Insurance Regulatory and Development Authority,
an agency of the Government of India, is the regulatory body for the insurance sector's
supervision and development.

Terminology used in definition of Insurance

Insurer or insurance company – The agency involved in Insurance business is known as

insurer.

Insured/ Assured – The person who gets his property/life insured is known as insured

Policy - The agreement or contract which is put in writing is known as a Policy.

Premium – The consideration in return of which the insurer undertakes to make goods the loss
or give a certain amount in case of life insurance is known as premium

6
 HISTORICAL BACKGROUND OF LIC

The life insurance business in India started in the 19th century when the first Indian
company, the Bombay Mutual life assurance society ltd., was formed at Bombay on
December 3, 1870.6 In the beginning, the number of life insurance companies was small and
the scales of operations were also very limited. In real terms the life insurance business in
India began when British Companies started life insurance transactions in India mainly for the
benefit of European civilians and soldiers. Occasionally, they also issued policies on Indian
lives, but it cannot be termed as Indian insurance in the true sense of the term. 

The very first policy on Indian lives was issued in 1945 by the “Royal” in favour of
‘Cursetjee Furdoonjee’.7 In 1874, a company, namely, the Oriental Government Security Life
Assurance Company Ltd., was formed followed by the Indian life of Karachi (1892), The
Bharat of Lahore (1896) and the Empire of India, Bombay (1897). To start with the progress
of Indian insurance companies was slow mainly due to competition from the foreign
companies having longer standing, bigger resources and Governmental patronage. However, a
larger number of companies were formed after the Swadeshi Movement of 1905.

  According to an investigation of life insurance in foreign countries made by the

Consular Officers of the United states in the year 1905, 26 foreign life insurance companies,
including one American life office, operated in Indian in that year8 . Between 1903 and 1912
alone, 38 life insurance companies were formed all over the country9 . These included the
National (1906), the Asian (1911) etc. of theses, as many as 26 were closed down within a
short period of time. During the same period about 500 provident societies were floated and
many of them also closed down their business shortly after inception. To exercise a measure
of control, therefore, the Government passed the first Insurance Act in 1912.

  The passage of the Act was a landmark in the history of life insurance in India. During
the First World War, the life insurance in the country suffered a setback. The investments of
the life insurance companies depreciated in value and so they had to suffer considerable
losses.

7
 ROLE OF AGENT IN INSURANCE
I. FULL information must be provided to the proponent at the point   of sale to enable
him to decided on the best cover or plan to minimize insurances of cooling off by the
proponents . 
II. An agent should be  well versed in all the paln the selling points and also be equipped
to asses the need of client . 
III. adherence agent must code of conduct for agent is crucial important agents must there
for familiarize themselves with provision of the code of conduct .
IV. Agents Must Provide  the offices with the accrued information about the prospect for
a fair assement  of the risk involved . the against confidential report must there for be
completed very carefully .
V. Agents must also possess adequate knowledge of policy servicing and claim
settlement procedure so that the policy holder can be guided correctly . 
VI. submission of proposal forms and proposal deposit to the branch office immediately
to avoid delays and to enable the office to taken timely decision .
VII. Aleaflet or brochure containing relevant features of the plan that is being sold should
be available with the agent .

a) If the agent are well conversant with the claim settelement producer and Assis the
claimant in completing the nassary  requirement , it would not only quacked the
process of claim settlement
b) Professional status but also help the organization to improve upon their

8
 FEATURES OF INSURANCE
Insurance today has become an integral part of everyone’s life. It is a written contract of
insurance that provides protection against future losses. Life insurance usually helps people
to get life insurance. The insured gets a certain compensation from the insurer. Non-life
insurance provides financial support to people or companies and helps them deal with losses.
The basic human properties have to be contrary to the idea of taking the risk.

With the above explanation, we can find these following characteristics, which are generally
celebrating in the case of life, sea, fire, and general insurance.

1. A large number of insured persons:

To spread the damage easily and easily, a large number of individuals should be insured. A
small number of individuals can also be co-operative insurance, but it is limit to a small area.
The cost of insurance for each member can be high. So, it can be impossible. Therefore, to
make the insurance cheaper, it is important to ensure a large number of individuals or
property because the cost of the insurance company will be the cost and therefore, the lower
premiums will be.

2. Sharing risks:
Insurance is an event that is a person to share a financial event that may occur when a specific
incident occurs on a person or his family. This event may be the death of a breadwinner for
the family in case of life insurance, marine insurance in the fire, fire in fire insurance and
other events in general insurance, for example, theft in theft insurance, accident in motor
insurance, And so on. The loss arising from these incidents, if the insured person is sharing
by all insured persons in the form of premium.

3. Price of Risk:
The amount of the insured’s share, the risk is evaluated before considering the idea,
consideration or the premium. There are several ways to evaluate risks. If the higher loss is
expected, then a higher premium can be charged. Therefore, the probability of loss is
calculated at the time of insurance.

9
4. Cooperative Equipment:
The most important feature of each insurance plan is the cooperation of a large number of
individuals who in reality agree to share the financial loss arising from any particular risk of
the insured. This group of individuals can be brought through voluntary or publicity or
through the request of agents. An insurer will be unable to fill all the losses due to its loss.
Therefore, by ensuring or underwriting a large number of persons, he is able to pay the
amount of loss. Like all cooperative pieces of equipment, there is no obligation on anyone to
buy an insurance policy.

5. Payment on contingency:
Payment is made on a certain casualty insured. If contingency happens then payment is made.
Since the life insurance contract is the contract of certainty, because the termination, death or
expiry of the term will definitely be, payment is definitely fixed. In other insurance contracts,
contingency is fire or marine hazard etc., may or may not be. Therefore, if contingency
happens, payment is made, otherwise, no amount is given to the policyholder. Similarly, in
certain types of policies, payment is not guaranteed due to the uncertainty of any particular
contingency within a particular period. For example, in term-insurance, payments are made
only when the death of the assured is within the specified period, maybe one or two years.
Similarly, pure endowment payments are done only in the existence of the insured at the end
of the term.

6. Payment of forty loss:

Another feature of insurance is the cordial loss of payments. An amicable loss is that which is
unpredictable and unpredictable and as a result of opportunity. In other words, the loss should
be casual. The law of a large number is based on the assumption that the losses are casual and
occur randomly. For example, a person can slip on the snowy path and break a leg. The loss
will be lucky. The insurance policy does not deliberately cover issues.

10
 INDIAN INSURANCE MARKET

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd
largest in terms of purchasing power parity. With factors like a stable 8-9 per cent annual
growth, rising foreign exchange reserves, a booming capital market and a rapidly expanding
FDI inflows, it is on the fulcrum of an ever increasing growth curve. Insurance is one major
sector which has been on a continuous growth curve since the revival of Indian economy.
Taking into account the huge population and growing per capita income besides several other
driving factors, a huge opportunity is in store for the insurance companies in India.
According to the latest research findings, nearly 80% of Indian population is without life
insurance cover, while health insurance and non-life insurance continues to be below
international standards. And this part of the population is also subjected to weak social
security and pension systems with hardly any old age income security. As per our findings,
insurance in India is primarily used as a means to improve personal finances and for income
tax planning; Indians have a tendency to invest in properties and gold followed by bank
deposits.

They selectively invest in shares also but the percentage is very small 4-5%. This in
itself is an indicator that growth potential for the insurance sector is immense. It’s a business
growing at the rate of 15-20% per annum and presently is of the order of $47.9 billion. India
is a vast market for life insurance that is directly proportional to the growth in premiums and
an increase in life density. With the entry of private sector players backed by foreign
expertise, Indian insurance market has become more vibrant. Competition in this market is
increasing with company’s continuous effort to lure the customers with new product
offerings.

11
 NATURE OF INSURANCE

Following are the main characteristics of insurance which are applicable to all types of
insurance (life, fire, marine and general insurance).

1. Sharing of Risks - Insurance is a device to share the financial losses which may occur
to individual or his family on the happening of certain events
2. Cooperative Device – Insurance is a co-operative device to spread the loss caused by
a particular risk over a large caused by a particular risk over a large number of persons who
are exposed to it and who agree to insure themselves against the risk.
3. Value of Risk – Risk is evaluated at the time of insurance. There are several methods
of valuing the risk. Higher the risks, higher will be premium
4. Payment on Contingency -If the contingency occurs, payment is made; payment is
made only for insured contingency. If there is no contingency, no payment is made. In life
insurance contract, payment is certain because the death or the expiry of term will certainly
occur. In other insurance contract like fire, marine, the contingency may or may not occur
5. Amount of Payment of Claim - The amount of payment depends upon the value of
loss occurred due to the particular insured risk. The insurance is there upto that amount. In
life insurance insurer pay a fixed sum on the happening of an event or within a specified time
period.

Example 
– In fire insurance, if fire occurs and half the property is destroyed, but the whole property is
insured, then payment of claim will be made only for that half building that is destroyed not
the whole amount of insured.

6. Insurance is different from Charity - In charity, there is no consideration but

insurance is not given without premium
6. Large number of Insured Person - Insurance is spreading of loss over a large number
of persons. Larger the number of persons, lower the cost of insurance and amount of
premium and incase lower the number of persons, higher the.

12
13
 FUNCTIONS OF INSURANCE

A. Primary Functions

I. Certainty of compensation of loss: Insurance provides certainty of payment

at the uncertainty of loss. The elements of uncertainty are reduced by better
planning and administration. The insurer charges premium for providing
certainty.

II. Insurance provides protection : The main function of insurance is to

provide protection against risk of loss. The insurance policy covers the risk
of loss. The insured person is indemnified for the actual loss suffered by him.
Insurance thus provide financial protection to the insured. Life insurance
policies may also be used as collateral security for raising loans.

III. Risk sharing : All business concerns face the problem of risk. Risk and
insurance are interlinked with each other. Insurance, as a device is the
outcome of the existence of various risks in our day to day life. It does not
eliminate risks but it reduces the financial loss caused by risks. Insurance
spreads the whole loss over the large number of persons who are exposed by
a particular risk.

B. Secondary Functions

I. Prevention of losses : The insurance companies help in prevention of losses as

they join hands with those institutions which are engaged in loss prevention
measures. The reduction in losses means that the insurance companies would be
required to pay lesser compensations to the assured and manage to accumulate
more savings, which in turn, will assist in reducing the premiums

14
II. Providing funds for investment : Insurance provide capital for society.
Accumulated funds through savings in the form of insurance premium re
achievement of goals. Businessman feel more motivated and encouraged to take
risks to enhance their profit earning. This also helps in improving their
efficiencies.

III. Solution to social problems : Insurance take care of many social problems. We have
insurance against industrial injuries, road accident, old age, disability or death etc.

IV. Encouragement of savings : Insurance not only provides protection against risks but
also a number of other incentives which encourages people to insure. Since regularity and
punctuality pf payment of premium is a perquisite for keeping the policy in force, the
insured feels compelled to save.

15
 PRINCIPLE OF INSURANCE

The basic principles which govern the insurance are –

1. Utmost good faith

2. Insurable interest

3. Indemnity

4. Contribution

5. Subrogation

6. Causaproxima

7. Mitigation of loss

1. Principle of utmost good faith :

 Both parties involved in an insurance contract—the insured (policy holder)

and the insurer (the company)—should act in good faith towards each other.
 The insurer and the insured must provide clear and concise information regarding the
terms and conditions of the contract

This is a very basic and primary principle of insurance contracts because the nature of the
service is for the insurance company to provide a certain level of security and solidarity to the
insured person’s life. However, the insurance company must also watch out for anyone
looking for a way to scam them into free money. So each party is expected to act in good
faith towards each other.

If the insurance company provides you with falsified or misrepresented information, then
they are liable in situations where this misrepresentation or falsification has caused you loss.

16
If you have misrepresented information regarding subject matter or your own personal
history, then the insurance company’s liability becomes void (revoked).

2. Principle of Insurable Interest

Insurable interest just means that the subject matter of the contract must provide some
financial gain by existing for the insured (or policyholder) and would lead to a financial loss
if damaged, destroyed, stolen, or lost.

 The insured must have an insurable interest in the subject matter of the insurance
contract.
 The owner of the subject is said to have an insurable interest until s/he is no longer the
owner.

In auto insurance, this will most times be a no brainer, but it does lead to issues when the
person driving a vehicle doesn’t own it. For instance, if you are hit by a person who isn’t on
the insurance policy of the vehicle, do you file a claim with the owner’s insurance company
or the driver’s insurance company? This is a simple but crucial element for an insurance
contract to exist.

3. Principle of Indemnity
 Indemnity is a guarantee to restore the insured to the position he or she was in before
the uncertain incident that caused a loss for the insured. The insurer (provider) compensates
the insured (policyholder).
 The insurance company promises to compensate the policyholder for the amount of
the loss up to the amount agreed upon in the contract.

Essentially, this is the part of the contract that matters the most for the insurance policyholder
because this is the part of the contract that says she or he has the right to be compensated or,
in other words, indemnified for his or her loss.

17
The amount of compensation is in direct proportion with the incurred loss. The insurance
company will pay up to the amount of the incurred loss or the insured amount agreed on in
the contract, whichever is less. For instance, if your car is inured for $10,000 but damages are
only $3,000. You get $3,000 not the full amount.

Compensation is not paid when the incident that caused the loss doesn’t happen during the
time allotted in the contract or from the specific agreed upon causes of loss (as you will see in
The Principle of Proximate Cause). Insurance contracts are created solely as a means to
provide protection from unexpected events, not as a means to make a profit from a
loss. Therefore, the insured is protected from losses by the principle of indemnity, but
through stipulations that keep him or her from being able to scam and make a profit.

4. Principle of Contribution
 Contribution establishes a corollary among all the insurance contracts involved in an
incident or with the same subject.
 Contribution allows for the insured to claim indemnity to the extent of actual loss
from all the insurance contracts involved in his or her claim.

For instance, imagine that you have taken out two insurance contracts on your used
Lamborghini so that you are covered fully in any situation. Let’s say you have a policy with
Allstate that covers $30,000 in property damage and a policy with State Farm that cover
$50,000 in property damage. If you end up in a wreck that causes $50,000 worth of damage
to your vehicle. Then about $19,000 will be covered by Allstate and $31,000 by State Farm.

This is the principle of contribution. Each policy you have on the same subject matter pays
their proportion of the loss incurred by the policyholder. It’s an extension of the principle of
indemnity that allows proportional responsibility for all insurance coverage on the same
subject matter.

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 5. Principle of Subrogation

This principle can be a little confusing, but the example should help make it clear.
Subrogation is substituting one creditor (the insurance company) for another (another
insurance company representing the person responsible for the loss).

 After the insured (policyholder) has been compensated for the incurred loss on a piece
of property that was insured, the rights of ownership of this property go to the insurer.

So lets say you are in a car wreck caused by a third party and your file a claim with your
insurance company to pay for the damages on your car and your medical expenses. Your
insurance company will assume ownership of your car and medical expenses in order to step
in and file a claim or lawsuit with the person who is actually responsible for the accident (i.e.
the person who should have paid for your losses).

The insurance company can only benefit from subrogation by winning back the money it paid
to it’s policyholder and the costs of acquiring this money. Anything paid extra from the third
party, is given to the policyholder. So lets say your insurance company filed a lawsuit with
the negligent third party after the insurance company had already compensated you for the
full amount of your damages. If their lawsuit ends up winning more money from the
negligent third party than they paid you, they’ll use that to cover court costs and the
remaining balance will go to you.

6. Principle of Causaproxima
 The loss of insured property can be caused by more than one incident even in
succession to each other.
 Property may be insured against some but not all causes of loss.
 When a property is not insured against all causes, the nearest cause is to be found out.
 If the proximate cause is one in which the property is insured against, then the insurer
must pay compensation. If it is not a cause the property is insured against, then the
insurer doesn’t have to pay.

When buying your insurance policies, you will most likely go through a process where you
select which instances you and your property will be covered for and which ones they will
19
not. This is where you are selecting which proximate causes are covered. If you end up in an
incident, then the proximate cause will have to be investigated so that the insurance company
validates that you are covered for the incident.

This can lead to disputes when you have suffered an incident you thought was covered but
your insurance provider says it’s not. Insurance companies want to make sure they are
protecting themselves but sometimes they can use this to get out of being liable for a
situation. This might be a dispute where you’ll need a lawyer to help argue for you.

7. Principle of Mitigation

This is our final principle that creates an insurance contract and the most simple one
probably.

 In an uncertain event, it is the insured’s responsibility to take all precautions to

minimize the loss on the insured property.

Insurance contracts shouldn’t be about getting free stuff every time something bad happens.
Therefore, a little responsibility is bestowed upon the insured to take all measures possible to
minimize the loss on the property. This principle can be debatable, so call a lawyer if you
think you are being unfairly judged under this principle.

20
 BENEFITS OF INSURANCE

Insurance benefits individuals, organizations and society in more ways than the average
person realizes.  Some of the benefits of insurance are obvious while others are not.

1. The obvious and most important benefit of insurance is the payment of losses.  An
insurance policy is a contract used to indemnify individuals and organizations for
covered losses.
2. The second benefit of insurance is managing cash flow uncertainty.  Insurance
provides payment for covered losses when they occur.  Therefore, the uncertainty of
paying for losses out-of-pocket is reduced significantly.
3. A third and uncommon benefit of insurance is complying with legal requirements. 
Insurance meets statutory and contractual requirements as well as provides evidence
of financial resources.
4. Another very important benefit of insurance is promoting risk control activity. 
Insurance policies provide incentives to implement a loss control program because of
policy requirements and premium savings incentives.
5. The fifth benefit of insurance is the efficient use of an insured's resources.  Insurance
makes it unnecessary to set aside a large amount of money to pay for the financial
consequences of the risk exposures that can be insured.  This allows that money to be
used more efficiently.
6. Another uncommon, important benefit of insurance is support for the insured's credit. 
Insurance facilitates loans to individuals and organizations by guaranteeing that the
lender will be paid if the collateral for the loan is destroyed or damaged by an insured
event.  This reduces the lender's uncertainty of default by the party borrowing funds.
7. The seventh benefit of insurance is it provides a source of investment funds. 
Insurance companies collect premiums up front, invest those premiums in a variety of
investment vehicles, and pay claims if they occur.
8. The last benefit of insurance is reducing social burden.  Insurance helps reduce the
burden of uncompensated accident victims and the uncertainty of society.

21
TYPES OF
INSURANCE

22
TYPES OF INSURANCE DESCRIPTION

23
 Types of Insurance Business are;

 Life Insurance or Personal Insurance.

 Property Insurance.

 Marine Insurance.

 Fire Insurance.

 Liability Insurance.

 Guarantee Insurance.

 Social Insurance.

These are explained below.

1. Life Insurance

Life Insurance is different from other insurance in the sense that, here, the subject matter of
insurance is the life of a human being.

The insurer will pay the fixed amount of insurance at the time of death or at the expiry of a
certain period.

At present, life insurance enjoys maximum scope because life is the most important property
of an individual.

Each and every person requires insurance.

This insurance provides protection to the family at the premature death or gives an adequate
amount at the old age when earning capacities are reduced.

Under personal insurance, a payment is made at the accident.

The insurance is not only a protection but is a sort of investment because a certain sum is
returnable to the insured at the death or the expiry of a period.

24
 2. General Insurance

General insurance includes Property Insurance, Liability Insurance, and Other Forms of
Insurance.

Fire and Marine Insurances are strictly called Property Insurance. Motor, Theft, Fidelity and
Machine Insurances include the extent of liability insurance to a certain extent.

3. Property Insurance

Under the property insurance property of person/persons are insured against a certain
specified risk. The risk may be fire or marine perils, theft of property or goods damage to
property at the accident.

4. Marine Insurance

Marine insurance provides protection against the loss of marine perils.

The marine perils are; collision with a rock or ship, attacks by enemies, fire, and captured by
pirates, etc. these perils cause damage, destruction or disappearance of the ship and cargo and
non-payment of freight.

So, marine insurance insures ship (Hull), cargo and freight.

Previously only certain nominal risks were insured but now the scope of marine insurance
had been divided into two parts; Ocean Marine Insurance and Inland Marine Insurance.

The former insures only the marine perils while the latter covers inland perils which may
arise with the delivery of cargo (gods) from the go-down of the insured and may extend up to
the receipt of the cargo by the buyer (importer) at his go down.

25
 5. Fire Insurance

Fire Insurance covers the risk of fire.

In the absence of fire insurance, the fire waste will increase not only to the individual but to
the society as well.

With the help of fire insurance, the losses arising due to fire are compensated and the society
is not losing much.

The individual is preferred from such losses and his property or business or industry will
remain approximately in the same position in which it was before the loss.

The fire insurance does not protect only losses but it provides certain consequential losses
also war risk, turmoil, riots, etc. can be insured under this insurance, too.

6. Liability Insurance
The general Insurance also includes liability insurance whereby the insured is liable to pay
the damage of property or to compensate for the loss of persona; injury or death.

This insurance is seen in the form of fidelity insurance, automobile insurance, and machine
insurance, etc.

7. Social Insurance

The social insurance is to provide protection to the weaker sections of the society who are
unable to pay the premium for adequate insurance.

Pension plans, disability benefits, unemployment benefits, sickness insurance, and industrial
insurance are the various forms of social insurance.

Insurance can be classified into 4 categories from the risk point of view.

26
 8. Personal Insurance

The personal insurance includes insurance of human life which may suffer a loss due to
death, accident, and disease

Therefore, personal insurance is further sub-classified into life insurance, personal accident

insurance, and health insurance.

9. Property Insurance

The property of an individual and of the society is insured against loss of fire and marine
perils, the crop is insured against an unexpected decline in deduction, unexpected death of the
animals engaged in business, break-down of machines and theft of the property and goods.

10.Guarantee Insurance

The guarantee insurance covers the loss arising due to dishonesty, disappearance,
and disloyalty of the employees or second party. The party must be a party to the
contract.

His failure causes loss to the first party.

For example, in export insurance, the insurer will compensate the loss at the failure
of the importers to pay the amount of debt.

27
 11.Other Forms of Insurance

Besides the property and liability insurances, there are other insurances that are
included in general insurance.

The examples of such insurances are export-credit insurances, State employees’

insurance, etc. whereby the insurer guarantees to pay a certain amount at certain
events.

This insurance is extending rapidly these days.

12.Miscellaneous Insurance

The property, goods, machine, Furniture, automobiles, valuable articles, etc. can be
insured against the damage or destruction due to accident or disappearance due to
theft.

There are different forms of insurances for each type of the said property whereby
not only property insurance exists but liability insurance and personal injuries are
also the insurer.

28
 EVOLUTION OF INSURANCE INDUSTRY

The concept of pooling resources is as old as the hills for Indians. The writings of
Dharmashastra, Manusmrithi and Arthashastra speak about importance of pooling resources
to face calamities like floods, fire, epidemics and famine. The modern day Insurance is
conceived from this mythological archetype.

The insurance industry is the backbone of country’s Risk Management. The beginning
of the Indian insurance industry dates back to the nineteenth century. In 1818, Europeans
started Oriental Life Insurance Company in Kolkata (Calcutta) to exclusively serve their
community. Colonial masters with racial prejudice unfairly characterised the age and
premium for Indians. The Indian policy holders paid more premium than European
counterparts. Indians desperately wished for Indian insurance companies to set foot in the
market. Bombay Mutual Life Assurance Society started in 1870 was the first Indian insurance
company to cover the lives of the Indians at normal rates. Triton Insurance Company Ltd in
the year 1850 is the first general insurance company. Gradually insurance business fledged
into a huge sector boosting the economy of India.

Only during the early years of twentieth century new companies started mushrooming
in India. In order to regulate these insurance companies, Life Insurance Companies Act and
Provident Fund Act were passed in 1912. Evolution of insurance industry has undergone
three phases, Pre-Nationalisation, Nationalisation and Privatisation. The Insurance industry
was nationalised only after passing Life Insurance Corporation Act of 1956. There were more
than two hundred insurance companies of both Indian and European origin.

Even after the nationalisation, government Insurance companies were not making
profit. Privatisation was a preferable solution for effective distribution and implementation of
marketing strategies. With privatisation insurance industry almost changed overnight.
Competition forced providers to advertise their products effectively. Once the gates were
thrown open to the private players insurance industry improved remarkably. Along with
safeguarding lives and property, insurance companies also offered enormous job
opportunities. The privatization helped to increase efficiency of insurance business. Many
new private companies came up with attractive products. Some of the major private players

29
in the Indian market are ICICI Prudential, Bajaj Allainz Life Insurance, Tata AIG life, Kotak
Life Insurance, HDFC Standard Life, Reliance Life, ICICI Lombard etc.

This millennium marked drastic changes in Insurance administration with the

introduction of Computers. The internet has enabled the insurance business to become more
accessible and user- friendly. Now you can buy the policy of your choice sitting at home. The
greatest benefit buying online is you can compare life insurance policies offered by different
companies in a single website. E India Insurance is a combination of internet and insurance
revolution in India. Juxtaposing modern day with colonial era, we notice rapid growth
prospects of the insurance industry. According to Insurance Regulatory and Development
Authority ( IRDA ), Indian insurance industry registered a impressive growth rate of 120% in
the year 2008. Economic experts anticipate that Indian domestic insurance would touch US $
60.5 Billion 

30
 INSURANCE COMPANIES IN INDIA

# Company Sector Headquarters Founded

1 Life Insurance Corporation of India Public Mumbai 1956

2 HDFC Standard Life Insurance Co. Ltd. Private Mumbai 2000

3 Max Life Insurance Co. Ltd. Private Delhi 2000

4 ICICI Prudential Life Insurance Co. Ltd. Private Mumbai 2000

5 Kotak Mahindra Life Insurance Co. Ltd. Private Mumbai 2001

6 Aditya Birla Sun Life Insurance Co. Ltd. Private Mumbai 2000

7 TATA AIA Life Insurance Co. Ltd. Private Mumbai 2001

8 SBI Life Insurance Co. Ltd. Private Mumbai 2001

9 Exide Life Insurance Co. Ltd. Private Bangalore 2001

10 Bajaj Allianz Life Insurance Co. Ltd. Private Pune 2001

11 PNB MetLife India Insurance Co. Ltd. Private Mumbai 2001

12 Reliance Nippon Life Insurance Company Private Mumbai 2001

13 Aviva Life Insurance Company India Ltd. Private Gurugram 2002

14 Sahara India Life Insurance Co. Ltd. Private Lucknow 2004

31
# Company Sector Headquarters Founded

15 Shriram Life Insurance Co. Ltd. Private Hyderabad 2005

16 Bharti AXA Life Insurance Co. Ltd. Private Mumbai 2008

17 Future Generali India Life Insurance Co. Ltd. Private Mumbai 2007

18 IDBI Federal Life Insurance Co. Ltd. Private Mumbai 2008

Canara HSBC Oriental Bank of Commerce

19 Private Gurugram 2008
Life Insurance Co. Ltd.

20 Aegon Life Insurance Co. Ltd. Private Mumbai 2008

21 DHFL Pramerica Life Insurance Co. Ltd. Private Mumbai 2008

22 Star Union Dai-Ichi Life Insurance Co. Ltd. Private Mumbai 2008

23 IndiaFirst Life Insurance Co. Ltd. Private Mumbai 2009

24 Edelweiss Tokio Life Insurance Co. Ltd. Private Mumbai 2011

NON LIFE INSURANCE COMPANIES

Secto
Company Headquarters Founded
r

1 Acko General Insurance Private Mumbai 2016

32
 Secto
Company Headquarters Founded
r

2 Aditya Birla Health Insurance Private Mumbai 2015

3 Agriculture Insurance Company of India Public New Delhi 2002

4 Apollo Munich Health Insurance Private Gurgaon 2007

5 Bajaj Allianz General Insurance Private Pune 2001

6 Bharti AXA General Insurance Private Mumbai 2008

7 Cholamandalam MS General Insurance Private Chennai 2001

8 Cigna TTK Private Mumbai 1918

9 DHFL General Insurance Private Mumbai 2016

1
Digit Insurance Private Pune 2017
0

1
Edelweiss General Insurance Private Mumbai 2017
1

1
Export Credit Guarantee Corporation of India Private Mumbai 1957
2

1
Future Generali India Insurance Private Mumbai 2007
3

33
 Secto
Company Headquarters Founded
r

1
HDFC ERGO General Insurance Company Private Mumbai 2002
4

1
ICICI Lombard Private Mumbai 2001
5

1
IFFCO TOKIO General Insurance Private Gurugram 2000
6

1
Kotak Mahindra General Insurance Private Mumbai 2015
7

1
Liberty General Insurance Private Mumbai 2013
8

1
Magma HDI General Insurance Private Mumbai 2009
9

2
Max Bupa Health Insurance Private New Delhi 2008
0

2
National Insurance Company Public Kolkata 1906
1

2
New India Assurance Public Mumbai 1919
2

34
 Secto
Company Headquarters Founded
r

2
Raheja QBE General Insurance Private Mumbai 2007
3

2
Reliance General Insurance Private Mumbai 2000
4

2
Reliance Health Insurance Private Mumbai 2017
5

2
Religare Health Insurance Company Limited Private Gurgaon 2012
6

2
Royal Sundaram General Insurance Private Chennai 2000
7

2
SBI General Insurance Private Mumbai 2010
8

2
Shriram General Insurance Private Jaipur 2008
9

3
Star Health and Allied Insurance Private Chennai 2006
0

3
Tata AIG General Insurance Private Mumbai 2001
1

35
 Secto
Company Headquarters Founded
r

3
The Oriental Insurance Company Public New Delhi 1947
2

3
United India Insurance Company Public Chennai 1938
3

3 2007
Universal Sompo General Insurance Company Private Mumbai
4

INSURANCE DEVELOPMENT AND REGULATORY

AUTHORITY
 Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations
 Protecting policyholder interests
 Specifying qualifications, the code of conduct and training for intermediaries and
agents
 Specifying the code of conduct for surveyors and loss assessors
 Promoting efficiency in the conduct of insurance businesses
 Promoting and regulating professional organisations connected with the insurance and
re-insurance industry
 Levying fees and other charges
 Inspecting and investigating insurers, intermediaries and other relevant organisations

36
 Regulating rates, advantages, terms and conditions which may be offered by insurers
not covered by the Tariff Advisory Committee under section 64U of the Insurance Act,
1938 (4 of 1938)
 Specifying how books should be kept
 Regulating company investment of funds
 Regulating a margin of solvency
 Adjudicating disputes between insurers and intermediaries or insurance intermediaries
 Supervising the Tariff Advisory Committee
 Specifying the percentage of premium income to finance schemes for promoting and
regulating professional organisations
 Specifying the percentage of life- and general-insurance business undertaken in the
rural or social sector
 Specifying the form and the manner in which books of accounts shall be maintained,
and statement of accounts shall be rendered by insurers and other insurer intermediaries.

37
 AUTO INSURANCE

Auto insurance is a contract between you and the insurance company that protects you
against financial loss in the event of an accident or theft. In exchange for your paying a
premium, the insurance company agrees to pay your losses as outlined in your policy.
Auto insurance provides coverage for:

 Property – such as damage to or theft of your car

 Liability – your legal responsibility to others for bodily injury or property damage
 Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and
funeral expenses

Basic personal auto insurance is mandated by most U.S. states, and laws vary. Auto
insurance coverages are priced individually (a la carte) to let you customize coverage
amounts to suit your exact needs and budget.
Policies are generally issued for six-month or one-year timeframes and are renewable.
The insurance company sends a notice when it’s time to renew the policy and pay your
premium.
Auto insurance requirements vary from state to state. If you're financing a car, your
lender may also have its own requirements. Nearly every state requires car owners to carry:

38
 Bodily injury liability – which covers costs associated with injuries or death that you
or another driver causes while driving your car.

 Property damage liability – which reimburses others for damage that you or another
driver operating your car causes to another vehicle or other property, such as a fence,
building or utility pole.

In addition, many states require that you carry:

 Medical payments or personal injury protection (PIP), which provides reimbursement
for medical expenses for injuries to you or your passengers. It will also cover lost wages and
other related expenses.

 Uninsured motorist coverage reimburses you when an accident is caused by a driver

who does not have auto insurance—or in the case of a hit-and-run. You can also
purchase under insured motorist coverage, which will cover costs when another driver lacks
adequate coverage to pay the costs of a serious accident.
While most basic, legally mandated auto insurance covers the damage your car
causes, it does notcover damage to your own car. To cover your own car, you should consider
these optional coverages:
 Collision reimburses you for damage to your car that occurs as a result of a collision
with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While
collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on
your car, it will cover damage from potholes or from rolling your car.
 Comprehensive provides coverage against theft and damage caused by an incident
other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other
hazards—even getting hit by an asteroid!
 Glass Coverage provides coverage from windshield damage, which is common.
Some auto policies include no-deductible glass coverage, which also includes side windows,
rear windows and glass sunroofs. Or you can buy supplemental glass coverage.

39
 TYPES OF AUTO INSURANCE

1. LI ABI LITY COV ERA GE

Auto liability coverage is mandatory in most states. Drivers are legally required to purchase
at least the minimum amount of liability coverage set by state law. Liability coverage has
two components:

 Bodily injury liability may help pay for costs related to another person's injuries
if you cause an accident.

 Property damage liability may help pay for damage you cause to another
person's property while driving.

2. UNIN SUR ED AND UNDER INSUR ED MOTORI ST C OV ERAGE

If you're hit by a driver who doesn't have insurance, uninsured motorist coverage
may help pay for your medical bills or, in some states, repairs to your vehicle. If you're hit

40
by an underinsured driver, that means they have car insurance but their liability limits aren't
enough to cover your resulting medical bills. That's where underinsured motorist coverage
may help.

Uninsured and underinsured motorist coverage is required in some states and

optional in other states.

3. C OMPR EHEN SIV E COV ERA GE

Comprehensive may help cover damage to your car from things like theft, fire, hail
or vandalism. If your car is damaged by a covered peril, comprehensive coverage may help
pay to repair or replace your vehicle (up to the vehicle's actual cash value). This coverage
has a deductible , which is the amount you'll pay out of pocket before your insurer
reimburses you for a covered claim.

Comprehensive is typically an optional coverage — but your lender may require it if

you're leasing or paying off your vehicle.

4. C OLLISI ON C OV ERAGE
If you're involved in an accident with another vehicle, or if you hit an object such as
a fence, collision coverage may help pay to repair or replace your car (up to its actual cash
value and minus your deductible).

Collision coverage is typically optional. It may be required, however, by your

vehicle's leaseholder or lender.

5. MEDI CAL PAYMEN TS C OVER AGE

passengers or family members who are driving the insured vehicle are injured in an
accident, medical payments coverage may help pay for costs associated with the injuries.
Covered costs may include hospital visits, surgery, X-rays and more.

Medical payments coverage is required in some states and optional in others.

6. PE RS ONA L INJUR Y PR OTEC TION

41
 Personal injury protection, or PIP, is only available in some states. Like medical
payments coverage, PIP may help pay for your medical expenses after an accident. In
addition, PIP may also help cover other expenses incurred because of your injuries — for
example, child care expenses or lost income.

Personal injury protection is required in some states and optional in other states
where it's available.

6. OTHER TYPES OF AUTO INSURAN CE C OVER AGE

You may be able to add the following optional coverages to your car insurance policy,
depending on your situation. Your insurance agent can help you understand what each
helps cover, so you can put together a policy that's right for you.

 Rental reimbursement coverage/transportation expense coverage

 Gap coverage

 New car replacement coverage

 Towing and labor cost coverage

 Ride-sharing coverage

 Sound system coverage

 Classic car insurance

The different components of an auto insurance policy are available to help protect you and
your vehicle.

42
Two Wheeler Insurance:

 Two wheeler insurance provides a kind of personal accidental cover for owners, while
driving the vehicle. The policy generally provides protection from any loss or damage to the
vehicle arising out of natural calamity like fire, protection against third party injury, burglary
etc. The amount insured will depend on the current showroom price multiplied by the
depreciation rate fixed by the Tariff Advisory Committee at the time of commencement of
policy period. Fast and easy claim process by most insurance companies will ensure existing
customer loyalty and widen the customer base.

  List of Some of Insurance Companies Offering Two Wheeler Ins

43
 CAR INSURANCE

Car Insurance is the fastest growing segment in the auto insurance category. This is
because insuring car is mandatory for everyone buying a new car. Major car manufacturers
are tying up with leading insurance companies to provide hassle free and quick insurance.
Car insurance includes loss or damage by accident, third party insurance, insurance against
burglary etc The amount of premium will depend on the make and value of the car, state
where the car is registered, year of manufacture etc. Insurance companies are trying hard to
make the claim process simpler and quicker to widen the existing customer base. erms and
conditions may vary in different insurance companies.

Commercial vehicle Insurance:

Commercial Vehicle Insurance covers all vehicles not used for personal purpose.
Trucks and HMVs are covered under this insurance. The insurance protects against damage
caused due to accident, third party injury, protection against natural calamity ,burglary etc.
The premium amount depends on a number off actors like showroom price of the vehicle at
the commencement of the insurance period, make of the vehicle, place of registration of the
vehicle etc. Fast and easy claim processing by leading insurance companies is the key to
ensure satisfied and loyal.

44
 COMMERCIAL INSURANCE

Organizations need to reduce both internal and external risks .They also require to safeguard
their business against unforeseen circumstances/events. Insurance companies are catering to
small ,medium and large scale companies to minimize their risk. Good Insurance advice can
save you time, money and worry. Leading insurance companies are coming out with
'Commercial Insurance Questionnaire' to ascertain the insurance needs of your commercial.
Insurance companies undertake complex procedure to evaluate and review the impact of any
change in commercial

 Calculation of Commercial Insurance Amount/Premium:

Insurance companies keep quite a few factors in mind while calculating the premium amount
to be paid by the client. Nature of business, size of the organization, number of employees,
the type of industry, the organization is a part of, annual turnover of business etc. The
premium is paid on a monthly/quarterly/half yearly/ yearly basis, as the case may be.
Companies also provide with instant commercial insurance quotes for the ease of their 
customers.

45
Types of Commercial Insurance:

 Agriculture Insurance
 Life Insurance
 Fire Insurance
 Industrial Insurance
 Marine Insurance
 Shop Insurance

1. Agriculture Insurance

                                  

India is an agrarian society with 75% of the population depending on it, for their
livelihood. Agriculture or crop insurance has assumed importance with large scale damage
caused due to pest attacks, crop diseases and vagaries of weather. The objective is to provide
insurance coverage and financial support to the far mers in the event of failure of any of the
notified crop as a result of natural calamities, pests & diseases. The list of crops being
covered for insurance differs from state to state. Generally quite a few Kharif and Rabi
season crops are covered. These crops are insured at the community/block/gram panchayat
levels .Agriculture insurance schemes are of immense help to farmers,providing them with
financial security.

46
 2. Life insurance

                             

Whole life insurance Whole life is a form of permanent insurance, with guaranteed
rates and guaranteed cash values. It is the least flexible form of permanent insurance.
Universal life insurance Universal life is similar to whole life, except that you can change the
death benefit (the money paid to the beneficiary when the insured person dies), the amount of
premiums and how often you pay the premiums. Variable life insurance Variable life
insurance is the riskiest form of permanent insurance, but it can also give you the best return
for your money.
Essentially, the life insurance company will invest your insurance premiums for you.
If the investments do well, the death benefit and cash value of the policy go up. If they do
poorly, they go down. It's a little like putting your savings into the stock market. Group life
insurance Many companies allow their employees to buy group life insurance through the
company. Usually, you can get very good rates for this insurance but you have to give the
insurance up 41 when you stop working there. For that reason, group insurance can be a good
way to buy a little extra life insurance, but it does not make sense to make it your main policy
There are a number of policies for specific insurance needs. 
Some of these include: Family income life insurance This is a decreasing term policy that
provides a stated income for a fixed period of time, if the insured person dies during the term
of coverage. These payments continue until the end of a time period specified when the policy
is purchased. Family insurance A whole life policy that insures all the members of an
immediate family --husband, wife and children. Usually the coverage is sold in units per
person, with the primary wage-earner insured for the greatest amount. Senior life insurance
Also known as graded death benefit plans, they provide for a graded amount to be paid to the
beneficiary.

47
 3. FIRE INSURANCE

Fire insurance policies provide payment for the loss of use of the property as a result
of a fire, or for additional living expenses that were necessitated by uninhabitable conditions
as well as damage to personal property and nearby structures. Homeowners should document
the property and its contents to simplify the assessment of items damaged or lost during a
fire. 

A fire insurance policy includes additional coverage against smoke or water damage
due to a fire and is usually effective for one year. Fire insurance policies that are about to
expire are usually renewable by the homeowner, under the same terms as the original policy.

Fire insurance covers a policyholder against fire loss or damage from a number of
sources. Sources include fires brought about by electricity, such as faulty wiring and
explosion of gas, as well as those caused by lightning and natural disasters. Bursting and
overflowing of a water tank or pipes may also be covered by the policy.

If the home is considered a total loss, the insurance company might reimburse the
owner for the house's current market value. Typically the insurance will provide a market
value compensation for lost possessions, with the total payout capped based on the home's
overall value.

For example, if a policy insures a house for $350,000, the contents are usually
covered for at least 50-70% of the policy value or a range of $175,000 to $245,000. Many
policies limit how much reimbursement covers luxury items such as paintings, jewelry, gold,
and fur coats.

48
 4. Industrial Insurance

Industrial insurance is a comprehensive policy covering a gamutof products. This is a

specially designed policy covering any kindof loss or damage caused to the products it
covers. Insurance is a financial topic of paramount importance for every individual. Insurance
is designed to protect the financial well-being of you and your dependents in the case of
unexpected loss. Some forms of insurance are required by law, while others are optional.
Agreeing to the terms of an insurance policy creates a contract between you and the insurance
company. In exchange for payments from you (called premiums), the insurance company
agrees to pay you a sum of money upon the occurrence of a specific event. That event may be
as mundane as a visit to the doctor or as serious as a car crash, depending on the type of
insurance.
Industrial Insurance Claim Process:

∙ Insured should inform the insurer's office by phone, letter or fax

∙ Necessary steps should be taken to minimise the loss
∙ Obtain estimate of repair from repairer of your choice
∙ The claim process takes anywhere between one to three weeks.
∙ Submit this repair estimate and claim form to the surveyordeputed by the insurance
company

49
5. Marine Insurance

Marine insurance covers the losses or damages caused to ships, terminals and
any transport or cargo by which goods are transferred, acquired, or held between
different points of origin and final destination. The term may also apply to inland
marine but it is usually used in the context of ocean marine insurance. Marine
insurance is a haven for transporters and shipping corporations because it helps to
lower the aspect of financial loss due to cargo loss.
Marine insurance is a crucial aspect because through this policy, shipowners
and other transporters can be sure of claiming damages in case of a mishap.
Sometimes, it happens that despite following all the safety regulations, losses or
damages arise. Along with natural hazards which have the potential to disrupt the
cargo and vessel, there are other incidents and attributes which could also cause a
major financial loss to the transporter. For instance, incidents like piracy and
possibilities of cross-border shootouts are more prevalent when it entails water
transportation and therefore, to avoid any such loss or damage, it is in the interest of
the transporter to buy a marine insurance.

 Open Policy – The inland marine insurance policy covers the inland movement of a
consignment for a specified duration of time, which is generally of one year. The
policy is apt for companies which are indulging in numerous transactions around the
year as it also offers continuous cover.

50
  Comprehensive Protection – The policy offers protection against various types of
losses or damages like a total loss of goods, partial loss of goods, related expenses
while still in transit, etc.

 Customisation – As per your business requirement, it is feasible to customise the

policy.

 Mark up Value – The policy allows a portion of profit to be included in the sum
insured. It is known as a mark-up in the marine insurance industry.

In the eventuality when goods are destroyed, damaged or stolen, it becomes important to file
a marine insurance claim immediately with the insurer. Then the insurer will take all efforts
to find out whether the reasonable care was taken while transporting goods or not in order to
ensure no deliberate efforts were made in order to file a claim.

Here, it is important to understand that just because you have a marine insurance policy, it
doesn’t mean you can act carelessly. You are expected to take care of your goods in the same
manner you would have done in the absence of a marine insurance policy. Also, there is a
time-window of usually one year for filing a claim with a marine insurance company at the
time of any loss or damage.

Though, marine insurance offers comprehensive cover, there are some instances which are
not covered under the policy, like,

 Loss or damage due to willful negligence

 Loss or damage due to improper packaging

 Removal of wreck

 Contamination due to radioactive rays

 Loss or damage due to riot, strike, civil commotion, etc.

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 6. SHOP INSURANCE

Shop Insurance is specially designed to meet the needs of smallshopkeepers. It is a

comprehensive insurance, catering todifferent insurance needs of shopkeepers. One policy
per shop isgenerally given by insurers. It covers damage/ loss to shop due tofire, burglary,
riot, strike, loss of money in transit, fraud committedby client's employees etc. The policy is
meant for shops only,hence restaurants and tea /coffee shops cannot be insured underthis
insurance policy.

Documents Required for Shop Insurance :

∙ Copy of FIR in case of theft
∙ List of articles loss/damage
∙ Proof of ownership of shop
∙ Claim form

52
HDFC LIFE
INSURANCE

53
 INTRODUCTION
HDFC Life (HDFC Life Insurance Company Ltd.)[1] is a long-term life
insurance provider with its headquarters in Mumbai, offering individual and group insurance.

It is a joint venture between Housing Development Finance Corporation Ltd (HDFC),

one of India's leading housing finance institution and Standard Life Aberdeen PLC, leading
well known provider of financial savings & investments services in the United Kingdom. On
14 August 2015 HDFC Ltd. entered into a share sale agreement with Standard Life to sell a
9.00% stake in HDFC Life to the latter. The transaction is subject to receipt of regulatory
approvals. Post the completion of the above transaction, HDFC will hold 61.65% stake in
HDFC Life and Standard Life's stake will increase to 35.00%, with rest to be held by others.

HDFC Life has about 414 branches and presence in 980+ cities and towns in India.
The company has also established a liaison office in Dubai.[2]

HDFC Life distributes its products through a multi channel network consisting of
Insurance agents, Bancassurance partners (HDFC Bank, Saraswat Bank, RBL Bank), Direct
channel, Insurance Brokers & Online Insurance Platform.

Established in 2000, HDFC Life is a leading long-term life insurance solutions

provider in India, offering a range of individual and group insurance solutions that meet
various customer needs such as Protection, Pension, Savings, Investment and Health. As on
March 31, 2019 the Company had 38 individual and 11 group products in its portfolio, along
with 8 optional rider benefits, catering to a diverse range of customer needs.

HDFC Life continues to benefit from its presence across the country with 412
branches and additional distribution touchpoints through several partnerships.  The
partnerships comprise 265 bancassurance partners including NBFCs (Non-Banking Financial
Companies), MFIs (Micro Finance Institutions), SFBs (Small Finance Banks), etc. and 39
partnerships within non-traditional ecosystems. The Company is also strengthened by a
strong base of financial consultants.

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 CORPORATE HISTORY
The Insurance Regulatory and Development Authority (IRDA) was constituted in
1999 as an autonomous body to regulate and develop the insurance industry. The IRDA
opened up the market in August 2000 with the invitation for application for registrations.
HDFC Life was established in 2000 becoming the first private sector life insurance company
in India.[5]

By 2001, the company had its 100th customer, strengthened its employee force to 100
and had settled its first claim. HDFC Life launched its first TV advertising campaign
'SarUthaKeJiyo' in 2005. In 2006, a study conducted by the Brand Equity – Economic Times
had put HDFC Life at 29th rank in the most trusted Indian Brands amongst the Top 50
Service Brands of 2010.[6]

The Insurance Regulatory and Development Authority (IRDA) gave accreditation to

HDFC Life for 149 training centres housed in its branches to cater to the mandatory training
required to be given as well as for other sales training requirements in 2009.

In 2012, it the first private life insurance company to bring back pension plans under
the new regulatory regime, with the launch of two pension plans - HDFC Life Pension Super
Plus and HDFC Life Single Premium Pension Super.

HDFC Life's associated companies include HDFC Ltd, HDFC Bank, HDFC

International Life and Re Company Limited, HDFC Pension, HDFC MF, HDFC
Sales, HDFC Ergo, HDB Financial Services, HDFC Securities, HDFC RED,[8] HDFC
Ventures Trustee Company, GRUH Finance, HDFC Trustee Company, HDFC Developers,
HDFC Property Ventures, HDFC Investments, Credit Information Bureau (India) Ltd

55
 PRODUCTS AND SERVICES
HDFC Life's products include Protection, Pension, Savings, Investment, Health along with
Children and Women plans. The company also provides an option of customizing the plans,
by adding optional benefits called riders, at an additional price. The company currently has
29 retail and 8 group products, along with 7 optional rider benefits (as on 7 May 2018).

 Protection Plans - insurance plans that provide protection and financial stability to the
family in case of any unforeseen events.
 Click2Protect Plus is their online term plan.
 Launched CSC Suraksha to be sold exclusive through the Common Services Centre
network.
 Click2Invest is their online ULIP investment plan.
 Health Plan – offers financial security to meet health related contingencies.
 Savings & Investment plans - These plans help in investment to achieve financial
goals.
 Retirement plans - financial security for life post retirement.
 Women's plans - plans catering to different financial needs of women.
 Children's plans – plans meant to secure children's future.
 Rural & social Plans – meant specifically for rural customers.
 Click2Retire completed their Click2 portfolio.
 ULIP Investment with more funds.

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 CHILD INSURANCE PLAN
Successful parenting is no mean accomplishment. A huge contributor to this success is
financial planning for your child's future needs at the right age! There is really no better gift
you can give your child, than the promise of a secure future with YoungStar Child Plans that
encompass child insurance plans & child education plans from HDFC Life. This Birthday,
gift your child a secure future & career to watch her soar high to fulfill her dreams with child
investment plans by HDFC Life.

What are Child Plans?

Child plans basically help in financial planning for your child's future needs at the right age.
As a parent you can secure your child’s future with plans that encompass children insurance
plans and children education plans.

Why you need a Child Insurance Plan

It is one of the best ways to save enough with regular investments for your child’s future for
needs like higher education which can be costly.

Financial protection features in child plans ensure that your child gets the best in the future
even in your absence.

How Child Insurance Plans by HDFC Life help you

HDFC Life’s YoungStar Plans encompass child insurance plans and education policies from
HDFC Life.

They provide the ideal combo of protection and savings thanks to the many features of these
children plans and make them perfect birthday gifts for your child

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 BENEFITS OF CHILD INSURANCE PLAN

 Protection with waiver of premium

A children insurance plan, like other life insurance policies provide life insurance coverage to
dependents. In this case, the protection is meant for the child. The life insurance amount from
the child plan can be used to meet the immediate and regular needs besides meeting future
needs of the child in the event of the untimely demise of the insured parent.

 Providing for immediate needs

To provide for the child’s regular needs, the life insurance coverage from children plans
provide the money to help the family meet regular expenses such as those related to school
education.

 Addressing future needs

A children future plan also provides money for higher education. In case of the untimely
demise of the insured parent, many child plans have what is a called premium waiver feature
that ensures that the child plan remains in force for the remaining part of the policy term. The
policy premium is paid by the life insurance company. The money invested so far, remains
invested till the end of the policy term and then money is paid to the child which can take
care of higher education expenses.

 Regular investment for child’s higher education

A children’s plan works equally well if the unfortunate event doesn’t take place. You invest
regularly throughout the term thanks to your premium payments. If you opt for a child
investment plan in the unit linked insurance plan (ULIP) category where a portion of the
premium is invested in buying units of a fund, money growth may well be high. This
typically takes place when you invest in ULIP equity funds. Over the long tenure of the
ULIP, the value of the units grow well since equity investments typically provide high returns
over 8-10 years, or more. As you near the time when you need to use the money, you can
move the money to a lower risk ULIP fund and ensure that the gains that you have made over
time are secured. The movement of your money to another ULIP fund is typically done free
of cost.

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 HEALTH INSURANCE BY HDFC
HDFC Life provides a variety of Health Insurance Plans &Mediclaim Policies that
offer financial security to meet health related contingencies. Due to changing lifestyles,
health issues have not just escalated, they have increasingly become more complex in nature.
It becomes imperative therefore to have a health insurance plan in place, thus your financial
planning is incomplete if you have not accounted for health.

What is Health Insurance?

Health Insurance is a kind of insurance that provides coverage for medical expenses to the
policy holder. Depending on the health insurance plan chosen the policy holder can get
coverage for critical illness expenses, surgical expenses, hospital expenses etc.

Why you need health insurance

Changing lifestyles are causing diseases with expensive and prolonged treatments.

A Health insurance plan helps cushion your family finances from unexpected large medical
expenses

How HDFC Life Health Insurance Plans help you

The Health Insurance Plans provide financial support for health related emergencies

It helps meet various health insurance needs be it based on the life stage of a person or a
specific disease.

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 BENEFITS OF HEALTH INSURANCE
 Reimburses medical expenses
If you or any of your family members, covered by medical insurance suffers from a medical
emergency, a health insurance plan comes to the rescue. Such a plan typically reimburses you
for the expenses covered by the policy and incurred during the episode of the medical
emergency. Traditionally, medical insurance providing policies known as mediclaim policies
covered hospitalisation expenses. However, a health insurance policy needs to do more and
cover other expenses related to hospital stay and onset of critical illness.
 Lump payment for critical illness
When you suffer from a critical illness like cancer or major heart disease, the financial impact
starts from the time of diagnosis. A health insurance plan covering large number of important
critical illness can provide the wide ranging protection that you and your family needs. You
need to ensure that the health insurance plan covers the major critical illnesses like cancer,
paralysis, coronary artery bypass surgery, major organ transplant, stroke and kidney failure.
Of course, along with regular health insurance plans, one can supplement the medical
insurance coverage with health insurance plans covering specific critical illness like cancer.
Typically, such critical illness insurance plans not only provide the lump sum payout on
detection of the disease but also provide additional benefits such as provision of regular
income a for a period of time, and waiving off the requirement to pay premium for the health
insurance plan.
 Tax benefits
When you are smart enough to adequately protect your family finances from medical
emergencies, you also get rewarded in other ways. Like traditional mediclaim policies,
premiums paid under health insurance plans are eligible for deduction uptoRs 25,000 under
Section 80D of the Income-tax Act, 1961. You get further deductions of Rs. 25,000 if you
pay health insurance premiums for parents, who are not senior citizens. Just in case your
parents are senior citizens, the eligibility of additional deductions goes up even further to Rs
30,000 from Rs. 25,000 stated above. A good health insurance plan in India or medical
insurance coverage has to be more than what a mediclaim policy provided in the past. It is all
about securing you from all possible expenses during health related emergencies. It is
important that your health insurance plan not only covers all your expenses incurred in the
hospital like but also other expenses related to critical illnesses that are increasingly arising
due to changes in lifestyles.

60
 FACORS TO BE CONSIDERED
 Get adequate coverage
There is little logic on scrimping on premiums while buying mediclaim policies. The focus
has to be on getting the maximum coverage required by your family at affordable premiums.
Remember, you pay from your pocket whatever a mediclaim policy or health insurance plan
doesn’t.
 Check company’s geographical presence
Insurance companies providing mediclaim policies or health insurance plans typically have
tie ups with hospitals having large networks. You need to check whether hospitals or
healthcare facilities empanelled with a prospective insurance company, are situated close to
your residence. Also, check if the insurance company has a presence across the country so
that in the case of the need for physical interaction, you are not inconvenienced.
 Study the width of coverage
Mediclaim policies and health insurance plans provide financial protection to you in case of
medical emergencies but the coverage of the emergencies are specified in the policies. It is
important to be aware of these conditions, the ailments and diseases that are covered.
Consider opting for a health insurance plan that has a wide coverage and few exclusions.
 Find out the coverage of pre-existing diseases
If you suffer from a particular ailment, you will need to disclose this at the time of buying a
health insurance plan. At the same time, it is important to know from when the disease will
get covered. Typically, insurance companies start covering pre-existing ailments after 3-4
years of continuous coverage.
 Save on premiums by buying online
Almost all companies offering health insurance companies offer online policies. The
premiums for such mediclaim policies and health insurance plans are lower since the
companies pass on savings from distribution and other cost savings. However, remember that
advice and support you get from an advisor will be absent and you will need to deal with the
company directly. This makes it important for you to choose an insurance company well
known for its customer service both online and in its branch offices across the country.
To sum up, online health insurance provides you with financial protection your family needs
in case of medical emergencies. Yet, one needs to keep these five things in mind to make the
most of this protection tool.

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 WOMENS INSURANCE PLAN
HDFC Life presents special solutions catering to different financial needs of women.
Women’s plans are a set of specially created and hand-picked products which suit the needs
of women at different stages of their life; such as protection, health, retirement, child’s
education and long term savings and investments.

What is Women's Insurance?

Women’s insurance plan caters to different financial needs of women. Women’s plans are a
set of specially created and hand-picked products which suit the needs of women at different
stages of their life; such as protection, health, retirement, child’s education and long term
savings and investments.

Why Women Need Women’s Insurance Plans?

Women need different financial solutions than men like financial protection on spouse’s
premature demise, women-specific health risks and financial security in retirement.

Women’s Insurance Plans address these women-specific needs.

How Women's Insurance Plans from HDFC Life Help?

Women’s Insurance Plans by HDFC Life have been specially created to meet women’s needs
at their different stages of life.

This is possible with features for life and health insurance and savings for major needs like
retirement and child’s education.

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 NEED FOR WOMEN INSURANCE PLAN
As a modern woman, do you really need to invest in life insurance? If you have children of
your own, a life insurance policy would be an obvious must-have. However, while people
often believe that if they do not have dependants, they don’t need to be insured, that is not the
case. Life insurance has much more to offer than protection of your children’s future in the
event that something untoward occurs. Here are the three most important reasons why you
need to invest in a women's insurance plan:

1. FOR THE FAMILY

These days most families have two working parents. As an active contributor to your family’s
income, it’s important that you back-up the income that you bring in. Since both you and
your spouse play an essential role in the financial security of your family, you should both be
insured. Taking out a life insurance policy for yourself will ensure that your loved ones'
futures are secured in the case of premature death or disability.

For a stay-at-home mom, a lot of time, money and effort go into running your household.
Finding someone to manage the household in your absence would cost your family much
more than it does currently and it’s necessary to plan for those added expenses. Even if your
spouse were to stay home to watch the children and take care of the house, that would require
a break from work or shorter shifts, which again means a decrease in income.

Women Life Insurance can benefit single women as well. It’s often overlooked that debts
such as loans and taxes would fall on family members if something were to happen to you.
An insurance plan can provide your family with the funds needed to pay off these debts.

2. FOR SELF

If you’re a single woman living independently, it pays to be prepared for a situation in which
you will not be earning an income. For instance, in the event that you are struck by illness or
need to take a break from work for any reason, having an insurance policy would come in
handy.

Today, it’s not uncommon to find a woman running her own business or a woman holding an
important position in a privately held business. So if you’re one of these women, it’s

63
important for you to get insured to make sure your business will keep on running, even when
you are no longer around.

When we think of life insurance, we generally think of the worst case scenario. However,
chances are that you could live to a ripe old age and have the retirement you always
imagined. Whether you’re single or married, there are definitely some retirement goals that
you’ve set for yourself – it may be a long cruise, a fancy car or just to travel as much as
possible. Investing in life insurance now could mean living out your most extravagant
retirement dreams, when the time comes.

3. WEALTH CREATION

Whether it’s a new business venture, a wedding or perhaps a new addition to the family,
there’s no telling what the future holds. Investing in a life insurance plan today can help you
build up a corpus to meet future requirements or goals such as buying your own home, a car
or preparing for a child’s higher education. What’s more, this investment in financial security
comes with the added benefit of tax savings.

At HDFC Life, we understand that the financial needs of women are unique from those of
their male counterparts. As a woman you may undertake a number of responsibilities
domestically and professionally. That’s why we offer customised life insurance solutions for
women to secure their own financial independence and that of their families. Start investing
today, for the protection of your financial future and to gain peace of mind.

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 TERM INSURANCE PLAN
Term plans are typically affordable insurance plans that provide full protection and financial
stability to your loved ones in case of any unforeseen events. HDFC Life presents term
insurance plans and policies in India to best meet your needs.

What is Term Insurance?

Term insurance is basically a type of life insurance that provides coverage for a certain period
of time or years. The nominee of the insured person receives the death benefit if the insured
dies when the policy is active. Among life insurance plans, term insurance provides the
highest life insurance coverage for the lowest premiums during the period of the plan.

How Term Insurance Plan from HDFC Life helps you?

Term Insurance Plan by HDFC Life provides you with the advantage of large life insurance
cover for an affordable premium.

Riders covering other risks such as accident are available and can be attached to term plans
and provide a much wider protection to your family.

Married Women's Property Act

The Married Women's Property Act, 1874 (“MWPA”) was created to secure the assets owned
by a woman against her husband, his creditors, and relatives. Section 6 of the MWPA covers
any insurance policy taken out by a man on his own life in favor of his wife and children.

65
 STEPS TO CHOOSE SUITABLE TERM PLANS

 STEP 1
Find out the life insurance amount you need Your term life insurance should be able to cover
your family’s living expenses and future obligations.There are many life insurance
calculators available online that you can use for reference. At the same time, it is useful to
know how to arrive at this figure.

To begin with, arrive at the life insurance amount you would require to cover your family’s
living expenses. Let’s say your annual income is Rs 12 lakh. Going by a rule of thumb of life
insurance coverage being 15 times of annual income, you need life insurance of Rs 1.8 crore.
The second step is to find out the life insurance coverage required for you to cover financial
obligations, such as your kid’s higher education and any outstanding loans. Suppose, the sum
total of your financial obligations is Rs 50 lakh, you would need total life insurance coverage
of Rs 2.3 crore (sum of Rs 1.8 crore and Rs 50 lakh).

 STEP 2

Compare term insurance plans Make it a point to compare the essential term insurance
product features online, such as the maximum coverage and the duration for which you need
to pay the premium. Also, find out whether the term life insurance companies have been in
the business for long and look like being there for the entire tenure of the plan, which could
be as long as 30 years. You also need to find out the insurance company’s claims settlement
ratio. That indicates the number of term insurance claims settled vis-à-vis the total number of
claims.

 STEP 3

Consider riders to widen risk coverage Term plans allow you to attach riders that cover other
risks to your family, such as those from accidents and critical illness. Since the riders come at
affordable premiums, it’s worth attaching them to your term plans. You will have a wider
coverage of risks and provide better financial protection to your family.

Buying online term plans provides you with immense convenience. Yet, you still have to
make sure that you choose the term insurance plan and don’t miss out on the essential details

66
 SAVINGS AND INVESTMENT PLAN

Our Savings and Investment plans are life insurance plans that offer you multiple avenues to
save and to grow your money. These online investment plans help in systematic and
disciplined investment ensuring that you and your family achieve your financial goals.

What are Investment Plans?

Investment Plans are financial products that provide the opportunity to create wealth for
future. Investment plans offer to help individuals in disciplined and periodic investment into
different funds overtime so as to achieve their future financial goals.

Why do you need Savings and Investment Plans?

Savings and Investment plans help you save regularly and be adequately prepared to meet
family’s financial needs in the future.

These online investment plans offer various features that help meet your specific financial
needs with investments made according to your appetite to take risks.

How Savings and Investment Plans by HDFC Life Help You?

Our Savings and Investment Plans help you save ample amounts with the help of regular
investments after taking into account your specific financial situation and future needs.

They also provide protection to your family and ensure all expenses are covered even in your
absence.

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 TYPES OF INVESTMENT PLAN
1) HDFC LIFE CLICK 2 WEALTH
 Potential of benefitting from market-linked returns.
 Safeguard the wealth created so that your desired goals are met.
 Secure your child's/ spouse's future with Premium Waiver option.
 Plan for your retirement with Golden Years Benefit option.
 Investment flexibility with 10 funds: Unlimited free switches allowed.
 Benefit of rupee cost averaging (STP)

2) HDFC LIFE SANCHAY PLUS

Life becomes more meaningful with the achievement of personal milestones. But
these milestones are often accompanied by added responsibilities and expenses. Financial
planning for key life stages such as marriage, parenthood, retirement, etc. becomes crucial to
help us prepare for these expenses. Life Insurance plan can help you achieve such goals
whilst safeguarding the family’s future against the unforeseen events.While there are many
opportunities that come with respective benefits, the assurance and convenience that a life
insurance plan with guaranteed benefit offers is irreplaceable.We at HDFC Life bring to you
“HDFC Life Sanchay Plus”, a non-participating, non-linked, savings insurance plan that
offers guaranteed returns for you and your family.

3) HDFC LIFE SANCHAY PAR ADVANTAGE

As you approach different stages in life, there are dreams and aspirations that you set
out for yourself and your family. More often than not, you make tough choices, sacrificing
one dream for the other. You also have to take care of day to day responsibilities like running
the family, paying for health expenses, children’s school fees etc. With rising life
uncertainties, it is important to secure a source of income to that takes care of these expenses,
more so after your retirement or in case of unfortunate demise. A Life Insurance plan offers
financial protection against such unforeseen events.To help you achieve your goals, we
present to you “HDFC Life Sanchay Par Advantage”, a life insurance solution which allows
you to live an uncompromised life, whilst securing the future of your family and, ensuring
you leave behind a legacy for them.

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 PENSION AND RETIREMENT PLAN
Retirement & Pension Plans provide you with financial security so that when your
professional income starts to ebb, you can still live with pride without compromising on your
living standards. Given the high cost of living and rising inflation, Retirement planning has
become all the more important.

What are Pension Plans?

Pension plans are investment plans that lets you allocate a part of your savings to accumulate
over a period of time and provide you with steady income after retirement. Retirement &
Pension Plans provide you with financial security so that when your professional income
starts to ebb, you can still live with pride without compromising on your living standards.
Given the high cost of living and rising inflation, Retirement planning has become all the
more important.

Why You Need Retirement and Pension Plans?

Retirement & Pension Plans provide ample regular income in retirement with the help of
money saved during work life. Your family can maintain its lifestyle without your regular
pay cheque despite constantly rising living costs.

Adequate retirement planning also help you to meet unexpected expenses without a worry.

How HDFC Life Retirement and Pension Plans Help?

Investments with regular premiums or a lump sum payment makes your money grow well
during your work life.

On retirement, a part or the whole of this savings can be used to create regular retirement
income.

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 TYPES OF PENSION PLANS

1) HDFC PENSION GURANTEED PLAN

1. Immediate Life Annuity Option

This option is available on both single life and joint life basis.

a.Single Life

    • The annuity will be payable in arrears as per payment frequency chosen by you, for as
long as the annuitant is alive

    • On death of the annuitant, the annuity payments will cease and no further benefits will be
payable

b.Joint Life

    • The annuity will be payable in arrears as per payment frequency chosen by you, for as
long as either of the primary or the secondary annuitant is alive

    • On the death of both annuitants, the annuity payments will cease and no further benefits
will be payable

2.Immediate Life Annuity with Return of Purchase Price Option

This option is available on both single life and joint life basis. The annuity will be
payable in arrears as per payment frequency chosen by you, for as long
as the annuitant is alive

3.Deferred Life Annuity with Return of Purchase Price Option

This option is available on both single life and joint life basis. Deferment Period may be
between 1 to 10 years (Integer values), as chosen by you at inception. The annuity rate shall
be as guaranteed at the inception of the Policy.

70
71
2) HDFC LIFE GURANTEED PENSION PLAN

 Limited premium paying term with assured benefit on death or at vesting

 On vesting, purchase an annuity and enjoy lifetime income- post retirement
 Get a lump sum vesting benefit which is a sum of sum assured on vesting, Guaranteed
Additions as well as Vesting Addition
 Assured Death Benefit of total premiums paid to date accumulated at a guaranteed rate
of 6% per annum compounded annually
 Tax benefit on premiums paid under section 80 CCC of the Income Tax Act, 1961

3) HDFC LIFE NEW IMMEDIATE ANNUITY PLAN

Financial independence is a dream for most individuals.To lead a

comfortable life, particularly after retirement after all the years of hard
work is on everyone’s wishlist. A smart way to ensure a regular income
stream post retirement is by taking an annuity.

 Guaranteed1 income for as long as you/your partner lives at a frequency of your choice -

monthly/quarterly/half-yearly/annual options
 Benefit from higher annuity rates at investment of Rs 2,50,000 or higher
 Death benefit on certain annuity options that provide for return of purchase price or
annuity to your spouse

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 INSURANCE PLANS FOR DEFENSE PERSONNEL

Insurance solutions offered under the Shauryaprogramme by HDFC Life are tailor-made to
meet the needs of the all Armed Forces personnel.

Why choose HDFC Life Defence Personnel Plan?

HDFC Life has been pioneering to introduce insurance cover in “war/war like situations,
terrorism, natural calamities, I.S duties & other hostilities”. HDFC Life’s insurance solutions
are designed to meet your long term protection & financial needs.

Our products are simplified, transparent & cost effective. We also offer flexible solutions
tailored to suit you. Our insurance plans enhance your existing cover & entitled service
benefits. Also, special revisions have been incorporated to our financial & medical guidelines
to meet defence personnel requirements through a simplified process.

SHAURYA by HDFC Life

The initiative Shaurya is designed with a view to augment existing insurance, provide various
financial saving solutions with tax benefits & a secured second innings career to our Ex-
servicemen.

Shaurya sales team consists of ex. Armed forces personnel who understand your financial
needs and provide suitable financial solutions. These individuals have an understanding and
appreciation of All Armed forces, but still they will go through extensive financial training to
understand you and how things work in your life.

How HDFC Life Defence Personnel Plans help you?

Unique customer tracking mechanism so that we can be with you even when you get posted
to a new location

Enhanced and personal after-sales service by highly trained sales and ex-servicemen team

Simplified issuance process to cater to needs of Defence personnel

Distinguished and specialized delivery of policy packs

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 LIST OF DISCONTINUED INSURANCE PLANS

 HDFC Life Health Assure Plan

 HDFC Life Invest Wise Plan
 HDFC Click 2 Protect Plan
 HDFC Protection Series
 HDFC Immediate Annuity Plan
 HDFC ClassicAssure Insurance Plan
 HDFC Life SampoornSamridhi Insurance Plan
 HDFC Children's Plan
 HDFC  Endowment Gain Insurance Plan
 HDFC Endowment Assurance Plan
 HDFC  New Money Back Plan
 HDFC Savings Assurance Plan
 HDFC Assurance Plan
 HDFC Single Premium Whole of Life Insurance Plan
 Premium Guarantee Plan
 Home Loan Protection Plan
 GraminBimaKalyanYojna
 HDFC Unit Linked Endowment Plan
 HDFC Unit Linked Endowment
 HDFC Unit Linked Pension Plan
 HDFC Unit Linked Pension
 HDFC Unit Linked Young Star Plan
 HDFC Unit Linked Young Star
 HDFC Unit Linked Young Star Plus
 HDFC Unit Linked Endowment Plus

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HDFC GENERAL
INSURANCE

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 HOME INSURANCE

Buying your dream home may have been the biggest investment you ever made. With such
an investment comes the responsibility to safeguard it from risks like – unforeseen damages,
natural calamities, manmade disasters and threats like theft & burglary.

Purchasing a home insurance policy will certainly buy you peace of mind, safety & assurance
against these unforeseen events. With a good home insurance at hand, you will be better
equipped to deal with crisis that may come your way.

Why do I need a home insurance?

The home is the most important place for a person and its protection needs is of utmost
importance. HDFC ERGO Home insurance provides you with a flexible and comprehensive
cover that protects your home against all possible contingencies.

 Are there any special schemes on home insurance?

Yes, with HDFC ERGO’s home insurance, you get the benefit of reduced premiums as well
as discounts up to 25% + 15%, depending on the tenure of your policy.

 What is the claim settlement process?

The claim process for HDFC ERGO Home Insurance is pretty straightforward. In the event
of any claim, you need to call our toll-free number and register the claim at the earliest with
the details of the nature of loss, location of loss, amount of loss (approx. estimation) and
policy number for refere...

 How is the premium that I have to pay calculated?

The premium you will have to pay will depend on the tenure of the policy you choose and the
sum insured, which in turn will be based on the following:

Depending on the varying factors, the payable premium also varies. There is an online
premium calculator available on our website which you can use to calculate the payable
amount.

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 FEATURES OF HOME INSURANCE

 Covers risk against Fire, Lightning, Explosion, Implosion, Flood, Inundation, Storm,
Riot, Strike, Earthquake, Terrorism (optional), Burglary, Theft and, Larceny

 Coverage up to 5 years

 Discount up to 25% and additional 15% discount for security features

 Provision for increase in Sum Insured at end of every year by 10%

 An unique cover for home owners with long term coverage

 No documentation, get policy online instantly 

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 TRAVEL INSURANCE

Now travel without worries. With HDFC ERGO Travel Insurance, there is a plan that suits
every indiviudal's need. These plans come with a host of features including no medical check
ups, cashless hospitalization and 24x7 international helpline assistance. These travel plans
cover all kind of travels including business and pleasure trips. The coverage cost too is much
lower than your imagination

Why does one require Travel Insurance?

Travel Insurance provides you and your family medical, financial and other assistance in case
of an emergency or untoward circumstances while travelling on an International Trip. No
matter who you are: a business traveler or a leisure traveler: you are now safer with Overseas
Travel Insurance which ...

 What are the available plans with HDFC ERGO?

HDFC ERGO provides coverages for Single Trip, Multiple Trips, Asia, and also a Family
Floater Plan with various Sum Insured options to choose from.

 What are the eligibility criteria?

Our Travel Insurance policy is available for all ages between 6 months – 70 yrs.

 What is the minimum period for a trip to be insured?

Our Travel Plans provide coverage to travel trips as short as 1- 4 days.

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 CRITICAL ILLNESS

Diagnosis of a critical illness for you or your loved one can bring your life to a stand still,
literally. What, perhaps, could worsen the situation would be the unavailability of the
requisite funds for treatment and associated expenses. Given the fact that the cost of medical
treatment for critical illnesses are exorbitant, one needs to be accordingly protected from such
unwarranted costs.

The HDFC ERGO Critical Illness Plan offers a Lump Sum Benefit amount to the insured
person on first diagnosis after a survival period of 30 days and for any one of the 8 such
illnesses as specified in the Policy. 

Coverage
This plan covers the following illnesses: -
 Heart attack (Myocardial Infarction)
 Multiple sclerosis
 Stroke
 Cancer

 Major organ transplantation

 Kidney Failure

 Coronary artery bypass surgery

 Paralysis

Benefits

 Paying for the care and treatment

 Recuperation aids

 Paying off debts, if any

 Providing for any lost income owing to a decreasing ability to earn

 Providing funds for a change in lifestyle

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 MOTOR INSURANCE

 Why do I need to insure my vehicle?

In India, it is mandatory to insure all vehicles at least for third party liability risks which
cover owners against all legal liability for bodily injuries or death or property damage to any
third party due to accident involving vehicle in a public area.

 What are the different types of vehicle which can be Insured online at HDFC Ergo?

One can insure private cars and two-wheelers with HDFC ERGO motor insurance plans.

 What are the benefits of buying motor insurance online ?

The biggest advantage of buying motor insurance policies online is that it is convenient, and
comes with better terms that helps simplify your purchasing decision. You can compare the
different plans and decide on which one will best suit your vehicle type. Also, online motor
insurance policies offer you other facilities such as renewal reminder, secure payment
gateways and tracking.

 What will be premium for my vehicle ?

Premium depends upon various factors such as vehicle type, make and model, cubic capacity,
place of registration, usage, previous claim history, etc. of the vehicle.

 Benefits

 Quick Approval: Your claim can get approved within an estimated time of a mere 24
hours from the time your vehicle reaches the garage.

 Digital: Buy the motor insurance online from the comfort of your home for added
convenience.

 Helpline: You can avail the toll-free help line for any motor insurance policy queries
and claims.

 Transparency: The claim settlement process is extremely fair and transparent.

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CONCLUSION

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 CONCLUSION

 Insurance is a large investment and you will most likely purchase multiple policies
throughout your lifetime. ... You do not want to waste your money on policies that do
not meet your needs, but the right insurance policy can protect you and your family
from unforeseen disasters.

  It is the risk transfer tool which is in existence since the time when trade through sea
started .In insurance you transfer your risk (negative deviation from an future
outcome) to an insurance company which will pay you at the time when the event
insured happens with respect to the contract signed by both the parties .

 Insurance is a large investment and you will most likely purchase multiple policies
throughout your lifetime. It is essential that you know what each type of insurance
covers and how it works so you can make the best decision about what to buy. Do not
base your decision on just what is cheapest, but look at what it provides

 The insurance industry in India has changed rapidly in the challenging economic
environment throughout the world. In the current scenario, Indian insurance
companies have become competitive in nature and are providing appropriate
distribution channels to get the maximum benefit and serve customers in manifold
ways. Indian Insurance industry has big opportunity to expand, given the large
population and untapped potential.

 The insurance market in India has witnessed dynamic changes including entry of a
number of global insurers. Most of the private insurance companies are joint ventures
with recognized foreign institutions across the globe. Saturation of markets in many
developed economies has made the Indian market even more attractive for global
insurance majors.

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APPENDIX

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 QUESTIONNAIRE

1. Do you have an insurance policy?

Yes

No

2. What type of insurance do you have?

Private

Public

3. Who influenced you to get an insurance policy?

The media

Insurance agents

Federal government

Friends, family and colleagues

Other

4. What kind of insurance policies do you have? Check as many as you’d like.
Savings policy

Whole life policy

Endowment policy

Money back policy

Automobile insurance

Pension plan policy

Property insurance

Any other

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 5. What is the average term of the policies you have?
Up to 5 yrs.

Above 20 years.

6. Have you ever received any benefits from any of the policies you currently have?
Yes

No

7. If yes, how many times have you received it?

1

More than three

8. How regularly do you pay your premiums?

Monthly

Quarterly

Half year

Yearly

 
9. Have you received any incentives from your insurance company on the insurance
premiums?
Yes

No

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 BIBLIOGRAPHY

 www.wikipedia.com
 www.hdfcinsurance.com
 www.quora.com
 www.moneycontrol.com
 www.business.mapsofinida.com

 www.thinkrupee.com

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