Insurance Company

The growth of the insurance sector in India has been phenomenal. The insurance industry has undergone a massive change over the last few years and the metamorphosis has been noteworthy.

There are numerous private and government insurance companies in India that have become synonymous with the term insurance over the years. Offering a diversified product portfolio and excellent services the many insurance companies in India have managed to make their way into almost every Indian household.

Before we begin the analysis of Indian insurance industry, let us clear some basics on insurance.

• In the words of a layman, insurance means managing risk. For instance, in life insurance segment, the insurance company tries to manage mortality (death) rates among the wide array of clients.
  
• The insurance company works in a manner by collecting premiums from policy holders, investing the money (usually in low risk investments), and then reimbursing this same money once the person passes away or the policy matures. The greater the probability for a person to have a shorter life span than the average mark, the higher premium that person has to pay. The case is the same for all other types of insurance, including automobile, health and property.
  
• Ownership of insurance companies is of two types:
• Shareholder ownership
• Policyholder ownership

Types of Insurance

1. Life Insurance - Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he or she lives beyond a certain age.
   
2. Health Insurance - Insurance against expenses incurred due to illness of the insured.
   
3. Liability Insurance - This insures property such as automobiles, property and professional/business mishaps.

Top Ten Insurance Company

Below is a list of the Top 10 insurance companies in India and their contact details zone wise.

Insurance Company	Products and Services	Contact Details
LIC Life Insurance Corporation of India	Insurance Policies Jeevan Anurag Unit Plans Samridhi Plus Pension Plus Special Plans Jeevan Madhur Jeevan Mangal Group Schemes	East Zone: LIC of India,P&GS Unit Jeevan Prakash,Calcutta Metro DO-I 16 Chittaranjan Avenue Kolkata West Bengal 700072 033-23346688 West Zone: Jeevan Prakash GHB Complex, 2nd Floor,Opp.to Rupal Park, Behind Ankur Bus stop, Naranpura, Ahmedabad Gujarat 380013 North Zone: Jeevan Prakash Post Box No 102 25 Kasturba Gandhi Marg New Delhi DELHI 110001 011-23762681 079-25502150 South Zone: LIC Building 102 Anna Salai Post Box No 324 Chennai TAMIL NADU 600002 044-28612871
ICICI Prudential Life Insurance Co Ltd	Education insurance plans Smartkid New Unit-Linked Regular Premium Smart Kid Regular Premium Savings (all ULIP) Life Time Super Premier Life Gold Life Time Plus Premium guarantee plans InvestShield Cash Back protection plans (All Traditional plans) Life Guard Save 'n' Protect Home Assure Health care plans Crisis Cover Diabetes Care/ Diabetes Care Plus Cancer Care	West Zone: A-32/B-32, 3rd Floor, Corporate house, Judges Bungalow Road, Above Hotel Honest, Off. S G Highway, Sarkhej-Bodakdev, Ahmedabad - 380015 Gujarat South Zone: Plot No. 11, 1st & 2nd Floor, K.R. Buildings, Lattice Bridge Road, Above Pizza Corner, Adyar, Chennai - 600020 Tamilnadu 9840877766 North Zone: ICICI Prudential Life Insurance Co. Ltd., 1 DLF Centre, Ground Floor, Opp Park Hotel, Sansad Marg, Connaught Place, New Delhi - 110001. Delhi 9818177766 East Zone: Plot No. C-653, 2nd Floor, Epari Plaza, Janpath,Unit-III, Bhubaneshwar - 751001 600222020
Bajaj Allianz Life Insurance Co Ltd	Insurance Policies iGain III Max Advantage Health care plans Star Package Personal Guard Silver Health Travel Insurance Student Elite Plan Brilliant Minds	East Zone: # 338, Calcutta Food Bazar, 2nd Floor, A Block, Lake Town, Kolkata, 700055 +91-33-32575382 North Zone: C-32, 1st Floor & 2nd Floor, Connaught Place, New Delhi - 110 002, 011 - 41490500 South Zone: 25/26,prince towers, 4th floor, college road, nungambakkam, chennai-600006 044-43904400 West Zone: 312, 3rd Floor , Megh Malhar Complex, near petrol pump, Sector 11,Gandhinagar - 382011 079-23244250-252
SBI Life Insurance Co Ltd	Individual Plans SBI Life - Unit Plus Super SBI Life - Smart Wealth Assure Group Plans Group Micro Insurance Plans Group Loan Protection Products	West Zone: SBI life insurance company ltd, 1st floor akshar arcade opp memnagar fire station , memnagar , ahmedaba 380014 079 -66103333 North Zone: SBI life insurance company ltd, 116, hargovind enclave,opp karkardooma community centre 011-40758700 East Zone: SBI LIFE INSURANCE company ltd, jeevandeep building ground floor,1 middleton street 033-22882323 / 22 South Zone: SBI LIFE INSURANCE company ltd, 2 nd floor, 96/04, south end road,basavangudi 080 26575460
Reliance Life Insurance Co Ltd	Protection Plans Reliance Life Insurance Money Multiplier Plan Reliance Special Term Plan Child Plan Reliance Child Plan Savings & Investment Plans Reliance Life Insurance Pay Five Plan Reliance Life Insurance Classic Plan - Limited Premium Reliance Life Insurance Highest NAV Advantage Plan Reliance Life Insurance Money Multiplier Plan North Zone: Level - II, C 4-5, Agrawal Cyber Plaza,Netaji Subhash Place,DelhiDelhi, 110092 011-32229807	West Zone: 201, Viva Complex, 42, Parimal Co-oprative Housing Society, Perimal Cross RoadAhmedabadGujarat,380009 079-30075191 South Zone: No.2940/E-5, GG Arcade,3rd floor, Service Road, West Of Chord, Opp Maruthi Mandir, Vijay Nagar,BangaloreKarnataka,560040 080-39826566 East Zone: 206, A.P.C, Bose Road, 2nd floor, Shyambazar (Opp-CESC Regional Office), Kolkata West Bengal,700004 033-30610530
HDFC Standard Life Insurance Co Ltd	Protection Plans HDFC Premium Guarantee Plan Savings and Investment Plans HDFC SL ProGrowth Flexi ClassicAssure Insurance Plan HDFC SL ProGrowth Maximiser	North Zone: HDFC SLIC, B-3/6,Ground Floor Asaf Ali Road, Delhi - 110002 011-43591300 South Zone: 2nd floor, Block 2 A, Esquire Centre, No. 9, M. G. road, Bangalore - 560 001 " 080-42791234 West Zone: HDFC Standard Life Insurance Co. Ltd.,2nd Floor, 'Shivalik Plaza', Opp Amam, IIM Road, Ahmedabad - 380 015 079 - 66101500 East Zone: 30SA/2, Block-B, New Alipore, Kolkata-700053 033-66125406
Birla Sun Life Insurance Co Ltd	Health and Wellness Solutions BSLI Saral Health Plan BSLI Bachat Money Retirement Solutions BSLI Dream Life Plan BSLI Immediate income Plan Rural Solutions Birla Sun Life Insurance Bima Dhan Sanchay Birla Sun Life Insurance Bima Kavach Yojana	North Zone: 1St Floor, Sco-14, Sector - Ii , Central Market, Punjabi Bagh, , New Delhi, Delhi 110026 Delhi 011-45062639 / 40 / 37 South Zone: Site No 70 , 2nd floor, Grace Towers,Above BMW Showroom, Old miller Road, Cunningham Road(Cr) Bangalore 560046 Karnataka 080 - 65398701 / 25 East Zone: 1St Floor, 110, Bose Pukur Para, , Kolkata- South, Kolkata 700042 West Bengal 033 - 66331915/16 West Zone: Pancharatna Upper Ground Floor, C. G. Road, Opp White House, Ahmedabad , Ahmedabad 380009 Gujarat 079-26409741
Max New York Life Insurance Co Ltd	Life Plans 20 year Endowment Max New York Life Platinum Protect Life Gain™ Plus 25 Growth Plans Max New York Life Flexi Fortune Max New York Life Shubh Invest Health Plans LifeLine MediCash™ Plus LifeLine Safety Net™	West Zone: 3rd Floor, Unit No.301 to 307, Aashth Mangal, Shahi Bagh, Near Rajasthan Hospital, Opposite Resham Bai Fertility Hospital, Ahmedabad-380004 Gujarat Tel: 079-40215433 North Zone: 2 & 3 rd Floor,C-6, Local Shopping Centre, Vasant Vihar, New Delhi, 110057 Delhi Tel: 011-46086900 South Zone: Vimal Chambers, No.70 & 70/1 4th Floor M.G.Road, Bangalore- 560001 Karnataka Tel: 080-66965700 East Zone: La Vida Mall, 2nd Floor, CK-III, Sector-II, Nr. Tank No. 9, Salt Lake City, Kolkata-700 091 Tel: 033-44079303 /04/05/01. 033-44079313-01
Kotak Mahindra Old Mutual Life Insurance Ltd	Protection Plans Kotak eternal Life Plans Saving and Investment Plans Kotak ace investment Plan Kotak surakshit Jeevan Child Plans Kotak headstart Child Assure	West Zone: Kotak Mahindra Old Mutual Life Insurance Ltd. Unit nos. 901 & 902, 9th floor, Wing A & B, Godrej Coliseum, Lokmanya Pan Bazar, Behind Evrard Nagar, Sion (E), Mumbai - 400 022 Tel : +91 22 6621 5999 East Zone: 190b Satin Sen Sarani Kankurgachi, Kolkata, West Bengal 700054 033 23648610 North Zone: Lower Ground Floor, 974/1 Dakha Plaza, Arya Samaj Road, Karol Bagh, New Delhi-110005, Beadonpura, Karol Bagh, New Delhi South Zone: RELCON PLAZA,FIRST FLOOR PATTOM, Kollam Road, Pattom Trivandrum, Kerala 695004 0471 6615600
Aviva Life Insurance Company India Ltd	Protection Plans Aviva LifeShield Platinum Aviva LifeShield Advantage Fund Management Rural Plans Aviva Anmol Suraksha Aviva Grameen Suraksha Savings Aviva Dhan Vriddhi Aviva LifeBond Advantage	North Zone: 2nd Floor, Prakashdeep Bldg., Tolstoy Marg,New Delhi Delhi I, Delhi 110001 Phone: 011-23462548 East Zone: 45 Bhupen Bose Avenue ,3rd flr, ShyambazarKolkata Kolkata 4, West Bengal 700004 Phone: 025304610 South Zone: Shubharam Complex 4th Floor,No 144 M G Road , Bangalore 560001 Bangalore, Karnataka Phone: 080 -25580777 West Zone: Mordern Centre, A Wing, 2nd Floor, Sane Guruji Marg, Mahalaxmi (E), Mumbai -11 Mumbai I, Maharashtra Phone: 02266207777

Challenges facing Insurance Industry

• Threat of New Entrants: The insurance industry has been budding with new entrants every other day. Therefore the companies should carve out niche areas such that the threat of new entrants might not be a hindrance. There is also a chance that the big players might squeeze the small new entrants.
  
• Power of Suppliers: Those who are supplying the capital are not that big a threat. For instance, if someone as a very talented insurance underwriter is presently working for a small insurance company, there exists a chance that any big player willing to enter the insurance industry might entice that person off.
  
• Power of Buyers: No individual is a big threat to the insurance industry and big corporate houses have a lot more negotiating capability with the insurance companies. Big corporate clients like airlines and pharmaceutical companies pay millions of dollars every year in premiums.
  
• Availability of Substitutes: There exist a lot of substitutes in the insurance industry. Majorly, the large insurance companies provide similar kinds of services - be it auto, home, commercial, health or life insurance.
  

How to choose an insurance company?

• There are many factors to probe into when an investor chose an insurance company.
• The consumers as well as the investors should only focus on the insurer's financial strength and capability to meet ongoing responsibilities to its policyholders.
• The fundamentals of the insurance company should be strong and should not indicate a poor investment opportunity as this might also deter growth.

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insurance polices condition

1. Application

   • Fill out insurance forms completely and accurately.

     Insurance policies require an application and premium payment to become effective. On the application, an applicant is asked a series of questions that help the insurance underwriter decide on the level of risk involved with insuring the individual.

   Contract

   • Policies may be approved, denied or accepted with changed provisions. Policies may be rated as an exceptional risk, demanding a higher premium, or may include exclusions, allowing a company to deny claims in certain specific situations.

   Claim

   • An insurance adjuster reviews your claim.

     When a catastrophe hits and you need to file a claim, insurance companies require basic information about what happened to thoroughly investigate the claim. Insurance adjusters then decide if the claim is valid and how much payment the contract requires.

   Payout

   • Employer-paid insurance benefits are taxable.

     Insurance companies pay out claims either to the individual or to a service provider based on the terms of the contract. If policy premiums have been paid with pretax dollars or paid by an employer, the payout will be taxable. Premiums that were paid with after-tax money are tax free.

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Fee-for-Service Health Plans

A certain amount of money each year, known as the deductible, is paid for by you before the health insurance payments begin. In a typical plan, the deductible might be $250 for each person in your family, with a family deductible of $500 when at least two people in the family have reached the individual deductible. The deductible requirement applies each year of the health insurance policy. Also, not all health expenses you have count toward your deductible. Only those covered by the health insurance policy do. You need to check the health insurance policy to find out which ones are covered.
After you have paid your deductible amount for the year, you share the bill with the health insurance company. For example, you might pay 20 percent while the health insurer pays 80 percent. Your portion is called "coinsurance".
To receive payment for fee-for-service health claims, you may have to fill out forms and send them to your health insurer. Sometimes your doctor's office will do this for you. You also need to keep receipts for drugs and other medical costs. You are responsible for keeping track of your own medical expenses.
There are limits as to how much a health insurance company will pay for your health claim if both you and your spouse file for it under two different group health insurance plans. A coordination of benefit clause usually limits benefits under two health plans to no more than 100 percent of the claim.
Most fee-for-service health plans have a "cap," the most you will have to pay for medical bills in any one year. You reach the cap when your out-of-pocket expenses (for your deductible and your coinsurance) total a certain amount. It may be as low as $1,000 or as high as $5,000. The health insurance company then pays the full amount in excess of the cap for the items your policy says it will cover. The cap does not include what you pay for your monthly health insurance premium.
Some health services are limited or not covered at all. You need to check on preventive health care coverage such as immunizations and well-child care.
There are two kinds of fee-for-service health coverage: basic and major medical. Basic protection pays toward the costs of a hospital room and health care while you are in the hospital. It covers some hospital services and supplies, such as x-rays and prescribed medicine. Basic coverage also pays toward the cost of surgery, whether it is performed in or out of the hospital, and for some doctor visits. Major medical insurance takes over where your basic coverage leaves off. It covers the cost of long, high-cost illnesses or injuries.
Some health insurance policies combine basic and major medical insurance coverage into one plan. This is sometimes called a "comprehensive plan." Check your health insurance policy to make sure you have both kinds of protection.

HMO: Health Maintenance Organizations
A health maintenance organization, or "HMO", is a prepaid health plan. As an HMO member, you pay a monthly premium. In exchange, the HMO provides comprehensive health care for you and your family, including doctors' visits, hospital stays, emergency care, surgery, laboratory (lab) tests, x-rays, and therapy.
The HMO arranges for this health care either directly in its own group practice and/or through doctors and other health care professionals under contract. Usually, your choices of doctors and hospitals are limited to those that have agreements with the HMO to provide health care. However, exceptions are made in emergencies or when medically necessary.
There may be a small co-payment for each office visit, such as $5 for a doctor's visit or $25 for hospital emergency room treatment. Your total medical costs will likely be lower and more predictable in an HMO than with fee-for-service health insurance.
Because HMOs receive a fixed fee for your covered medical care, it is in their interest to make sure you get basic health care for problems before they become serious. HMOs typically provide preventive care, such as office visits, immunizations, well-baby checkups, mammograms, and physicals. The range of health services covered varies in HMOs, so it is important to compare available HMO plans. Some services, such as outpatient mental health care, often are provided only on a limited basis.
Many people like HMOs because they do not require claim forms for office visits or hospital stays. Instead, members present a card, like a credit card, at the doctor's office or hospital. However, in an HMO you may have to wait longer for an appointment than you would with a fee-for-service health insurance plan.
In some HMOs, doctors are salaried and they all have offices in an HMO building at one or more locations in your community as part of a prepaid group health practice. In others, independent groups of doctors contract with the HMO to take care of patients. These are called individual practice associations (IPAs) and they are made up of private physicians in private offices who agree to care for HMO members. You select a doctor from a list of participating physicians that make up the IPA network. If you are thinking of switching into an IPA-type of HMO, ask your doctor if he or she participates in the HMO plan.
In almost all HMOs, you either are assigned or you choose one doctor to serve as your primary care doctor. This doctor monitors your health and provides most of your medical care, referring you to specialists and other health care professionals as needed. You usually cannot see a health care specialist without a referral from your primary care doctor who is expected to manage the health care you receive. This is one way that HMOs can limit your choice.
Before choosing an HMO, it is a good idea to talk to people you know who are enrolled in the HMO you are considering. Ask them how they like the services and care given.

POS: Point-of-Service Plans
Many HMOs offer an indemnity-type option known as a Point-of-Service or "POS" health care plan. The primary care doctors in a POS plan usually make referrals to other providers in the health plan. But in a POS plan, members can refer themselves outside the plan and still get some coverage.
If the doctor makes a referral out of the network, the health care plan pays all or most of the bill. If you refer yourself to a provider outside the network and the service is covered by the health plan, you will have to pay coinsurance.

PPO: Preferred Provider Organizations
The preferred provider organization, or "PPO", is a combination of traditional fee-for-service and an HMO. Like an HMO, there are a limited number of doctors and hospitals to choose from. When you use those providers (sometimes called "preferred providers", other times called "network providers"), most of your medical bills are covered.
When you go to doctors in the PPO, you present a card and do not have to fill out forms. Usually there is a small co-payment for each visit. For some health care services, you may have to pay a deductible and coinsurance.
As with an HMO, a PPO requires that you choose a primary care doctor to monitor your health care. Most PPOs cover preventive care. This usually includes visits to the doctor, well-baby care, immunizations, and mammograms.
In a PPO, you can use doctors who are not part of the plan and still receive some health insurance coverage. At these times, you will pay a larger portion of the bill yourself (and also fill out the claims forms). Some people like this option because even if their doctor is not a part of the network, it means they do not have to change doctors to join a PPO.

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Managed Care: An Explanation

You will hear the term "managed care" quite a lot in the United States. It is a way for health insurers to help control costs. Managed care influences how much health care you use. Almost all health insurance plans have some sort of managed care program to help control health care costs. For example, if you need to go to the hospital, one form of managed care requires that you receive approval from your health insurance company before you are admitted to make sure that the hospitalization is needed. If you go to the hospital without this approval, you may not be covered for the hospital bill.
Fee-for-Service Health Plans
This is the traditional kind of health care policy. Health insurance companies pay fees for the services provided to the insured people covered by the policy. This type of health insurance offers the most choices of doctors and hospitals. You can choose any doctor you wish and change doctors any time. You can go to any hospital in any part of the country.
With fee-for-service health plans, the insurer pays only part of your doctor and hospital bills. You pay a monthly fee, called a premium.

 

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TYPES OF INSURANCE POLICIES

Insurance provides compensation to a person for an anticipated loss to his life, business or an asset. Insurance is broadly classified into two parts covering different types of risks:

1. Long-term (Life Insurance)
2. General Insurance (Non-life Insurance)

Long-term Insurance
Long term insurance is so called because it is meant for a long-term period which may stretch to several years or whole life-time of the insured. Long-term insurance covers all life insurance policies. Insurance against risk to one's life is covered under ordinary life assurance. Ordinary life assurance can be further clasified into following types:

Types of Ordinary Life Assurance	Meaning
1. Whole Life Assurance	In whole life assurance, insurance company collects premium from the insured for whole life or till the time of his retirement and pays claim to the family of the insured only after his death.
2. Endowment Assurance	In case of endowment assurance, the term of policy is defined for a specified period say 15, 20, 25 or 30 years. The insurance company pays the claim to the family of assured in an event of his death within the policy's term or in an event of the assured surviving the policy's term.
3. Assurances for Children	i).Child's Deferred Assurance: Under this policy, claim by insurance company is paid on the option date which is calculated to coincide with the child's eighteenth or twenty first birthday. In case the parent survives till option date, policy may either be continued or payment may be claimed on the same date. However, if the parent dies before the option date, the policy remains continued until the option date without any need for payment of premiums. If the child dies before the option date, the parent receives back all premiums paid to the insurance company.
	ii). School fee policy: School fee policy can be availed by effecting an endowment policy, on the life of the parent with the sum assured, payable in instalments over the schooling period.
4. Term Assurance	The basic feature of term assurance plans is that they provide death risk-cover. Term assurance policies are only for a limited time, claim for which is paid to the family of the assured only when he dies. In case the assured survives the term of policy, no claim is paid to the assured.
5. Annuities	Annuities are just opposite to life insurance. A person entering into an annuity contract agrees to pay a specified sum of capital (lump sum or by instalments) to the insurer. The insurer in return promises to pay the insured a series of payments untill insured's death. Generally, life annuity is opted by a person having surplus wealth and wants to use this money after his retirement. There are two types of annuities, namely: Immediate Annuity: In an immediate annuity, the insured pays a lump sum amount (known as purchase price) and in return the insurer promises to pay him in instalments a specified sum on a monthly/quarterly/half-yearly/yearly basis. Deferred Annuity: A deferred anuuity can be purchased by paying a single premium or by way of instalments. The insured starts receiving annuity payment after a lapse of a selected period (also known as Deferment period).
6. Money Back Policy	Money back policy is a policy opted by people who want periodical payments. A money back policy is generally issued for a particular period, and the sum assured is paid through periodical payments to the insured, spread over this time period. In case of death of the insured within the term of the policy, full sum assured along with bonus accruing on it is payable by hte insurance company to the nominee of the deceased.

General Insurance
Also known as non-life insurance, general insurance is normally meant for a short-term period of twelve months or less. Recently, longer-term insurance agreements have made an entry into the business of general insurance but their term does not exceed five years. General insurance can be classified as follows:

Fire Insurance	Fire insurance provides protection against damage to property caused by accidents due to fire, lightening or explosion, whereby the explosion is caused by boilers not being used for industrial purposes. Fire insurance also includes damage caused due to other perils like strom tempest or flood; burst pipes; earthquake; aircraft; riot, civil commotion; malicious damage; explosion; impact.
Marine Insurance	Marine insurance basically covers three risk areas, namely, hull, cargo and freight. The risks which these areas are exposed to are collectively known as "Perils of the Sea". These perils include theft, fire, collision etc.
	Marine Cargo: Marine cargo policy provides protection to the goods loaded on a ship against all perils between the departure and arrival warehouse. Therefore, marine cargo covers carriage of goods by sea as well as transportation of goods by land.
	Marine Hull: Marine hull policy provides protection against damage to ship caused due to the perils of the sea. Marine hull policy covers three-fourth of the liability of the hull owner (shipowner) against loss due to collisions at sea. The remaining 1/4th of the liability is looked after by associations formed by shipowners for the purpose (P and I clubs).
Miscellaneous	As per the Insurance Act, all types of general insurance other than fire and marine insurance are covered under miscellaneous insurance. Some of the examples of general insurance are motor insurance, theft insurance, health insurance, personal accident insurance, money insurance, engineering insurance etc.

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