Endowment Assurance 
Endowment insurance is a level premium plan with a savings feature. At maturity, a lump sum is paid out equal to the sum assured (plus dividends in a par policy). If death occurs during the term of the policy then the total amount of insurance and any dividends (par policy) are paid out.

There are a number of products in the market that offer flexibility in choosing the term of the policy namely you can choose the term from five to 30 years. There are products in the market that offer non participating (no profits) version, the premiums for which are cheaper

Universal Life
This is a flexible life insurance policy and is also market sensitive. You decide on the several investment options on how your net premium are to be invested. While the mony invested has the potential for significant growth, such funds are subject to market risks including the loss of the principal.

Unit Linked Product
Market-linked plans or unit-linked insurance plans (ULIP) are similar to traditional insurance policies with the exception that your premium amount is invested by the insurance company in the stock market.

Market-linked insurance plans (MLP) mimic mutual funds and invest in a basket of securities, allowing you to choose between investment options predominantly in equity, debt or a mix of both (called balanced option).

The major advantage market-linked plans offer is that they leave the asset allocation decision in the hands of investors themselves. You are in control of how you want to distribute your money among the broad class of instruments and when you want to do it or pull out. Any of the products mentioned above except term products could be unit-linked.

Riders 
Riders are additional add-on benefits that you could opt to include in your policy over and above what the policy may provide. However, these additions come at an extra premium charge depending of the rider you opt for. These riders cannot be bought separately and independently. The extra premium, nature and characteristics of the riders are based on the base policy that is offerred.

Some riders available in the market are :

1. Accident Death Benefit: Provides a additional amount in case death occurs as a result of an accident. 
2. Term Rider: It allows the payment of an additional amount should death of the insured happens.
3. Waiver of Premium: In case of total and permanent disability of life insured due to accident or any other means this rider allows premiums on base policy or riders to be waived. 
4. Critical Illness: It provides payment of an additional amount on the diagnosis of some critical illness.

insurance

Whole Life Insurance 
Whole life insurance covers you for as long as you live if your premiums are paid. You generally pay the same premium amount throughout your lifetime.

Some whole life policies let you pay premiums for a shorter period such as 15, 20 or 25 years. Premiums for these policies are higher since the premium payments are made during a shorter period. There are options in the market to have a return of premium option in a whole life policy. That means after a certain age of paying premiums, the life insurance company will pay back the premium to the life assured but the coverage will continue.

Money Back Insurance 
The money back plan not only covers your life, it also assures you the return of a certain per cent of the sum assured as cash payment at regular intervals. It is a savings plan with the added advantage of life cover and regular cash inflow. This plan is ideal for planning special moments like a wedding, your child's education or purchase of an asset, etc. Money back plan have "participating" and "non participating" versions in the market.

Types of insurance news

Term Insurance
Term insurance covers you for a term of one or more years. It pays a death benefit only if the policy holder dies during the period the insurance is in force. Term insurance generally offers the cheapest form of life insurance. You can renew most term insurance policies for one or more terms even if your health condition has changed.

However, each time you renew the policy for a new term, premiums may climb higher, just like a rent agreement every time you renew the lease. This policy is particularly useful to cover any outstanding debt in the form of a mortgage, home loan, etc.

Finding the Right Individual Health Plan

Finding individual health insurance is actually a lot like looking for a new pair of jeans. Here's how:

In a clothing store, there are usually dozens of racks of jeans to choose from. As you shop, you'll consider what kind of jeans you want, along with how much you want to spend. When you find a pair you like, you'll try it on to see if it fits.

Now imagine each rack is a different insurance company. You can shop in the same way — by comparing various types of plans, comparing rates, and comparing coverage and benefits. If you shop smart, you can find the best fit for your health needs.

Here's where we come in. We make it easy to connect with professional agents. A licensed agent will help you sort out all the details of a health insurance plan — and help you with the application process.

When you use our secure online service, you'll be instantly connected with agents from leading health insurance companies around the country.

Which Individual Health Insurance Plan is right for me???

As you look for an individual plan, you might be asking yourself: What plan is right for me? Which plan do people like me choose?

If you're a person who is in good health, you might want to consider a high-deductible PPO that's compatible with a Health Savings Account. This option is best for people who don't visit the doctor often, and are looking for major medical coverage.

If you'd rather have more comprehensive individual health insurance coverage, such as preventive care coverage, consider a PPO or HMO plan with a lower deductible. You might not be able to use an HSA, but you'll have coverage for routine doctor's office visits and other preventive care. Typically, you'll pay between $10 and $40 for a doctor's office copayment depending on your plan. With this type of plan, you'll also have major medical coverage.

Even if neither suggestion seems right for you, there plenty more options to choose. What's the best way to find out which individual health insurance plan is right for you?

Individual vs. Employer-Sponsored Health Coverage

The majority of people have employer-sponsored health insurance. But the number of people with individual health insurance coverage is growing. Today, more than 13 million people have an individual plan.

Why choose an individual plan over an employer's plan? Here are the key advantages of individual health insurance:

• Customized coverage. In group coverage, everyone ends up in a one-size-fits-all type of plan. But everyone has different health needs. With employer-sponsored coverage you end up paying for coverage you don't need, or may have to go without coverage for care you do need.
  
  
• Mobile coverage. With an employer's plan, leaving your job means leaving your health insurance. Individual plans protect your health wherever your career takes you.

Understanding the Cost of Personal Health Insurance Plans

Which health plan costs do you need to know about your individual health insurance plan?

Your premiums
Your premiums are payments you make to keep your plan in effect. Usually, premiums are paid each month. Premiums are set by your insurance company based on factors such as health status, age, where you live, and where you work.

Your deductible
The deductible is the dollar amount you'll be responsible for before your plan begins coverage. Most individual health insurance plans let you choose your own deductible, so how do you choose the amount that's best?

It might seem like a lower deductible would be better. But a low deductible means you'll have to pay higher monthly premiums. It works the other way too — the higher your deductible, the lower your month's bills. You'll have to decide if you want lower monthly premiums or lower medical bills for your health care.

Copayments and coinsurance
If you have an individual HMO, you might pay $15 at the doctor's office for a check-up. That's called your copayment. You pay a certain dollar amount of the bill and your plan covers the rest. HMOs offer copayments as low as $10, while individual PPOs often charge copayments of $40 or less.

Coinsurance is similar to a copayment, except it's expressed as a percentage rather than a dollar amount. A coinsurance rate of 80/20 means you'll be responsible for 20% of a medical bill.

What Kinds of Private Health Plans Can I Choose From?

There are plenty of individual health insurance plans to choose from. Here are the most common types:

• HMOs (Health Maintenance Organization). HMOs are one of the most affordable health plans available — and they offer comprehensive coverage. HMOs create networks of doctors, hospitals, clinics, specialists, and other care providers. Most HMO networks consist of thousands of health care professionals, ensuring you'll have convenient access to medical care when you need it. 
  
  
• PPOs (Preferred Provider Organization) . The PPO is an affordable individual health insurance plan with an added benefit — you'll have coverage with any health care provider. That means you can see any doctor or specialist you want, and your plan will cover the care. The PPO is great for flexible, comprehensive, and affordable health care. 
  
  
• Health Savings Account (HSA) Plans. There are 2 parts to HSA coverage: a high-deductible plan and a Health Savings Account. The high-deductible plan provides catastrophic coverage and features low monthly premiums. The HSA is a tax-free savings account where you save money to pay for routine medical expenses. 
  
  
• Fee For Service (FFS) Plans. The FFS plan is the traditional form of individual health insurance. It works very simply — you get the care you need, then you're reimbursed for a percentage of the cost.

Personal Automobile Insurance

Ownership and/or operation of an automobile involves three risks. 

(1) The risk, of third party personal injury and/or property damage arising out of an accident. 

(2) Personal injury to the automobile owner, family members and guests arising out of accidents in which the owner’s vehicle is involved.

(3) Physical damage to the automobile caused by accidents, and/or loss due to theft or other perils. 

Claims Department :

When an insured loss occurs, insurers are required to pay claims within a reasonable time from the date of notice filed by the insured. The claims department reviews and verifies claims that have been submitted and determines the terms of settlement with the claimant. The claimant is defined as someone who makes a claim. We at FNS generally refer to a claimant as the third party in a claim; i.e. one who files a claim against the insured or first party. In any multi-vehicle auto claim, three parties exist. The first party we refer to as the insured or policyholder. The second party we refer to as the insurance carrier, and the third party we refer to as the claimant, or the individual involved in the loss who does not have a policy with the client to which we are filing the loss. 



Claim settlement is more difficult in property and liability insurance. Where losses are relatively small and clear-cut, many insurers give the authority to settle claims to the agents. 

Where losses are large and complicated, the claims department may assign the loss to staff adjusters who are employees of the company. Adjusters who are not employees of the company are known as independent adjusters. They are used when technical knowledge of the specialized skill is required in the particular case. Independent adjusters are also used when the insurer does not have a local staff adjuster or employee to handle the loss. 



Frequently, a claim settlement may be handled by adjustment bureaus, which are owned by the insurance companies or through public adjusters who represent the insured. Thus, the manner in which the claims department satisfies its liability to policy holders depends upon the type of loss involved, its size or the extent to which specialization or knowledge in the particular field is required.

Property and Liability Insurance :

Property insurance indemnifies the person with an interest in physical property for loss or damage caused by various causes. Marine coverage is included in this type of insurance coverage. Indemnification is a term associated with the restoration of a policyholder to the same financial condition they were in before the loss occurred. 

Liability insurance covers the legal liability of an insured resulting from bodily and personal injuries to other persons or physical damage to their property. Legal liability arises out of actual or alleged negligence.

Domain Knowledge on Insurance for Testing :

This introduction to insurance is intended to provide you with a foundation of insurance policies and terms on several different levels. The lines of business that will be covered are Personal Auto, Personal Property, and Personal Liability. Each section will provide background information to ensure that each FNS representative has a basic understanding of the insurance fields. More importantly, it will allow a better understanding of why each question is being asked in a FNS loss and what information the claim adjusters need to process a claim in the most efficient manner possible. 


The Personal Auto section will provide a list of what types of claims will be covered along with the exclusions. Additionally, a full analysis of the personal auto policy will be outlined to aid your overall understanding of this common line of business .

This section will also highlight some differences between Personal Property and its counterpart, Commercial Property. More specifically, how Personal Property includes Liability within its ‘umbrella’ whereas Commercial Liability functions as a stand-alone policy. 


The insurance industry dates back as far as the Babylonians, as well as the Greeks and Romans at the close of the 13th century. From there, it was traced to the Middle Ages and to Lloyd’s Coffee house in London.

THE ROAD AHEAD

In its report— 'Insurance Sector Futuristic Growth'—ASSOCHAM has stated that India's insurance sector is likely to reach US$ 46.25 billion by 2010. The report said, "The total insurance business will reach a level of US$ 46.25 billion in the next two years from the current level of US$ 1.15 billion." Private insurance business is likely to see a 140 per cent growth rate due to the aggressive marketing techniques used by them. Conversely, state-owned insurance companies would see a 35–40 per cent growth rate.

GOVERNMENT INITIATORS

The Government has taken many proactive steps to give a boost to this sector:

• The Insurance Regulatory and Development Authority (IRDA) will announce guidelines for mergers and acquisitions (M&A) in the insurance sector by the end of March 2009. The regulator is formulating the guidelines in consultation with the Institute of Actuaries, IRDA Chairman, Mr J Hari Narayan. IRDA has cleared 288 new insurance products this year (2008).
• Earlier in December 2008, IRDA has allowed insurers to acquire up to 20 per cent debt and equity in an infrastructure-related company, compared with 10 per cent earlier. According to IRDA, the move is aimed at enhancing the flow of insurance funds to meet the present needs of infrastructure financing. Relaxing the investment norms further, IRDA has allowed insurers to invest an additional 5 per cent in debt instruments of infrastructure and housing companies, over and above the 20 per cent ceiling, with a prior board approval. The country's largest insurer, LIC, already holds over 10 per cent in a host of companies, which is likely to increase further.
• IRDA has constituted a panel that will monitor the role of TPAs and evaluate their performance in current health insurance market and make suitable recommendations clarifying their utility to the future growth of the health insurance industry.
• Government is planning to ease restrictions on foreign investments in insurance, banking and pensions, and allow foreign direct investment (FDI) investment of 49 per cent from the present 26 per cent.
• IRDA has removed administered pricing mechanism, i.e., de-tariffing in respect of fire and engineering along with motor insurance of general insurance for premium, effective from January 1, 2007.
• The control rates on fire, engineering and workmen's compensation insurance classes have been removed from September 1, 2007.
• Several states aggressively offering public health insurance schemes to their rural poor. A host of private players are rushing with their offerings, sensing huge opportunity in this segment some state governments have also taken a dynamic role in this sector.
• In an arrangement with the regional rural banks (RRBs), the West Bengal government is planning to extend insurance facilities to farmers in the 60–70 years' age bracket through a tie-up with IFFCO-TOKIO General Insurance.
• The Haryana State Co-operative Supply and Marketing Federation Limited (HAFED) facilitated weather-based insurance coverage to contracting farmers through AIC. 50 per cent of the premium for this insurance, which is US$ 5.863 /acre, was paid by HAFED. 25 farmers having 145 acres availed this opportunity in 2008.
• The Government of Andhra Pradesh after piloting the 'Arogya Sri' health insurance scheme in three districts plans to issue health cards to 18 million BPL (below the poverty line) families. As a result, about 60 million of the State's 80 million people will have insurance cover.
• The Karnataka Government has partnered with the private sector to provide coverage at a low cost in the Yeshaswini Insurance scheme to provide for major surgical operations, including those pertaining to pre-existing conditions, to Indian farmers.

MAJOR INVESTORS

• Reliance Capital is planning US$ 432.26 million as investment for its insurance business over the next three to five years.
• Max New York Life Insurance has announced a strategic business alliance with ALEgION Insurance Broking wherein, the latter would sell Max Vijay in Kerala and Tamil Nadu. Under the first of its kind distribution initiative, ALEgION will distribute 'Max Vijay' through a fleet of Maruti vans, which would be used as mobile financial service distribution offices.
• The largest insurer in the country would also be investing another US$ 3.67 billion in government securities. This would take LIC’s total investments in the remaining period of the current fiscal to around US$ 10.19 billion, over and above the US$ 20.87 billion it has already invested in the first eight months of the current financial year.
• Bharti AXA General Insurance (a JV between the Bharti Enterprises and AXA) is planning to invest US$ 152.92 million spread over the next five years.
• Ranked among the top five life insurance companies, Birla Sun Life Insurance is planning US$ 274.30 million as investment for further expansion. It is presently the fastest growing life insurer in 2008–09, with a 187 per cent growth in new business during the first quarter.
• In the first quarter of 2008–09, insurance companies have invested US$ 3.18 billion in equities, which is four times of what was invested a year ago.

GLOBAL COMPANIES

The booming domestic insurance market along with saturation of markets in many developed economies has made the India a very attractive destination for global insurance majors. Major global names already having a presence in the Indian market though JVs with Indian firms including French life insurance company Sogecap, US-based American Int. Group (AIG) Max, Tokio Marine and Fire of Japan, Cardiff SA of France, and UK-based Prudential, IAG which has tied up with SBILife.

Some of the other major joint venture companies in this industry are Bajaj Allianz, ING Vysya, AMP Sanmar Assurance Limited, HDFC Standard, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra Old Mutual, Met Life, Royal Sundaram, and ICICI-Lombard among others.

Many more are to soon enter the Indian market:

• The latest entrant has been QBE Holdings (AAP) Pty Limited, a wholly owned subsidiary of QBE, Australia which has tied up with Raheja QBE General Insurance Company Limited, a joint venture general insurance company promoted by Prism Cements Limited, India.
• US health insurers, Aetna (a 158-year old company with total revenues for the calendar year 2007 at US$ 27.6 billion and net income at US$ 1.8 billion, is interested in setting up stand-alone health insurance companies.
• CIGNA, another US-based company (a health insurer, and it also provides life, accident, health and expatriate employee benefits insurance coverage in a few international markets) is interested in setting up stand-alone health insurance company.
• UK-based company, Bupa, is also interested in setting up stand-alone health insurance company.
• American company Ace, a leading global commercial property and casualty insurance group, is looking at entering the life and non-life sectors.
• US-based Travelers Group (Travelers is a big underwriter of property and casualty insurance in the US and reported a net written premium of US$ 21.1 billion in 2006 is interested in the non-life sectors. It is planning to sign an agreement with Indian engineering major L&T.

RURAL INSURANCE

The Indian rural market offers tremendous growth opportunities for insurance companies. According to a survey 'India Invest Incomes and Savings Survey 2007' by IIMS Dataworks (a Noida-based retail finance research firm), 58 per cent of India's 105.4 million insured people were from the rural areas. Yet, urban India was ahead in terms of penetration (47 per cent), or the number of policyholders compared with the total population. This meant that almost one out of every two paid workers in urban India was insured, while it was only 27 per cent in rural areas.

With increased IRDA focus on the sector, growth rate in the rural sector has been picking up. Reliance Life Insurance recorded a growth of 150 per cent in rural policies against 140 per cent growth in urban policies, in 2007–08.

Bancassurance segment

The bancassurance segment has been growing consistently pace and is competing with the traditional sale of insurance by agents owing to the keenness of banks to augment other income (fee-based income). Global insurance consulting firm, Watson Wyatt Worldwide in 'India Bancassurance Benchmarking Study 2006-07', had said that both life and general insurers were bullish about prospects of insurance penetration in the rural markets. According to the study, about 30 per cent of the life insurers have indicated that by the year 2010, rural insurance business will constitute between 16-20 per cent of their total bancassurance new business premium.

Bankers and insurers are both upbeat about the future of the bancassurance segment and it is expected to contribute about 50 per cent or more in the life insurance segment by the year 2010. It has also contributed significantly to the business of major insurance companies like Life Insurance Corporation (LIC) and SBI Life.

The growth in the bancassurance for insurance companies wholly depends on the number of bank branches that actively dispense these products. According to industry sources, private and foreign banks are biggest mobilisers of insurance premium despite public sector banks having a wider reach. In August 2008, bancassurance accounted for 35 per cent of the premium collected by private players. In 2006–07, that figure was about 17 per cent.

India Insurance Market

The India Insurance Market despite having a highly elaborate history spanning almost two centuries, has come of age only in the last 50 years after the formation of the Life Insurance Corporation (LIC) of India in 1956 and the entry of private companies into the market in 2000.

Traditionally the Indian Insurance Market had centered around the life insuranceuntil recently, a host of other insurance policies covering a diverse range of issues and objects like medical insurance, accident insurance, fire insurance, automobile insurance and other policies which fall under the category of general insurance are being provided by various private insurance companies.

Performance of the Indian Insurance Market – A Report

The following points will provide you an insight into the insurance market of Indiaand its fast expanding prospects . The report is well supported by data based on detailed analysis that would help investors, financial service providers and global banking players to venture into the Indian insurance market .

Taking into account the changing socio-economic demographies, rate of GDP growth, behavior of consumers, and occurrences of natural calamities at regular intervals themarket of Life Insurance in India is expected grow to the value of around US $ 41.44 billion by the year 2009. The Market is expected to grow at a compounded annual growth rate (CAGR) of more than 200 % year over year (YOY) from year 2006 onwards.

• 65 % of the general insurance market is controlled by private housesthat already exist in the market.
• However in automobile insurance , public sector covers a substantial 68 % of the total market value.
• Among individual companies that are worthy of mentioning, ICICI Lombardenjoys a whopping 53 % market share in Accident Insurance while the remaining 47 % is shared by New India Assurance and United India Insurance , both belonging to the public sector .

The other key players of the market include: 
In Public Sector:

Life Insurance Corporation (LIC) of India, National Insurance Company Limited, Oriental Insurance Limited, New India Assurance Company Limited and United India Insurance Company Limited.

In Private Sector:

Bajaj Allianz, ING Vysya, SBI Life, Tata AIG Life, HDFC Standard, ICICI Prudential Life Insurance, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra Old Mutual, Max New York Life and Met Life.

Thus, the ever increasing population of the country will ensure constant boom in the India Insurance Market in the distant future.