NAME : HARSHA NAIR

HARSHA DUTT
NANDA
KISHORE
GAYATRI
ROUT
G. MEGHNA
DUDDA
SUDEEPTHI

SECTION : C

SUBJECT : FINANCIAL MARKETS AND INTITUTIONS

TOPIC : GENERAL AND LIFE INSURANCE

SUBMITTED TO : DR. SHAFIKA PARVEEN

DATE : 17TH MARCH 2024

REMARK :
 ACKNOWLEDGEMENT

We would like to express special thanks of gratitude to

Dr. Shafika Parveen as well as our University who
gave us the golden opportunity

to do this wonderful project on the topic

GENERAL AND LIFE INSURANCE
which also helped us in doing a lot of research and we
come to know about so many new things.
We are really thankful to them.

Secondly, we would also like to thank all my team members who

helped a lot in finishing this project within the limited time.
It helped to increase our knowledge and skills.
 INSURANCE
An insurance policy/plan is a contact between an individual (Policyholder)
and an insurance company (Provider). Under the contract, you pay regular
amounts of money (as premiums) to the insurer, and they pay you the sum
assured if an unfortunate event arises.

• INSURANCE is a practice or arrangement by which company or

government agency provides a guarantee of compensation for
specific losses, damage, illness or death in return for a payment of
premium.

• It is a contract in which an individual or entity receives financial

protection or reimbursement against losses from a company. The
company pools client’s risks to make payments more affordable for
the insured.

GENRAL INSURANCE
General insurance is a category of insurance that protects assets from any
unexpected loss. It is a common term that covers all kinds of non-life
insurance.

For example, you have a house, and you insure it against fire by taking fire
insurance. Here, the fire insurance covers any loss which might occur in
case the house gets a fire. For example, health, automobile, natural
calamity, fire, etc. In case of an unfortunate event, having a general
insurance cover can be of immense help.
Benefits of taking General Insurance
 General insurance plans can help you get insurance cover against
necessary contingencies that life insurance doesn't cover.
 While life insurance benefits majorly come into play upon the
policyholder's death or survival of the policy term, general insurance
policies can provide coverage for any risk-covered incident during the
policy term.
 Such plans can reduce the stress on personal finances and savings in
times of emergency. Therefore, you have a better chance of staying on
course with your investments and savings goals irrespective of the
emergency you face.

Difference Between General Insurance & Life Insurance

How does General Insurance Work?

The main concept behind general insurance is to help people protect
themselves from the financial effect of damage and loss of property and
other valuables.
When someone buys an insurance policy, he/she is required to pay a
monthly or annual premium.

If a person faces damage or loss of property, the terms of the policy are
used to help a person up to the decided limit.

The insurer might replace the item. If terms dictate, policy-holders might
also receive a cash settlement.

What is a premium?
Premium is the price paid to avail of any insurance. It is the cost price of
the insurance policy. It can be paid monthly or in a lump sum while buying
the insurance policy. The insurance premium is calculated based on many
factors.

The most important factors in case of calculating the general insurance

premium are:

o The condition of the asset which is to be insured.

o Cost of the asset.
o Risks involved.

TYPES OF GENERAL INSURANCE PLANS

Health Insurance

Accessing quality healthcare services and infrastructure can be very costly.

As a result, your savings and contingency funds can quickly drain out in the
case of any medical emergency.
Thus, health insurance is arguably one of the most critical general
insurance policies that one should have. It provides coverage for medical
expenses such as hospitalization bills, cost of medicine, treatment, etc., if
the insured person must undergo medical treatment for any covered
illness.

Features of Health Insurance Plans

 One can choose between individual and family floater health

insurance plans based on you and your family's coverage needs.
 A proper and adequate health plan can provide extensive coverage on
expenses like surgery, ambulance, doctor’s fee, room rent, etc.
 Health plans can provide cashless treatment benefits where the
insurance firm directly pays the medical expenses to the partner
hospital subject to pre-agreed terms and conditions.
 One can enhance your policy coverage by including valuable add-ons
such as critical illness rider, maternity cover, room rent waiver, etc.
 One can claim an income tax deduction on the health insurance
premium you pay in a financial year. Such tax deductions are allowed
under Section 80D of the Income Tax act 1961. The maximum tax
deduction under Section 80D varies as per the following table.

Sr. No. Type of People Maximum Deduction

Covered by the Health Allowed (in Rs)
Plan
1 Policyholder, spouse, and 25,000.00
dependent children
2 All the persons mentioned in Sr. 50,000.00
No. 1 and policyholder’s
parents, where the parent’s age
is below 60 years
3 All the persons mentioned in Sr. 75,000.00
No. 1 and policyholder’s
parents, where the parent’s age
is above 60 years
4 i) Policyholder’s 1,00,000.00
parents are
 above 60 years
of age. And
ii) Policyholder,
spouse, or
dependent
children are
above the age
of 60 years

Motor Insurance

Such types of insurance protect vehicle owners from the financial losses
arising out of damages that involve their vehicle. Vehicle insurance is
classified into two types depending on the type of damages it covers

1. Third-Party Liability

Third-party insurance only covers the damages caused to the third party by
the insured owner’s vehicle. It doesn’t cover the damages caused to the
vehicle of the policyholder. Under the Motor Vehicles Act 1988, third-party
motor insurance is mandatory in India.

2. Comprehensive Insurance Coverage

It covers the damages caused to the policyholder's vehicle as well as the

third party. Therefore, it offers complete coverage that can better protect
you in the event of an accident.

Features of Motor Insurance Plans

 Motor insurance is available for two-wheelers, four-wheelers, and

commercial vehicles.
 You can include various important add-ons with your comprehensive
vehicle insurance, such as NCB protection, engine protection, zero-
depreciation, etc.
 For comprehensive insurance, policyholders can opt for cashless claims
at partner garages of the insurance company.
 You can either buy a single-year vehicle insurance policy or a multi-
year policy. The benefits of a multi-year vehicle insurance policy are-
 You don't have to worry about yearly revisions of premium rates, and
the chances of lapses are less.
 You can save more by buying a multi-year policy compared to a one-
year car insurance policy.

Travel Insurance

Facing financial emergencies while travelling can put anyone in

unnecessary trouble. Especially, one might feel at a loss if faced with a
medical emergency in a foreign land. Travel insurance can cover all such
unforeseen emergencies.

In fact, many countries have made travel insurance mandatory for

overseas travelers. For example, travel insurance is mandatory while
applying for a Schengen visa.

Features of Travel Insurance Plans

 Travel insurance can cover numerous travel emergencies like loss of

luggage, passport, flight delay, trip cancellation, and medical
emergencies.
 It can cover your entire family while traveling.
 It can provide insurance coverage for a full trip.
 Travel insurance can be either single-trip or annual multi-trip,
depending on the insurance provider.

Home Insurance

A natural or man-made disaster can cause significant damage to

someone’s home. However, home insurance can cover the financial loss
that individuals might suffer in such an event.

Features of Home Insurance

 A home insurance policy can cover the following types of damages.

 o Home insurance can provide coverage against natural calamities
like floods, storms, earthquakes, etc.
o Man-made calamities like fire, theft, and riots, can also be covered
under home insurance.
 A home insurance premium can depend on various factors like the
coverage amount, age and location of the house, scope of coverage,
etc.

Fire Insurance

As the name suggests, such types of insurance provide financial protection

against the damages caused by fire to a property or asset.

Features of Fire Insurance Plans

 Fire insurance can cover damages caused due to fire, lightning, forest
fire, bush fire, accidental fire, explosion, or implosion.
 The insurance usually covers the repairing or replacement cost of the
insured asset.
 Fire insurance can be essential for businesses that are prone to
massive damages due to a potential fire.

OTHER TYPES OF GENERAL INSURANCE POLICIES

Apart from the types of general insurance discussed until now, there are
some other important general insurance products that can be useful for
large organizations. These are called corporate general insurance.
Following are some of the popular corporate insurance products offered
by reputed insurers.

Marine Insurance

The policy covers the inland movement of consignments and is well suited
for firms that deal in cargo shipments.
Features of Marine Insurance

 The policy can automatically cover successive shipments until the sum
insured is exhausted.
 All shipments and journeys are covered by an annual premium.
 A strong network of surveyors is available to facilitate easy insurance
claim settlement.
 A single policy can cover multiple shipments and transits for a certain
period.
 The policy protects both incoming and outgoing consignments to and
from India.

Engineering Insurance

This policy can cover a wide range of expenses such as machinery

breakdown, electronic equipment insurance, etc. Therefore, engineering
insurance can be ideal for a manufacturing unit. The price of engineering
insurance coverage will vary depending on a number of variables, such as
the cost of the machinery or equipment being covered, the degree of risk
involved with the project, and other elements like the project's location
and length.

Specialty Lines Insurance

Such insurance plans include-

o Cyber Security Insurance

The rise in Internet usage in businesses has also increased the instances of
cyber attacks such as hacking, denial of service attacks, etc. The loss is
more profound if the business deals with a wide range of data.

Therefore, cyber security insurance has become important for many

corporate houses. It covers data restoration costs, forensics, business
interruption losses, etc.
 o Commercial Crime Insurance

Workplace fraud is a possibility in every business. So, it’s important to

financially protect your business against such incidents through
commercial crime insurance. The policy covers the loss of money or
securities due to

o Director’s and Officer’s Insurance

The main purpose of the director’s and officer’s insurance is to protect the
personal assets of the individual who is a director or a high-ranking officer
in the company. D&O insurance policies usually cover a variety of risks,
such as accusations of negligence, mismanagement, and breach of
fiduciary duty. Additionally, the insurance may pay for settlements,
judgments, and defense expenses related to covered claims. The policy can
cover the following:

o Credit Insurance

A credit insurance plan protects a business from the risk of non-payment

by its customers. Such policies are essential for companies with a
significant portion of accounts receivables on their balance sheet and run
the risk of huge losses on payment defaults.

o Miscellaneous Insurance

A corporate establishment may need protection such as burglary

protection, money insurance, or insurance for portable equipment. All
such sundry insurances can be covered by miscellaneous insurance.
Employee Benefits Insurance

Employee benefits insurance typically covers group health insurance. This

type of insurance is a form of insurance that covers employee perks like
retirement plans, life insurance, disability insurance, and health insurance.
In order to offer their employees these benefits, employers frequently buy
this kind of insurance. Such types of insurance benefits can help retain
talent in an organization.

Concept of Insurance Endorsements

A change to an existing insurance contract that modifies the terms or
purview of the initial policy is known as an insurance endorsement. You
can add, remove, exclude, or change coverage using an endorsement, also
known as a "rider." It may be given out when you first buy the insurance,
at the time of purchase, or when you renew the coverage. It is an
alteration to an insurance contract that has legal force.

Example -

Mr. G chooses All city Insurance Pvt. Ltd. to provide him with motor vehicle
insurance for his SUV. He insures his vehicle from unforeseen accidents
and risks. The insurance company makes note of all the parts and
accessories related to the car and provides a cover for the same. After 3
months, Mr. G decides to install a new CNG kit in his car. In this instance, in
order to obtain a cover for it, he would need to notify the underwriter
about this new installment. This cover can be placed mid term with the
help of an endorsement.

List of Documents Required for Buying a General

Insurance Policy
Given below is the list of the documents required to buy general insurance
policies in India:
 o Photograph of insurer
o Identity proof
o Age proof
o Address proof
o Income proof

Along with the aforementioned documents, there are a few insurance-

specific documents that are required.

For example -

For health insurance, people would need the following documents along
with the aforementioned ones:

o Health Insurance proposal form, filled and signed by the proposer

o Medical examination report

For buying a motor insurance policy, people would have to submit the
following documents along with the general list of documents:

o Motor Insurance proposal form, duly filled and signed by the

owner of the vehicle
o Invoice of the vehicle
o RC book of the vehicle

HOW TO SUBMIT A CLAIM FOR GENERAL INSURANCE?

It is crucial to study and comprehend your insurance policy before filing a
claim because different policies may have different requirements and
exclusions. The steps that are usually taken when submitting a claim for
general insurance are as follows:
 The initial stage is to get in touch with your insurance provider as soon
as you can following the loss or damage-causing incident. Depending
on the procedures of the provider, you can either do this over the
phone or online.
 The insurer will need to know the specifics of the incident, such as the
date, time, and place, as well as any additional pertinent details like
the identities of any witnesses or other parties involved.
 You might need to offer proof to back up your claim, depending on the
kind of claim. This could consist of images, invoices, and medical or
law enforcement records This could, among other things, consist of
images, invoices, medical or law enforcement records.
 You will be guided through the claim procedure by your insurer, which
may entail filling out claim forms, providing additional information or
paperwork, or meeting with an assessor or other insurer
representative.
 After you've filed your claim, the insurer will review it to see if it falls
under the terms of the policy. If your claim is approved, the insurance
company will let you know how much money you'll get back in
damages or reimbursements as well as any other pertinent
information.

Factors to Consider While Investing in General Insurance

Policies
Some factors that need to be considered while investing in general
insurance:

Low Premiums – The premium price of a plan indicates if the policy is

costly or inexpensive. General insurance policies like vehicle insurance,
health insurance, home insurance, etc., are used to safeguard assets
against financial risks. However, you have to pay a premium for the same
to ensure the safety and security of your assets against damages. It is
important to consider that the premium charged for the plan is
inexpensive and within your budget.

Hassle-free purchase process – Most people stay away from insurance

coverage because they think insurance buying is a hassled process. Online
and offline are the two ways of buying insurance. You may consider a
policy that offers a smooth and hassle-free online buying procedure
without the involvement of agents. Moreover, it may also fetch you online
purchase discounts. Besides, you may calculate the premium and the
benefits received with the help of an online calculator.

Protection against damage – With insurance coverage, you can ensure

protection against monetary losses and damages caused to your vehicle,
or any other asset. Also, they safeguard you against third-party damages
caused by your vehicle.

Total protection – With comprehensive coverage, you may ensure

protection against your own damages. So, in the event of a fire, theft,
natural disaster, etc, you may rely on your comprehensive insurance for
protection against such damages and losses. Hence, look for policies with
comprehensive protection for complete safeguard.

Insurance company reputation – Since a large number of insurance

companies are offering numerous products, it is important to consider the
reliability of the insurer in terms of settling claims. Knowing about the
insurer is important to ensure that you are trusting a company that can
indeed help you in need.

CSR or Claim Settlement Ratio – Some insurers may lure you with lucrative
deals and offers at the time of buying an insurance policy. However, the
real issue comes at the time of claim settlement. Hence, checking the CSR
of the insurer is important. So, while opting for the top private general
insurance companies in India, always rely on a company with high CSR.

Customer reviews – Nowadays, customer reviews have become a great

way to know about a company. You may come to know the loopholes and
success stories of an insurance company by spending some time and
reading reviews.

What Are the Different Types of Claim Ratios for General

Insurance Policies?
There are two types of claim ratios that you need to be aware of when
buying a general insurance policy in India.

1. Incurred Claim Ratio (ICR)

This tells you how likely it is for an insurance company to settle your
claims. ICR is the ratio between the net claims paid by an insurer against
the total premiums it has collected.

Let us take the example of an insurance company that has collected Rs. 60
crore in premium and has paid Rs. 80 crore for settling insurance claims. In
that case, its Incurred Claim Ratio is 75%.

A high ICR may mean that a company is in good financial health and has a
history of settling claims. However, if a company with low profits shows
high ICR, it may not be able to sustain its operations in the long run.

2. Claim Settlement Ratio (CSR)

CRS is the percentage of claims that an insurer has settled against the
claims it has received in a year. This ratio shows you the commitment and
reliability of a general insurance company towards its customers. You can
check the CSR of all general insurance providers on their website.
Let us say that a company has settled 85 claims against 100 claims it has
received. In this case, its CSR would be 85%.

The higher the CSR, the higher the chance of your claims being settled by a
particular insurer. It also indicates that the company has sound financials
and a robust claim settlement process. However, it does not factor in the
time taken to settle claims.

What Are the Tax Benefits of General Insurance Plans?

The tax benefits of general insurance policies are enumerated below.

1. For Health Insurance:

Section 80D of ITA allows tax benefits for the premium paid for health
insurance.

One can claim a tax deduction for self, spouse and children for up to:

Rs. 25,000 if below the age of 60

Rs. 30,000 if above 60 years

One can also seek additional tax deductions for parents:

Up to Rs. 25,000 if they are below 60 years

Up to Rs. 30,000 if they are above 60 years

It should be noted that tax benefits can only be availed if the premium is
paid by any other mode other than cash.

2. For motor insurance:

If the vehicle is used for business purposes, the premium paid for the
insurance can be treated as an expense.

If the car is used for personal purposes, the premium paid cannot be
treated as an expense.

If the vehicle is used for both personal and business reasons, tax
deductions are allowed only for the instances when the car was used for
business.

List of Top General Insurance Companies in India

Given below is the list of top general insurance companies in India in 2024:

Aditya Birla Capital

Acko

ICICI Lombard

SBI General Insurance

Reliance General Insurance

TRENDS IN GENERAL INSURANCE

Segment wise Graphical representation

Sector wise Graphical representation
Best Health Insurance Companies in India with Claim
Settlement Ratio
The tabular data below highlights the CSR of different health insurance
providers in India for FY 2024:
[Link]. Company Claim Settlement Ratio
FY24 (in %)
1. HDFC ERGO General 100
Insurance
2. Reliance General Insurance 100
3. ICICI Lombard General 99.7
Insurance
4. Kotak Mahindra General 97
Insurance
5. Cholamandalam MS 94
General Insurance
6. Future Generali India 94
Insurance
7. Zuno General Insurance 94
8. Go Digit General Insurance 93
9. Bajaj Allianz General 92.24
Insurance
10. Royal Sundaram General 92
Insurance
11. Magma HDI General 90
Insurance
12. SBI General Insurance 66.08
13. Aditya Birla Health 96%
Insurance
14. Care Health Insurance 95.22%
15. The New India Assurance 92.68%
16. Niva Bupa Health 90.70%
Insurance
17. Star Health and Allied 89.90%
Insurance
18. ManipalCigna Health 88.00%
Insurance Co. Ltd.
 ANALYSIS OF PAST 5 YEAR DATA OF TOP 5 HEALTH INSURANCE
COMPANY
HDFC ERGO General Insurance

PARTICULARS MARCH 23 MARCH 22 MARCH 21 MARCH 20 MARCH 19

OPERATING 67,26,984 47,43,001 73,08,757 39,68,939 49,39,058
REVENUES
PROFIT/ 86,84,454 66,77,695 79,17,692 45,89,649 19,79,723
LOSS
BEFORE TAX
PROFIT/ 65,26,595 50,01,316 59,16,510 32,69,418 38,29,877
LOSS AFTER
TAX
Equity Share 24,94,730 23,16,535 21,34,695 — 13,62,200
Dividend

ANALYSIS OF REVENUE AND

PROFIT
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

OPERATING REVENUES Linear (OPERATING REVENUES)

PROFIT/LOSS AFTER TAX
Reliance General Insurance

PARTICULARS MARCH 23 MARCH 22 MARCH 21 MARCH 20 MARCH 19

OPERATING 72,57,915 69,15,182 49,56,493 43,19,484 1,619,200
REVENUES
PROFIT/ 41,51,799 38,08,332 32,25,439 29,93,828 2,120,227
LOSS
BEFORE TAX
PROFIT/ 27,06,873 24,22,832 20,81,184 25,93,616 2,120,227
LOSS AFTER
TAX
Equity Share 2,520 10,062 — — —
Dividend

ANALYSIS OF REVENUE AND

PROFIT
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

OPERATING REVENUES Linear (OPERATING REVENUES)

PROFIT/LOSS AFTER TAX
ICICI Lombard General Insurance

PARTICULARS MARCH 23 MARCH 22 MARCH 21 MARCH 20 MARCH 19

OPERATING 1,88,70,570 1,68,36,020 1,26,78,390 1,15,32,770 1,02,26,530
REVENUES
PROFIT/ 21,12,530 16,83,510 19,53,950 16,96,890 15,98,420
LOSS
BEFORE TAX
PROFIT/ 17,29,050 12,71,010 14,73,050 11,93,760 10,49,260
LOSS AFTER
TAX
Equity Share 4,66,510 3,78,080 1,81,830 3,18,100 2,27,010
Dividend

ANALYSIS OF REVENUE AND

PROFIT
20000000

15000000

10000000

5000000

0
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

OPERATING REVENUES Linear (OPERATING REVENUES)

PROFIT/LOSS AFTER TAX
Kotak Mahindra General Insurance

PARTICULARS MARCH 23 MARCH 22 MARCH 21 MARCH 20 MARCH 19

OPERATING
3,42,50,850 2,70,38,820 2,68,40,270 2,69,29,610 239,43,210
REVENUES
PROFIT/ 4,09,38,160 3,26,32,910 2,45,64,940 2,06,50,310 1,75,07,540
LOSS
BEFORE TAX
PROFIT/ 3,04,55,850 2,47,48,780 2,05,11,810 1,69,19,290 1,36,04,600
LOSS AFTER
TAX
Equity Share 2,58,920 218960 40500 193260 —
Dividend

ANALYSIS OF REVENUE AND

PROFIT
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

OPERATING REVENUES Linear (OPERATING REVENUES)

PROFIT/LOSS AFTER TAX
Cholamandalam MS General Insurance

PARTICULARS MARCH 23 MARCH 22 MARCH 21 MARCH 20 MARCH 19

OPERATING
1,27,57,040 1,00,48,290 95,16,010 86,52,630 69,91,970
REVENUES
PROFIT/
LOSS 35,99,340 28,90,980 20,37,490 15,81,990 18,18,740
BEFORE TAX
PROFIT/
LOSS AFTER 26,66,200 21,46,710 15,14,910 10,52,370 11,86,150
TAX
Equity Share
1,64,360 1,64,140 1,06,560 1,66,170 1,01,630
Dividend

ANALYSIS OF REVENUE AND

PROFIT
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

OPERATING REVENUES Linear (OPERATING REVENUES)

PROFIT/LOSS AFTER TAX