Insurance Loans24: MISCELLANEOUS INSURANCE

RURAL LIFE INSURANCE AND PRIVATE SECTOR INITIATIVES

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Among  the private sector  insurers, who started  their activities during  2000-2001, aviva life insurance  . Co had launched  an exclusive 
plan for  rural  areas called Gram Suraksha. The test marketing  results of the Plan in Andhra  Pradesh 
were reportedly encouraging  and
the company  hopes to market the plan
through institutions. The law priced policy offers life cover and money back
benefits . For broad basing  its rural
portfolio , Aviva life  had opened  offices 
at Faridkot, Nagpur, Nashik and Udaipur, in September 2003, Aviva had
also launched  customized  products 
called  Amar Suraksha  and Jana Suraksha . </div>
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The term former  is a  term insurance cover the with return of the
premium provision  on  survival 
of the selected  term., The latter
is a  fixed term policy available  for terms 
of five years  and ten years  respectively 
for the sums assured of Rs. 25,000 or Rs. 50,000  as the case may be. Aviva is confident  of utilized 
the extensive rural network of its Indian partner , Dabur.  This was 
followed by the launch of the Sankat 
harn Policy by IFFCO-tokio , General insurance  Company 
for farmers, Gramin Bima Yojana, a plan of Kotak mahindra  Old Mutual insurance co.  Is a plan designed to suit  the needs 
of the rural populace. This single 
premium endowment  plan provides  for payments 
on death or maturity whichever  is
earlier  . The plan  has a fixed term of 15 years . </div>
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The policy can
be surrendered by at any times  and the
surrender at any the time and the surrender value  varies 
from 90% tp 230% upon the period by for which  the policy has remained  in the books of the insurer. ICICI
Prudential  had also launched  different 
types of the  policies like
ICICI  Pru Mitra an endowment  type of the plan and ICICI plus Pru
Suraksha  a regular premium plan to meet
the varying  needs of the rural populace.
HDFC Standard  Life markets  certain 
specialized life insurance products for the rural market.
Development  insurance plan., A group
insurance product is being  offered by
the HDFC Standard life to the rural markets 
through NGO;s  and  Bima Bachat Yojana, is another  product meany by the  rural consumption .</div>
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 The Birla  Sun Life , Bimla Kavach Yojana is a single
premium insurance policy specially designed 
for the rural under privileged. The private insurance companies until
the end of the fiscal 2002-2003 could not be make by any perceptible
penetration  into the rural areas and as
the end of the fiscal  200-03, the
combined  rural life insurance
coverage  by LIC  and private 
players was around 27% leaving  
behind a substantial 
populations  to be covered.  Both for the public sector and  the private insurance companies, distributing
products   in rural areas poses certain
problems  . As a  agricultural 
income is presently  tax-free in
India, in the rural areas tax sops  offer
no  attractions  and , as a 
such the marketing  is more   individual need -based. Many of the agents
for advisors, do not find it profitable 
to visit the rural areas or 
distributing  limited  products, .</div>
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 To overcome this situations,
companies  are adopting  new strategies, . Some  companies resort to mass compaigns  by addressing the villagers  with the help of the local village head or
the Sarpanch  . Alternatively, some of
the companies  tie up  with banks 
having  wide  rural networks for distributing  insurance products, through  the Bancassurance  route. Some companies  enter into tie-up with NGO’s and social
organizations  facilities. Agencies  to offer product  in the rural 
areas. Some of the companies are also drawing are also drawing  on the concept of  Rural Career Agents or Advisors, which has
been pioneered by LIC, in spite of difficulties, unlike in the past
fiscals,  at the end of the financial  year 2003-04, all life insurers  had completed 
their rural and social sector obligations, In the connection  a suggestions,  of Apparao 
Machiraju  merits  examinations.....</div>
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RURAL LIFE INSURANCE AND PRIVATE SECTOR INITIATIVES

Among the private sector insurers, who started their activities during 2000-2001, aviva life insurance . Co had launched an exclusiv...

MISCELLANEOUS INSURANCE

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MISCELLANEOUS INSURANCE</div>
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Introduction : 
Insurance not falling under fire insurance and marine  insurance is considered as miscellaneous  insurance as per the insurance. Act 1938. The
four public sector general insurance companies and some private general insurance
companies have brought to light a number of miscellaneous insurance policies is
cover a variety of other risks. The most important  forms of miscellaneous insurance are: Motor insurance, Legal liability insurance, Business
insurance, Hospitalisation insurance, Social sector insurance, Engineering
insurance,  Rural insurance,  and other insurance. Let us discuss all
these  insurances, one by one in the
pages to come</div>
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. 1. MOTOR INSURANCE : The owner of a motor vehicle  is exposed to various types of risks. These
risks fall into two groups. First those of damage to , or loss or destruction
of the motor  vehicle  itself and second, that of being called upon
to pay damages for injuries which may be done to others through  the use, ownerships  or maintenance of the motor vehicle. The
first</div>
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or risk  may further
be classified as follows: </div>
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(1) Destruction by 
fire, internal or external in origin, </div>
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(2) Theft, </div>
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(3) Injury through collision with some other object moving
or fixed or through upset.</div>
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 (4) Other damages to motor  vehicles as by breakage of glass, damage in
flood, or while being transported. The second type of risk  is the liability
of the insured to third parties arising out of a accidents caused by the use of
a motor vehicle on the road. The liability may be for death  or bodily injury or for damages to property.
The risk also vary accordingly  to the
class of vehicle. E. g. in a passenger automobile. the liability may be for
death  of or injury  to
passengers  or in a common carrier, the
liability may be loss of or damage to the property carried. In order to
safeguard  the owner of a motor vehicle
from the above mentioned risks a special insurance,</div>
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> has been
conceived known as marine insurance</span></div>

MISCELLANEOUS INSURANCE

MISCELLANEOUS INSURANCE Introduction : Insurance not falling under fire insurance and marine insurance is considered as miscellaneous ...

SCIENTIFIC PRINCIPLES OF LIFE INSURANCE

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Insurance  have been able to keep their promise
because  life insurance  is based on sound scientific  principles. These include<br />
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 1)  Shared risk: Members of our  earliest societies understood the
benefits  of pooling  their resources talent and also risk .
Whether  hunting for food or
defending  against common enemies  people found that sharing the risk among the
group minimized the risk to the individual. This is how the workers  guilds of the middle ages attempted  to protect families of members  against another common enemy: financial
hardship caused by death. Members  would
contribute  small amounts  each years  into a common widows and orphans fund. Though
the system was flawed it did provide basic protection for families  of members who died during the year. This
idea was still used as late as the Nineteenth Century  in this country by immigrant groups: it later
became the basis for the hundreds of fraternal 
life insurance  companies still
flourishing  today as well as  for association group insurance plan
including  those offered by the American
Academy of family physicians. </div>
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2) The La
of the large numbers: The principles of shared risk only works when the law of
large numbers is also applied, Under this scientific  principles the larger the group, the less
impact the death of one member has on the group as a whole. A group with just
ten, a hundred even a thousands members would not works. The base would  be too fragile  to susceptible 
to mortality blips due to situations and events that lead to
unexpected  deaths such as a  flu epidemic 
or earthquake that look of thousands of lives in a  certain geography  location. This is one reason groups and
individual today transfer the risk to insurance companies in effect forming new
groups consisting of  hundreds of
thousands  very often millions of
members.<br />
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3)  Predictable Mortality: A third principle
of  life insurance   is predictable mortality. It is not possible
to tell when a given individual will die. but du to more than a century of
tracking and recording data about health life style and mortality trends,
insures can projects life expectancies. This data  is recorded in mortality tables. A mortality
table is a chart summarizing the life span of a large number of people.
Specifically it projects (a) the number of death that will occur per 1,000
individual  at a given age and  (b) the life expectancy of an individual at
any age. The 1980 commissioner’s standard ordinary mortality table 1980 (SO) is
the official mortality table in use the by all insurances today, It charts a
representative sample of 10 million lives and 
follows them to age 100 when for insurance purpose the last person is
presumed to have died.  Once  the insurance company  can reasonably  predict how many people of a given age will
die in a given year, it can project mortality experience. Subsequently the
insurer can then project costs and premium 
rates. For instances  as life
expectancy  has climbed dramatically in this century the cost of  life insurance  has decreased.<br />
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4) 
Invested Assets: When the insurance company receives premium, that money
is not just put into  a vault. It is
invested. It may be years before a claim is made against the police. So, the
impact of investment experience can be significant. The projected return is
factored into premium and other costs. At the same time a percentage of assets
is set aside in company  reserves to
reduce the impact of unexpected events.  </div>
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 5) Fair and accurate risk selection: A 
life insurance  contract is an
aleatory contract. It is  based on the
possibility  of a chance occurrence and
in all likelihood, one side will benefit more than the other. However  for 
life insurance  to work, the
insurer needs to recover as many variables as possible. This brings  up to the final principle  of insurance, which is fair and accurate risk
assessment. Especially  with the
individual insurance policies, coverage is issued based on the assumption of
reasonable risk. This means insuring people who are  generally in good  health at the time of application. This
is also why medical exams  and blood
samples are sometimes required. Once 
insured policy owners are protected if they become ill. That is the
reasonable risk the company  assumes that
a certain percentage of insured will die prematurely. However  were the company to issue policies on
seriously ill application   life
insurance  would becomes
prohibitively  expensive.</div>
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SCIENTIFIC PRINCIPLES OF LIFE INSURANCE

Insurance have been able to keep their promise because life insurance is based on sound scientific principles. These include 1)...

Insurance Loans24

RURAL LIFE INSURANCE AND PRIVATE SECTOR INITIATIVES

MISCELLANEOUS INSURANCE

SCIENTIFIC PRINCIPLES OF LIFE INSURANCE

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