WHAT IS LIFE INSIRANCE...???

 

icici prulife

Year 1818 saw the advent of the life insurance business in india with the establishment of the Oriental Life Insurance company in calcutta.This Company however failed in 1834.in 1829,the madras equitable had begun transacting life insurance business in the madras Presidency.1870 saw the enactment of the british insurance act and in the last three decades of the ninteenth century,the bombay mutual (1871),Oriental(1874)and Empire of the india(1897) were started in the Bombay Residency.This era ,however,was dominated by foreign insurance offices which did good business in india,namely Albert Life Assurance,Royal Insurance,Liverpool and London globe insurance and the indian offices were up hard competition from the foreign companies.

 

 

In 1914, the Government of India started publishing returns of insurance companies in india.the Indian Life Assurance CompanyAct,1912 was the first statutory measures to regulate life business.In 1928, the indian insurance companies act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in india by indian and foreign insurers including provident insurance societies.In 1938,with a view to protecting the intrest of the insurance public,the earlier legislative was consolidated and amended by the Insurance Act,1938 with comprehensive provisions for effective control over the activities of insurers.

The Insurance Amandment Act of 1950 aboloshed Principle Agencies.However,there were a large number of Insurance companies and the level of competition was high.There were a large number of insurance companies and the level of companies andthe level of competition was high.There were also allegations of unfair trade practices. The Government of India,therefore,decided to nationize insurance business.

An Ordinance was issued on 19th January 1956 nationalising the Life insurance sector and Life insurance Corporation came into existance in the same year.The LIC absorbed 154 Indian,16 non-indian insurers as also 75 providents socities-245 indians and foreign insurance in all. The LIC had monopoly till the late 90s when the insurance sector was reopened to the private sector.

Life insurance organisation companies of the various functions within a life insurance organisation.Before we go into the organisational aspects it is important to understand the workflow within a life insurance company.typically, the following workflow can be seen in any life insurance company on the core business of solicitation and servicing insurance:

1)Solicitation of Insurance business by an insurance agent or registered intermediaries('Distributors')

2)Form-filling by the Distributors

3)Registration of New Business in a Branch office of an Insurer.

4)Scrutiny of proposal forms and documents annexed thereto

5)Data-entry of information contained in proposal form in Insurer's Policyholder Adminisatration system

6)Underwriting of proposals

7)Issue of policy insurance contracts

8)Collection of Renewal Premiums of policies issued

9)Policy servicing activities, including surrenders,loans etc.

10)Claims processing

While the above activities constitutes core day-to-day work for a Life Insurance,there are various other support functions which enables the above core activities.based on the above,broadly the functions within a Life Insurance Organisation are classified as follows:

1)human resources

2)Finance & Accounts

3)Investments

4)Actuarial & products

5)Distribution:

a) Individual Agency

b)Third Party Distribution-Corporate Agents,Broking etc.

c)Direct distribution including online business

d)Rural business

e)Sales training

6)Marketing

7)Information Technology

8)Operations:

a)New Business& Underwriting

b)Policy Servicing

c)Persistancy & Renewal Premiums Mangements.