Case Study Of Bharti Axa Life Insurance Services

The safety aspect for risk management will evaluate the potential for human loss of life and or injury. The potential for major incident or accident, such as fire, explosion, or spill, including environmental damage. The necessity for security within the company is a highly need aspect of safety that can lead to risk. The revenues aspect for risk management will evaluate the loss of customer base, recovering of capital loss and recognizing uncoverable capital loss, and loss of opportunity in marketing of the product. The necessity for revenue risk management is key. The costs aspect for risk management will evaluate the costs that were incurred due to preventable problems. Also, costs due to increased warehouse space, vendor changes, and discount changes. A significant risk in cost for this company is the cost of legal defense. The legal aspect for risk management will evaluate regulatory compliance failures and actions that could result

In the words of the erstwhile Finance Minister, Morarji Desai: Whereas Life Insurance Corporation will always bear in mind that its primary obligation is to its policy holders whose money it holds in trust, and will never lose sight of the fact that, as a single investor in India, it has to keep before it the investors of the community as a whole. It will, therefore, invest in ventures which further the social advancement of the country. Its funds will, as far as practicable, be invested for the entire good of the country. The following factors are essential for an ideal insurance policy:

We are all familiar with risk. In fact, it is a key component in our everyday material life and we often manage it automatically either when dealing with mundane tasks or major hazards.

According to Fundamentals of Financial Planning, life insurance is divided into two categories, term and permanent (Dalton, Gillice, Dalton & Longdon, 2015, pp.224-225). Term life is insurance for a certain period of time, and provides benefits for a limited amount at death, provided death occurs within the policy’s timeframe. On the other hand, permanent life insurance such as universal, variable and hybrids of the two, have components that include death benefits as well as a saving and/or investment components. While there are pros and cons for both types of insurance, as a financial planner, his or her decision as it relates to what is best for the client, should be based on the client’s personal risks, the costs and benefits that are

The NPS- New Pension System introduced by Government of India is extremely concerned with protection of unorganized sector workers and to promote voluntarily save for their retirement. As per NSSO survey 2011-12, 88% of total workforces in India are come under the umbrella of unorganized sector who are inadequately covered under pension. The new scheme introduce will be administered by Pension Fund Regulatory and Development Authority (PFRDA), Atal Pension Yojana applicable to age bracket between 18 to 40 years which gives subscribers the fixed pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 and Rs. 5000 per month after attainment of age of 60, subjected to contribution and age at the time of entering into pension scheme. APY provides exit option only at the age of attaining 60 years only and in case of death the pension will be available to the spouse. The above benefit needs to be analyzed using the value of money, which gives the subscriber to lead retirement with proper corpus or monthly income which meets the requirements.

To show how this is done we use the following scenario of a participating ordinary life policy in the amount of $10,000 that is sold to an individual, age 35. We show how the traditional net cost approach would calculate his life insurance and we then discuss the various indexes involved. The purpose of this essay is to clarify the calculations of life insurance policies for the user.

To study the impact of FDI in insurance we first look at the how the Indian insurance sector has evolved over the years. Indian insurance sector has experienced different phases from being an open competitive market to being nationalized and back to deregulation. The Indian insurance story began in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Kolkata. In the year 1912 the Indian Life Insurance Companies Act came into existence and laid out policies and procedures to control insurance business in country. It was later amended in 1938 to protect the public. The major change came in 1956 when the central government 245 private insurers and formed the Life Insurance

Recently, insurers introduced online insurance policies. This got a wide spread acceptance from many clients in that it is quick, easy and convenient. It is also cheaper in that a person doesn’t have to travel

This report mainly focuses on how to assess purpose, scope features and functions of financial protection products, including the role and limitation of state benefits. This report will analyse the clients aims and objectives of retirement planning including relevant investment issues and risk profile by conducting a fact find. Considering the client’s data by illustrating the financial plan and recommending the most suitable plan after monitoring the client circumstances through expanding their aims and objectives. Furthermore it will look at various parts including tax, legal framework of pension schemes.

Broadly there are two regulatory models governing investment policies of insurance companies and pension funds – the Prescriptive Model and the Prudent Man Model. The Prescriptive Model is one where the asset allocation decisions of these institutional investors are dictated by a mandated investment pattern. This is followed in countries like India, Canada, Italy, Japan and South Korea. On the other hand, the Prudent Man Model is one where there is no mandated investment pattern, but “eligible assets” and “admissibility limits” must back the prescribed minimum solvency related to eligible assets. This model indirectly influences the asset allocation decisions of the insurance companies and pension funds. This model is adopted in countries such as US, UK, France and Spain.

Patt (2009) suggest that the whole concept of insurance is premised on the principle of spreading the risk of loss over a wide population coverage with the core mandate of providing financial security.

The journey of insurance liberalization process in India is now several years old. The first major milestone in this journey has been the passing of Insurance Regulatory and Development Authority Act, 1999. This along with amendments to the Insurance Act 1983, LIC and GIC Acts paves the way for the entry of private players and possibly the privatization of the hitherto public monopolies LIC and GIC. Opening up of insurance to private sector including foreign participation has resulted into various opportunities and challenges.

The Indian General Insurance Industry has reported strong growth in the past decade, mainly benefitting from the low degree of insurance penetration in the country. Over the past five years, the Gross Premium Written by Indian general insurance industry reported a compounded annual growth rate (CAGR) of 18.1% in the financial year 2013. With high co-relation between the growth rates in General Insurance Premiums and the National GDP growth rates, we expect the industry growth rates to moderate in line with the slowdown in Indian GDP growth. Accordingly ICRA estimates the General Insurance Industry to grow at around 15% in FY14.

In general insurance 8 private companies have entered, 6 of which have foreign equity of 26 per cent. Among the private players in general insurance, Reliance and Cholamandalam does not have any foreign equity. The aggregate loss of the private life insurers amounted to Rs. 38633 lakhs in contrast to the Rs.9620 crores surplus (after tax) earned by the LIC. In general insurance, 4 out of the 8 private insurers suffered losses in 2002-03, with the Reliance, a company with no foreign equity, emerging as the most profitable player. In fact the 6 private players with foreign equity made an aggregate loss of Rs. 294lakhs. on the other hand the public sector insurers in general insurance made aggregate after tax profits of Rs. 62570 lakhs.

According to B. Nagaraja in his paper “PERFORMANCE OF INSURANCE INDUSTRY IN INDIA: A CRITICAL ANALYSIS” (Jan 2015) he has stated that there exists regional disparities between south and north Indian states with regard to insurance penetration and density and they have been drastically declining in recent years. The claims settlement ratio, one of key indicator for measuring the operational efficiency of insurance industry shows that LIC has fared well in terms of high settlement ratio of individual and group death claims, compared to the private insurers. Achieving cost-competitiveness, improving the stakeholders’ confidence, meeting new demand one individual at a time and improving the operational ability of the insurance industry are to be paid attention to experience the healthy growth of insurance industry as has