Insurance Sector in India, Types and Name
Priyanka Dahima11 Jun, 2024
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Insurance Sector in India: In India, insurance covers both public and private sector organizations. It is listed as a Union List subject in the Seventh Schedule of the Constitution of India, which means that it can only be enacted by the central government.
The insurance sector has gone through several stages, allowing private companies to obtain insurance and also allowing foreign direct investment. India allowed private companies to operate in the insurance sector in 2000 and imposed an FDI limit of 26%, which was raised to 49% in 2014 [1] and further increased to 74% in May 2021.Insurance Sector in India
The Indian insurance sector consists of 58 Indian insurance companies; in them, 24 companies are engaged in life insurance and 34 in non-life insurance. The Life Insurance Company (LIC) is the only public sector company that offers life insurance. Other types of insurance are offered by another six public sector insurance companies. In addition, there is one national reinsurer known as General Insurance Corporation of India (GIC Re). Other stakeholders in the Indian insurance market include agents (individuals and companies), surveyors, brokers and third-party administrators who handle health insurance claims.Indian Insurance Sector
The Indian government and insurance regulatory authorities have taken several steps to support the growth of the industry. The most important of them is the mission "Insurance for all until 2047" launched in November 2022, the main objective of which is to ensure that every citizen and company has an adequate insurance cover/solution. Initiatives are also being taken to attract foreign interest in the market. These reforms and strong economic growth should support the further development and expansion of the insurance sector.What is Insurance?
Insurance is a protected policy that allows a person to mitigate risks. It is a form of protection and security against unexpected losses such as financial or health losses. Insurance is a contract whereby a person or entity receives financial protection and fixed compensation from an insurance company. Insurance is used to protect against financial losses; damage can be loss of property or injuries etc. Insurance can also be referred to as a financial product sold by insurance companies to protect an individual or organization against unexpected risks such as fire, property damage, theft or accidents.Types of Insurance
- Life Insurance: This is a type of insurance that allows the owner to ensure the financial security of his family members after their death.
- Property Insurance: This type of insurance protects the property or real estate of an individual or organization. If damage occurs to these assets, the insurance company will compensate it at the request of the insured.
- Marine Insurance: This is a type of insurance that helps protect and cover loss of goods transported by ships or damage to ships, cargo or terminals.
- Fire Insurance: This type of insurance covers damage caused by fire to the property or goods of an individual or organization.
- Liability Insurance: This type of insurance provides protection against losses incurred by the company, such as lawsuits filed due to negligence, injury, or misconduct.
- Guarantee Insurance: This is a type of insurance that guarantees an advance payment or advance payment for services agreed in a contract.
- Health Insurance: This type of insurance protects against medical expenses incurred during an illness.
Top 10 Insurance Companies in India
1. HDFC Life Insurance: HDFC Life Insurance is a partnership between Standard Life Aberdeen PLC and Housing Development Finance Corporation Limited. Founded in 2000, the company offers a variety of insurance policies, including security plans, pension plans, women's pension plans, children's plans and health plans. They also offer exclusive policies for women and children, allowing owners to increase coverage with additional passengers. In addition, HDFC Life is committed to prompt and efficient resolution of claims.
2. Max Life Insurance: Founded in 2000, Max Life Insurance Company is among the top 10 life insurance companies in India. Their main goal is to ensure financial stability for subscribers. The company offers a variety of life insurance policies, including child insurance, long-term savings, protection, investment and group solutions, individually tailored.
3. LIC Life Insurance: Life Insurance Corporation of India (LIC) is a government-owned comprehensive life insurance and investment company that caters to insurance needs. It is widely regarded as one of the best insurance companies in India. LIC's main mission is to invest in global financial markets and various government securities after raising money from people through life insurance policies. LIC controls the majority of the life insurance market in India, private insurance companies have a smaller market share. Although there are about 25 private insurance companies competing for customers in India, LIC remains the country's oldest and only government-controlled life insurance company. LIC Life Insurance aims to provide adequate life insurance cover to people living in rural areas and support the weaker and underprivileged.
4. Reliance Nippon Life Insurance: Reliance Nippon Life Insurance was established as a joint venture between Reliance Capital and Nippon Life. It started operations in the year 2001 and is known among the customers for its insurance policies as one of the leading life insurance companies. The company has offered insurance plans to more than 10 million customers and is considered one of the largest non-bank guaranteed insurance companies among private insurance companies. It mainly deals with five different insurance segments including pension, protection, child, health, financial and savings insurance, serving individuals as well as companies or group entities.
5. AEGON Life Insurance: Founded in 2008, AEGON Life Insurance is a service-oriented company with innovative professionals. They use a multi-channel marketing approach to help people make better life decisions. The company offers various services including online term plans, endowment plans, group plans, ULIP plans, provident funds, provident plans, savings plans, child plans, and state plans.
6. Bajaj Allianz Life Insurance: Bajaj Allianz Life Insurance is one of India's leading private insurance companies, a joint venture between Bajaj Finserv Limited and Allianz SE. The company offers a wide range of life insurance products tailored to the changing needs and demands of customers.
7. Kotak Mahindra Life Insurance: Kotak Mahindra Life Insurance Limited is one of the leading and fastest growing insurance companies in India. It is a joint venture between Old Mutual Limited, a pan-African investment, savings, insurance, and banking company, and Kotak Mahindra Bank Limited. The company offers a variety of financial solutions that meet the requirements of both companies and private investors. Kotak Life Insurance aims to secure your future and positive returns on your investments by offering a variety of affordable life insurance policies.
8. Bharti AXA Life Insurance: Bharti AXA Life Insurance is a collaboration between Bharti Enterprises and AXA Group. It is a prominent institution in India and is interested in financial services, agriculture and telecommunications. The company offers various insurance policies including savings plans, children's education plans, term life insurance plans, and ULIP plans to provide long-term value addition to its customers.
9. Pramerica Life Insurance: Pramerica Life Insurance was established as a joint venture between Prudential International Insurance Holdings Limited and Dewan Housing Finance Corporation Limited. It started operations in the life insurance sector in 2013 and now operates in 138 branches across the country. The company offers a range of life insurance products for both groups and individuals, focusing on policy needs such as retirement planning, securing children's future, wealth creation, and savings.
10. Exide Life Insurance: Formerly known as ING Vysya Life Insurance Company, Exide Life Insurance is one of the best life insurance companies in India. It is a non-government private insurance company headquartered in Bengaluru. Exide Industries Limited owns the insurance company Exide, which serves more than 15 million customers. The company has a solid traditional product line with a proven record of bonuses in the insurance industry. Committed to providing long-term protection and savings solutions, it offers on-demand life insurance options in addition to traditional offerings.
Insurance Sector in India FAQs
Q1. What is the insurance sector in India?
Q2. How many Insurance companies are there in India?
Q3. What are the Top 10 Insurance companies of India?
Q4. What are types of Insurance?
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