Origin of Insurance

Whenever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risk may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, etc.

Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. It comes under service sector and while marketing this service due care is taken in quality product and customer satisfaction. The main function of the Insurance is to provide protection against the possible chances of generating losses.

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

Brief History of the Insurance Sector

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

INSURANCE SECTOR
The opening up of Insurance sector was a part of the ongoing liberalization in the financial sector of India. The changing face of the financial sector and the entry of several companies in the field of life and non life Insurance segment are one of the key results of these liberalization efforts. Insurance business by way of generating premium income adds significantly to be the GDP. Over the past three years, more than thirty companies have expressed interest in doing business in India. The IRDA (Insurance Regulatory Development Authority) is the regulatory authority, which looks over all related aspects of the insurance business. The provisions of the IRDA bill acknowledge many issues related to insurance sector.

The IRDA bill provides guidance for three levels of players - Insurance Company, Insurance brokers and Insurance agent. Life Insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP is 1.3 % against, 5.2 per cent in the US.

General Insurance is another segment, which has been growing at a faster pace. But as per the current comparative statistics, the general insurance premium has been lower than life insurance. General Insurance premium as a percentage of GDP was a mere 0.5 'per cent in 1996. In the General Insurance Business, General Insurance Corporation (GIC) and its four subsidiaries viz. New India Insurance, Oriental Insurance, National Insurance and United India Insurance, are doing major business. The General Insurance Industry has been growing at a rate of 19 percent per year.

The entry of several private insurance companies, particularly international insurance companies, through joint ventures, will speed up the process of insurance mobilization. The competition will unleash new schemes and benefits, which will give consumers a better Chance to save as well as insure. The regulatory system in India is relatively new and takes some more time to make the Insurance sector a perfectly competitive one. Insurance Regulatory Authority of India issued regulations on 15 subjects which included appointed. Actuary, actuarial report, Insurance agents, Solvency margins, re-insurance, registration of Insurers, and obligation of insurers to rural and social sector, investment and accounting procedure. The reform in Insurance in India is guided by factors like availability of a variety of products at a competitive price, improvement in the quality of customer services etc. Also the employment opportunities in the Insurance sector wil1 increase as major players set their business plans in India. The policy of the government to open up the financial sector and the Insurance sector is expected to bring greater FDI inflow into the country. The increase in the investment limit in this vital sector has generated considerable business interests among the foreign Insurance companies" Their entry wil1 certainly change the Insurance sector considerably.

Insurance Sector Reforms:

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future, direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. In 1994, the committee submitted the report and some of the key recommendations included:

Structure:
1. Government stake in the insurance Companies to be brought down to 50%. 2. Government should take over the holdings of GlC and its subsidiaries so that these subsidiaries can act as independent corporations. 3. All the insurance companies should be given greater freedom to operate.

Competition:
I. Private Companies with a minimum paid up capital of Rs. 1 bn should be allowed to enter the industry. 2. No Company should deal in both Life and General Insurance through a single entity. 3. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. 4. Postal Life Insurance should be allowed to operate in the rural market. 5. Only one State Level Life Insurance Company should be allowed to operate in each state

Regulatory Body:
1. The Insurance Act should be changed. 2. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

Investment:
1. Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. 2. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time.)

Customer Service:
1. LIC should pay interest on delays in payments beyond 30 days. 2. Insurance companies must be encouraged to set up unit linked pension plans. 3. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer Services and increase the coverage of the insurance industry should open up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs. 100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve.

Insurance Regulatory Authority

On the recommendations of the Malhotra Committee, government has set up an interim Insurance Regulatory Authority (IRA), with a view to activate an insurance regulatory apparatus essential for proper monitoring and control of the insurance industry. The IRA is headed by a chairman who is also Controller o0f insurance and chairman of TBC. The other members of the IRA, not exceeding seven in number of whom not more than three shall serve full time, shall be nominated by the central government.

INSURERS:

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers: Life Insures: Life Insurance Corporation of India (LIC) General Insurers General Insurance Corporation of India (GIC) (with effect from Dec 2000, a national reinsure

INSURANCE INDUSTRY:

CLASSIFICATION

INSURANCE

LIFE INSURANCE

GENERAL INSURANCE

Fire Insurance

Marine Insurance

Mediclaim

Motor

Vehicle

SOME PLAYERS IN THE INDUSTRY:

Life Insurance Life Insurance Corporation of India.

General Insurance General Insurance Corporation of India. 1. 2. 3. 4. Oriental Insurance Company Ltd. New India Assurance Company Ltd. National Insurance Company Ltd. United India Insurance Company Ltd.

New Entrants ICICI Prudential Life Insurance Ltd. Tata AIG Life Insurance Corporation Ltd. ING Vysya Life Insurance Corporation Ltd. Om Kotak Mahindra Life Insurance Corporation Ltd. Bajaj Alliaz General Insurance Company Ltd. Reliance General Insurance Company Ltd. Tata AIG General Insurance Company Ltd. Royal Sundaram Alliance Insurance Company Ltd.

4 Is of Insurance Service

The 4 Is refers to the different dimensions/ characteristics of any service. Unlike pure product, services have its own characteristics and its related problems. So the service provider needs to deal with these problems accordingly. The service provider has to design different strategies according the varying feature of the service. These 4 Is not only represent the characteristics of different services but also the problems and advantages attached to it. These 4 Is can be broadly classified as: Intangibility

Inconsistency

Inseparability

Inventory

Intangibility:

Insurance is a guarantee against risk and neither the risk nor the guarantee is tangible. Hence, insurance rightly come under services, which are intangible. Efforts have been made by the insurance companies to make insurance tangible to some extent by including letters and forms

 Inconsistency Service quality is often inconsistent. This is because service personnel have different capabilities, which vary in performance from day to day. This problem of inconsistency in service quality can be reduced through standardization, training and mechanization. Inseparability Services are produced and consumed simultaneously. Consumers cannot and do not separate the deliverer of the service from the service itself. Interaction between consumer and the service provider varies based on whether consumer must be physically present to receive the service. Inventory No inventory can be maintained for services. Inventory carrying costs are more subjective and lead to idle production capacity. When the service is available but there is no demand, cost rises as, cost of paying the people and overhead remains constant even though the people are not required to provide services due to lack of demand. In the insurance sector however, commission is paid to the agents on each policy that they sell. Hence, not much inventory cost is wasted on idle inventory. As the cost of agents is directly proportionate to the policy sold.

GENERAL INSURANCE
With the opening up of the insurance industry to the private sector, the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business).

Definition and meaning:

1. INSURANCE:
Insurance is the means of managing risk and protection against financial loss arising as a result of contingencies, which may or may not occur.

In other words, insurance is the act of providing assurance, against a possible loss, by entering into a contract, with one who is willing to give assurance. Through this contract the person willing to give assurance binds himself to make good such loss, if it occurs

3. GENERAL INSURANCE:General insurance means managing risk against financial loss arising due to fire, marine or miscellaneous events as a result of contingencies, which may or may not occur. General Insurance means to Cover the risk of the financial loss from any natural calamities viz. Flood, Fire, Earthquake, Burglary, etc.. i.e. the events which are beyond the control of the owner of the goods for the things having insurable interest with the utmost good faith by declaring the facts about the circumstances and the products by paying the stipulated sum , a premium and not having a motive of making profit from the insurance contract.

Some of the General Rules: 1. Mis-description :

The insurance policy shall be void and all the premiums paid by insured may be forfeited by the insurance company in the event of mis-presentation or mis-declaration and/or nondisclosure of any material facts. 2. Reasonable care :

The insured shall take all reasonable steps to safeguard the property insured against any loss or damage. Insured shall exercise reasonable care that only competent employees are employed and shall take all reasonable precautions to prevent all accidents and shall comply with all statuary or other regulations

3. Fraud :

If any claim under the policy may be in any respect fraudulent or if any fraudulent means or device are used by the insured or any one acting on the insureds behalf to obtain any benefit under the insurance policy, all the benefits under the insurance policy may be forfeited.

4. Few basic principles of general insurance are :

1. Insurable interest 2. Utmost good faith 3. Subrogation 4. Contribution 5. Indemnity

5. Risks of loss not covered under general insurance are:

The loss or damage or liability or expenses whether direct or indirect occasion by happening through or arising from any consequences of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion revolution, civil commotion or loot or pillage in connection therewith and loss or damage caused by depreciation or wear and tear. However the risk of loss or damage by war can be insured by payment of additional premium in some cases only.

Product levels:
In this figure there is a nucleus or core in the center, which is supported by series of tangible and intangible features and benefits and these form a cluster around the core product.

Level

Type service

of Contents

Insurance sector

Core service

Basic service product

Life Non-life insurance policy

Expected service

Basic product and

minimum

After sales service Low period. claim settling

purchase conditions that must be met.

Augmented service

Something

different, which

Technology Online payment Payment through credit cards Standing instruction to bank premium

enables one product to be differentiated from other

Potential service

Features that attract the customers and are useful to them.

Maturity claims settled on or before the maturity date. Loans

The core product of insurance company is insuring life and non life products. People opt for this service as they want to secure their life, people dependent on them and other valuable things in life.

The time factor plays an important role while providing service to the customer. The customer expects that the procedures for settling the claim should be short and not much time consuming. They should get the benefits of the service as soon as possible.

Today the technology is boosting in each and every field. Insurance is not an exception. Companies have started providing customers facility of online payment of premium through their websites. They also provide online assistant to the customer the policy status and how to calculate the premium. To calculate the premium they just need the present age, the type of police, sum assured, and accident covered if any. By filling in this information you can calculate the amount of premium you have to pay. The customer can pay their premiums by means of credit cards or can also give standing instruction to the bank in order to pay their monthly premiums. The insurance companies also provide loan facilities against their policies. At present loans are granted on unencumbered polices as follows:

Up to 90% of the Surrender Value for policies, where the premium due is fully paid-up, and

Up to 85% of the Surrender Value for policies where the premium due is partly paid-up.

The minimum amount for which a loan can be granted under a policy is Rs150. The rate of interest charged is 10.5% p.a., payable half-yearly. Loans are not granted for a period shorter than six months, or on the security of lost policies (the assured must have the duplicate policies) or on policies issued under certain plans. Certain types of policies are, however, without loan facility.

FREQUENT TERMS USED

Agent:

An insurance company representative licensed by the state, who solicits, negotiates or effects contracts of insurance, and provides service to the policyholder far the insurer.

Actual Total Loss:

It is a loss where the goods are completely lost and become irrecoverable

Additional cover:

An insurance policy extended to cover additional risk perils such as strikes. Riots and Civil commotion etc on payment of extra premium.

Agreed value policy:

Policy which undertakes to pay a specified amount in case of total loss. Under this case the policy does not take into account the current market value.

Assessor:

Person who estimates the value of goods for the purpose of apportioning the sum payable by the underwriters to settle the claims. Also called as Surveyor.

Assured:

Party indemnified against 19ss by means of insurance.

Burglary:

It is a theft committed by breaking into or out of the premises. Evidence of breaking In, Is necessary.

Coverage:

The scope of protection provided under a contract of insurance; any of several risks covered by a policy.

Cargo insurance: A generic term used in both inland marine and ocean marine insurance to designate the types of insurance available to provide coverage for cargo that is being transported by truck, rail, air, ship, or boat.

Certificate of Insurance:

A statement of coverage issued to an individual insured, specifying the insurance benefits and principal provisions applicable to the member.

Claim:

The formal request by a policyholder or a claimant for payment of loss under an insurance policy.

Co-insurance:

A provision under which an insured who carries less than the stipulated percentage of insurance to value, will receive a loss payment that is limited to the same ration which the amount of insurance bears to the amount required;

Cover Note:

Is the document that is issued provisionary pending issuance of insurance Policy.

Indemnity:

Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss.

Insurable Interest:

A condition in which the person applying for insurance and the person who is to receive the policy benefit will suffer all emotional or financial loss, if any untouched event occurs. Without insurable interest, an insurance contract is invalid,

Insurance:

Social device for minimizing risk of uncertainty regarding loss by spreading the risk over a large enough number of similar exposures to predict the individual chance of loss.

Net Premium:

The portion of premium rate which is designed to cover benefits of the policy, excluding expenses, contingencies and profit.

Policy:

Is the legal document that has the conditions of the insurance contract.

Premium:

It is the amount paid to secure an insurance policy.

Salvage:

Recovery made by an insurance company by the sale of property which has been taken over from that insured as a part of loss settlement. The remains of damaged vehicle or any other property.

Third party:

Any person other than the two parties signing an insurance, contract.

Underwriting:

Underwriting of a risk involves consideration of material, facts on the basis of which a decision will be taken whether to accept the risk and if so at what rate of premium.

COMPANY PROFILE:
Reliance Commercial Corporation In 1962, DhirubhaiAmbani started the Reliance Commercial Corporation with the capital of Rs 15000. The primary business of Reliance Commercial Corporation was to import polyester yarn and export spices. The business was setup in partnership with ChampaklalDamani, his second cousin. In1965 ChampaklalDamani and Dhirubhai ended their partnership and Dhirubhai started on his own. In1968, he moved to an up market apartment at Alta mount Road in South Mumbai.Ambanis net worth was estimated at about Rs. 10 lakh by late 1960s. Initial Public Offering DhirubhaiAmbani is credited with starting the equity cult in India. More than 58,000 investors from various parts of India subscribed to Reliances IPOs in 1977. Reliance Industries holds distinction that it is the only private sector company whose several annual general meetings were held in stadiums. In 1986, Dhirubhai managed to convince a large no. of first time retail investors to participate in the unfolding Reliance story and put their hard earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial returns on their investments. Ambanis net worth was estimated at about Rs.1 billion by early 1980s. Diversification Over time Dhirubhai diversified his business with the core specialization being in petrochemicals and additional interest in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets and logistics. The company as a whole by BBC as a business empire with an estimated annual turnover of $12 million, and an 85,000 strong workforce

Reliance Capital

Reliance Mutual fund

Reliance Reliance General Insurance Life Insurance Insurance

Reliance Money

Reliance Consumer Finance

Mutual Fund

RELIANCE GENERAL INSURANCE is one of the leading private general insurance companies
of India, in the present times. It was amongst the first companies to apply for, and obtain, a license for insurance business, after the liberalization of insurance sector, in 2000. The company continued to growth with the passing time, widening the scope of its insurance policies. Today, it offers over 94 customized insurance products catering to need of the corporate, SME and individual customers. Reliance general insurance also boasts of being the first insurance company in India to be awarded the ISO 9001:2000 certification across all functions, processes, products and location pan-India.

VISION
To be an insurer of World Standards and the most preferred choice for clientele at the domestic and global level.

MISSION
Companies mission is to keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance.

GOALS

Make affordable insurance accessible to all Keep customer as focal point for all operations Protect policy holders interests Adopt best international practices in claims, underwriting and policy servicing Be the most innovative in product development Establish Pan India presence

Growth and innovation

Reliance general insurance company Ltd has grown over time, to set up as many as 2000 offices, which have spread across 173 cities, in 22 states of India. Such a wide distribution channel network, along with 24x7 customer service assistance and a fully fledged website, has added to its success. As the same time, the company continuous to launce innovative products, like Indies first Over-The-Counter health and home insurance policies, to woo potential customers and keep the present ones satisfies and pleased.

Customer Focus

The brand philosophy of reliance general insurance company is Protecting what u value. The company aims at helping individuals; Corporates as well as SMEs protect their dreams and accomplishments; that too though a hassle frees buying process. With the concept of online buying, Reliance has made it possible for the potential customers to book the policies from within the confines of their home/office. At the same time, the insurance company intends to make the claim settlement as prompt, transparent and speedy as possible.

Services

Reliance general insurance company offers a wide range of innovative products to the potential customers. Right from health and home insurance to car/motor and travel insurance, we can get almost all types of individual policies with reliance, that too as the premium rate. Apart from that, the company also caters to corporate and SME clients, providing end to end insurance solutions. The product basket includes fire, engineering, liability, marine, travel and other types of insurance, for organization risk management.

The key business & financial highlights are:

Reliance General Insurance has notched a premium of Rs.1946 crores during the FY 2007-08, an exponential growth of 113 per cent as against the industry growth of 13 per cent. The Companys new business premium of Rs.1034 crores for the FY 2007-08, constitutes 33.01% of the Industrys new business premium. Reliance General Insurance ranks among the Top three private sector general insurance companies in India, during FY 2007 - 08 Enjoys a 17 per cent market share amongst the private sector players. The distribution network extends across 200 Branch Offices spread across 172 cities in 22 States. Reliance General Insurance has achieved the ISO 9001:2000 certification for maintaining quality standards across all functions, processes, products and locations pan-India. This has made RGI the first general insurance company in the industry to achieve this milestone. Has many Industry firsts to its credit including the first Over-The-Counter retail health insurance policy in India - Reliance Health Wise Policy. The health kit system, launched by RGI was conferred the PC Quest award for Best IT implementation. The Reliance Home Insurance film won an ABBY Award at Ad Fest 2008 Rapidly expanded the width and depth of the customer touch points over the last 2 years. The current customer touch points are offered through distribution channels like Agents, Banc assurance, Motor, Broking, Travel, Direct Sales and Rural.

QUALITY
At Reliance General Insurance, we identify Quality and Customer-focus as our key strategic initiatives. Our Quality roadmap, strictly aligned with our business priorities, is benchmarked to the best contemporary global practices, and is designed to support our single-minded objective of maintaining world-class quality standards. Our quality system deployment, defined from the point of the view of our customers, is to enhance customer experience at all the touch points. As part of this initiative, every business process in the organization is identified, documented, automated and deployed. These processes are further monitored continuously through their compliance scores and dashboard measures and reviewed by the Senior Management team within the organization. In fact this passion has taken us one step ahead. We are pleased to share the recognition of our Quality Management System by reputed global quality standards auditing organization Det Norske Veritas (DNV), which has awarded us the ISO 9001:2000 certification. The certification conforms our adherence to design, development & sale of General Insurance product offerings to meet customer needs and in line with 'IRDA regulations'

What does the ISO 9001: 2000 certification mean to our Customer?

Streamlined processes and procedures Reliance General Insurance has established well-defined and documented process and to help understand our Customers requirements and address them to their satisfaction. Superior Service Standards our unwavering commitment to excellence ensures prompt and correct documentation while also ensuring transparent & speedy claims settlement.

OPERATIONS
To achieve business success by improving operational efficiencies, Reliance General Insurance realizes the need to tighten up and streamline both channel partner relationships and back office operations. The brokers and channel partners are the interface to end customers. They play a vital role in helping sustain existing customers as well as attract new customers through better and diverse services. So it is imperative that we are well connected with brokers / channels partners as well as meet their needs. Improvement in back office operations can happen if policy production and billing are automated; overall claims expenses are reduced, and claims settlement is made faster. To be successful at doing this, we need to nurture both parts of the solution equation, that is, creation of solution-oriented strategy and deployment of solution-based scalable technology that enables meeting of strategic goals laid out as part of our enterprise strategy. In the current scenario many insurers either rely on manual methods or custom coded solutions that lack strategic approach to address their business needs. Manual execution of their crucial operations leads to many errors that occur in documents passed from insurers to brokers or ceding companies to reinsurers, which results in lengthy settlement cycles. While custom coded interfaces are developed to meet a certain set of needs only. They are not scalable so cannot meet changing needs and require recurring IT investment to keep them in use. Reliance General Insurance Co. Ltd is in the process of rolling out a 'Centrally controlled, decentralized delivery' operations structure to ensure speedy processing and service while maintaining predictable and strict quality control. A solution is also being developed to offer strategic value through systematic design and deployment of BPM and integration technologies. The solution will address volatile situations, and shall be a scalable and reusable solution. It would help meet the challenge of operational costs saving while enabling us to exploit business expansion opportunities

TECHNOLOGY
The IT strategy aims to integrate the business and IT visions and has been an important instrument in facilitating the dialogue between the IT community and the business leaders across the Company. The importance of planning, in this fast-paced environment, has never been more critical. The technical and business segments have worked closely to identify the impact of external drivers, clarify the business needs, and ultimately determine how IT can best help in achieving the business goals. Our Customers form the centre piece of the business architecture and rightly so, be the focal point from a technology perspective as well. Our Endeavour shall be to provide easy, consistent and instant access of relevant information to customers across multiple channels and touch points. All our technology initiatives shall be geared towards this objective.

The Company recognizes that the security of information requires an ongoing commitment. Towards this end a security program would provide a continuous cycle for assessing risk, developing and implementing effective security procedures, and monitoring the effectiveness of those procedures. We want to guarantee the reliability, confidentiality and availability of critical information. To that end, we will continue implementation of our strategy for enhancing information security management controls. We are in a challenging environment, dealing with all the changes in technology, the insurance industry, the IRDA regulations and the workplace. The expectations of what information technology (IT) can do to benefit the business and its customers continue to grow. We've been working hard to provide day-to-day IT services, while keeping our eye on where the Company is headed strategically, and also transforming the IT organization to meet future requirements.

Meaning of Risk / Insurance

Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term "risk" is used to describe all the accidental happenings, which produce a monetary loss. Insurance is a method in which a large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. The sharing of risk among large groups of people is the basis of insurance. The losses of an individual are distributed over a group of individuals.

The risk becomes insurable if the following requirements are complied with: The insured must suffer financial loss if the risk operates. The loss must be measurable in money, The object of the insurance contract must be legal. The insurer should have sufficient knowledge about the risks he accepts

Reliance Energy Ltd.

Reliance Mutual Fund

Harmony

Reliance Communications

Reliance Anil Dhirubhai Ambani Reliance Life Insurance Group

Reliance General Insurance

Reliance Portfolio Management Service

Reliance Big Entertainment

DIFFERENT PRODUCTS - OFFERED BY RGICL HEALTH

Reliance Health Wise Access to quality healthcare is a necessity today. The Reliance Health Wise Policy ensures you provide the best medical care to your family. We offer a health insurance policy that gives you the optimum value for money without compromising on the quality of medical attention. Reliance Individual Medi claim Insurance Policy Your family deserves the best especially when it comes to medical care. With medical expenses shooting sky high, Reliance Medi claim Insurance Policy helps you meet hospitalization costs. We free you from financial worries so that you can give your full attention to your loved ones.

MOTOR
Reliance Two Wheeler Insurance Policy Two wheelers are convenient and exuberant. With the many advanced features added in, today's two wheelers are safe too. However, the possibility of damage to your pride and joy exist by way of theft, natural calamities and accidents. Ensure your peace of mind with Reliance Two Wheeler Insurance Policy. It gives you comprehensive cover for your vehicle. Reliance Private Car Insurance Policy Your car is more than a means of transport. It can be used for a family outing or for your feel of freedom when your work burdens you down or it could be your primary aid in emergencies. Reliance Private Car Policy provides you comprehensive protection for your valued possession.

HOME
Reliance Home Protect Policy Your home is probably your most valuable asset, both as an investment and as your sanctuary in a hectic world. You need to protect it from harm. Reliance Home Protect Policy offers quality, basic coverage with many standard features, plus a full array of coverage options to enhance your protection

Reliance Householders' Package Policy Your home is the place where you feel most secure. It protects from outside elements and keeps the family bound together. To secure it, you need comprehensive coverage offered by Reliance Householders' Package Policy that is tailored to your individual home and possessions.

TRAVEL
Reliance Travel Care Insurance Policy for Individuals and Families Are you planning a trip to Disneyland with your family or a romantic tour of the classics in Europe? Reliance Travel Care gives you comprehensive cover for you and your family when you globe trot. Travel Care goes beyond just health insurance and provides you with a wide range of travel related covers to make your trip stress-free. Reliance Travel Care Insurance Policy for Students If you are planning on an international education, you need to have health insurance cover that meets the norms of the university. Reliance Travel Care offers you a plan especially designed for student life abroad. We value your dreams and aspirations and we will be glad to assist you in realizing them. Reliance Travel Care Insurance Policy Asia Asia with its exotic flavors and shopping Meccas has attracted the Indian travelers in hoards. Reliance Travel Care-Asia Plan is designed to safeguard and protect you from medical and other emergencies at a reasonable cost Reliance Pravasi Bhartiya Bima Yojana Insurance Policy With the advent of globalization and liberalization, every day, thousands of Indians are crossing new frontiers and taking up new challenges in different parts of the world. But at the same time they are exposed to several perils like illness, accidents and various other misfortunes. In order to help cover such contingencies, we present the Reliance Pravasi Bhartiya Bima Yojana Insurance policy. This policy is specially designed for emigrant Indians who are abroad on a valid visa for purposes of employment

ACCIDENT COVER
Reliance Individual Personal Accident Policy Safety is always a paramount concern. However accidents do occur. An accident at home could be simply broken glass or a gas cylinder burst. Reliance Individual Personal Accident Policy is one of the key security measures to undertake for providing financial security in case of a injurious accident. It ensures that one's family does not suffer in event of an accident by providing compensation for accidental death or disablement.

PACKAGE POLICY
Reliance Office Package Policy Your office which is the place of your professional success has been built with much of your time and money. However, it is constantly exposed to various kinds of risks. An unfortunate occurrence might disrupt the customary functioning of it, bringing a huge financial burden to your business and on you. Although you cannot guard your business from all possible risks, but with the Reliance Office Package Policy, you can choose those risks which you want to protect your office against and also determine the extent of cover against each risk. Reliance Commercial Care Policy Your enterprise means the whole world to you. You direct all your efforts in securing the business against any undesirable misfortune. Reliance Commercial Care Policy furthers this Endeavour and protects your business against various perils and risks which it might be exposed to, making sure that you can focus your efforts where it is needed the most the running of the business. Reliance Industry Care Insurance Policy For a manufacturing or industrial unit, every operational moment is critical. However, despite the best safety efforts, accidents do happen leading to significant losses. We understand and appreciate your business and to ensure that in such events your business is up and running as soon as possible, we present Reliance Industry Care Policy. Reliance Shopkeeper's Package Policy

Often, establishments such as shops are exposed to various risks that threaten to result in significant loss and damage to property as well as business. To ensure financial protection from such losses and to facilitate smooth running of your business, we present Reliance Shopkeeper's Package Policy.

MISCELLANEOUS POLICIES
Reliance Money Insurance Daily monetary transactions are an integral part of business routine. Few of these innumerable exchanges could include transfer of funds through cash, cheques, drafts, and postal orders etc which are typically exposed to certain risks. To cover such risks, we are pleased to offer the advantage of Reliance Money Insurance Policy, which protects your money round the clock. Reliance Burglary & Housebreaking Insurance Policy The world around us is becoming more and more unsafe and the increase in crime rate bears witness to this fact. Occurrences like burglary, housebreaking or robbery of contents at your office, warehouse, shop or industry can bring about a huge financial loss to you. Reliance General Insurance is pleased to offer a plan that keeps your property protected at all times against burglary and house breaking. Reliance Fidelity Guarantee Insurance Policy Your employees are the driving force of your business. The successful functioning of your enterprise is most often based on responsibility and subsequent empowerment of your workforce. However, it is also possible that such delegation might lead to misuse of empowerment and hence, one should guard against this risk. The Reliance Fidelity Guarantee Policy facilitates you in delegating and empowering your employees while keeping your business safe Industrial All Risks Policy Industrial Units are exposed to a host of perils which threaten to bring their day to day operations to a grinding halt. Any loss or damage to property due to these perils can cause a lot of financial trouble, both in terms of the repair or replacement costs and the business loss that such events can bring about. The Reliance Industrial All Risks Policy can be the perfect solution for the industrial units to ensure complete coverage when such loss or damage occurs Reliance Standard Fire and Special Perils Policy Corporates with large spread out business insurance need comprehensive protection for their operation. Insurance is an essential tool to protect yourself against losses that could devastate your business. Reliance has provided Reliance Standard Fire and Special Perils Policy with a combination of both standard and optional features so that you can choose the cover which best suits your business

Reliance Machinery Insurance Policy Machinery forms an integral part of any manufacturing or industrial set-up. Breakdown of critical machines have a significant impact on your business, not only in terms of the heavy expenses towards repair and replacements, but also the financial losses that you might have to bear during downtime. We help companies protect their assets and safeguard their revenue streams with the help of the Reliance Machinery Insurance Policy. Reliance Electronic Equipment Insurance Policy Today electronic equipment is a part and parcel of all businesses, whether big or small. From computers to medical devices, industrial equipments to electronic cash registers, companies all over the world are increasingly relying on the latest technology as a backbone to aid their day-to-day operations. It becomes imperative to cover these equipments against the perils that they are exposed to, so as to ensure the continuity of your business and safeguard your investments. The Reliance Electronic Equipment Policy is the ideal solution for such an insurance need, providing coverage for unforeseen physical loss or damage to your equipments Reliance Marine Cargo Insurance Policy The increase in global trade has boosted our economic prosperity as a nation and has developed new avenues of business for many organizations. Today, new trade agreements are expanding the realms of business operations to many new countries and more goods are being shipped around the world. There are a variety of risks that are associated with transit of goods and it becomes pertinent to have comprehensive coverage for loss or damage to the goods. For this purpose, we present the Reliance Marine Cargo Policy.

OVERVIEW OF INSURANCE INDUSTRY

As we all know that the Indian insurance system has its roots in the nineteenth century. Before 1973 prior to nationalization of general insurance companies, insurance was concentrated mainly among private hands. It was clear that a better insurance system was needed to promote the economic goals of the new Indian state. According to experts in insurance there has been a substantial growth in the distribution of insurance branches and size. After nationalization, there was also a change in recruitment policy. However due to the advancement in technology there was introduction of computer in every field but insurance in India did not, however, introduce computers on a large scale because of the fear that these would result in retrenchment and unemployment. For a long time Indian insurance companies faced very little competition and operated in a protected economy. But after 1999 market for insurance products and services has become more competitive than ever before because of the entry of big private insurance companies. . Now due to the increase in competition the private and public sector insurance companies had to broaden the horizon of their products and services to meet their demand and fulfill their need through better facilities. To fulfill the need of their customer the insurance companies has to be accelerate in the country. To be successful in insurance sector, insurance companies will need to revamp their business model to (a) Build a large volume, highly scalable operation, (b) Package and deliver products rapidly in a dynamic market, (c) Leverage effectively on multiple delivery channels (branch, internet, etc.) with a view to contain the cost of operations (d) Build relationships with providers of related insurance products and services and move towards converting the network of insurance companies branches into insurance supermarkets.

So there are different insurance products and services that are offered by the insurance companies in order to fulfill the need and the demand of the customer. Although all insurance companies offer same type of insurance products like home insurance ,motor insurance, office insurance etc. but the sections covered and premium charges varies from one company to another company.

OVERVIEW OF PACKAGE POLICIES 1-HOUSE HOLDERS POLICY Our home and family mean everything to us. Not only our love and care, but also a lot of our time and money have gone behind their being what they are today. Although we cannot guard them from all possible risks, we can take steps to help us tide over unexpected events that can totally shatter our life and our dreams. The Householders Policy is a comprehensive shelter that protects our house and the various contents in it against a variety of risks. It is a single policy that takes care of a number of contingencies. It is imperative that we secure our home from natural and man-made catastrophes. House holders Policy covers risks of different types and protects the house as well as personal effects and household goods. This is a package policy specially designed to meet the insurance requirements of a householder by combining a number of standard policies usually taken by householders, under a single policy. Features:-

*Fire and Allied Perils *Burglary and House Breaking. *All Risks (jewellery and valuables) *Domestic Mechanical and Electrical Appliances. *Domestic Electronic Appliances. *Television Sets. *Fixed Plate Glass. *Baggage. *Personal Accident. *Legal Liability etc.

2-OFFICE PACKAGE POLICY There are huge investments made when it comes to business. Investments are made for office premises, equipment's, human resources and other infrastructural facilities. Our trade or business on which so much of our time and money have been spent to build up is constantly exposed to various kinds of risks. Some unfortunate occurrence might bring a huge financial burden to our business and to us. Although we cannot guard our business from all possible risks, we can take steps to tide over such unexpected events.

The Office Package Policy is a comprehensive insurance policy, specially designed to provide protection to our Office against different kinds of risks and perils. By opting for this single policy, the office owner covers those risks which his business is likely to encounter while concentrating on his business activity. This policy is suitable for large offices owned by big companies as well as small and medium sized offices like Travel Agencies, Professionals like Chartered Accountants, Consultants, Architects, Interior Decorators, Engineers or any other service provider Features:*Fire and Allied Perils *Burglary and House Breaking. *Mechanical and Electrical Appliances. *Electronic Appliances. *Money Insurance. *Fixed Glass and Sanitary Fittings. *Baggage. *Neon Sign/Glow sign/Hoarding. *Personal Accident. *Infidelity/Dishonesty of Employees. *Legal Liability. *Additional Rent for Alternative Accommodation. *Tenants Legal Liability etc

3-SHOPKEEPERS POLICY

The Shopkeepers insurance policy is a comprehensive and specially designed policy that seeks to cover the losses arising out of a wide variety of risks and perils. It lets the shopkeeper concentrate on the running of his business, his most valued asset but also his source of income. It covers both the structure and the contents of our shop and protects us against financial loss in case of an unfortunate incident. Only one policy can be taken by one shopkeeper for each shop in a specific location having separate books of accounts. This is a package policy specially designed for small shopkeepers. It is a single policy combining the various insurance requirements of shopkeepers. Features:-

*Fire and Allied Perils *Burglary and House Breaking. *Mechanical and Electrical Appliances. *Electronic Appliances. *Money Insurance. *Fixed Glass and Sanitary Fittings. *Baggage. *Neon Sign/Glow sign/Hoarding. *Personal Accident. *Infidelity/Dishonesty of Employees. *Legal Liability

CONCLUSION

Service with a promise: Todays insurance customer will settle for nothing, except the better service with a broad promise. And then they will realize that they are the king. They will not confine themselves with the world class products and services but they also need a broad platform where they can make different choices. Their choice of one entity over another insurance company is determined by considerations of service quality rather than any other factor. They want competitive premium rates, yes, but them also wants their claim or renewal applications etc to be processed in double-quick time. They cherish the convenience of impersonal Net insurance, yes, but during their occasional visits to the branch, they also want the comfort of personalized, human interactions and facilities that make their insurance experience pleasurable. But they also needs that their grievances should be settling as soon as possible. In short, they want a security house that will more than just issue the policy and settles their claims: they want an insurance that cares and for more than just their custom. They want a customer-friendly insurance company.