What is Insurance ?

• Insurance is actually a contract between 2 parties

whereby one party called insurer undertakes in exchange
for a fixed sum called premium to pay the other party
happening of a certain event.
• Insurance is a federal subject in India.
• Life & General insurance in India is still a nascent sector
with huge potential for various global player.
 Why Insurance ?

• To provide security
• Old age pension
• As an investment or saving mechanism
• As a collateral for loans
• For tax benefits
 Evolution
• Insurance in india has its history dating back till 1818, when
Oriental Life Insurance Company was stated by Europeans.
• The oldest existing insurance company in India is National
Insurance Company Ltd, which was founded in 1906 and is
doing business even today.
• In the recent year when the Govt. of India in 1999 opened up
the insurance sector by allowing private insurance companies
to work in the market by depositing 100 crores rupees in the
reserve of government and allowing FDI up to 26 %
• This has encourage many overseas insurance companies,
having a required amount in their reserve, to open their branch
in our country.
 Insurance companies

Life Insurance Companies General Insurance Companies

HDFC Standard Life Insurance Co. Reliance General Insurance Co.

ICICI Prudential Life Insurance Co. TATA AIG General Insurance Co.
Birla Sun Life Insurance Co. Bajaj Allianz General Insurance Co.
Life Insurance Corporation of India National Insurance Company Limited
Financial Statements
Schedule A for Life Insurance Business
Part I: Accounting Principles for
preparation of financial statement
Part II: Disclosures forming part of Financial
Statements
Part III: General Instructions for
preparation of financial statements
Part IV: Contents of Management Report
Part V: Preparation of Financial statements
Form A-RA: Revenue Account
Form A-PL: Profit and Loss Account
Form A-BS: Balance sheet and 15 Schedules
forming part of financial
Statements
Schedule B for General Insurance
Business
Part I: Accounting Principles for preparation
of financial statements
Part II: Disclosures forming part of Financial
Statement
Part III: General Instructions for
preparation of financial statements.
Part IV: Contents of Management Report
Part V: Preparation of financial statements.
Form B-RA: Revenue Account
Form B-PL: Profit and Loss Account
Form B-BS: Balance Sheet and 15 Schedules
forming part of financial
statements
THANK YOU
FOR WATCHING
By Nikita Kadam
MC-5042