ACKNOWLEDGEMENT

I would like to convey my sincere thanks to........... (Teachers name), my Economics teacher who
always gave me valuable suggestions and guidance during the project. She/he has a source of
inspiration and helped me understand and remember important details of the project. She/he
gave me an amazing opportunity to do this wonderful project '(name of the project)'. I also thank
my parents and friends for their help and support in finalizing this project within the limited time
frame.

(Name of the student)———

CERTIFICATE
This is to certify that——— (Name of the student) of class 11 has successfully completed the
Economics Project on———(Name of the project) as per the guidelines of class 11 Board
examination conducted by CBSE.

Teacher's Signature:———-

Teacher's Name:—————

INDEX
• INTRODUCTION

• HISTORY

• IRDA AND ITS FUNCTIONS

• INSURANCE COMPANIES

• TYPES OF INSURANCE

• IMPORTANCE OF INSURANCE TO BUSINESSMAN

• CAREER IN INSURANCE SECTOR

• BIBLIOGRAPHY

• THANK YOU

INTRODUCTION
Insurance is a means of protection from financial loss in

which, in exchange for a fee, a party agrees to

compensate another party in the event of a certain loss,

damage, or injury. It is a form of risk management,

primarily used to hedge against the risk of a contingent

or uncertain loss.

MORE ABOUT IT
• An entity which provides insurance is known as an insurer, insurance

company, insurance carrier, or underwriter.

• A person or entity who buys insurance is known as a policyholder.

• A person or entity covered under the policy is called an insured.

• The insurance transaction involves the policyholder assuming a guaranteed known, and
relatively small loss in the form of a payment to the insurer (a premium) in exchange for the
insurer's promise to compensate the insured inthe event of a covered loss. The loss may or may
not be financial, but it must be reducible to financial terms. Furthermore, it usually involves
something in which the insured has an insurable interest established by ownership,possession,
or pre-existing relationship.

HISTORY
Insurance in this current form has its history dating back to 1818, when Oriental Life Insurance
Company was started by Anita Bhavsar in Kolkata to cater to the needs ofEuropean community.
The pre-independence era in India saw discrimination betweenthe lives of foreigners (English)
and Indians with higher premiums being charged forthe latter. In 1870, Bombay Mutual Life
Assurance Society became the first Indianinsurer.
At the dawn of the twentieth century, many insurance companies were founded. In the year
1912, the Life Insurance Companies Act and the Provident Fund Act were passedto regulate the
insurance business. The Life Insurance Companies Act, 1912 made it necessary that the
premium-rate tables and periodical valuations of companies should becertified by an actuary.
However, the disparity still existed as discrimination betweenIndian and foreign companies. The
oldest existing insurance company in India is theNational Insurance Company, which was
founded in 1906, and is still in [Link] LIC had monopoly until the late 90s when the
Insurancesector was reopened to the private sector. But, now there are

23 private life insurance companies in India. Before that, the industry consisted of only two state
insurers: Life Insurers(Life Insurance Corporation of India, LIC) and General Insurers (General
Insurance Corporation of India, GIC). GIChad four subsidiary companies. With effect from
December2000, these subsidiaries have been de-linked from the parent company and were set
up as independent insurance companies:Oriental Insurance Company Limited, New India
AssuranceCompany Limited, National Insurance Company Limited andUnited India Insurance
Company.

What is IRDAI?
IRDAI stands for Insurance Regulatory and Development Authority of India.

It is the government body that controls and regulates all insurance companies in India.

Think of IRDAI as the “referee” or “watchdog” of the insurance industry.

What does IRDAI do?

⭐ 1.
Protects customers

IRDAI makes rules so customers are not cheated by insurance companies.

⭐ 2.
Approves insurance plans

No company can sell any insurance plan unless IRDAI checks and approves it.

⭐ 3.
Monitors insurance companies

It checks whether companies are financially stable, honest, and following rules.

⭐ 4.
Handles complaints

If someone has a problem with an insurance company, IRDAI provides a system to solve it:

●​ IGMS (Integrated Grievance Management System)​

⭐ 5.
Ensures fair claim settlement

IRDAI makes sure companies pay claims on time and do not delay without reason.

Why is IRDAI important?

Because insurance is about your money + your safety.

IRDAI ensures:

●​ transparency​

●​ no fraud​

●​ fair treatment​

●​ safety of your investment​

When was IRDAI formed?

1999, under the IRDA Act.
INTRODUCTION
• The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body
under the jurisdiction of Ministry of Finance , Government of India and is tasked with regulating
and licensing the insurance and re-insuranceindustries in India.[1] It was constituted by the
Insurance Regulatory andDevelopment Authority Act, 1999,[2] an Act of Parliament passed by
theGovernment of India.[3] The agency's headquarters are in Hyderabad, Telangana,

where it moved from Delhi in 2001.[4]

• IRDAI is a 10-member body including the chairman, five full-time and four part-

time members appointed by the government of India.

• Section 4 of the IRDAI Act 1999 specifies the authority's composition. It is a ten-

member body consisting of a chairman, five full-time and four part-time members

appointed by the government of India. At present (YEAR-2023), the authority is

chaired by Debasish Panda and its full-time members.

ROLES AND FUNCTIONS -Section 14 of the IRDAI Act,1999,

• Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations

• Protecting policyholder interests

• Specifying qualifications, the code of conduct and training for intermediaries and agents

• Specifying the code of conduct for surveyors and loss assessors

• Promoting efficiency in the conduct of insurance businesses

• Promoting and regulating professional organisations connected with the insurance and
re-insurance industry

• Leaving fees and other charges

• Inspecting and investigating insurers, intermediaries and other relevant organisations

• Regulating rates, advantages, terms and conditions which may be offered by insurers not
covered by the

Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938)
• Regulating a margin of solvency

• Adjudicating disputes between intermediaries

• Supervising the Tariff Advisory Committee

and many more.

Typesss of insurance-IRDAI

LIFE INSURANCE
• In life insurance customer pays premium for certain numberof years and there will be certain
lock in period and after thatperiod is over the customer receives lump sum amount or after the
death of the customer the nominee receives thepayment. There are various types of life
insurance.

It acts as financial security to meet any unexpected expenses.

• This also acts as long-term savings schemes. It is used to safeguard our self as well as our
family member as amount ispaid to nominee in case the insurer is dead

.HEALTH INSURANCE

• Health insurance is used to claim medical expenses in casethe individual is hospitalized.

• In medical insurance they have certain criteria for preexisting diseases such as diabetics,
Blood pressure etc.

• For e.g. the claim related to above mentioned disease can be done only after 6 months of
insurance is paid and so on.

• There are some insurance companies providing health cardsto customers, hence one need
not pay the amount and theclaim bill will be deducted at the initial stage itself.

VEHICLE INSURANCE
• This type of insurance is for losses related with vehicles such as
Two wheelers, Four wheelers, commercial trucks and so on. It is

mandatory for any vehicle holder to take this insurance.

• If any accident occurs and if the vehicle is insured certain amount

will be paid depending upon the premium for repairing or

replacing the components of vehicles.

• Even if the vehicle is lost and if it is insured claim can be done.

• This also provides accidental coverage for the drivers.

Marine insurance –
This type of insurance are used tomeet the losses during the transport of goods via [Link]
covers the losses of cargos, ships, freight etc.

Credit insurance
– It covers loans or credit card when an individual is not able to do the payment due to reasons
such unemployment or death.

• Another main advantage of insurance is it can be claimed as tax saving deduction under
section 80C and 80 D

INSURANCE AND BUSINESSMAN

• Security and Safety: It gives a sense of security and safety to the businessman. It enables him
to receive compensation against actual loss. He can concentrate on his business with a secure
feeling that in case of losses arising from insurable risk, his losses will be compensated

• Distribution of risk: Risk in insurance is spread over a number of people rather being
concentrated on a single individual.

• Normal expected profit: An insured trader can enjoy normal margin of profit all the time. He is

protected from unexpected losses because of insurance.

• Easy to get loans: A trader can get bank loans easily if his stock or property is insured,
asinsurance provides a sense of security to the lenders.
• Advantages of Specialization: Businessmen can concentrate on their business activities
without spending more time on safeguarding their property. The insurance companies, on the
other hand,can provide specialized insurance services.

• Development of Social Sectors: Insurance funds are available for economic development
particularly for the development of social sectors. Especially for a developing country like
India,insurance funds are an important source for investing in infrastructure projects (roads,
power,water supply, telecom etc).

CAREERS IN INSURANCE SECTOR

• Insurance Sales Agent:- Let’s start with the basic job we think insurance brokers undertake -
sales. If you decide to be a sales agent,you will help potential individuals decide which
insurance policy to buy and the options that offer better benefits within their budgets.

• Claims Adjuster:- There are many kinds of insurance policies whichone takes; they include
health, life, cars, even mobile phones—the policies are plenty. Now, as a claims adjuster, you
would assess the situation and see what benefits the investor should receive based ontheir
claim and damages

• Claims Examiner:- After a claim adjuster completes his/her rounds and thoroughly evaluates
what needs to be done, the task of reviewing incoming claims is assigned to a claims examiner

•Relationship Manager and Advisor:-As the name suggests, you are the bridge between the
client and the company, the Relationship Manager. You make sure the client is happy and
conversant with thecompany’s new and old policies and is satisfied with your [Link]
many more options are available in this sector like Insurance Underwriter, Insurance Actuary
etc.

BIBLIOGRAPHY
• GOOGLE - [Link]

• WIKIPEDIA - [Link]

• TATA AIA - [Link]

• FINANCIAL SERVICES - [Link]

• MINISTRY OF FINANCE

• BUSINESS STUDIES CLASS XI - SUBHASH DEY

• BUSINESS STUDIES CLASS XI - POONAM GANDH

Thankyouuu