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Public Sector Insurance Companies in India

The document provides an overview of public sector insurance companies in India, detailing their establishment, type, ownership, and key information. It also outlines the role and governance of the Insurance Ombudsman, including the process for filing complaints and recent amendments. Additionally, it describes various government insurance schemes aimed at different demographics, such as farmers and senior citizens.
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0% found this document useful (0 votes)
10 views9 pages

Public Sector Insurance Companies in India

The document provides an overview of public sector insurance companies in India, detailing their establishment, type, ownership, and key information. It also outlines the role and governance of the Insurance Ombudsman, including the process for filing complaints and recent amendments. Additionally, it describes various government insurance schemes aimed at different demographics, such as farmers and senior citizens.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Website: civilstap22@gmail.

com Contact us: 7889296332

Public Sector Insurance Companies in India

1. Life Insurance Corporation of India (LIC)

• Established: 1956
• Type: Life Insurance
• Ownership: Government of India
• Headquarters: Mumbai
• Key Info:
o Oldest and largest life insurance company in India.
o Held monopoly in the life insurance sector till the entry of private companies post-2000.

2. General Insurance Corporation of India (GIC Re)

• Established: 1972
• Type: Reinsurance
• Ownership: Government of India
• Headquarters: Mumbai
• Key Info:
o Only public sector reinsurance company in India.
o Provides support to direct insurance companies.
o Subsidiary: GIC Re South Africa.

3. Agriculture Insurance Company of India Ltd. (AIC)

• Incorporated: 20th December 2002


• Started Operations: 1st April 2003
• Type: Crop Insurance (General Insurance)
• Ownership: Ministry of Finance, Govt. of India
• Headquarters: New Delhi
• Key Info:
o Specializes in agriculture and crop insurance.
o Implements government schemes like PMFBY (Pradhan Mantri Fasal Bima Yojana).

4. Export Credit Guarantee Corporation Ltd. (ECGC)

• Established: 30th July 1957


• Type: Export Insurance
• Ownership: Ministry of Commerce & Industry, Govt. of India
• Headquarters: Mumbai
• Key Info:
o Provides credit risk insurance to Indian exporters.
o Helps boost international trade.
Website: civilstap22@[Link] Contact us: 7889296332

5. National Insurance Company Ltd. (NICL)

• Established: 1906
• Type: General Insurance
• Ownership: Government of India
• Headquarters: Kolkata
• Key Info:
o One of the oldest general insurance companies in India.
o Offers wide range of products including vehicle, health, and property insurance.

6. The New India Assurance Co. Ltd.

• Established: 23rd July 1919


• Type: General Insurance
• Ownership: Government of India
• Headquarters: Mumbai
• Key Info:
o Largest public sector general insurer in India.

7. The Oriental Insurance Co. Ltd.

• Established: 12th September 1947


• Type: General Insurance
• Ownership: Government of India
• Headquarters: New Delhi
• Key Info:
o Known for offering customized and specialized insurance products.
o Focus on industrial and commercial sectors.

8. United India Insurance Co. Ltd.

• Established: 1938
• Type: General Insurance
• Ownership: Government of India
• Headquarters: Chennai
• Key Info:
o Offers products for retail and commercial sectors.
Website: civilstap22@[Link] Contact us: 7889296332

Insurance Ombudsman (India)


Establishment & Legal Basis

• Established: 11th November 1998


• By: Government of India under Redressal of Public Grievances Rules, 1998
• Legal Framework:
o Under powers of the IRDAI Act, 1999
o Rules updated under Insurance Ombudsman Rules, 2017 (amended in March 2021)

Purpose & Role

• Alternative Grievance Redressal Mechanism


• Handles complaints related to:
o Life Insurance
o General Insurance
o Health Insurance
• Applicable to:
o Individual policies
o Group policies
o Sole proprietors & micro enterprises
• Claim Limit: ₹30 lakhs or less

Governance Structure

Council for Insurance Ombudsmen (CIO)

• Total Members: 9 (including Chairperson)


• Members Include:
1. 2 from Life Insurers (nominated by Life Insurance Council)
2. 2 from General Insurers (excluding standalone health insurers)
3. 1 from Standalone Health Insurers
4. 1 from IRDAI
5. 1 from Ministry of Finance (Joint Secretary level)
6. 2 Chairpersons (Rotating: Chairman of LIC and GIPSA)

Term:

• 3 years
• Re-nomination gap: 3 years (except for IRDAI, Finance Ministry, Chairperson nominees)

Insurance Ombudsman

• Appointed by: CIO based on recommendations from Selection Committee


• Selection Committee Includes:
1. Chairperson of IRDAI (or senior member)
2. 1 general insurance expert (from Banks Board Bureau)
Website: civilstap22@[Link] Contact us: 7889296332

3. 1 life insurance expert (from Banks Board Bureau)


4. 1 consumer rights representative
5. 1 Central Government representative (Finance Ministry)

Qualifications:

• Age: 55–65 years


• Experience:
o Civil Servants: Ex-Joint Secretary (or equivalent), OR
o Insurance Professionals: 25+ years, 1 level below Board Director
• Tenure: 3 years or until age 68 (whichever is earlier)
• Reappointment: Not eligible
• Exception: Those serving before March 2, 2021 – till term end or age 70

Coverage & Access

• 17 Ombudsman Centres: Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Ahmedabad, Bengaluru,


Bhopal, Bhubaneswar, Chandigarh, Guwahati, Jaipur, Kochi, Lucknow, Noida, Pune, Patna
• No Fee Required to file complaint
• Online Filing & Video Hearings Available

Conditions to Approach Ombudsman

1. First, lodge complaint with insurer.


2. If:
o No response in 30 days, or
o Complaint is rejected, or
o Not satisfied with response

→ Then file with Ombudsman.

3. Applicable only to individual policyholders


4. Claim amount must be ₹30 lakhs or less

Grounds for Complaint

1. Delay in claim settlement


2. Partial/total rejection of claims
3. Premium disputes
4. Misrepresentation of policy terms
5. Legal disputes (policy clauses, “Act of God”, etc.)
6. Poor service by insurer/agent/intermediary
7. Policy mismatch with proposal form
8. Policy not issued after premium payment
9. Violation of IRDAI rules or policy terms

Settlement Process
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1. Recommendation:

• Ombudsman acts as mediator


• If accepted by complainant → Insurer must comply in 15 days

2. Award (Binding Decision):

• If no settlement → Ombudsman issues Award within 3 months


• Insurer must comply in 30 days

Recent Amendments (March 2021)

• Covers services of:


o Agents, Brokers, Intermediaries
• Online complaints enabled
• Video conferencing introduced
• Brokers brought under Ombudsman jurisdiction

1. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

• Launch: 2015
• Ministry: Finance
• Type: Accident Insurance
• Eligibility: 18–70 years with a bank/post office account
• Premium: ₹20/year
• Coverage: Accidental death/disability
• Covers accidental death and disability due to accidents, natural calamities (earthquakes, floods),
and murder.
• Benefits:
o Death or total disability: ₹2 lakh
o Partial disability: ₹1 lakh
• Auto-Renewal: Yes (Auto-debit before June 1 annually)

2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

• Launch: May 2015


• Ministry: Finance
• Type: Life Insurance
• Eligibility: 18–50 years with a bank/post office account
• Premium: ₹436/year
• Coverage: Death (any cause)
• Benefit: ₹2 lakh on death
• Term: One year, renewable

3. Pradhan Mantri Fasal Bima Yojana (PMFBY)

• Launch: January 2016


Website: civilstap22@[Link] Contact us: 7889296332

• Ministry: Agriculture
• Type: Crop Insurance
• Eligibility: Farmers growing notified crops
• Objective: Compensation for crop loss due to natural calamities, pests, etc.
• Coverage Includes:
o Yield Loss
o Prevented Sowing
o Post-Harvest Losses
o Localized Calamities

4. Atal Pension Yojana (APY)

• Launch: May 2015


• Ministry: Finance (Managed by PFRDA)
• Type: Pension Scheme
• Eligibility: 18–40 years (non-income tax payers since Oct 2022)
• Contribution: Monthly (auto-debited, amount based on age and pension choice)
• Pension: ₹1000–₹5000/month from age 60
• Benefit:
o Spouse continues pension after subscriber’s death
o Corpus paid to nominee after both pass away

5. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

• Launch: May 2017


• Managed by: LIC
• Target: Senior Citizens (60+)
• Type: Pension-cum-Investment Scheme
• Policy Term: 10 years
• Max Investment: ₹15 lakh
• Returns: 7%–9% annually
• Benefits:
o Regular pension (Monthly/Quarterly/etc.)
o Return of purchase price on death or maturity
o Loan and premature exit allowed

6. Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)

• Launch: September 2019


• Ministry: Agriculture
• Type: Pension Scheme for Farmers
• Eligibility:
o Small/Marginal Farmers (land ≤ 2 hectares)
o Age 18–40 years
o Not covered under EPFO/ESIC/NPS or not an income taxpayer
• Contribution: ₹55–₹200/month (Govt. matches contribution)
• Pension: ₹3000/month from age 60
• Family Pension: 50% to spouse upon death

1. Pradhan Mantri Suraksha Bima Yojana (PMSBY)


Website: civilstap22@[Link] Contact us: 7889296332

• Launch Date: May 9, 2015


• Ministry: Ministry of Finance
• Type: Accidental Insurance
• Implementing Agency: Public Sector General Insurance Companies and other insurers
• Eligibility: Indian citizens aged 18 to 70 years having a savings bank or post office account
• Premium: ₹20 per annum (auto-debited before June 1 each year)
• Coverage:
o Accidental death or total permanent disability: ₹2 lakh
o Partial permanent disability: ₹1 lakh
• Renewability: Yes (Auto-renewed annually)
• Source: [Link] – PMSBY

2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

• Launch Date: May 9, 2015


• Ministry: Ministry of Finance
• Type: Life Insurance
• Implementing Agency: Life Insurance Corporation (LIC) and other life insurers
• Eligibility: Indian citizens aged 18 to 50 years with a savings bank or post office account
• Premium: ₹436 per annum (auto-debited)
• Coverage: ₹2 lakh (for death from any cause)
• Term: One year, renewable every year
• Source: [Link] – PMJJBY

3. Pradhan Mantri Fasal Bima Yojana (PMFBY)

• Launch Date: January 13, 2016


• Ministry: Ministry of Agriculture & Farmers’ Welfare
• Type: Crop Insurance Scheme
• Eligibility: All farmers (loanee and non-loanee) growing notified crops in notified areas
• Premium:
o Kharif Crops: 2% of sum insured
o Rabi Crops: 1.5%
o Commercial/Horticultural Crops: 5%
• Coverage:
o Prevented sowing/planting risk
o Standing crop (yield loss)
o Post-harvest losses
o Localized calamities
• Yield Losses: Comprehensive risk insurance is provided to cover yield losses due to non-preventable
risks, such as ○ Natural Fire and Lightning ○ Storms, Hailstorms, Cyclones, Typhoons, Tempest,
Hurricanes, Tornados, etc. ○ Flood, Inundation, and Landslide ○ Drought, Dry spells ○ Pests/
Diseases etc.
• 2. Prevented Sowing (on notified area basis):- In cases where the majority of the insured farmers of a
notified area, having the intent to sow/plant and incurred expenditure for the purpose, are prevented
from sowing/planting the insured crop due to adverse weather conditions, shall be eligible for
indemnity claims upto a maximum of 25% of the sum insured
• 3. Post-Harvest Losses (individual farm basis): Coverage is available upto a maximum period of 14
days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field after
Website: civilstap22@[Link] Contact us: 7889296332

harvesting, against specific perils of cyclone / cyclonic rains, unseasonal rains throughout the
country.
• 4. Localized Calamities (individual farm basis): Loss/damage resulting from the occurrence of
identified localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the
notified area.
• Implementing Agencies: Empanelled insurance companies under MoA
• Source: [Link]

4. Atal Pension Yojana (APY)

• Launch Date: May 9, 2015


• Ministry: Ministry of Finance (Regulated by PFRDA)
• Type: Pension Scheme
• Eligibility:
o Citizens aged 18 to 40 years
o Since October 2022, only non-income tax payers can enroll
• Contribution: Monthly (based on age and desired pension; auto-debited)
• Pension Benefits: ₹1000–₹5000 per month from age 60
• Death Benefits:
o Spouse receives pension after subscriber’s death
o Nominee receives corpus after both pass away
• Source: [Link]

5. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

• Launch Date: May 4, 2017 (Available until March 31, 2023)


• Managed by: Life Insurance Corporation of India (LIC)
• Target Group: Senior Citizens aged 60 years and above
• Type: Pension-cum-Investment
• Policy Term: 10 years
• Maximum Investment: ₹15 lakh per senior citizen
• Returns: Assured interest rate of 7.4% per annum (compounded monthly)
• Benefits:
o Monthly/quarterly/semi-annual/annual pension payout
o Return of purchase price on death/maturity
o Loan facility after 3 years
o Premature exit for critical illness allowed
• Source: [Link] – PMVVY

6. Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)

• Launch Date: September 12, 2019


• Ministry: Ministry of Agriculture & Farmers’ Welfare
• Type: Voluntary Pension Scheme for Farmers
• Eligibility:
o Small and marginal farmers with landholding ≤ 2 hectares
o Age: 18–40 years
o Not an income tax payer, and not covered under EPFO/ESIC/NPS
Website: civilstap22@[Link] Contact us: 7889296332

• Contribution: ₹55 to ₹200/month (based on entry age); Government contributes equally


• Pension: ₹3000 per month from age 60
• Family Pension: Spouse gets 50% of pension on subscriber’s death
• Exit Option: Exit with contributions + interest if leaving early
• Source: [Link]

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