This project titled “COMPARISON OF DIFFERENT PRODUCTS OF HDFC STANDARD LIFE INSURANCE COMPANY LTD And RELIANCE LIFE INSURANCE COMPNAY”. In this project we study about various insurance products offer by HDFC Life and reliance insurance company in the market. This report provides the various insurance products available in the market to protect the people life from particular risk and also provides knowledge about the various savings schemes available in the market. So firstly we need to understand what is insurance. Insurance is a contract between two parties whereby one party called insurer undertakes In exchange for a fixed sum called premiums, to pay the other party happening of a certain event. To get insurance an individual or an organization can approach to an insurance Company directly, through Insurance Agent of the concerned company or through Intermediaries.
The business of insurance is related to the protection of the economic values of assets. Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of assets. Every asset has normally an expected lifetime. During this period, it is expected to perform and provide income/comfort to the owner. The owner, being aware of this, plans the things in such a way that by the time the expected lifetime of the asset expires, he is ready with the funds required for its replacement. In this way, he ensures that the value or income from the asset is not lost. Well, this appears to be a fine arrangement provided the asset completes its expected lifetime!
All assets carry the risk of being destroyed or damaged. But all assets may not necessarily get destroyed or damaged. Only in a few instances, the probability turns out to be true and the asset gets actually lost or destroyed by accident or some other unfortunate event before the completion of its expected lifetime. The owner and those deriving benefits from the asset will suffer because the arrangement to make available its substitute is not yet ready.
Insurance is helpful in mitigating such adverse consequences. To sum up, assets are insured; as they are likely to be lost or made non-functional through an accidental occurrence. Insurance does not protect the assets. This means that insurance cannot prevent loss to the assets due to perils. Nor can insurance avoid the occurrence of the perils. It only compensates, may not be fully, the economic or financial loss resulting to the asset from such damage or destruction.
1.2BRIEF HISTORY OF INSURANCE
The beginning of insurance business is traced to the city of London. It started with the marine business. Marine traders, who used to gather at Lloyd’s coffee house in London, agreed to share losses to goods during transportation by ship. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. Marine related losses included:-
* Loss of ship by sinking due to bad weather in high seas. * Goods in transit by ship robbed by sea pirates.
* Loss of or damage to the goods in transit by ship due to bad weather in high seas. The first insurance policy was issued in England in 1583.
It was in the early 19th Century when the Britishers on their postings in India felt the need of life insurance cover. It started with English Companies like... ‘The European and the Albert’. In India, insurance began in 1818 with life insurance being transacted by an English company the Oriental Life Insurance Company Limited. The first Indian company was the Bombay Mutual Assurance Society Ltd. formed in 1870 in Mumbai.
LIFE INSURANCE IN INDIA:
The concept of Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance...