Insurance Courses in India

Insurance is a written contract or certificate which promises of reimbursement to people in the case of any type of loss, accident, natural disasters etc. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Insurance Agents are involved in helping individuals and businesses in managing risk to protect themselves from catastrophic losses and to anticipate potential problems. They help clients to understand their insurance needs, explain their options to them and help them in deciding appropriate insurance policies. The Indian insurance industry is witnessing exceptional growth with private participation. It has a mix of public and private firms both in the field of life and non-life business. This sector not only provides a protective shield to the lives and assets of the nation but also generates thousands of jobs and career opportunities.

Some of its specialized fields are -

• Auto Insurance.
• Life Insurance.
• Property Insurance.
• Health Insurance.
• Accident, Sickness and Unemployment Insurance
• Liability Insurance.
• Pet Insurance.
• Travel Insurance.
• Title Insurance.
• Workers Compensation.
• Aviation Insurance.

Content

The study of this field includes all or few of these –

1. Introduction to Insurance.
2. Principles of Insurance.
3. Nature of Insurance, Documents & Classification.
4. Financial Aspects of Insurance.
5. Introduction to Under-writing & Claims.

Objectives

• To develop high calibre young professionals who can play a crucial role in the ongoing development of the insurance industry.
• To develop a commitment towards dual-profitable services related to insurance and risk management.
• To give an absolute clear picture to policy seekers without any hidden agenda.

Basic Requirement

Academic Requirements - Students who have passed 10 + 2 in any stream or equivalent exam are eligible. To pursue a career in the insurance industry, one has to pass the entrance examination conducted by the Actuarial Society of India, Mumbai. License is needed to work in this field which can be achieved through a training programme.

1. Insurance Institute of India conducts Licentiate, Associateship and Fellowship plus other training programmes for insurance services. Licentiate examination can be taken in Hindi and English on life and non life branches. Subjects covered are Principles of Insurance (Principles of Life Assurance), Practice of Life Assurance (Practice of Life Assurance), Insurance Business Environment (Elements of Modern Commerce) for the life branch and for the non life branch you need to take up Practice of General Insurance (Practice of General Insurance) instead of Practice of Life Assurance.
2. The Central Board of Secondary Education (C.B.S.E.), in collaboration with the GIC and LIC have introduced insurance subjects at 10+2 as a vocational course. The same has been introduced by many universities at the graduation level. After the completion of graduation or post graduation in management one can work in the insurance marketing and sales of private insurance companies.

Some of the institutes providing Insurance Courses:

• International Institute for Insurance and Finance - Hyderabad
• Annamalai University, Annamalai Nagar (Tamil Nadu).
• Institute of Insurance and Risk Management, Hyderabad (Andhra Pradesh).
• Amity School of Insurance and Actuarial Science, Noida.

Personality Traits - This field is well-suited for those who are good listeners, who enjoy people and are comfortable with quantitative analysis of risks. For being a successful insurance agent, the most vital skill required is to have a knack for convincing people. They must be self confident, outgoing, helpful, social and should be able to communicate with people at varied levels.

Job Perspectives

Insurance is a trillion dollar business that employs a humongous number of people. It is a stable yet dynamic industry that provides a wealth of advancement and career opportunities. As the population ages and wealth grows, the demand for insurance professionals is also on the increase. There are some what 30 insurance companies in India. The major government companies are Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC) and Postal Life Insurance. While LIC deals with insurance of life, GIC and its subsidiaries are concerned with non life aspects of insurance such as car, marine, accident, medical and fire insurance. Many multinational companies have come forward in the insurance field. ICICI Prudential, Om Kotak Mahindra, Birla Sun-Life, Tata AIF Life, Reliance, HDFC Standard Life-Insurance Co., Max New York Life, SBI Life Insurance, ING Vysya Life etc. are the top companies in the private sector. In non-life insurance segment, major private players are ICICI Lombard, Royal Sundaram, Cholamandalam, IFFCO Tokyo, Tata AIG etc. All Insurance companies come under the Insurance Regulatory and Development Authority (IRDA) which is established to regulate, promote and ensure orderly growth of Life and General insurance industry in India. With such a large number of companies involved in the Insurance business, there is no dearth of jobs.

Remuneration

The pay scale in the government sector is as per government rules depending on each position. For each grade, along with their basic pay other allowances are also granted. In the private sector the salary scales are more lucrative. They take in management graduates to work mainly in the areas of marketing and sales with an initial salary ranging from Rs 15,000 to Rs 25,000 per month. Commissions are the most common form of compensation for insurance agents and the amount depends on the type and amount of insurance sold, and whether the transaction is a new policy or a renewal. On the 1st year of policy, they may get about 25-32% of the premium amount, followed by 7.5% in the 2nd and 3rd and 5% in 4th and 5th year. When they meet their sales goals bonuses are also awarded. Remuneration of agents are governed by IRDA regulations, while earnings of surveyors depend upon nature of work and assignments. Actuaries are one of the most highly paid people in the insurance sector and the entry level salary is expected to be somewhere around Rs. 8 lakh per annum and with a few years experience they could earn a seven figure salary per annum, especially in the private sector. For the underwriters it is around Rs. 6 lakh per annum.

Some Job Types

1. Underwriter.
2. Sales Representative.
3. Asset Manager.
4. Customer Service Representative.
5. Actuary.
6. Administrative Officer (AO).
7. Assistant Administrative Officer (AAO).
8. Development Officer.
9. Composite Agent.

Some Employment Areas

• Educational Institutes.
• Research Organisations.
• Health Departments.
• Aviation Industry.
• Insurance Agencies.
• Banks.
• Financial Institutions.
• Credit Companies.
• Automobile Industry.
• Property Developers.