Insurance

How to secure life and property

Insurance is a means of protection against any hazards of life. It is financial contract that binds two people to definite commitment which is known as Policy. The purchaser of the insurance/ gets insurance coverage is the policy holder or insured and the one who sells the policy is the insurer. From the time the insured signs the policy he/she has a commitment to pay an assured amount of money known as premium at regular intervals for a fixed period to the insurer. In fact, insurance is an agreement to pay a premium in return for which the insurer will pay compensation in certain eventualities e.g. fire, theft, motor accident, etc.

The insurance industry in India is witnessing an exceptionally upward trend. This could be attributed to the participation of the private companies in this industry. Both public and private sector are playing an active role in the field of life and non-life business. Today this industry is playing a major role in generating thousands of jobs and career opportunities.

One of the leading options for career choice in this industry is that of the insurance agent. These agents advice the individuals and enterprises about insurance protection to their health, life and properties and sell the policies to provide protection against financial loss. This industry also provides great opportunities in marketing, distribution, actuarial, underwriting operations and investing departments.

Earlier the insurance companies were public sector companies which were under governmental control like the Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC) and Postal Life Insurance but today with lots of private players there are about 30 insurance companies in the industry. They being 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. 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.

Eligibility:

The entrance examination conducted by the Actuarial Society of India has to be passed by eligible students who have passed 10 + 2 or equivalent exam . License is needed to work in this field which can be achieved through a training programme. The Central Board of Secondary Education (C.B.S.E.), in collaboration with the GIC and LIC has 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.

Job Prospect:

Insurance industry has different departments and its own set of rules and responsibilities. The main work areas are : Administrative Officer (AO) and Assistant Administrative Officer (AAO) , Development Officer, Insurance/ Composite Agents, Insurance Surveyors, Actuaries, Insurance Underwriter, Investment Professionals.

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.

Institutes:

Many institutes offer course in insurance like Actuarial Society of India, Mumbai, Amity School of Insurance and Actuarial Science, Noida, Birla Institute of Management & Technology, New Delhi.