project of tata aig

8/7/2019 project of TATA AIG

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Presenta t ion Repor t

on

Submit ted in Par t ia l Ful f i l lment for the Award of the Dip loma

of

Pos t Graduate Dip loma in Management

(Sess ion 2010-12)

Submit ted to : Submi t ted By:

Facul ty Name Student Name

(In terna l Guide) Rol l No

PGDM

DEPARTMENT OF MANAGEMENT

INSTITUTE OF MANAGEM ENT STUDIES, NOIDA

A UGC Recognized Ins t i tu te

A-8B, P lo t C, Sec tor-62 , Noida


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1

I N S T I T U T E O F M A N A G E M E N T S T U D I E S , N O I D A

A UGC Recognized Ins t i tu te

A-8B, P lo t C, Sec tor-62 , Noida

D E C L A R AT I O N

I ____________________________bear ing Rol l No ________

Class __________________of the Ins t i tu te of Management

Studies , Noida hereby dec lare tha t the Pro jec t Repor t -208

ent i t led______________________________________________

_________ i s an or ig ina l work and the same has not been

submi t ted to any o ther Ins t i tu te for the award of any o ther

d ip loma. The sugges t ions as approved by the facul ty were duly

incorpora ted .

S i g n a t u r e o f S t u d e n t

C o u n t e r s i g n e d

S i g n a t u r e o f F a c u l t y G u i d e


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INDEX

S R N O TO P I C PA G E N O

1 N AT U R E O F I N S U R A N C EI N D U S T RY

4

2 H I S TO RY O F I N S U R A N C E I N I N D I A 11

3 T Y P E S O F I N S U R A N C E 1 4

4 TATA G R O U P 2 8

5 A M E R I C A N I N T E R N AT I O N A LG R O U P ( A I G )

29

6 TATA - A I G G E N E R A L I N S U R A N C E 3 1

7 V I S I O N O F TATA A I G 3 2

8 P U R P O S E O F TATA - A I G 3 2

9 VA L U E S 3 2

1 0 I N S U R A N C E S C H E M E O F TATA A I G 3 3

11 C O R P O R AT E S O C I A LR E S P O N S I B I L I T Y ( C S R )

4 1

1 2 M I L E S TO N E 4 3

13 MANAGEMEN T TEAM OF TATAAI G

52

1 4 B I B L I O G R A P H Y 5 4


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NATURE OF THE INSURANCE INDUSTRY

Goods and serv ices .

The insurance indus t ry provides pro tec t ion aga ins t f inanc ia llosses resu l t ing f rom a var ie ty of hazards . By purchas ing

insurance pol ic ies , ind iv idua ls and bus inesses can rece ive

re imbursement for losses due to car acc idents , thef t o f

p roper ty, and f i re and s torm damage; medica l expenses ; and

loss of income due to d isab i l i ty or dea th .

Indus t ry organiza t ion .

The insurance indus t ry cons is t s main ly of insurance car r ie rs

and insurance agencies and brokerages . In genera l , insurance

car r ie rs a re la rge companies tha t provide insurance and assume

the r i sks covered by the pol icy. Insurance agencies and

brokerages se l l insurance pol ic ies for the car r ie rs . Whi le some

of agencies and brokerages a re d i rec t ly a ff i l i a ted wi th a

par t icu lar car r ie r and se l l on ly tha t car r ie r ' s po l ic ies , many are

independent and are thus f ree to marke t the pol ic ies of a

var ie ty of insurance car r ie rs .

In addi t ion to these two pr imary components , the insurance

indus t ry inc ludes es tab l i shments tha t provide o ther insurance-

re la ted serv ices , such as c la ims ad jus tment or th i rd-par ty

adminis t ra t ion of insurance and pens ion funds . These o ther

insurance indus t ry es tab l i shments a l so inc lude a number of

independent organiza t ions tha t provide a wide a r ray of

insurance- re la ted serv ices to car r ie rs and the i r c l ien ts . One

such serv ice i s the process ing of c la ims forms for medica l


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p rac t i t ioners . Other se rv ices inc lude loss prevent ion and r i sk

management . Also , insurance companies somet imes h i re

independent c la ims ad jus te rs to inves t iga te acc idents and

cla ims for proper ty damage and to ass ign a dol la r es t imate to

the c la im.

Insurance car r ie rs assume the r i sk assoc ia ted wi th annui t ies

and insurance pol ic ies and ass ign premiums to be pa id for the

pol ic ies . In the pol icy, the car r ie r s ta tes the length and

condi t ions of the agreement , exac t ly which losses i t wi l l

p rovide compensa t ion for, and how much wi l l be awarded . The

premium charged for the pol icy i s based pr imar i ly on the

amount to be awarded in case of loss and the l ike l ihood tha t

the insurance car r ie r wi l l ac tua l ly have to pay. In order to be

able to compensa te pol icyholders for the i r losses , insurance

companies inves t the money they rece ive in premiums, bu i ld ing

up a por t fo l io of f inanc ia l asse ts and income-producing rea l

es ta te which can then be used to pay off any fu ture c la ims tha tmay be brought . There a re two bas ic types of insurance

car r ie rs : pr imary and re insurance . Pr imary car r ie rs a re

respons ib le for the in i t ia l underwr i t ing of insurance pol ic ies

and annui t ies , whi le re insurance car r ie rs assume a l l o r par t o f

the r i sk assoc ia ted wi th the ex is t ing insurance pol ic ies

or ig ina l ly underwr i t ten by o ther insurance car r ie rs .

Pr imary insurance car r ie rs offe r a var ie ty of insurance pol ic ies .

Life insurance p rovides f inanc ia l p ro tec t ion to benef ic ia r ies

usua l ly spouses and dependent ch i ldrenupon the dea th of the

insured . Disab i l i ty insurance suppl ies a prese t income to an

insured person who i s unable to work due to in jury or i l lness ,


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and h ea l t h insurance pays the expenses resu l t ing f rom

accidents and i l lness . An annui ty (a cont rac t or a group of

cont rac ts tha t furn ishes a per iodic income a t regular in te rva ls

for a spec i f ied per iod) provides a s teady income dur ing

re t i rement for the remainder of one ' s l i fe . P roper ty-casua l ty

insurance protec ts aga ins t loss or damage to proper ty resu l t ing

f rom hazards such as f i re , thef t , and na tura l d i sas te rs . L iab i l i ty

insurance protec ts po l icyholders f rom f inanc ia l respons ib i l i ty

for in jur ies to o thers or for damage to o ther people ' s p roper ty.

Most po l ic ies , such as au tomobi le and homeowner ' s insurance ,

combine both proper ty-casua l ty and l iab i l i ty coverage .Companies tha t underwr i te th i s k ind of insurance a re ca l led

proper ty-casua l ty car r ie rs .

Some insurance pol ic ies cover groups of people , ranging f rom

a few to thousands of ind iv idua ls . These pol ic ies usua l ly a re

i ssued to employers for the benef i t o f the i r employees or to

unions , p rofess iona l assoc ia t ions , o r o ther membersh iporganiza t ions for the benef i t o f the i r members . Among the most

common pol ic ies of th i s na ture a re group l i fe and hea l th p lans .

Insurance car r ie rs a l so underwr i te a var ie ty of spec ia l ized

types of insurance , such as rea l -es ta te t i t l e insurance ,

employee sure ty and f ide l i ty bonding , and medica l malprac t ice

insurance .

Other organiza t ions in the indus t ry a re formed by groups of

insurance companies , to per form funct ions tha t would resu l t in

a dupl ica t ion of e ffor t i f each company car r ied them out

indiv idua l ly. For example , se rv ice organiza t ions a re suppor ted


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by insurance companies to provide loss s ta t i s t ics , which the

companies use to se t the i r ra tes .

Recent deve lopments .

The recent f inanc ia l c r i s i s has resu l ted in la rge losses for the

insurance indus t ry. Indus t ry condi t ions in the near te rm remain

tenuous , par t icu lar ly as many companies wi l l cont inue to

exper ience dec l in ing revenues , inves tment losses , and cred i t

ra t ing downgrades , which can affec t an insurers ab i l i ty to

repay debt by having to pay a h igher in te res t ra te .

Addi t iona l ly, insurance companies who were t rad ing in c red i tdefaul t swaps and o ther r i sky ins t ruments wi thout suff ic ien t

hedging suffered espec ia l ly hard , and some companies even

became inso lvent . Companies wi th prudent r i sk management

s t ra teg ies a l so suffered la rge losses , because most inves tment

ins t ruments owned by insurance companies exper ienced fa l l ing

values as they were be ing so ld or marked down as the s tock

marke t de te r iora ted in la te 2008. Nonethe less , as insurers

rebui ld capi ta l and adhere to s t r ic te r Federa l regula t ions , the

insurance indus t ry i s l ike ly to s tab i l ize .

Insurance car r ie rs now se l l p roducts t rad i t iona l ly assoc ia ted

wi th o ther f inanc ia l ins t i tu t ions , such as banks and secur i t ies

f i rms . These products inc lude secur i t ies , mutua l funds , and

var ious re t i rement p lans . The In te rne t i s an impor tan t too l for

insurance car r ie rs in reaching poten t ia l and ex is t ing cus tomers .

Carr ie rs use the In te rne t to enable cus tomers to access onl ine

account and b i l l ing informat ion , submi t c la ims , v iew insurance

quotes , and purchase pol ic ies . In addi t ion to ind iv idua l car r ie r-


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sponsored In te rne t s i tes , severa l " lead-genera t ing" s i tes have

emerged . These s i tes a l low potent ia l cus tomers to input

informat ion about the i r insurance pol icy needs . For a fee , the

s i tes forward cus tomer informat ion to a number of insurance

companies , which rev iew the informat ion and , i f they dec ide to

take on the pol icy, contac t the cus tomer wi th an offer. This

prac t ice g ives consumers the f reedom to accept the be s t ra te .

Insurance penet ra t ion ( insurance premium as per cent of GDP)

measures the leve l of insurance ac t iv i ty re la t ive to the s ize of

the economy. As GDP per capi ta r i ses , i t i s expec ted tha t

ind iv idua ls wi l l purchase more insurance . The la tes t Swiss Re

repor t revea ls tha t the insurance penet ra t ion in India was 4 . 6

per cent in 2008 cons is t ing of 4 .0 per cent in l i fe bus iness and

0.6 per cent f rom non- l i fe bus iness , unchanged f rom 2007.


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HISTORY OF INSURANCE IN INDIA

Insurance in India has i t s h i s tory da t ing back unt i l 1818, when

Orien ta l L i fe Insurance Company was s ta r ted by Ani ta Bhavsar

in Kolka ta to ca te r to the needs of European communi ty. The pre- independence e ra in India saw d iscr imina t ion be tween the

l ives of fore igners (Engl i sh) and Indians wi th h igher premiums

be ing charged for the la t te r. In 1870, Bombay Mutua l Li fe

Assurance Socie ty became the f i r s t Ind ian insu rer.

At the dawn of the twent ie th century, many insurance

companies were founded. In the year 1912, the Li fe Insurance

Companies Act and the Provident Fund Act were passed to

regula te the insurance bus iness . The Li fe Insurance Companies

Act , 1912 made i t necessary tha t the premium-ra te tab les and

per iodica l va lua t ions of companies should be cer t i f ied by

an ac tuary . However, the d ispar i ty s t i l l ex is ted as

d iscr imina t ion be tween Indian and fore ign companies . The

oldes t ex is t ing insurance company in India i s the Nat iona lInsurance Company Ltd . , which was founded in 1906. I t i s in

bus iness . Before tha t , the indus t ry cons is ted of on ly two s ta te

insurers : L i fe Insurers ( Li fe Insurance Corpora t ion of India ,

LIC) and Genera l Insurers ( Genera l Insurance Corpora t ion of

India , GIC) . GIC had four subs id ia ry companies

The f i sca l 2008-09 wi tnessed g loba l f inanc ia l mel tdown.

Despi te i t , the Indian insurance indus t ry, which has b ig

oppor tuni ty to expand, g iven the la rge popula t ion and untapped

poten t ia l , g rew sa t i s fac tor i ly. Whi le l i fe insurance bus iness

reg is te red a growth of 10 .15 per cent , genera l insurance


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bus iness recorded a growth of 9 .09 per cent in 2008-09 . Wi th

th is , Insurance penet ra t ion (premium volume as a ra t io of GDP)

in rupee te rms for the year 2008-0 9 s tood a t 4 . 7 4 per cent ; 4 . 17

per cent for l i fe insurance and 0 .57 per cent for non- l i fe

insurance . The leve l of pene t ra t ion , par t icu lar ly in l i fe

insurance , t ends to r i se as income leve ls increase . Ind ia , wi th

i t s huge middle c lass households , has exhib i ted growth

poten t ia l for the insurance indus t ry. Sa tura t ion of marke ts in

many developed economies has made the Indian marke t even

more a t t rac t ive for g loba l insurance majors . The insurance

marke t in India has wi tnessed dynamic changes inc luding en t ryof a number of g loba l insurers . Most of the pr iva te insurance

companies a re jo in t ventures wi th recognized fore ign

ins t i tu t ions across the g lobe .

By end March 2009, there were for ty- four insurance companies

opera t ing in India ; o f which twenty- two were in the l i fe

insurance bus iness and the remain ing twenty-one were in

genera l insurance bus iness and one na t iona l re - insurer. Of

these for ty- four companies , 8 a re in the publ ic sec tor ( two

spec ia l i sed insurers , namely ECGC and AIC, one in l i fe

insurance , four in genera l insurance and one re - insurer ) . The

remain ing th i r ty-s ix a re pr iva te sec tor companie s .

( I ) L i fe Insurance

The to ta l cap i ta l o f the l i fe insurers a t end March 2009 s tood a t

Rs .18253.0 4 crore , wi th addi t iona l in fus ion of capi ta l to the

exten t of Rs .5956.62 crore . There had been no infus ion of


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capi ta l in the case of LIC, which cont inued to be Rs .5 c rore .

The infus ion of addi t iona l cap i ta l o f Rs . 5956.62 crore

compr ised of Rs . 987 .05 crore f rom new co mpanies and

remain ing Rs . 4 969.57 crore f rom exis t ing pr iva te insurers .

TABLE 6

PA I D - U P C A P I TA L : L I F E I N S U R E R S

(Rs . Crore) I N S U R E R M a r c h 3 1 ,

2 0 0 8

A d d i t i o n s

d u r i n g 2 0 0 8 -

09

March 31 ,

2 0 0 9

LIC 5.00 0.00 5.00

Pr iva te Sec tor 12291. 4 2 5956.62 182 4 8. 0 4

TO TA L 1 2 2 9 6 . 4 2 5 9 5 6 . 6 2 1 8 2 5 3 . 0 4

N e w P o l i c i e s

New pol ic ies underwr i t ten by the l i fe insurers were 509 .23

lakh in 2008-09 as aga ins t 508 .7 4 l akh dur ing 2007-08 showing

a margina l increase of 0 .10 per cent . The pr iva te insurers

exhib i ted a growth o f 13 .19 per cent , which i s much lower than

67. 4 0 per cent recorded in the previous year. LIC, showed a

negat ive growth for the second consecut ive year a t 4 .52 per

cent as aga ins t i t s p rev ious year nega t i ve growth of 1 .61 per

cent .


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In some sense we can say tha t insurance appears

s imul taneous ly wi th the appearance of human soc ie ty. We know

of two types of economies in human soc ie t ies : money

economies (wi th marke ts , money, f inanc ia l ins t ruments and so

on) and non-money or na tura l economies (wi thout money,

marke ts , f inanc ia l ins t ruments and so on) . The second type i s a

more anc ien t form than the f i r s t . In such an economy and

communi ty, we can see insurance in the form of people he lp ing

each o ther. For example , i f a house burns down, the members

of the communi ty he lp bui ld a new one . Should the same th ing

happen to one ' s ne ighbour, the o ther ne ighbours must he lp .Otherwise , ne ighbours wi l l no t rece ive he lp in the fu ture . This

type of insurance has surv ived to the present day in some

count r ies where modern money economy wi th i t s f inanc ia l

ins t ruments i s no t widespread .

Insurance in India has been v iewed as a tax sav ing ins t rument

and r i sk cover in l i fe insurance was pure ly inc identa l . Themindse t cont inues to be the same, a l though the uni t - l inked

ins t ruments a re becoming popular. The emergence of pure r i sk

p roducts has thus taken a back sea t . Lapsa t ion i s a se r ious

issue . L i fe insurers a re s t r iv ing to des ign imagina t ive products

so as to ensure long te rm commitments f rom the pol icyholders .

In the process there i s a need for the d is t r ibu tors to p lay a key

ro le in ident i fy ing the needs of the prospec t and then se l linsurance so tha t long- te rm re ten t ion of cus tomers i s

es tab l i shed . In India , mos t of the hea l thcare spending i s by

way of ou t -of -pocket expenses and in th i s background the

sudden surge of hea l th insurance wi th a 60 per cent growth i s


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phenomenal . Bes ides , hea l th insurance por t fo l io i s i t se l f new

to the Indian domain and thus the growth i s addi t iona l ly

s igni f icant . A par t o f th i s growth i s cer ta in ly on account of the

increase in the awareness leve ls of the people . Never the less , i t

i s no t tha t every th ing i s hunky dory and f ine wi th the c lass .

Cus tomer gr ievances cont inue to haunt the hea l th insurers .

I ssues re la t ing to provid ing hea l th insurance to sen ior c i t izens ,

and a t a ffordable premiums are an a rea tha t has been in the

l imel ight . Wi th be t te r c la r i ty on pre-ex is t ing d iseases and

premium ra tes , i t i s hoped t ha t a lo t o f cont rovers ies assoc ia ted

wi th th i s c lass could be nul l i f ied . I t i s a l so impor tan t , tha t po l icyholders should rea l ize the impor tance and the bas ic

pr inc ip les of insurance , before ge t t ing in to any c la im-re la ted

disputes .

Ty p e s o f i n s u r a n c e

Any r i sk tha t can be quant i f ied can poten t ia l ly be insured .Spec i f ic k inds of r i sk tha t may g i ve r i se to c la ims are known as

"per i l s" . An insurance pol icy wi l l se t ou t in de ta i l which per i l s

a re covered by the pol icy and which are not . Below are (non-

exhaus t ive) l i s t s of the many d i ffe ren t types of insurance tha t

ex is t . A s ingle pol icy may cover r i sks in one or more of the

ca tegor ies se t ou t be low. For example , au to insurance would

typica l ly cover both proper ty r i sk (cover ing the r i sk of thef t o r

damage to the car ) and l iab i l i ty r i sk (cover ing lega l c la ims

from caus ing an acc ident ) . A homeowner ' s insurance pol icy in

the U.S . typ ica l ly inc ludes proper ty insurance cover ing damage

to the home and the owner ' s be longings , l i ab i l i ty insurance


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cover ing cer ta in lega l c la ims aga ins t the owner, and even a

smal l amount of coverage for medica l expenses of gues ts who

are in jured on the owner ' s p roper ty.

Bus iness insurance can be any k ind of insurance tha t pro tec ts

bus inesses aga ins t r i sks . Some pr inc ipa l subtypes of bus iness

insurance a re (a ) the var ious k inds of p rofess iona l l i ab i l i ty

insurance , a l so ca l l ed p rofess iona l indemni ty i nsurance , wh ich

are d iscussed be low under tha t name; and (b) the bus iness

owner ' s po l icy (BOP) , which bundles in to one pol icy many of

the k inds of coverage tha t a bus iness owner needs , in a way

analogous to how homeowners insurance bundles the coverages

tha t a homeowner needs

A u t o i n s u r a n c e


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Auto insurance pro tec ts you aga ins t f inanc ia l loss i f you have

an acc ident . Auto insurance provides proper ty, l i ab i l i ty and

medica l coverage :

1. Proper ty coverage pays for damage to o r thef t o f the car.

2 . Liabi l i ty coverage pays for the lega l respons ib i l i ty to

o thers for bodi ly in jury or proper ty damage .

3. Medica l coverage pays for the cos t o f t rea t ing in jur ies ,

rehabi l i ta t ion and somet imes los t wages and funera l

expenses .

Most count r ies requi re you to buy some, bu t no t a l l , o f thesecoverages . When a car i s used as co l la te ra l for a loan the

lender usua l ly requi res spec i f ic coverage . Most au to pol ic ies

are for s ix months to a year.

H o m e i n s u r a n c e

Main ar t ic le : Home insurance


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Home insurance provides compensa t ion for damage or

des t ruc t ion of a home f rom disas te rs . In some geographica l

a reas , the s tandard insurances exc lude cer ta in types of

d i sas te rs , such as f lood and ear thquakes , tha t requi re addi t iona l

coverage . Main tenance- re la ted problems are the homeowners '

respons ib i l i ty. The pol icy may inc lude inventory, o r th i s can be

bought as a separa te pol icy, espec ia l ly for people who ren t

hous ing . In some count r ies , insurers offe r a package which may

inc lude l iab i l i ty and lega l respons ib i l i ty for in jur ies and

proper ty damage caused by members of the household ,

inc luding pe ts .

H e a l t h I n s u r a n c e

Main ar t ic les : Heal th insurance and Denta l insurance

Heal th insurance pol ic ies by the Nat iona l Heal th Serv ice in the

Uni ted Kingdom (NHS) or o ther publ ic ly- funded hea l th


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p rograms wi l l cover the cos t o f medica l t rea tments . Denta l

insurance , l ike medica l insurance , i s coverage for ind iv idua ls

to pro tec t them agains t denta l cos ts . In the U.S . and Canada ,

denta l insurance i s of ten par t o f an employer ' s benef i t s

package , a lon g wi th hea l th in surance .

A c c i d e n t , S i c k n e s s a n d U n e m p l o y m e n t I n s u r a n c e

y Disabi l i ty insurance pol ic ies provide f inanc ia l suppor t in

the event the pol icyholder i s unable to work because of

d i sab l ing i l lness or in jury. I t p rovides month ly suppor t to

he lp pay such obl iga t ions as mor tgage loans and cred i tcards . Shor t - te rm and long- te rm disabi l i ty pol ic ies a re

ava i lab le to ind iv idua ls , bu t cons ider ing the expense ,

long- te rm pol ic ies a re genera l ly obta ined only by those

wi th a t l eas t s ix- f igure incomes , such as doc tors , l awyers ,

e tc . Shor t - te rm d isabi l i ty insurance covers a person for a

per iod genera l ly up to s ix months , paying a s t ipend each

month to cover medica l b i l l s and o ther necess i t ie s .

y Long- te rm disabi l i ty insurance covers an ind iv idua l ' s

expenses for the long te rm, up unt i l such t ime as they are

cons idered permanent ly d isab led and thereaf te r. Insurance

companies wi l l o f ten t ry to f ind o ther ways to employ the

person and re in tegra te them back in to the work force in

preference to and before dec lar ing them unable to work a t

a l l and therefore to ta l ly d isab led . Insurance companies ,

for obvious reasons , f requent ly go to grea t lengths ,

inc luding undercover surve i l lance v ia v ideocam and

repea ted independent medica l eva lua t ions by company


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doctors , in hopes of avoid ing the necess i ty of paying

permanent d i sab i l i t y s t ipends to a c la i mant .

y Disabi l i ty overhead insurance a l lows bus iness owners to

cover the overhead expenses of the i r bus iness whi le they

are unable to work .

y Tota l permanent d i sab i l i ty insurance provides benef i t s

when a person i s permanent ly d isab led and can no longer

work in the i r p rofess ion , of ten taken as an ad junc t to l i fe

insurance .

y Workers ' compensa t ion insurance rep laces a l l o r par t o f a

worker ' s wages los t and accompanying medica l expensesincurred because of a job- re la ted in jury.

C a s u a l t y

Casual ty insurance insures aga ins t acc idents , no t necessar i ly

t ied to any spec i f ic proper ty.

Main a r t ic le : Casua l ty insurance

y Crime insurance i s a form of casua l ty insurance tha t

covers the pol icyholder aga ins t losses a r i s ing f rom the

cr imina l ac ts of th i rd par t ies . For example , a company can

obta in c r ime insurance to cover losses a r i s ing f rom thef t

or embezzlement .

y Pol i t ica l r i sk insurance i s a form of casua l ty insurancetha t can be taken out by bus inesses wi th opera t ions in

count r ies in which there i s a r i sk tha t revolu t ion or o ther

po l i t i ca l condi t ion s wi l l resu l t in a loss .


19/59


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l i fe insurance as a tax-eff ic ien t method of sav ing as wel l as

pro tec t ion in the e vent of ear ly dea th .

In U.S . , the tax on in te res t income on l i fe insurance pol ic ies

and annui t ies i s genera l ly defer red . However, in some cases the

benef i t der ived f rom tax defer ra l may be offse t by a lo w re turn .

This depends upon the insur ing company, the type of po l icy

and o ther var iab les (mor ta l i ty, marke t re turn , e tc . ) . Moreover,

o ther income tax sav ing vehic les (e .g . , IRAs, 4 01(k) p lans ,

Roth IRAs) may be be t te r a l te rna t ives for va lue accumula t ion .

P r o p e r t y

Main ar t ic le : Proper ty insurance

Th i s tornado damage to an I l l i no i s home would be cons idered

an " Act of God " for insurance purposes

Proper ty insurance provides pro tec t ion aga ins t r i sks to

property, such as f i re , thef t or weather damage . This inc ludes

spec ia l ized forms of insurance such as f i re insurance , f lood

insurance , ear thquake insurance , home insurance , i n l and

mar ine insurance or bo i le r insurance .


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y Automobi le insurance , known in the UK a s motor

insurance , i s p robably the most common form of

insurance and may cover both lega l l i ab i l i t y c l a ims

agains t the dr iver and loss of or damage to the insured ' s

vehic le i t se l f . Throughout the Uni ted S ta tes an au to

insurance pol icy i s requi red to lega l ly opera te a motor

vehic le on publ ic roads . In some jur i sd ic t ions , bodi ly

in jury compensa t ion for au tomobi le acc ident v ic t ims has

been changed to a no-fau l t sys tem, which reduces or

e l imina tes the ab i l i ty to sue for compensa t ion but

provides au tomat ic e l ig ib i l i ty for benef i t s . Credi t cardcompanies insure aga ins t damage on ren ted cars .

o Driv ing School Insurance provides cover for any

author ized dr iver whi l s t undergoing tu i t ion , cover

a l so unl ike o ther motor pol ic ies provides cover for

ins t ruc tor l i ab i l i ty where both the pupi l and dr iv ing

ins t ruc tor a re equal ly l iab le in the event of a c la im.

y Avia t ion insurance insures aga ins t hu l l , spares ,

deduct ib les , hu l l wear and l iab i l i ty r i sks .

y Boi le r insurance (a lso known as boi le r and machinery

insurance or equipment breakdown insurance) insures

aga ins t acc identa l phys ica l damage to equipment or

machinery.

y Bui lder ' s r i sk insurance insures aga ins t the r i sk of

phys ica l loss or damage to proper ty dur ing cons t ruc t ion .

Bui lder ' s r i sk insurance i s typ ica l ly wr i t ten on an "a l l

r i sk" bas is cover ing damage due to any cause ( inc luding

the negl igence of the insured) not o therwise express ly

exc luded . Bui lder ' s r i sk insurance i s coverage tha t


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2 1

p ro tec ts a person ' s or organiza t ion ' s insurable in te res t in

mater ia l s , f ix tures and/or equipment be ing used in the

cons t ruc t ion or renovat ion of a bu i ld ing or s t ruc ture

should those i tems sus ta in phys ica l loss or damage f rom a

covered cause . [ 1 8 ]

y Crop insurance "Farmers use c rop insurance to reduce or

manage var ious r i sks assoc ia ted wi th growing crops . Such

r i sks inc lude c rop loss or damage caused by weather, ha i l ,

d rought , f ros t damage , insec ts , o r d i sease , for

ins tance ." [ 1 9 ]

y Ear thquake insurance is a form of proper ty insurance tha t pays the pol icyholder in the event of an ear thquake tha t

causes damage to the proper ty. Most ord inary homeowners

insurance pol ic ies do not cover ear thquake damage . Most

ear thquake insurance pol ic ies fea ture a h igh deduct ib le .

Rates depend on loca t ion and the probabi l i ty of an

ear thquake , as wel l as the cons t ruc t ion of the home .

y A fide l i ty bond is a form of casua l ty insurance tha t covers

pol icyholders for losses tha t they incur as a resu l t o f

f raudulent ac ts by spec i f ied ind iv idua ls . I t usua l ly insures

a bus iness for losses caused by the d ishones t ac t s of i t s

employees .

y Flood insurance pro tec ts aga ins t p roper ty loss due to

f looding . Many insurers in the U.S . do not provide f lood

insurance in some por t ions of the count ry. In response to

th is , the federa l government c rea ted the National Flood

Insurance Program which serves as the insurer of las t

resor t .


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2 2

y Home insurance , a l so commonly ca l led hazard insurance

or homeowners insurance (of ten abbrevia ted in the rea l

es ta te indus t ry as HOI) , i s the type of proper ty insurance

tha t covers pr iva te homes .

y Landlord insurance covers res ident ia l and commerc ia l

p roper t ies which a re ren ted to o thers . Most homeowner ' s

insurance covers only owner-occupied homes .

y Marine insurance and mar ine cargo insurance cover the

loss or damage of sh ips a t sea or on in land waterways , and

of cargo in t rans i t , regard less of the method of t rans i t .

When the owner of the cargo and the car r ie r a re separa tecorpora t ions , mar ine cargo insurance typ ica l ly

compensa tes the owner of cargo for losses sus ta ined f rom

fi re , sh ipwreck , e tc . , bu t exc ludes losses tha t can be

recovered f rom the car r ie r or the car r ie r ' s insurance .

Many mar ine insurance underwr i te rs wi l l inc lude " t ime

element" coverage in such pol ic ies , which ex tends the

indemni ty to cover loss of prof i t and o ther bus iness

expenses a t t r ibu tab le to the de lay caused by a covered

loss .

y Supplementa l na tura l d i sas te r insurance covers spec i f ied

expenses a f te r a na tura l d i sas te r renders the

pol icyholder ' s home uninhabi tab le . Per iodic payments a re

made d i rec t ly to the insured unt i l the home i s rebui l t o r a

spec i f ied t ime per iod has e lapsed .

y Sure ty bond insurance i s a th ree par ty insurance

guarantee ing the per formance of the pr inc ipa l .

y Terror i sm insurance provides pro tec t ion aga ins t any loss

or damage caused by ter ror i s t ac t iv i t i e s .


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y V olcano insurance i s an insurance tha t covers volcano

damage in Hawai i .

y Windstorm insurance i s an insurance cover ing the damage

tha t can be caused by hur r icanes and t ropica l cyc lones .

L i a b i l i t y

Main ar t ic le : Liab i l i ty insurance

Liabi l i ty insurance i s a very broad superse t tha t covers lega l

c la ims aga ins t the insured . Many types of insurance inc lude an

aspec t of l i ab i l i ty coverage . For example , a homeowner ' s

insurance pol icy wi l l normal ly inc lude l iab i l i ty coverage which

pro tec ts the insured in t he event of a c la im brought by someone

who s l ips and fa l l s on the proper ty ; au tomobi le insurance a l so

inc ludes an aspec t of l i ab i l i ty insurance tha t indemnif ies

aga ins t the harm tha t a c rash ing car can cause to o thers ' l ives ,

hea l th , o r proper ty. The pro tec t ion offered by a l iab i l i ty

insurance pol icy i s twofold : a lega l defense in the event of alawsui t commenced aga ins t the pol icyholder and

indemnif ica t ion (payment on behal f of the insured) wi th

respec t to a se t t lement or cour t verd ic t . L iab i l i ty pol ic ies

typica l ly cover only the negl igence of the insured , and wi l l no t

apply to resu l t s of wi l fu l o r in ten t iona l ac ts by the insured .

y Publ ic l iab i l i ty insurance covers a bus iness aga ins t c la imsshould i t s opera t ions in jure a member of the publ ic or

damage the i r p roper ty in some way.

y Direc tors and off icers l i ab i l i ty insurance pro tec t s an

organiza t ion (usua l ly a corpora t ion) f rom cos ts assoc ia ted


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with l i t iga t ion resu l t ing f rom mis takes made by d i rec tors

and off icers for which they are l iab le . In the indus t ry, i t

i s usua l ly ca l led "D&O" for shor t .

y Environmenta l l i ab i l i ty insurance pro tec ts the insured

f rom bodi ly in jury, p roper ty damage and c leanup cos ts as

a resu l t o f the d ispersa l , re lease or escape of po l lu tan t s .

y Errors and omiss ions insurance : See "Profess iona l

l iab i l i ty insurance" under "Liabi l i ty insurance" .

y Pr ize indemni ty insurance pro tec ts the insured f rom

giving away a la rge pr ize a t a spec i f ic event . Examples

would inc lude offer ing pr izes to contes tan ts who can makea ha l f -cour t shot a t a baske tba l l game, or a ho le- in-one a t

a gol f tournament .

y Profess iona l l i ab i l i ty insurance , a l so ca l l ed p rofess iona l

indemni ty insurance , p ro tec ts insured profess iona ls such

as a rch i tec tura l corpora t ion and medica l prac t ice aga ins t

po ten t ia l negl igence c la ims made by the i r pa t ien ts /c l ien ts .

Profess iona l l i ab i l i ty insurance may take on d i ffe ren t

names depending on the profess ion . For example ,

p rofess iona l l i ab i l i ty insurance in re ference to the

medica l profess ion may be ca l led malprac t ice insurance .

Notar ies publ ic may take out er rors and omiss ions

insurance (E&O). Other poten t ia l E&O pol icyholders

inc lude , for example , rea l es ta te brokers , Insurance

agents , home inspec tors , appra isers , and webs i te

developers .

C r e d i t I n s u r a n c e

Main ar t ic le : Credi t insurance


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Credi t insurance repays some or a l l o f a loan when cer ta in

th ings happen to the bor rower such as unemployment ,

d i sab i l i t y , o r dea th .

y Mortgage insurance insures the lender aga ins t defaul t by

the bor rower. Mor tgage insurance i s a form of c red i t

insurance , a l though the name cred i t insurance more of ten

is used to re fer to pol ic ies tha t cover o ther k inds of debt .

y Many credi t cards offe r payment pro tec t ion p lans which

are a form of c red i t insurance .

O t h e r t y p e s o f I n s u r a n c e

y All - r i sk insurance i s an i n s u r a n c e tha t covers a wide-

range of inc idents and per i l s , except those noted in the

pol icy. Al l - r i sk insurance i s d i ffe ren t f rom per i l - spec i f ic

insurance tha t cover losses f rom only those per i l s l i s ted in

the pol icy. [ 2 0 ] In car insurance , a l l - r i sk pol icy inc ludes

a lso the damages caused by the ow n dr iver.y Business in te r rupt ion insurance covers the loss of income,

and the expenses occurred , a f te r a covered per i l in te r rupts

normal bus iness opera t ions .

y Col la te ra l p ro tec t ion insurance or CPI , insures proper ty

(pr imar i ly vehic les ) he ld as co l la te ra l for loans made by

lending ins t i tu t ions .

y Defense Base Act Workers ' compensa t ion or DBA

Insurance provides coverage for c iv i l ian workers h i red by

the government to per form cont rac ts ou ts ide the U.S . and

Canada . DBA is requi red for a l l U.S . c i t izens , U.S .

res idents , U.S . Green Card holders , and a l l employees or


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subcont rac tors h i red on overseas government cont rac ts .

Depending on the count ry, Fore ign Nat iona ls must a l so be

covered under DBA. This coverage typ ica l ly inc ludes

expenses re la ted to medica l t rea tment and loss of wages ,

as wel l as d i sab i l i ty and dea th benef i t s .

y Expat r ia te insurance provides ind iv idua ls and

organiza t ions opera t ing outs ide of the i r home count ry

wi th pro tec t ion for au tomobi les , p roper ty, hea l th , l i ab i l i ty

and bus iness pursu i t s .

y Financia l loss insurance or Bus iness In te r rupt ion

Insurance pro tec ts ind iv idua ls and companies aga ins tvar ious f inanc ia l r i sks . For example , a business might

purchase coverage to pro tec t i t f rom loss of sa les i f a f i r e

in a fac tory prevented i t f rom car ry ing out i t s bus iness for

a t ime. Insurance might a l so cover the fa i lure of a

cred i tor t o pay money i t owes to the insured . This type of

insurance i s f requent ly re fer red to as "bus iness

in te r rupt ion insurance ." Fide l i ty bonds and sure ty bonds

a re inc luded in th i s ca tegory, a l though these products

provide a benef i t to a th i rd par ty ( the "obl igee") in the

event the insured par ty (usua l ly re fer red to as the

"obl igor") fa i l s to per form i t s ob l iga t ions under a cont rac t

wi th the obl igee .

y Kidnap and ransom insurance

y Legal expenses insurance covers pol icyholders aga ins t the

poten t ia l cos ts of lega l ac t ion aga ins t an ins t i tu t ion or an

indiv idua l . When someth ing happens which t r iggers the

need for lega l ac t ion , i t i s known as the event ' . There a re


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two main types of lega l expenses insurance , Before the

event insurance and After the event insurance .

y Locked funds insurance is a l i t t l e -known hybr id insurance

pol icy jo in t ly i ssued by governments and banks . I t i s used

to pro tec t publ ic funds f rom tamper by unauthor ized

par t ies . In spec ia l cases , a government may au thor ize i t s

use in pro tec t ing semi-pr iva te funds which a re l iab le to

tamper. The te rms of th i s type of insurance a re usua l ly

very s t r ic t . Therefore i t i s used only in ex t reme cases

where maximum secur i ty of funds i s requi red .

y Media Insurance i s des igned to cover profess iona ls tha tengage in f i lm, v ideo and T V product ion .

y Nuclear inc ident insurance covers damages resu l t ing f rom

an inc ident involv ing rad ioac t ive mater ia l s and i s

genera l ly a r ranged a t the na t iona l leve l . See the Nuclear

exc lus ion c lause and for the Uni ted S ta tes the Pr ice-

Anderson Nuclear Indus t r ies Indemni ty Act )

y Pet insurance insures pe ts aga ins t acc idents and i l lnesses

- some companies cover rout ine /wel lness care and bur ia l ,

as wel l .

y Pol lu t ion Insurance which cons is t s of f i r s t -par ty coverage

for contaminat ion of insured proper ty e i ther by ex terna l

or on-s i te sources . Coverage for l i ab i l i ty to th i rd par t ies

ar i s ing f rom contaminat ion of a i r, water, o r land due to

the sudden and acc identa l re lease of hazardous mater ia l s

f rom the insured s i te . The pol icy usua l ly covers the cos ts

of c leanup and may inc lude coverage for re leases f rom

underground s torage tanks . In ten t iona l ac ts a re

spec i f ica l ly exc luded .


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y Purchase insurance i s a imed a t p rovid ing pro tec t ion on the

products people purchase . Purchase insurance can cover

ind iv idua l purchase pro tec t ion , warran t ies , guarantees ,

care p lans and even mobi le phone insurance. Such

insurance i s normal ly very l imi ted in the scope of

p roblems tha t a re co vered by the pol icy.

y Ti t le insurance provides a guarantee tha t t i t l e to rea l

property is ves ted in the purchaser and/or mor tgagee , f ree

and c lear of l i ens or encumbrances . I t i s usua l ly i ssued in

conjunct ion wi th a search of the publ ic records per formed

at the t ime of a rea l es ta te t ransac t ion .y Travel insurance is an insurance cover taken by those who

t rave l abroad , which covers cer ta in losses such as medica l

expenses , loss of personal be longings , t rave l de lay,

personal l i ab i l i t i es , e tc .

Ta ta Group

The Tata Group companies opera te in seven bus iness sec tors :

Communica t ions and Informat ion Technology, Engineer ing ,

Mater ia l s , Serv ices , Energy, Consumer Products and

Chemica ls . The Group was founded by Jamset j i Ta ta in the mid


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19th century, a per iod when India had jus t se t ou t on the road

to ga in ing independence f rom Br i t i sh ru le . Consequent ly,

Jamset j i Ta ta and those who fo l lowed h im a l igned bus iness

oppor tuni t ies wi th the objec t ive of na t ion bui ld ing . This

approach remains enshr ined in the Group ' s e thos to th i s day.

The Tata Group i s one of India ' s l a rges t and most respec ted

bus iness conglomera tes , wi th revenues in 2007-08 of $ 62 .5

b i l l ion (Rs . 251 ,5 4 3 crore) . Ta ta companies toge ther employ

some 350,000 people . The Group ' s 27 publ ic ly l i s ted

enterpr i ses have a combined marke t capi ta l iza t ion of some $ 60 b i l l ion and a shareholder base of 3 .2 mi l l ion . The major Ta ta

Companies a re Tata S tee l , Ta ta Consul tancy Serv ices , Ta ta

Motors , Ta ta Chemica ls , Ta ta Communica t ions , Ta ta Power,

Indian Hote ls and Tata Tea . The Tata Group has opera t ions in

more than 85 count r ies across s ix cont inents , and i t s companies

expor t p roducts and serv ices to 80 count r ies .

The Tata fami ly of companies shares a se t o f f ive core va lues :

in tegr i ty, unders tanding , exce l lence , un i ty and respons ib i l i ty.

These va lues , which have been par t o f the Group ' s be l ie fs and

convic t ions f rom i t s ear l ies t days , cont inue to guide and dr ive

the bus iness dec is ions of Ta ta companies . The Group and i t s

en terpr i ses have been s teadfas t and d is t inc t ive in the i r

adherence to bus iness e th ics and the i r commitment to corpora te

soc ia l respons ib i l i ty. This i s a legacy tha t has earned the

Group the t rus t o f many mi l l ions of s takeholders in a measure

few bus iness houses anywhere in the wor ld can match .


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About Amer ican In te rna t iona l Group, Inc . (AIG)

Amer ican In te rna t iona l Group, Inc . (AIG) i s a lead ing

in terna t iona l insurance organiza t ion wi th opera t ions in more

than 130 count r ies and jur i sd ic t ions . AIG companies serve

commerc ia l , ins t i tu t iona l , and ind iv idua l cus tomers through

one of the most ex tens ive wor ldwide proper ty-casua l ty

ne tworks of any insurer. In addi t ion , AIG companies a releading providers of l i fe insurance and re t i rement se rv ices

around the wor ld . AIG common s tock i s l i s ted on the New York

Stock Exchange , as wel l as the s tock exchanges in I re land and

Tokyo.

AIG is a major Amer ican insurance corpora t ion based a t the

Amer ican In te rna t iona l Bui ld ing in New York Ci ty. The Br i t i sh

headquar te rs a re loca ted on Fenchurch St ree t in London

cont inenta l Europe opera t ions a re based in La Defense , Par i s ,

and i t s As ian HQ is in Hong Kong. Accord ing to the 2008

Forbes Global 2000 l i s t , AIG was the 18th- la rges t company in

the wor ld .

Company Background: AIGs h is tory da tes back to 1919, when

Cornel ius V ander S tar r es tab l i shed an insurance agency in

Shanghai , China . S ta r r was the f i r s t Westerner in Shanghai to

se l l insurance to the Chinese . In 1962, S tar r gave

management of the company ' s less than successfu l U.S .

hold ings to Maur ice R. \ "Hank\" Greenberg , who sh i f ted the


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company ' s U.S . focus f rom personal insurance to h igh .1969.

Amer ican In te rna t iona l Group, Inc i s the lead ing U.S . based

in terna t iona l insurance and f inanc ia l se rv ices organiza t ion and

the la rges t underwr i te r of commerc ia l and indus t r ia l insurance

in the Uni ted S ta tes . I t s member companies wr i te a wide range

of commerc ia l and personal insurance products th rough a

var ie ty of d i s t r ibu t ion channels in over 130 count r ies and

jur i sd ic t ions throughout the wor ld . AIG's Li fe Insurance

opera t ions compr ise of the most ex tens ive wor ldwide ne twork

of any l i fe insurer. AIG's g loba l bus inesses a l so inc lude

f inanc ia l se rv ices and asse t management , inc luding a i rc raf tleas ing , f inanc ia l p roducts , t rad ing and marke t making ,

consumer f inance , sav ings products .

Ta ta AIG Genera l Insurance

Tata AIG Genera l Insurance Company Limi ted (Tata AIG

Genera l ) i s a jo in t venture company, formed by the Tata Group

and Amer ican In te rna t iona l Group, Inc . (AIG) . Ta ta AIG

Genera l combines the Tata Group ' s pre-eminent leadersh ip

pos i t ion in India and AIG's g loba l presence as the wor ld ' s

leading in te rna t iona l insurance and f inanc ia l se rv ices

organiza t ion . The Tata Group holds 7 4 per cent s take in the

insurance venture wi th AIG hold ing the ba lance 26 percent .

Ta ta AIG Genera l Insurance Company, which s ta r ted i t s

opera t ions in India on January 22 , 2001, provides insurance

solu t ions to ind iv idua ls and corpora tes . I t o ffe rs a comple te

range of genera l insurance products inc luding insurance for


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automobi le , home, personal acc ident , t rave l , energy, mar ine ,

p roper ty and casua l ty as wel l as severa l spec ia l ized f inanc ia l

l ines . The Company be l ieves in offe r ing innovat ive and

re levant insurance so lu t ions in the re ta i l and commerc ia l space .

Each product offe r ing i s backed by exper t i se and an

unpara l le led c la ims serv ice . The Company ' s products a re

ava i lab le through var ious channels of d i s t r ibu t ion l ike agents ,

b rokers , banks ( through banc assurance t ie ups) and d i rec t

channels l ike Tele Marke t ing , Dig i ta l Marke t ing , works i te e tc

Tata AIG Li fe Insurance Company Ltd . "Tata AIG Li fe" offe rsa broad ar ray of l i fe insurance products to ind iv idua ls ,

assoc ia t ions and bus inesses of a l l s izes , wi th a wide var ie ty of

addi t iona l coverage to ensure our cus tomers can f ind an

insurance product to meet the i r needs .

AIG's progress i s the resu l t o f the ta len t and dedica t ion of

thousands of employees a round the g lobe , who have been

s teadfas t in the i r commitment to serv ing cus tomers and

repaying taxpayers .

THE JOINT V ENTURE:

Tata AIG Li fe Insurance Co. Ltd . i s cap i ta l ized a t Rs . 185

crores of which 7 4 per cent has been brought in by Tata Sons

and the Amer ican par tner br ings in the ba lance 26 per cent . Mr.

George Oommen has been named managing d i rec tor of Ta ta

AIG Li fe . Ta ta-AIG plans to provide broad ar ray of l i fe

insurance p lans to cover to both ind iv idua ls and groups . The


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company headquar te red in Mumbai , wi th branch opera t ions in

Delh i , Chennai , Hyderabad , Bangalore Calcu t ta , Pune and

Chandigarh .

V ISION OF TATA AIG

To be India ' s mos t prefer red Genera l Insurance Company.

PURPOSE OF TATA AIG

To crea te unmatched va lue for our cus tomers , employees , bus iness par tners and shareholders by de l i ver ing remarkable

serv ice tha t i s cons is ten t , fa i r and t ransparent

V ALUES

Our va lues represent the core , shared be l ie fs tha t gu ide how we

act and work toge ther t o achieve our goa ls . We share a se t o f 6

core va lues : Cus tomer F i rs t , People , Pass ion , Per formance ,

In tegr i ty and Empathy.

y C u s t o m e r F i r s t : Ant ic ipa te the i r p r ior i t ies . Exceed the i r

expec ta t ions .

y I n t e g r i t y : We must conduct our bus iness fa i r ly, wi th

hones ty and t ransparency. Every th ing we do must s tandthe tes t o f publ ic sc ru t iny.

y P e o p l e : We must work cohes ive ly wi th our co l leagues

across the Group and wi th our cus tomers and par tners


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around the wor ld , bu i ld ing s t rong re la t ion ships based on

to lerance , unders tanding and mutua l coopera t ion . S t r ive to

develop d iverse ta len t and reward exce l lence .

y P e r f o r m a n c e : We must cons tan t ly s t r i ve to achieve the

highes t poss ib le s tandard s in our day- to-day work and in

the qua l i ty of the goods and serv ices we provide .

y P a s s i o n : We must be exc i ted about what we do . We must

have a s t rong in te rna l ized dr ive to meet goa ls . Relen t less

de termina t ion to so lve cus tome r problems.

y R e s p e c t : We must be car ing , show respec t , compass ion

and humani ty for our co l lea gues and cus tomers a round the

wor ld , and a lways work for the benef i t o f the communi t ie s

we serve .

INSURANCE SCHEMES(YOJANA) OF TATA AIG

FOR ADULT___________________________

Tata AIG Li fe Maha Guaran tee , a non-par t ic ipa t ing

endowment p lan , i s one such p lan tha t meets a l l your demands

for a secured inves tment wi th a h igh l i fe cover. Not only tha t ,

the p lan benef i t s g rows every year, to he lp you meet your

increas ing needs .


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Tata AIG Li fe Assure One yea r / F ive Years /10 Years / 15

Ye a r s / 2 0 Ye a r s / 2 5 Ye a r s L i f e l i n e P l a n s , a n d Te r m t o a g e

6 0 k n o w n a s A s s u r e L i f e l i n e t o A g e 6 0

You ge t the luxury of h igh coverage but a t an a ffordable cos t .

You have the f lex ib i l i t y to choose the te rm of cover. To learn

more ,

Tata AIG Li fe Assure 10 Years / 20 Years / 30 Years

S e c u r i t y & G r o w t h P l a n s

This amazing endowment pol icy enabl es you keep your money

safe and have i t g row. In the unfor tuna te event you d ie whi leunder th i s cover, your dependants wi l l ge t the su m assured .

However, i f you out l ive the te rm, you s t i l l ge t the sum assured

a long wi th a whole range of bonuses . To learn more ,

Tata AIG Li fe Assure 21 yea rs Money Saver

This p lan offers you cash payments a t the end of every 3 years

dur ing the te rm of the pol icy. You a lso ge t the dua l benef i t s o f

l i fe insurance coverage p lus the f lex ib i l i ty of per iodic

payments . To learn mo

Tata AIG Li fe Assure Golden Years P lan

This endowment pol icy g ives you safe ty AND re turns . In case

of dea th , your dependants ge t the sum assured o therwise your

sav ings grow. I f you l ive pas t the te rm you s t i l l ge t tha t sum

assured a long wi th a whole hos t of bonuses . To learn more ,


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Tata AIG Li fe Easy Re t i r e

This i s an immedia te annui ty p lan wi th Return of PurchasePr ice (RoPP) which can be purchased through a s ing le premium

payment . The p lan provides for annui ty payments which a re

pa id throughout the l i fe t ime of an annui ta n t . To learn more ,

Ta t a A I G L i f e H o s p i C a s h B a c k

This p lan a l lows mul t ip le c la ims aga ins t unforeseen

hospi ta l iza t ion expenses and you a l so ge t your money back . To

learn more ,

Tata AIG Li fe Hea l th Inves to r

This p lan offers a lumpsum benef i t on d iagnos is of 12 c r i t ica l

i l lnesses , a cover in case of unfor tuna te dea th and a 100%

return of premium in case of no c la ims . To learn more ,

Tata AIG Li fe L i feP lus

This p lan le t s you win no mat te r what happens . Get your

p remiums back i f you out l ive the te rm. Get sum assured in ca se

of dea th by na tura l causes . Get DOUBLE the sum assured in

case of dea th by acc identa l causes . To learn more ,


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Tata AIG Li fe MahaLi fe Gold

This i s the idea l p lanning vehic le for your re t i rement . I t p rovides you a s teady income and insurance coverage for l i fe !

Premiums are payable only for the f i r s t 15 years . You can even

use th i s to cover fu ture expenses of your ch i ldren . To learn

more ,

Ta t a A I G L i f e R a k s h a 1 0 / 1 5 / 2 0 / 2 5

This p lan offers you a la rge cover a t a smal l p remium wi th the

f lex ib i l i ty to choose the te rm of cover. To learn more ,

Ta t a A I G L i f e S h u b h L i f e

This p lan provides you 100% l i fe insurance pro tec t ion and h igh

re turns on your inves tment but the premiums you pay are

among the lowes t of any s imi la r endowment pol icy. To learn

more ,

Tata AIG Li fe Hea l th F i r s t

Qual i ty hea l thcare i s incredib ly expens ive . You need a pol icy

tha t covers a l l cont ingencies inc luding pro longed


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hospi ta l iza t ion , major surgery, c r i t i ca l i l lness , pos t

hospi ta l iza t ion fees and even the unfor tuna te event of your

dea th . Heal thFi rs t p rovides a lump sum i r respec t ive of what

your medica l b i l l s a re . To learn more ,

Tata AIG Li fe Hea l th Pro tec to r - 5 Year Guaran te ed

R e n e w a l A c c i d e n t a n d H e a l t h PLAN

The average cos t for a major surgery or t rea tment in hospi ta l i s be tween three to f ive lakh . Heal th Pro tec tor i s the f i r s t p roduct

of i t s k ind in India tha t offe rs you pro tec t ion in case ANYONE

in your fami ly has an acc ident or fa l l s i l l . To learn more

Ta t a A I G L i f e I n v e s t A s s u r e F l e x i S u p r e m e

This p lan i s a un i t l inked endowment insurance p lan tha t provides you wi th ample f lex ib i l i ty to su i t your needs and

pr ior i t ies and he lps you to achieve your f inanc ia l goa ls . This

p lan a l so provides the much needed l i fe insurance pro tec t ion in

case of any unfor tuna te event . To learn more

Ta t a A I G L i f e L a k s h y a S u p r e m e

Present ing , Ta ta AIG Li fe Lakshya Supreme a non-

par t ic ipa t ing s impl i f ied i ssuance Uni t L inked Endowment


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Insurance p lan wi th enhanced fea tures tha t provides you the

dual benef i t o f inves tment and pro tec t ion . To learn more

Ta t a A I G L i f e I n v e s t A s s u r e P l u s S u p r e m e

Present ing , Ta ta AIG Li fe Inves tAssure P lus Supreme, a non-

par t ic ipa t ing , un i t l inked , endowment p lan , which combines the

secur i ty of insurance wi th an oppor tuni ty of en joying

poten t ia l ly h igher re turns on your inves tments a t the

convenience of a S ingle Premium. This s ing le payment of

p remium ensures benef i t s for the en t i re po l icy te rm, wi thout

worry ing about any fu ture payment obl iga t ions .

FOR CHILDREN

To ensure your ch i ldren lead happy and successfu l l ives , i ts

impor tan t to p lan now so tha t they wi l l have the f inanc ia lsuppor t they need in the fu ture .

Tata AIG has a range of f lex ib le insurance products to he lp you

secure your ch i ldrens f inanc ia l fu ture . Our products inc lude :


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Tata AIG Li fe Assure Caree r Bu i lde r

This money-back pol icy provides f inanc ia l ass i s tance a t key

s tages of your ch i lds l i fe , f rom educa t ion to the i r f i r s t s teps

in to a new career.

Tata AIG Li fe Assure Educare a t 18 & Ta ta AIG Li fe

A s s u r e E d u c a r e

This f i r s t o f i t s k ind juveni le endowment pol icy i s geared

toward funding your ch i lds educa t ion . You can choose

be tween Assure Educare 18 and Assure Educare 21 , depending

on your ch i lds needs .

Tata AIG Li fe Assure 21 yea rs Money Saver

This sav ings p lan provides you wi th cash payments in the form

of surv iva l benef i t s a t regular in te rva ls to fund your ch i lds

needs a t c r i t i ca l mi les tones or suppor t your f inanc ia lobl iga t ions . You ge t the dua l benef i t s o f l i fe insurance

coverage p lus the f lex ib i l i ty of per iodic payments .


This unique pol icy ensures tha t your ch i ld wi l l have a s teady

income and insurance coverage for l i fe ! Premiums are payable

only for the f i r s t 15 years .

Tata AIG Li fe S ta rk id

An except iona l endowment pol icy tha t ensures you can afford

to g ive your ch i ld the very bes t fo r h i s career & marr iage .


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FOR RETIREMENT PLANNING

The es t imated l i fespan of an average ly hea l thy person i s

a round 75 years . This means tha t you wi l l have to fund your l i fes ty le for 20 years wi thout a regular sa la ry i f you p lan to

re t i re a t the age of 55 . Le t us show you how you can t ru ly

make your re t i rement years in to Golden years .

Tata AIG Li fe Assure Golden Years P lan

This endowment pol icy g ives you safe ty AND re turns . In case

of dea th , your dependants ge t the sum assured o therwise your

sav ings grow. I f you l ive pas t the te rm you s t i l l ge t tha t sum

assured a long wi th a whole hos t of bonuses . To learn more ,

Tata AIG Li fe Easy Re t i r e

This i s an immedia te annui ty p lan wi th Return of Purchase

Pr ice (RoPP) which can be purchased through a s ing le premium

payment . The p lan provides for annui ty payments which a re

pa id throughout t he l i fe t ime of an annui tan t . To learn more.


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This d is t inc t ive pol icy i s the idea l p lanning vehic le to fund

your re t i rement . I t p rovides you a s teady income and insurance

coverage for l i fe ! Premiums are payable only for the f i r s t 15years . To learn more .

Tata AIG Li fe Ni rvana

The h ighly f lex ib le Nirvana re t i rement p lan le t s you choose

your re t i rement age ( f rom 50 t o 65 years ) . To learn more .

Tata AIG Li fe Ni rvana P lus

This i s Ind ias f i r s t and only pens ion pol icy wi th a guaranteed

addi t ion of 10 percent of sum assured every 5 years . You can

choose f rom three leve ls of cover, and a l so dec ide the age you

want to re t i re . To learn more ,

CORPORATE SOCIAL RESPONSIBILITY (CSR) OF TATA

GROUP


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The Tata Group was one of a l l the f i r s t to promote CSR (what

i t ca l l s corpora te c i t izenship) in India . The Group be l ieves , as

does the au ther, tha t a rea l cont r ibu t ion comes when

communi t ies a re enabled in a manner tha t has a sus ta ined

development impact . Approximate ly 30 percent of prof i t a f te r tax (PAT) of the Tata Group as a whole i s inves ted in

communi ty deve lopment programmes across India . The group

has a cent ra l ly adminis te red agency Tata Counci l for

communi ty In i t ia t ives tha t he lps i t s companies through

spec i f ic process in soc ia l deve lopment , envi ronment

management , b iodivers i ty res tora t ion and employee

volunteer ing . The Tata Groups corpora te c i t izenship

in i t ia t ives range f rom hea l th and educa t ion to l ive l ihoods and

women ch i ldren wel fare , f rom t r iba l hamle ts to

d isadvantaged v i l lages a mul t i tude of in i t ia t ives tha t have

touched the l ives of thousands of people across the na t ion . The

Group has a l so c rea ted c i t ies and towns around some of the i r

indus t r ia l fac i l i t i es Jamshedpur, Mi thapur, Babra la , Math ig i r i

which a re tangib le mani fes ta t ion of a commitment to

employees tha t s t re tches much fur ther than formal or mandered

cont rac t .


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Tata S tee l ca te rs to over 600 v i l lages and severa l company

towns in the s ta tes of Or issa and Jharkhand. I t has c rea ted

Town Serv ices , a Communi ty Development ans Socia l Welfare

Depar tment and an Energy and Envi ronment Cel l . Ta ta S tee l

has promoted rura l economy through na tura l resources

management , micro f inanc ing and cred i t and t ra in ing for

ga infu l employment . I t has c rea ted a r ipp le e ffec t across towns

and v i l lages , and i t s se rv ices have grown to cover 700 ,000

benef ic ia r ies . Today, Ta ta S tee l i s a l so respons ib le for

envi ronment management , fami ly in i t ia t ives , medica l se rv ices ,

emergency f i re se rv ices , a i rpor t , mobi le medica l se rv ices ,spor t s fac i l i t i es and educa t ion cent res . In Jamshedpur, Ta ta

Stee l takes care of publ ic u t i l i t i es inc luding road main tenance ,

water and e lec t r ic i ty supply, s t ree t l igh ts , san i ta t ion and more .

The company a lsa runs e ights pr imary schools , n ine h igh

school and a co l lege , whi le suppor t ing many more schools

indi rec t ly. Communi t y in i t ia t i ves a re a h igh on the Tata agenda

as educa t ion and th is has spawned a wide var ie ty of

p rogrammes , most no tab ly on AIDS awareness and drug abuse .

Tata S tee l has a l so u t i l i zed a web of income genera t ion ,

empowerment and hea l th and hygiene scheme in i t s rura l

development programmes for the t r iba l communi t ies in the

s ta tes of Jharkhand, th i s in tegra ted programme employs the

companys bes t p rac t ices whi le drawing on the exper ience and

exper t i se of independent deve loped agencies . I t a l so takes

management lear ing and sk i l l s to the grass roots popula t ion . In

i t s huge p lan ta t ion hold ing in Munnar in south India , Ta ta Tea

has in i t ia ted three pro jec ts to equip menta l ly and phys ica l ly

d isabled ch i ldren to secure a be t te r fu ture . Through i t s micro


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insurance scheme for v i l lagers , Ta ta AIG has been provid ing

secur i ty cover to the weaker sec t ion of soc ie ty. Ta ta

Consul tancy Serv ices works to promote l i t e racy to adul t s who

cannot read or wr i te . This spec ia l computer based programme

has l i f ted more than 4 6,000 people out of i l l i t e racy and has the

poten t ia l to de l iver to mi l l ions more . Ta ta Chemica ls

in i t ia t ives to empower v i l lage women, run a biodivers i ty

reserve p lan ta t ion pro jec t dr iven by employee volunteers to

crea te a bo tan ica l reserve for endangered p lan t spec ies , Ta ta

Motors an t i - leprocy crusade a re fur ther examples of the Tata

creed of communi ty work . Envi ronment i s another focus a reawi th in the Tata Groups overa l l corpora te respons ib i l i ty

mat r ix . A hos t of the Tata companies adhere to the

envi ronmenta l procedures drawn up by the GRI . (The Tata

Grouop fo l lows the c lass ica l t rad i t ion of companies such as

Bounevi l le in the UK ( the forerunner of Cadburya) which

be l ieved in c rad le- to-grave care for i t s workers . Ta ta , o f

course , goes beyond i t s own workers . There a re quibbles tha t

the Tata soc ia l venture a re done to consol ida te i t s many

monopol i s t ic bus iness ac t iv i t ies I Ind ia . On t ime wi l l t e l l

whether these ac t iv i t ies wi l l cont inue in the new, less

pa te rna l i s t ic , Ind ia .

M i l e s t o n e s


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The Tata group i s one of India ' s o ldes t , l a rges t and mostrespec ted bus iness conglomera tes . The group ' s bus inesses a respread over seven bus iness sec tors .

F o u n d a t i o n 1868-1931

C o n s o l i d a t i o n1932-1989

E x p a n s i o n 1990 onwards

T h e s e e d s o f w h a t w o u l d m a t u r e a n d b e c o m e t o d a y ' s Ta t ag r o u p w e r e l a i d l o n g y e a r s b e f o r e I n d i a b e c a m e i n d e p e n d e n t

1868

Jamset j i Nusserwanj i Ta ta s ta r t s a pr iva te t rad ing f i rm, lay ingthe foundat ion of the Tata group.

187 4

The Cent ra l Ind ia Spinning , Weaving and Manufac tur ingCompany i s se t up , marking the group ' s en t ry in to tex t i les and

i t s f i r s t l a rge-sca le indus t r ia l venture .

1902

The Indian Hote ls Company i s incorpora ted to se t up the Taj


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Mahal Pa lace and Tower, Ind ia ' s f i r s t luxury hote l , whichopened in 1903.

1907

The Tata I ron and Stee l Company (now Tata S tee l ) i ses tab l i shed to se t up India ' s f i r s t i ron and s tee l p lan t i nJamshedpur. The p lan t s ta r ted product ion in 1912.

Se ts up i t s f i r s t o ff ice overseas , Ta ta Limi ted in London.

1910

The f i r s t o f the three Tata Elec t r ic Companie s , The TataHydro-Elec t r ic Power Supply Company i s se t up . The second,Andhra V a l ley Power Supply Company was es tab l i shed in1917 and Tata Power in 19 19. The f i r s t two companie s weremerged wi th Tata Power in 2000 to form a s ingle en t i ty.

1911

The Indian Ins t i tu te of Sc ience i s es tab l i shed in Bangalore toserveas a cent re for advanced lea rn ing .

1912

Tata S tee l in t roduces e ight -hour working days , wel l before

such a sys tem was implemented by law in much of the West .

1917

The Tatas en ter the consumer goods indus t ry, wi th the Tata


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Oil Mi l l s Company be ing es tab l i shed to make soaps ,de te rgents and cooking o i l s . The co mpany was so ld toHindus tan Lever (now Uni lever ) in 198 4 .

T h e Ta t a g r o u p v e n t u r e d i n t o n e w a r e a s a n d b u i l t o n t h ef o u n d a t i o n s , i n s p i t e o f t h e r e s t r a i n t s i m p o s e d b y ac o n t r o l l e d e c o n o m y

1932

Tata Air l ines , a d iv is ion of Ta ta Sons , i s es tab l i shed , openingup the av ia t ion sec tor in India . Ai r India was na t iona l i sed in1953.

1939

Tata Chemica ls , now the la rges t p roduce r of soda ash in thecount ry, i s es tab l i shed .

19 4 5

Tata Engineer ing and Locomot ive Company ( renamed TataMotors in 2003) i s es tab l i shed to manufac ture locomot ive andengineer ing products .

Ta ta Indus t r ies i s c rea ted for the promot ion and develop mentof h i - tech indus t r ies .


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1952

Jawahar la l Nehru , Ind ia ' s f i r s t Pr ime Minis te r, reques ts thegroup to manufac ture cosmet ics in India , l ead ing to these t t ing up of Lakme. The company was so ld to Hindus tanLever (now Uni lever ) in 1997.

195 4

Ind ia ' s major marke t ing , engineer ing and manufac tur ingorganisa t ion , V ol tas , i s es tab l i shed .

1962

Tata F in lay (now Tata Tea) , one of the la rges t t ea producers ,i s es tab l i shed .

Tata Expor ts i s es tab l i shed . Today the company, renamedTata In te rna t iona l , i s one of the leading expor t houses inIndia .

1968

Tata Consul tancy Serv ices (TCS) , Ind ia ' s f i r s t sof twareserv ices company, i s es tab l i shed as a d iv is ion of Ta ta Sons .

1971

Tata Prec is ion Indus t r ies , t he f i r s t Ta ta company inSingapore , i s founded to des ign and manufac ture prec is ionengineer ing products .


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198 4

The f i r s t 500 MW thermal power uni t a t the Trombay s ta t ionof the Tata Elec t r ic Companies i s commiss ioned .

T h e l i b e r a l i s a t i o n o f t h e I n d i a n e c o n o m y u n l e a s h e d a p e r i o d

o f r e m a r k a b l e g r o w t h f o r t h e Ta t a g r o u p , i n I n d i a a n d

w o r l d w i d e

1995

Tata Qual i ty Management Serv ices ins t i tu tes the JRD Q V

Award , model led on the Malcolm Baldr ige Nat iona l Qual i ty

V a lue Award of the Uni ted S ta tes , l ay ing the foundat ion of the

Tata Bus iness Exce l lence Model .

1996

Tata Teleserv ices (TTSL) i s es tab l i shed to spearhead the

group ' s foray in to the te lecom sec tor.

1998

Tata Indica Ind ia ' s f i r s t ind igenous ly des igned and


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manufac tured car i s l aunched by Tata Motors , spearheading

the group ' s en t ry in to the passenger car segment .

1999

The new Tata group corpora te mark and logo are launched .

2000

Tata Tea acqui res the Tet ley group, UK. This i s the f i r s t major

acquis i t ion of an in te rna t iona l brand by an Indian bus iness

group.

2001

Tata AIG a jo in t venture be tween the Tata group andAmer ican In te rna t iona l Group Inc (AIG) marks the Tata re -

en t ry in to insurance . (The group ' s insurance company, New

India Assurance , se t up in 1919, was na t iona l i sed in 1956) .

2002

Tata Sons acqui res a cont ro l l ing s take in V SNL ( renamed Tata

Communica t ions in 2008) , Ind ia ' s l ead ing in te rna t iona l

te lecommunica t ions serv ice provider.


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Tata Consul tancy Serv ices (TCS) becomes the f i r s t Ind ian

sof tware company to c ross one b i l l ion dol la rs in reven ues .

Ti tan launches Edge , the s l i mmest watch in the wor ld .

200 4

Ta ta Motors i s l i s ted on the wor ld ' s l a rges t bourse , the New

York Stock

Exchange , the second group company to do so a f te r V SNL.

Tata Motors acqui res the heavy vehic les uni t o f Daewoo

Motors , South Korea .

TCS goes publ ic in Ju ly 200 4 in the la rges t p r iva te sec tor

in i t ia l publ ic offe r ing ( IPO) in the Indian marke t , ra i s ing

near ly $1 .2 b i l l l ion .

2005

Tata S tee l acqui res S ingapore-based s tee l company NatStee l

by subscr ib ing to 100 per cent equi ty of i t s subs id ia ry,

NatSteel Asia .

V SNL (now Tata Communica t ions) acqui red Tyco Global Network , making i t one of the wor ld ' s l a rges t p roviders of

submar ine cable bandwidth .

Tata Sons comple tes 60 years of Ta ta opera t ions in the US.


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The Taj acqui res a ho te l run by Starwood, Sydney ( renamed

Blue) and takes over management of The Pier re , NY.

2006

Tata Sky sa te l l i t e te lev is ion serv ice launched across the

count ry.

Foundat ion s tone for the Tata Medica l Cent re unvei led in

Kolka ta .

2007

Tata S tee l acqui res the Ango-Dutch company Corus , making i t

the wor ld ' s f i f th - la rges t s tee l p roducer.

TCS inaugura tes TCS China a jo in t venture wi th the

Chinese government and o ther par tners .

Computa t iona l Research Labora tor ies , a d iv is ion of Ta ta Sons ,

develops Eka , one of the fas tes t supercomputers in the wor ld

and the fas tes t in Asia .

The Taj acqui res Campton Place Hote l in San Franc isco .

Tata S tee l ce lebra tes i t s cen tenary on Augus t 26 , 2007.

2008


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Tata Motors unvei l s Ta ta Nano, the Peoples Car, a t the 9 t h

Auto Expo in Delh i on January 10 , 2008.

Tata Motors acqui res the Jaguar and Land Rover brands f rom

the Ford Motor Company.

Tata Chemica ls acqui res Genera l Chemica l Indus t r ia l Products

Inc.

2 0 0 9

Ta ta Motors announces commerc ia l l aunch of the Tata Nano;

Tata Nano draws over 2 .03 lakh bookings ; f i r s t 100 ,000

owners of the Tata Nano chosen; de l ivers f i r s t Ta ta Nano in

the count ry in Mumbai .

Tata Motors ushers new era in Indian au to indus t ry wi th i t s

new, wor ld-s tandard t ruck range .

Tata Teleserv ices announces pan- India GSM serv ice wi th NTT

DOCOMO.

TRF acqui res Dutch Lanka Tra i le r Manufac turers (DLT) , Sr i

Lanka , a wor ld-c lass t ra i le r manufac tur ing company.

Jaguar Land Rover in t roduces i t s p remium range of vehic les in

India .

Tata Motors acqui res remain ing 79 per cent shares in Hispano

Carrocera , one of the la rges t manufac turers of bus and coach


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cabins in Europe .

Tata Teleserv ices launches Photon T V , an appl ica t ion tha t

a l lows Tata Photon Plus subscr ibers to watch l ive te lev is ion

channels on the i r l ap tops whi le on the move , and on the i r

personal computers a t home and in the off ice .

Tata Chemica ls launches Tata Swach the wor lds most cos t -

e ffec t ive water pur i f ie r.

2 0 1 0

TRF acqui res UK-based Hewi t t Robins In te rna t iona l .

New plan t for Ta ta Nano a t Sanand inaugura ted

Management Team

Gaurav D. Garg Kaushal Mishra

Managing Direc tor & CEO Execut ive V i ce

Pres ident


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Kurush Ja l Daruwal la Miranj i t

Mukher jee

Senior V i ce Pres ident , Chief

F inancia l Off icer

Company Secre ta ry And

Genera l Counse l

MRavichandran Ramesh

Ramani

Nat iona lHead

Head

Commerc ia l L ines Accident &

Heal th

Bhara t Govinda Parva th i S ingh

Nat iona l Head Nat iona l Head


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Lines Personal

Cla ims

Atr i Chakrabor ty Suryanarayanan

Subramanian Nat iona l Head Nat iona l Head

Opera t ions Human Resources

Mohi t Goel

Head Market ing .


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B i b l i o g r a p h y

y www.ta ta -a ig .com / l i fe insurance

y www.ta ta -a ig .com/genera l insurance

y Dickson, P.G.M. (1960) . T h e Sun Insurance Off ice 1710-

1960: T h e His tory of T w o and a h a l f Centur ies o f Br i t i s h

Insurance . London: Oxford Univers i ty Press . pp . 32 4

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