insurance & mutual fund institutions

8/12/2019 Insurance & Mutual Fund Institutions

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Garvita Upadhyay,MBA(DS) Part:IISem.:IV


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F allowing I nstitutions are as fol lows :

1.L ife I nsur anceCorporation of I ndia

2.Genral I nsur anceCorporation of I ndia

3.Uni t Trust of I ndia


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Introduction Life insurance in its modern form came to India from

England in the year 1818.

Oriental life Insurance company, started by Europeans InCalcutta was the first life Insurance company on Indian soil.

Before 1912 India had no Legislation to Regulate InsuranceBusiness.

In the year 1912, the life insurance companies act theprovident fund act were passed.


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It made necessary that the premium rate tables periodicalvaluations of companies should be certified by an actuaryactuaries means one who calculates insurance risks premiumsaccording to statistical probabilities.

It was much later on the 19th

Jan 1956, India parliamentpassed the LIC Act on the 19 th Jan 1956 the LIC of India wascreated on 1 st sept,1956 with a capital of 5 crores.

LIC lad 5 zonal offices, 33 divisional offices 212 Branch offices,apart from its corporate offices in the year 1956.

Today LIC function with 2048 fully computerized branchoffices.


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Central Office (1)

Zonal Office(7)Bombay,Madras,Calcutta,Delhi,

Kanpur

Divisional Office(100)

Branch Office


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105 divisional offices.

8 zonal offices the corporate officeLICs wide area network covers 1 divisional

offices connects all the branches through a metroarea network with satellite offices attached to aboutsome 50 branches.And has a network of around 1.2 million agents for

soliciting life insurance from the public.

It has crossed the milestone of issuing 1,01,32,955.


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Explore and enhance the quality of life of peoplethrough financial security by Providing productsand services of aspired attributes with competitive

returns, and by rendering resources for economicdevelopment.

A trans -nationally competitive financialconglomerate of significance to societies and Prideof India.


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Spread L ife I nsur ance widely and in par ticular to the rur al areasand to the Socially and economically backward classes with a view to

reachi ng all insur able persons in the country and providing themadequate f inancial cover against death at a reasonable cost.

Maximize mobilization of people savings by making insurance - l inked savings Adequately attr active..

M eet the var ious l i fe insur ance needs of community that wouldarise in the changing social and economi c envi ronment


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Conduct business with utmost economy and with the ful lrealization that moneys belong to the policyholders.

Act as trustees of the insur ed publi c in their individual andcollective capaciti es.

Promote amongst al l agent and employees of the corporation asense of parti cipation, pr ide and job satisfaction towardsachievement of corporate objective.

I nvolve all people worki ng in the corporation to the best oftheir capabil i ty in nur tur ing interest of the insur ed public byproviding eff icient service with cour tesy


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Functions of LIC:Acc to section 6 of L I C act1956 have fallowing functions of L I C:1. Subject to rules if any .made by Central Govt. on behal f i t shal l be thegeneral duty of corporation to carry on insur ance business , whether in oroutside I ndia & Co. exerci se i ts power under this act, as to secure l ifeinsurance business to best advantage of community

2. Without prejudice to the generali ty of the provisions contained in sub- sec. 1 subj ect to the other provisions contained in this act

1.To carr y on capital redemption business or reinsurance business inso far as reinsurance business apper tains to l ife insurance business

2. Subject to rul es by Cent. Govt. investing funds in such manner

Co. may think fi t & take all steps may be necessary in protection ofinvestment such as take over of land admini ster ing any proper ty off ersas secur i ty and have right to dispose it

3. To acqui re,hold & dispose of any proper ty for the pur pose of i tsbusiness


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4. To tr ansfer the insurance business carr ied on outside indi a toany other persons if interest of Co. I t is expedient to do so.

5. To lend money upon secur i ty of any movable or immovableproperty

6. To borrow or raise money in such manner & upon such secur i tyas Co. may think f i t

7.To do all such things as ay incidental or conducive to the properexercise of any powers of the Co.3. Other function of L I C:

1.i t is a speciali zed all -india F I whi ch play imp role in capital marketof countr y

2.F or making sound investment L I C invests in shares of promisingindustr ial enterprises, grants loan, mortgage of f ixed assets apar t f rominvestment in govt. secur iti es

3. maintain close contact with other FIs such as IDBI,ICICI,ANDUTI for co-ordination of i ts investment

4. not invest in pr ivate l imi ted companies5. Largest underwriter in the capital market of country

6. Economic growth with huge investments in the country


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Komal Jeevan - Plan No. 159 Chi ldren Deferred - Plan no.41, Jeevan Ki shore Plan no.102 Jeevan Chhaya - Plan no.103 M arr iage Endowment/Educational Annuity - Plan No. 90 Jeevan Anurag - Plan no.168

Endowment wi th Profi ts - Plan no.14 L imited Payment EndowmentwithProf i ts - Plan no.48, Jeevan M itra - Plan no.88 New JanaRaksha Policy - Plan no.91, Jeevan Anand Plan no. 149 Jeevan M itra Tri ple Cover - Plan no.133


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Janashr ee Bima Yojana Group I nsurance Scheme in li eu of EDL I Group (Term) I nsurance Scheme Group Savings L inked I nsurance Scheme, Group Superannuation Scheme Group M ortgage Redemption Assur ance Scheme

Jeevan Saathi - Pl an no.89

M oney Back wi th Pr ofi t - Plan no.75, New M oney Back - Plan no.93 Jeevan Sur abhi 15 yrs - Pl an no.106, Jeevan Sur abhi 20 yrs - Pl an no.107 Jeevan Sur abhi 25 yrs - Plan no.108, Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan N o 154, 155, 156 157 Bima Bachat- Plan no.175


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New Jeevan Dhar a - Plan no.148, New Jeevan Sur aksha Plan no. 147

Jeevan Akshay I I Plan no. 163, Jeevan N idhi Plan no. 169Jeevan Akshay V Plan no. 18 3

Term Assur ance - Plan no.43, M ortgage Redemption - Plan no.52Jeevan Aadhar - Plan no.114, M arket Plus - Plan No 181Jeevan Vishwas Plan No. 136, Jeevan Saral Plan N o. 165Jeevan Pr amukh Plan No. 167, Bima Nivesh 2005 Plan No 171M oney Plus-Plan No 180

Conver tible Term Assur ance - Pl an no.58New Bima Kir anTerm Assur anceAnmol Jeevan I Plan N o- 164Amul ya Jeevan-Plan No-177


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General Insurance

Corporation of India


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History in Brief

The enti re general insur ance business in I ndia was nationali sed by GeneralI nsur ance Bu siness (Nati onali sation) Act, 1972 (GI BN A).

The Government of I ndia (GOI), through Nati onali sation took over th e shares of55 I ndian insur ance companies and the under takings of 52 insur ers carrying ongeneral insurance business.

General I nsur ance Corporation of I ndia (GI C) was formed in pursuance ofSection 9(1) of GI BN A.

I t was incor porated on 22 November 1972 under the Companies Act, 1956 as aprivate company limi ted by shar es.

GI C was formed for the purpose of super intending, contr oll ing and carr ying onthe business of general insurance.

As soon as GI C was formed, GOI tr ansferr ed all the shar es i t held of th e generalinsurance companies to GIC.


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Subsidiary companies of GIC:After a process of mergers among I ndi an insurance companies, four companies

were left as ful ly owned subsidiar y companies of GI CNational I nsur ance Company Limi tedThe New I ndia Assur ance Company L imitedThe Ori ental I nsur ance Company L imitedUni ted I ndia I nsur ance Company L imited.The next landmark happened on 19th Apri l 2000, when the Insur anceRegulatory and Development Author i ty Act, 1999 (I RDA A) came into force.Th is Act also in troduced amendment to GI BN A and the I nsur ance Act, 1938. Anamendment to GI BNA removed the exclusive pri vil ege of GI C and i tssubsidiar ies carrying on general i nsurance in I ndia.I n November 2000, GI C was renoti f ied as the Indian Reinsurer and thr oughadministrative instruction, i ts supervisory role over the four subsidiar ies wasended.With the General I nsur ance Bu siness (Nati onali sation) A mendment Act 2002 (40of 2002) comin g in to for ce from M arch 21, 2003; GI C ceased to be a holdingcompany of i ts subsidiaries.The ownershi p of the four erstwhi le subsidiar y companies and also of theGeneral I nsur ance Corporation of India was vested with Government of

India.


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Trust and mutual respectProfessional excellenceIntegrity and transparency

CommitmentResponsive Service


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Investment Practice's & Policies ofGIC

Provision under Insurance act, 1938:Sec.27(b) provides basic framework within which investible funds of GIC invested

as:1. Approved securities2. Securities of or guaranteed as to principal & interest by the Govt. of

U.K3. Debentures or other securities for money issued by municipality ina state,under any housing scheme approved by central and stategovt.

4. First mortgage on immovable property in india5. Immovable property situated in India & which is free of all

encumbrances .6. Fixed deposits with banks or cooperative socities7. Debentures of or shares in cooperative socities8. Preference shares of any company which has paid dividends on

its eqity shares on 3 years etc.


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Revised Guidelines:These guidelines effect from 1 st April,1995 were applicable to

investments made before IRDA act applicable :a) Central govt. M arketable secur i ties : Not less than 20

%b) State govt. secur i ti es Other guar anteed secur i ti es

including {1} : Not less than 30 %c) H ousing loans to H UDCO and State govt. for housing &

fire f ighting equipments: Not less than15%

d) M arket sector : Not more than 50 %


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UTI Was Formed

To Increase ThePropensity Of

Lower Group Middle Group

To Save & To Invest


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UTI Came IntoExistence

In 1963 , During a periodmarked by great political &

economic uncertainty in India

To channelize savings of thecommunity into equitymarkets to make them

available for the companies tospeed up the process of

industrial growth UTI was

organized

With war on the borders &economic turmoil that

depressed the financial market

The company &entrepreneurs were found

difficult to access the equitymarkets


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UTI was the idea of the Finance Minister, T.T.Krishnamachari , which would open to any personor institution to purchase the units offered by thetrust .

UTI was formed as anintermediary to full fill

the twin objectives

Investing those savingsMobilizing retail savings

In the capital market &passing on the benefits so

accrued to the smallinvestors.


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Schemes:Open Ended Schemes (Income):

UTI - CRTS 81 - Dividend OptionTI - CRTS 81 - Growth OptionUTI - MIS-GrowthUTI - MIS-ADVANTAGE-FLEXI DIVIDENDUTI Bond Fund-Growth (for rep. After 6 months- No Load)

UTI BALANCED FUNDUTI Dynamic Bond Fund Dividend OptionUTI Dynamic Bond Fund Growth OptionUTI Mahila Unit Scheme - Dividend OptionUTI - Treasury Advantage Fund - Institutional Monthly Dividend OptionUTI - Treasury Advantage Fund - Retail Weekly Dividend OptionTI - Treasury Advantage Fund - Growth Option

UTI - Treasury Advantage Fund - Institutional-weekly DividendUTI - Treasury Advantage Fund - Institutional-GrowthUTI - Short Term Income Fund - Dividend OptionUTI - Short Term Income Fund -Institutional Dividend OptionUTI - Unit Linked Insurance Plan


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Schemes:Open Ended Schemes (Growth):

UTI - Equity Fund-Growth OptionUTI - Equity Fund-Income OptionUTI - INDEX SELECT FUND-Growth OptionUTI - INDEX SELECT FUND-Income OptionUTI - Master Index Fund-Growth OptionUTI - Master Index Fund-Income OptionUTI - Master Plus Unit Scheme-Growth OptionUTI - Master Plus Unit Scheme-Income OptionUTI - Master Share-Growth OptionUTI - Master Value Fund-Growth OptionUTI - Master Value Fund-Income OptionUTI - MNC Fund (UGS 10000)-Growth Option

UTI - MNC Fund (UGS 10000)-Income OptionUTI - NIFTY Index Fund-Growth OptionUTI - NIFTY Index Fund-Income OptionUTI - TOP 100 Fund- Growth OptionUTI - TOP 100 Fund-Income Option


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Schemes:Open Ended Schemes (Balanced):

UTI - Variable Investment Scheme-Growth OptionUTI - Variable Investment Scheme-Income OptionUTI Balanced Fund-GrowthUTI Balanced Fund-Income

Open Ended Schemes (Liquid):

UTI- Liquid Fund-Cash Plan-GrowthUTI- Liquid Fund-Cash Plan-IncomeUTI- Liquid Fund-Cash Plan-INST Income

UTI- Liquid Fund-Cash Plan-INST GrowthUTI- Liquid Fund-Cash Plan-INST MthlUTI- Liquid Fund-Cash Plan-INST WklyUTI- Liquid Fund-Cash Plan-MTLY


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SchemesOpen Ended Schemes (Money Market):

UTI MMF - Instn Growth PlanUTI MMF - Instn Plan-Daily DividendUTI MMF - Instn Weekly OptionUTI MMF-Daily DividendUTI MMF-GrowthUTI MMF-Income

Open Ended Schemes (Gilt):

UTI - G-Sec Fund-GrowthUTI - G-Sec Fund-IncomeUTI - G-Sec Fund-STP GrowthUTI - G-Sec Fund-STP IncomeUTI - G-Sec Fund-STP IncomeUTI - GILT ADVANTAGE-LONG TERM PF-DIVIDENDUTI - GILT ADVANTAGE-LONG TERM PF-GROWTHUTI - GILT ADVANTAGE-LONG TERM PF-PRESCRIBED DATEAUTO REDEMPTION


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Schemes:Open Ended Schemes (Floating Rate):UTI - FLOATING RATE STP - INSTN DAILY DIVIDENDUTI - FLOATING RATE STP - INSTN GROWTH OPTIONUTI - FLOATING RATE STP -Instn Weekly Dividend OptionUTI - FLOATING RATE STP-DAILY DIVIDENDUTI - FLOATING RATE STP-DIVIDENDUTI - FLOATING RATE STP-GROWTH

Close Ended Schemes (Income):

Fixed Income Interval Fund Monthly Interval Plan - Growth OptionFixed Income Interval Fund Monthly Interval Plan Dividend OptionFixed Income Interval Fund Monthly Interval Plan Institutional Dividend Option

Fixed Income Interval Fund Monthly Interval Plan Institutional Growth OptionUTI- Fixed Term Income Fund Series -II Plan-16 - Growth InstitutionalUTI- Fixed Term Income Fund Series -II Plan-16 - Growth RetailUTI- Fixed Term Income Fund Series -II Plan-16 - Income RetailUTI - FMP Quarterly Series Feb 2012 Dividend OptionUTI - FMP Quarterly Series Feb 2012 Growth Option


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Schemes:UTI - FMP Quarterly Series Feb 2012 Instn Growth OptionUTI - FMP Quarterly Series Feb 2012 Instn. Dividend OptionUTI - FMP Quarterly Series Feb 2012 Plan II Dividend OptionUTI - FMP Quarterly Series Feb 2012 Plan II Instn Dividend OptionUTI - FMP Quarterly Series Feb 2012 Plan II Instn Growth OptionUTI Capital Protection Oriented Scheme 3 years - Income OptionUTI F I I F Series II -Quarterly Interval Plan IV Dividend OptionUTI F I I F Series II -Quarterly Interval Plan IV Growth OptionUTI F I I F Series II -Quarterly Interval Plan IV Instn. Dividend OptionUTI F I I F Series II -Quarterly Interval Plan IV Instn. Growth OptionUTI F I I F Series II -Quarterly Interval Plan V - Instn Growth OptionUTI F I I F Series II -Quarterly Interval Plan V Dividend OptionUTI F I I F Series II -Quarterly Interval Plan V Growth OptionUTI F I I F Series II -Quarterly Interval Plan V Instn Dividend Option

UTI F I I F Series II -Quarterly Interval Plan VI-Divided OptionUTI F I I F Series II -Quarterly Interval Plan VI-Growth OptionUTI F I I F Series II -Quarterly Interval Plan VI-Institutional Divided Option


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Schemes:UTI F I I F Series II -Quarterly Interval Plan VII Dividend OptionUTI F I I F Series II -Quarterly Interval Plan VII Instn Dividend OptionUTI Fixed Income Interval Fund ( Half Yearly Plan I) Dividend OptionUTI Fixed Income Interval Fund ( Half Yearly Plan I) Instn Dividend OptionUTI Fixed Income Interval Fund ( Half Yearly Plan II)- Dividend OptionUTI Fixed Income Interval Fund ( Half Yearly Plan II)- Instn. Dividend OptionUTI Fixed Income Interval Fund ( Half Yearly Plan II)- Instn. Growth OptionUTI Fixed Income Interval Fund ( Quarterly Interval Plan I) Dividend PlanUTI Fixed Income Interval Fund ( Quarterly Interval Plan I) Inst Dividend PlanUTI Fixed Income Interval Fund ( Quarterly Interval Plan I) Inst Growth PlanUTI Fixed Maturity Plan - Half Yearly March 08- Dividend OptionUTI Fixed Maturity Plan - Half Yearly March 08- Growth OptionUTI Fixed Maturity Plan - Half Yearly March 08- Instn. Dividend OptionUTI Fixed Maturity Plan - Half Yearly March 08- Instn. Growth OptionUTI Fixed Maturity Plan - Half Yearly Series Nov 2007 Dividend OptionUTI Fixed Maturity Plan - Half Yearly Series Nov 2007 Growth OptionUTI Fixed Maturity Plan -Half Yearly Feb 2012 Dividend Option

UTI Fixed Maturity Plan -Half Yearly Feb 2012 Growth OptionUTI Fixed Maturity Plan -Half Yearly Feb 2012 Instn Growth OptionUTI Fixed Maturity Plan -Quarterly June08 Growth OptionUTI Fixed Maturity Plan -Quarterly June08 Instn. Dividend OptionUTI Fixed Maturity Plan -Quarterly June08 Dividend Option


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Schemes:UTI Fixed Maturity Plan -Quarterly Mar 2008 Sr.1 Growth Option--10.26530016-Jun-2008UTI Fixed MUTI Fixed Maturity Plan -Quarterly Mar 2008 Sr.1 Instn Dividend OptionUTI Fixed Maturity Plan -Quarterly Mar 2008 Sr.1 Instn. Growth OptionUTI Fixed Maturity Plan Quarterly Feb 2008 - Series II Instn. Dividend OptionUTI Fixed Maturity Plan Quarterly Feb 2008 - Series II Instn. Growth OptionUTI Fixed Maturity Plan Quarterly February '08 Series I - Dividend OptionUTI Fixed Maturity Plan Quarterly February '08 Series I - Growth Option

UTI Fixed Maturity Plan Quarterly February '08 Series I - Institutional Dividend OptionUTI Fixed Maturity Plan Quarterly February '08 Series I - Institutional Growth OptionUTI Fixed Maturity Plan Quarterly May08 Series II - Dividend OptionUTI Fixed Maturity Plan Quarterly May08 Series II - Growth OptionUTI Fixed Maturity Plan Quarterly May08 Series II - Instn. Dividend OptionUTI Fixed Maturity Plan Quarterly November 2007 Series II Dividend OptionUTI Fixed Maturity Plan Quarterly November 2007 Series II Growth OptionUTI Fixed Maturity Plan Quarterly November 2007 Series II Instn. Dividend Option

UTI Fixed Maturity Plan Quarterly November 2007 Series II Instn. Growth OptionUTI Fixed Maturity Plan Yearly Series June 2007 Institutional Growth OptionUTI Fixed Maturity Plan Yearly Series - March07 - Dividend OptionUTI Fixed Maturity Plan Yearly Series Sept 09 Growth Option


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Schemes:UTI Fixed Maturity Plan Yearly Series - April 2007 - Institutional DividendOptionUTI Fixed Maturity Plan Yearly Series April 2007 - Dividend OptionUTI Fixed Maturity Plan Yearly Series Aptil 2008 Dividend OptionUTI Fixed Maturity Plan Yearly Series Aptil 2008 Instn. Growth OptionUTI Fixed Maturity Plan Yearly Series August 2007 Dividend Option


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Structure:UTI represent an unique organization

without ownership capital and onindependent board of trustee.

Under the provision of the first UTIschemes, US - 64, certain institutionscontributed to the schemes initial capital.


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Structure:The contributors to the initial capital of Rs.

5 crore for US 64 schemes were Reserve Bank Of India(RBI)Other Financial InstitutionsLife Insurance Corporation(LIC)State Bank Of India(SBI)

And its subsidiaries & other scheduledbanks including a few foreign banks.


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Objective:The basic objective of the

UTI is to offer bothsmall and largeinvestors the means ofacquiring shares in thewidening prosperityresulting from thesteady, industrialgrowth of the country.


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Objective:Primary

Objectives of UTI

To give them an opportunityto share the benefits

To promote and pull the smallsavings


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Objective:

To encouragethe savings ofpeople.

Other Objectives of UTI

To mobilizesavings fromthe small savers

To allowinvestors toparticipate

To channelizesavings toindustrialgrowth


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Power & function:

To sell units to investors in different parts ofthe country.

To provide liquidity to units.

To cover the small savings into industrialfinance.


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Power & function:

To underwrite the issue of shares &debentures

To mobilize the savings of the communitythrough sale of units.

To serve unit holders along the length andbreath of the country


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UTI have relied extensively or intermediaries to market theirschemes to investors.With the help of UTI recently banks finance companies,secondary market brokers & even post offices have also begunto market mutual funds to their existing & potential client basis.It is thus clear that all types of intermediaries are required for thegrowth of the industry.


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It helps inmobilizesavings

Operational Practicesof UTI

Distribution of

assistance

Financialassistance to

corporateenterprises

Channelization of funds


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insurance & mutual fund institutions

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