SV Naan Mudhalvan
SV Naan Mudhalvan
SV Naan Mudhalvan
PROJECT REPORT
Submitted to Bharathiar University in partial fulfillment of the requirement of the degree of Bachelor of Commerce with
Professional Accounting
Submitted by
VIDYASRI.K
(Reg. No. 212AC2228)
MARCH – 2024
INSURANCE PROJECT
Name VIDYASRI.K
Class III-B.COM CA
Naan-Mudhalvan ID 8C4279E377E19C48B3C43D5116051A8B
Date
PROJECT-1
1.
CREATING OWN HEALTH INSURANCE
COMPANY
PROJECT-2
2.
MOTOR INSURANCE CLAIMING PROCESS
PROJECT – 3
3.
A STUDY REGARDING DICGC
PROJECT – 1
Our company provides financial security, shielding individuals from the burden of
high medical costs. It ensures access to quality healthcare services, fostering
overall well-being. Through risk mitigation and preventive care, it adds tangible
value by promoting a healthier and more secure future. Excellent customer
service and community engagement further enhance its role as a trusted partner in
safeguarding individuals and families."
OUR PRODUCTS
INDIVIDUAL HEALTH INSURANCE:
1. Premiums:
The amount of money paid by the insured to the insurance company in
exchange for coverage. Premiums are typically paid on a monthly or annual
basis.
2. Coverage Limits:
Health insurance plans often have limits on the amount they will pay for
specific services or over a certain period. These limits may be annual or lifetime limits.
3. Deductibles:
The amount of money the insured must pay out of pocket before the insurance company begins
to cover expenses. Higher deductibles often result in lower premium costs.
4. Co-payments (Co-pays):
A fixed amount that the insured pays for a covered healthcare service, with the insurance
company covering the remaining costs.
5. Coinsurance:
The percentage of costs the insured and the insurance company share after the deductible has
been met. For example, the insured might pay 20% of the cost, and the insurance company covers the
remaining 80%.
6. Network:
Health insurance plans often have a network of healthcare providers (doctors, hospitals, clinics)
with whom they have negotiated lower rates. Using providers within the network is usually more cost-
effective for the insured.
7. Preventive Services:
Many health insurance plans cover preventive services, such as vaccinations and screenings, at
no additional cost to the insured.
9.Policy Exclusions:
Health insurance plans may exclude coverage for certain services or conditions, so it's essential
to understand the policy's exclusions.
10.Renew ability:
Health insurance plans are often renewable, allowing individuals to continue coverage over
time.
SAMPLE CHEQUE AND KYC DOCUMENTS
CALCULATION OF HEALTH INSURANCE
The calculation of health insurance premiums can vary depending on several factors, including
the type of plan, coverage options, age, location, and any pre-existing health conditions. Here are
some key factors that may influence the calculation of health insurance costs:
1. Type of Plan:
Health insurance plans come in various types, such as HMO (Health Maintenance
Organization), PPO (Preferred Provider Organization), POS (Point of Service), and high-deductible
plans. Each type has different cost structures.
2. Coverage Level:
The extent of coverage you choose affects the premium. Plans with higher coverage levels or
lower deductibles typically have higher premiums.
3. Age:
Younger individuals generally pay lower premiums compared to older individuals. As people
age, the risk of health issues increases, leading to higher insurance costs.
4. Location:
The cost of healthcare can vary by region. Insurance companies may consider the local cost
of medical services when determining premiums.
5. Family Size:
Family plans cover more individuals, so premiums for family coverage are typically higher
than individual plans.
6. Pre-existing Conditions:
In some regions or under certain plans, individuals with pre-existing health conditions
may face higher premiums or may be subject to specific conditions.
Plans with higher deductibles or copayments may have lower premiums. However, you'll pay
more out-of-pocket when you receive medical services.
Some individuals may qualify for subsidies or tax credits based on their income level, which
can help lower the overall cost of health insurance.
It's important to compare different health insurance plans, considering both the premium costs
and the coverage provided. Additionally, understanding the terms like deductibles, copayments, and
coinsurance is crucial in evaluating the overall cost of healthcare coverage. Keep in mind that health
insurance costs can change annually, and it's advisable to review your coverage regularly to ensure it
meets your needs.
The process for filing a health insurance claim can vary slightly depending on the insurance
company and the type of plan you have. However, the general steps involved in the claim procedure are
as follows:
1. Seek Medical Treatment:
In case of illness or injury, seek medical attention from a healthcare provider covered by your
insurance plan. If it's an emergency, go to the nearest emergency room.
Provide your health insurance information at the time of receiving medical services.
This includes your insurance ID card, policy number, and any other relevant details.
If your plan requires you to pay a copayment or deductible, make the payment at the time of service
4. Submission of Claims by Healthcare Provider:
In many cases, the healthcare provider will submit the insurance claim on your behalf. They
will send a bill to the insurance company for the services provided.
After the claim is processed, the insurance company will send you an Explanation of Benefits
(EOB). This document outlines the services provided, the amount billed, the covered amount, any
deductible or copayment you're responsible for, and the amount paid by the insurance company.
Carefully review the EOB to ensure accuracy. If there are any discrepancies or if you have
questions, contact your insurance company for clarification.
7. Provider Billing:
If there is a remaining balance after the insurance company has processed the claim, the
healthcare provider will send you a bill for the amount you owe.
8. Payment:
Pay any outstanding balance to the healthcare provider according to the billing terms. This may
include the deductible, copayment, or any non-covered expenses.
9. Appeals Process:
If your claim is denied or if you disagree with the insurance company's decision, you have the
right to appeal. Follow the appeals process outlined by your insurance provider.
10. Keep Records:
Maintain a record of all communications, bills, and EOBs related to your health insurance
claims. This documentation may be useful in case of disputes or for future reference.
It's important to understand the specific procedures outlined in your health insurance policy and
to follow them accordingly. If you have any questions or concerns during the claims process, don't
hesitate to contact your insurance company's customer service department for assistance. Additionally,
keeping open communication with your healthcare provider can help ensure a smooth claims process.
PROJECT - 2
Your car met with an accident and has a valid insurance on it; luckily you
escaped from the accident with no injuries. But the car has undergone severe
breakages. You have taken the car for service to the authorized dealer’s
workshop immediately. The dealer advices you to claim Insurance for
damages. Identify and explain all the processes that needs to be undergone
and all the documents that needs to be submitted to the insurance
company for smooth claim process
THE NEW INDIA ASSURANCE
The New India Assurance Company Limited is a public sector general insurance company in
India. Here are some key points about the company:
Establishment:
The New India Assurance Company Limited was established in 1919 by Sir Dorabji Tata in Mumbai,
India.
It is one of the five insurance companies that were nationalized by the Government of India in 1972.
Product Offerings:
The company provides a wide range of insurance products, including motor insurance, health
insurance, travel insurance, property insurance, liability insurance, and various other general insurance
products.
It caters to both individual and corporate customers.
Financial Strength:
As a government-owned insurance company, New India Assurance is known for its financial
stability and strength.
It plays a crucial role in providing insurance coverage and risk mitigation services to individuals
and businesses in India.
The company operates under the regulatory framework of the Insurance Regulatory and
Development Authority of India (IRDAI), which oversees and regulates the insurance sector in the
country.
Social Responsibility:
It's important to note that information about specific companies can change over time, so for
the most up-to-date and accurate details about New India Assurance, you may want to refer to the
company's official website, regulatory filings, or other reliable sources as of the current date.
Motor insurance, also known as auto insurance or car insurance, is a type of insurance
coverage that provides financial protection against physical damage or bodily injury resulting from
traffic collisions and against liability that could also arise from incidents in a vehicle.
Motor insurance is essential for protecting both individuals and their vehicles from financial
losses associated with accidents and unforeseen events. It is advisable to carefully read and understand
the terms and conditions of the policy to ensure adequate coverage.
Motor insurance gives protection to the vehicle owner against (I). damages to his/her vehicle
and (ii). pays for any Third Party Liability determined as per law against the owner of the vehicle.
Third Party Insurance is a statutory requirement. The owner of the vehicle is legally liable for any
injury or damage to third party life or property caused by or arising out of the use of the vehicle in
a public place. Driving a motor vehicle without insurance in a public place is a punishable offence
in terms of the Motor Vehicles Act, 1988
Types of Coverage:
1. Liability Coverage:
This is typically mandatory and covers bodily injury and property damage that you may cause
to others in an accident.
2. Collision Coverage:
Covers damage to your own vehicle resulting from a collision with another vehicle or object.
3. Comprehensive Coverage:
Protects against non-collision events such as theft, vandalism, natural disasters, or accidents
involving animals.
Provides coverage if you're involved in an accident with a driver who has little or no insurance.
5. other components Motor Insurance covers:
The damages to the vehicle due to the following perils are usually covered under OD section of
the Motor Insurance policy:
5. Claim Assessment:
● The insurance company will assign an adjuster to assess the damage and estimate the cost
of repairs.
● The adjuster may inspect the damaged vehicle and, if necessary, consult with repair shops to
determine the repair costs.
6. Approval of Repairs:
● Once the assessment is complete, the insurance company will approve the repairs if the claim
is found to be valid.
● The insurer may recommend authorized repair shops or allow you to choose one from
their network.
7. Repair Process:
● If repairs are needed, coordinate with the repair shop to have the vehicle fixed.
● The insurance company may directly pay the repair costs to the authorized repair shop
or reimburse you after the repairs are completed.
8. Claim Settlement:
● The insurance company will finalize the claim settlement, which may involve covering
the repair costs, providing a replacement vehicle, or offering a cash settlement.
● You may need to pay any applicable deductibles before receiving the settlement.
9. Deductible Payment:
● if your policy includes a deductible, you'll need to pay this amount before the
insurance company covers the remaining costs.
● Once the claim is settled and all necessary payments are made, the insurance company will close
the claim.
● Obtain confirmation in writing that the claim is closed, and all matters are resolved.
DOCUMENTS FOR CLAIM MOTOR INSURANCE
When submitting documents for a motor insurance claim, it's important to provide
comprehensive and accurate information to facilitate the claims process. While the specific
requirements may vary depending on your insurance provider and the nature of the claim, here is
a general list of documents commonly requested:
1. Claim Form:
Complete the insurer's claim form, providing detailed information about the incident, such
as date, time, and location.
5. Witness Statements:
If there were any witnesses to the incident, include their statements.
6. Photographs:
Include photographs of the accident scene, damages to vehicles, and any other relevant details.
1. Assessment of Damage:
After an accident or incident, an insurance adjuster will assess the damage to your vehicle.
They will examine the extent of the damage and determine the cost of repairs or replacement parts.
2. Deductible:
Your insurance policy may have a deductible, which is the amount you're responsible for paying
before your insurance coverage kicks in. For example, if your deductible is $500 and the total cost of
repairs is $3,000, you would pay the $500 deductible, and your insurance would cover the remaining
$2,500.
3. Coverage Limits:
Your insurance policy will specify the maximum amount the insurance company will pay for
covered damages. If the cost of repairs exceeds this limit, you may be responsible for the remaining
amount.
4. Depreciation:
In some cases, the insurance company may take depreciation into account when calculating the
value of your claim. Depreciation reflects the decrease in value of your vehicle over time.
5. Market Value:
If your vehicle is deemed a total loss (i.e., the cost of repairs exceeds the vehicle's value), the
insurance company will typically offer you the actual cash value (ACV) of your vehicle at the time of
the loss. The ACV is determined based on factors such as the vehicle's age, condition, mileage, and
market value.
6. Negotiation:
You have the right to negotiate with your insurance company regarding the settlement amount.
You can provide evidence to support your claim and argue for a higher settlement if you believe the
initial offer is insufficient.
It's important to review your insurance policy carefully and understand your coverage
limits, deductibles, and any exclusions before filing a claim. Additionally, documenting the damage
with photographs and obtaining estimates from reputable repair shops can help support your claim.
If you have any questions or concerns about your motor insurance claim, it's advisable to contact
your insurance provider for guidance and assistance
PROJECT – 3
Introduction to DICGC
The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of the
Reserve Bank of India (RBI) established in 1961. Its primary function is to provide insurance cover for
deposits in banks and to promote the stability and public confidence in the banking system. DICGC
plays a crucial role in safeguarding the interests of depositors in India by ensuring that their deposits
are protected up to a certain limit in case of bank failures.
DICGC provides insurance to all commercial banks, including public sector banks, private
sector banks, foreign banks operating in India, regional rural banks (RRBs), and local area banks. In
essence, almost all scheduled commercial banks in India are insured by the DICGC. This means that if
a bank fails, depositors are entitled to receive insurance coverage for their deposits up to a certain
limit.
2. Cooperative Banks
It's important to note that not all cooperative banks are insured by DICGC. DICGC insurance
covers eligible deposits in these banks up to a certain limit, currently set at Rs. 5 lakhs per depositor per
bank.
For the most up-to-date and comprehensive information, please refer to the official website of
the Deposit Insurance and Credit Guarantee Corporation of India or contact them directly.
What does the DICGC insure? What is the maximum deposit amount
insured by the DICGC?
The Deposit Insurance and Credit Guarantee Corporation (DICGC) in India provides insurance
coverage to deposits held in banks against the risk of bank failure. DICGC insures all types of deposits,
including savings accounts, fixed deposits, current deposits, recurring deposits, etc., up to a certain
limit. As of my last update in January 2022, the maximum deposit amount insured by the DICGC is
Rs. 5 lakhs per depositor per bank. This means that if a bank where you hold deposits were to face
liquidation or insolvency, you would be eligible to receive up to Rs. 5 lakhs of insurance coverage on
your total deposits in that bank.
It's essential to note that this coverage limit applies per depositor per bank. If you have deposits
in multiple banks, each bank's deposits are insured separately up to the specified limit.
The DICGC insurance does not cover the following types of deposits:
It's advisable to stay updated with the latest guidelines and announcements from the DICGC
and the Reserve Bank of India regarding deposit insurance coverage and regulations.
How will you know whether your bank is insured by the DICGC or not?
In India, most banks are insured by the Deposit Insurance and Credit Guarantee
Corporation (DICGC). However, to ensure that your bank is insured by the DICGC, you can take
the following steps:
Visit the official website of your bank and look for information regarding deposit insurance.
Most banks will have a section or page dedicated to deposit insurance where they provide details about
the coverage provided by the DICGC.
If you're uncertain about whether your bank is insured by the DICGC, you can contact your
bank's customer service department. They should be able to provide you with information about deposit
insurance coverage and address any questions or concerns you may have.
You can also visit the official website of the Deposit Insurance and Credit Guarantee
Corporation of India. They usually provide a list of banks insured by DICGC along with other
relevant information regarding deposit insurance coverage.
5. Regulatory Information:
The Reserve Bank of India (RBI) also provides information about banks and their
regulatory status. You can visit the RBI website or check their publications for information related
to deposit insurance and the banks insured by DICGC.
By utilizing these methods, you can ensure that your bank is insured by the DICGC
and understand the extent of the insurance coverage provided to your deposits.
Accrued interest, on the other hand, is generally considered part of the overall balance of the
account and is subject to the same insurance limit as the principal amount. However, if the total balance
of the account, including both principal and accrued interest, exceeds the insurance limit, the excess
amount may not be covered by DICGC insurance in the event of bank failure.
It's essential for depositors to be aware of this distinction and to consider the insurance coverage
limit when managing their deposits in various banks.