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1: INSURANCE INDUSTRY

Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.

1.1:MEANING OF INSURANCE
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

1.2:IMPORTANCE OF INSURANCE
IMPORTANCE OF INSURANCE

The process of insurance has been evolved to safeguard the interests of people from uncertainty by providing certainty of payment at a given contingency. The insurance principle comes to be more and more used and useful in modern affairs. Not only does it serve the ends of individuals, or of special groups of individuals, it tends to pervade and to transform our modern social order, too. The role and importance of insurance, here, has

been discussed in three phases: 1) uses to individual 2) uses to a special group of individuals ie business or industry and 3) uses to the society. USES TO AN INDIVIDUAL 1. Insurance provides security and safety The insurance provides safety and security against the loss on a particular event. In case of life insurance payment is made when death occurs or the term of insurance is expired. The loss to the family at a premature death and payment in old age are adequately provided by insurance. In other words, security against premature death and old age sufferings are provided by life insurance. Similarly, the property of insured is secured against loss on a fire in fire insurance. In other insurance, too, this security is provided against the loss at fire, against the loss at damage, destruction or disappearance of property, goods, furniture and machines, etc. 2. Insurance affords peace of mind The security wish is the prime motivating factor. This is the wish which tends to stimulate to more work, if this wish is unsatisfied, it will create a tension which manifests itself to the individual in the form of an unpleasant reaction causing reduction in work. The security banishes fear and uncertainty, fire, windstorm, automobile accident, damage and death are almost beyond the control of human agency and in occurrence of any of these events may frustrate or weaken the human mind. By means of insurance,however, much of the uncertainty that centres about the wish for security and its attainment may be eliminated. 3. Insurance protects mortgaged property At the death of the owner of the mortgaged property, the property is taken over by the lender of money and the family will be deprived of the uses of the property. On the otherhand, the mortgage wishes to get the property insured because at the damange or destruction of the property he will lose his right to get the loan repayed. The insurance will provide adequate amount to the dependents at the early death of the property-owner to pay off the unpaid loans. Similarly, the mortgagee gets adequate amount at the destruction of the property. 4. Insurance eliminates dependency At the death of the husband or father, the destruction of family need no elaboration. Similarly, at destruction of property and goods, the family would suffer a lot . It brings reduced standards of living and the suffering

may go to any extent of begging from the relatives, neighbours or friends. The economic independence of the family is reduced or , sometimes, lost totally. What can be more pitiable condition than this that the wife and children are looking others more benevolent than the husband and father, in absense of protection against such dependency. The insurance is here to assist them and provides adequate amount at the time of sufferings. 5. Life insurance encourages saving The elements of protection and investment are present only in case of life insurance. In property insurance, only protection element exists. In most of the life policies elements of saving predominates. These policies combine the programs of insurance and savings. The saving with insurance has certain extra advantages-i) systematic saving is possible because regular premiums are required to be compulsorily paid. The saving with a bank is voluntary and one can easily omit a month or two and then abandon the program entirely. ii) in insurance the deposited premium cannot be withdrawn easily before the expiry of the term of the policy. As contrast to this, the saving which can be withdrawn at any moment will finish within no time. iii) the insurance will pay the policy-money irrespective of the premium deposited while in case of bank-deposit, only the deposited amount along with the interest is paid. The insurance, thus, provides the wished amount of insurance and the bank provides only the deposited amount. iv) the compulsion or force to premium in insurance is so high that if the policy- holder fails to pay premiums within the days of grace, he subjects his policy to lapsation and may get back only a very nominal portion of the total premiums paid on the policy. For the preservation of the policy, he has to try his level best to pay the premium. After a certain period, it would be a part of necessary expenditure of the insured. In absense of such forceful compulsion elsewhere life insurance is the best media of saving. 6. life insurance provides profitable investment Individuals unwilling or unable to handle their own funds have been pleased to find an outlet for their investment in life insurance policies. Endowment policies, multipurpose policies, deferred annuities are certain better form of investment. The elements of investment ie regular saving, capital formation, and return of the capital alongwith certain additional return are perfectly observed in life insurance. In india the insurance policies carry a special exemption from income-tax, wealth tax, gift tax and estate duty. An individual from his own capacity cannot invest regularly

with enough of security and profitability. The life insurance fulfills all these requiremens with a lower cost. The beneficiary of the policy-holder can get a regular income from the life-insurer, if the insured amount is left with him.

1.3:DIFFERENCE BETWEEN INSURANCE & ASSURANCE


Most people do not understand the important difference between Life Assurance and Life Insurance but its quite simple. Life Insurance insures you for a specific period of time. Then if you die whilst the policy is in force, the insurance company pays the claim. However, if you survive to the end of the term, the policy is finished and has no residual value whatsoever. Even whilst the Life Insurance policy is in force it only has any value if you have a claim in that context its just like your home insurance! Life Assurance is different. With Life Assurance you have an important investment element. A Life Assurance policy joins a guaranteed insured sum with a none guaranteed investment, the value of the investment being directly related to the size of the guaranteed sum on your policy, the number of years the policy has been in force and Insurance Companys investment performance. If you were to die during a Life Assurance policys term, the policy pays out the guaranteed sum (just as with Life Insurance) or the value of the annual investment bonuses that had been added to the policy by the Insurance Company to date, whichever is the larger. Therefore, as the years go by the Life Assurance policy increases in value as the bonuses attached to it, build up. However, if you survive to the end of the policy, your investment value is increased. You then get the annual bonuses plus a terminal bonus. When a Life Assurance policy has earned an investment value via its annual bonuses, you can cash it in with the insurance company. However, most people get a far higher price for their policy by selling it to a specialist investment broker. Youll find a number of investment brokers on the Internet who wish to buy life assurance policies.

In recent years, the investment returns on Life Assurance policies have dropped very significantly reflecting investment conditions. Furthermore, most insurance companies have placed penalties for cashing in policies early. This has similarly reduced the resale value for Life Assurance policies. Life Insurance is much cheaper than Life Assurance and, in our experience, Life Insurance is what most people need.

1.4:PRINCIPLES OF INSURANCE
Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses. Insurability Risk which can be insured by private companies typically share seven common characteristics:

1. Large number of similar exposure units: Since insurance operates


through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses. Exceptions include Lloyd's of London, which is famous for

insuring the life or health of actors, sports figures and other famous individuals. However, all exposures will have particular differences, which may lead to different premium rates. 2. Definite loss: The loss takes place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.

3. Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be pure, in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks or even purchasing a lottery ticket, are generally not considered insurable. 4. Large loss: The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses, these latter costs may be several times the size of the expected cost of losses. There is hardly any point in paying such costs unless the protection offered has real value to a buyer. 5. Affordable premium: If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, then it is not likely that the insurance will be purchased, even if on offer. Furthermore, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, then the transaction may have the form of insurance, but not the substance. (See the US Financial Accounting Standards Board standard number 113) 6. Calculable loss: There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim. 7. Limited risk of catastrophically large losses: Insurable losses are ideally independent and non-catastrophic, meaning that the losses do not happen all at once and individual losses are not severe enough to bankrupt the insurer; insurers may prefer to limit their exposure to a loss from a single event to some small portion of their capital base. Capital constrains insurers' ability to sell earthquake

insurance as well as wind insurance in hurricane zones. In the US, flood risk is insured by the federal government. In commercial fire insurance, it is possible to find single properties whose total exposed value is well in excess of any individual insurer's capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.

Legal When a company insures an individual entity, there are basic legal requirements. Several commonly cited legal principles of insurance include 1. Indemnity the insurance company indemnifies, or compensates, the insured in the case of certain losses only up to the insured's interest. 2. Insurable interest the insured typically must directly suffer from the loss. Insurable interest must exist whether property insurance or insurance on a person is involved. The concept requires that the insured have a "stake" in the loss or damage to the life or property insured. What that "stake" is will be determined by the kind of insurance involved and the nature of the property ownership or relationship between the persons. The requirement of an insurable interest is what distinguishes insurance from gambling. 3. Utmost good faith the insured and the insurer are bound by a good faith bond of honesty and fairness. Material facts must be disclosed. 4. Contribution insurers which have similar obligations to the insured contribute in the indemnification, according to some method. 5. Subrogation the insurance company acquires legal rights to pursue recoveries on behalf of the insured; for example, the insurer may sue those liable for insured's loss. 6. Causa proxima, or proximate cause the cause of loss (the peril) must be covered under the insuring agreement of the policy, and the dominant cause must not be excluded 7. Mitigation - In case of any loss or casualty, the asset owner must attempt to keep loss to a minimum, as if the asset was not insured. To "indemnify" means to make whole again, or to be reinstated to the position that one was in, to the extent possible, prior to the happening of a

specified event or peril. Accordingly, life insuranceis generally not considered to be indemnity insurance, but rather "contingent" insurance (i.e., a claim arises on the occurrence of a specified event). There are generally three types of insurance contracts that seek to indemnify an insured: 1. a "reimbursement" policy, and 2. a "pay on behalf" or "on behalf of"[ policy, and 3. an "indemnification" policy. From an insured's standpoint, the result is usually the same: the insurer pays the loss and claims expenses. If the Insured has a "reimbursement" policy the insured can be required to pay for a loss and then be "reimbursed" by the insurance carrier for the loss and out of pocket costs including, with the permission of the insurer, claim expenses. Under a "pay on behalf" policy, the insurance carrier would defend and pay a claim on behalf of the insured who would not be out of pocket for anything. Most modern liability insurance is written on the basis of "pay on behalf" language which enables the insurance carrier to manage and control the claim. Under an "indemnification" policy the insurance carrier can generally either "reimburse" or "pay on behalf of" whichever is more beneficial to it and the insured in the claim handling process. An entity seeking to transfer risk (an individual, corporation, or association of any type, etc.) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of acontract, called an insurance policy. Generally, an insurance contract includes, at a minimum, the following elements: identification of participating parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage (i.e., the amount to be paid to the insured or beneficiary in the event of a loss), andexclusions (events not covered). An insured is thus said to be "indemnified" against the loss covered in the policy. When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a claim against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the premium. Insurance premiums from many insureds are used to fund accounts reserved for later payment of claims in theory for a relatively few claimants and for overhead costs. So long as an insurer maintains

adequate funds set aside for anticipated losses (called reserves), the remaining margin is an insurer's profit.

1.5:HISTORY OF INSURANCE
In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and more modern monetary economies (with markets, currency, financial instruments and so on). The former is more primitive and the insurance in such economies entails agreements of mutual aid. If one family's house is destroyed the neighbours are committed to help rebuild. Granaries housed another primitive form of insurance to indemnify against famines. Often informal or formally intrinsic to local religious customs, this type of insurance has survived to the present day in some countries where a modern money economy with its financial instruments is not widespread. Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively.Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea. Achaemenian monarchs of Ancient Persia were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices.

The subscription room at Lloyd's of London in the early 19th century. The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: "[W]henever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much. A thousand years later, the inhabitants of Rhodes invented the concept of the general average. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were deliberately jettisoned in order to lighten the ship and save it from total loss. The ancient Athenian "maritime loan" advanced money for voyages with repayment being cancelled if the ship was lost. In the 4th century BC, rates for the loans differed according to safe or dangerous times of year, implying an intuitive pricing of risk with an effect similar to insurance.[15] The Greeks andRomans introduced the origins of health and life insurance c. 600 BCE when they created guilds called "benevolent societies" which cared for thefamilies of deceased members, as well as paying funeral expenses of members. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies. Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed.

Lloyd's of London, pictured in 1991, is one of the world's leading and most famous insurance markets

Some forms of insurance had developed in London by the early decades of the 17th century. For example, the will of the English colonist Robert Hayman mentions two "policies of insurance" taken out with the diocesan Chancellor of London, Arthur Duck. Of the value of 100 each, one relates to the safe arrival of Hayman's ship in Guyana and the other is in regard to "one hundred pounds assured by the said Doctor Arthur Ducke on my life". Hayman's will was signed and sealed on 17 November 1628 but not proved until 1639.Toward the end of the seventeenth century, London's growing importance as a centre for trade increased demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships' captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market (note that it is an insurance market rather than a company) for marine and other specialist types of insurance, but it operates rather differently than the more familiar kinds of insurance. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new plan for London in 1667.A number of attempted fire insurance schemes came to nothing, but in 1681 Nicholas Barbon, and eleven associates, established England's first fire insurance company, the 'Insurance Office for Houses', at the back of the Royal Exchange. Initially, 5,000 homes were insured by Barbon's Insurance Office. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry primary resides with individual state insurance departments. The current state insurance regulatory framework has its roots in the 19th century, when New Hampshire appointed the first insurance commissioner in 1851.Congress adopted the McCarran-Ferguson Act in 1945, which declared that states should regulate the business of insurance and to affirm that the continued regulation of the insurance industry by the states is in the public's best interest.The Financial Modernization Act of 1999, commonly referred to as "Gramm-Leach-Bliley", established a comprehensive framework to authorize affiliations between banks, securities firms, and insurers, and once again acknowledged that states should regulate insurance. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through the National Association of Insurance Commissioners.

In recent years, some have called for a dual state and federal regulatory system (commonly referred to as the Optional federal charter (OFC)) for insurance similar to the banking industry. In 2010, the federal Dodd-Frank Wall Street Reform and Consumer Protection Act established the Federal Insurance Office ("FIO")] FIO is part of the U.S. Department of the Treasury and it monitors all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that may contribute to a systemic crisis in the insurance industry or in the U.S. financial system.FIO coordinates and develops federal policy on prudential aspects of international insurance matters, including representing the U.S. in the International Association of Insurance Supervisors.[20] FIO also assists the U.S. Secretary of Treasury with negotiating (with the U.S. Trade Representative) certain international agreements.] Moreover, FIO monitors access to affordable insurance by traditionally underserved communities and consumers, minorities, and low- and moderateincome persons.The Office also assists the U.S. Secretary of the Treasury with administering the Terrorism Risk Insurance Program.However, FIO is not a regulator or supervisor.The regulation of insurance continues to reside with the states.

1.6:TIMELINE IN INSURANCE HISTORY


The history of life insurance is almost too big to fit on one timeline. It spans from today all the way back to 100 B.C., when Caius Marius, a Roman military leader, created a burial club among his troops. When a member died unexpectedly, other members would pay for the funeral expenses. Similar clubs followed suit, as Romans believed improper burials led to unhappy ghosts. Eventually, the clubs started including a stipend for the survivors of the deceased. After the Roman Empire fell, life insurance didn't reappear until 1662, when London draper John Graunt discovered predictable patterns of longevity and death in a defined group of people, despite the uncertainty about the future longevity or mortality of an individual person. A few decades later, in 1693, astronomer Edmond Halley constructed the first mortality table to provide a link between life insurance premium and average life spans. It wasn't until 1732, though, that the first insurance company in the United States formed in Charleston, S.C., and life insurance wasn't added to its product line until 1760. In 1756, Joseph Dodson reworked Halley's mortality table, linking premium rate to age. By 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of Presbyterian ministers and their dependents. Episcopalians organized a similar fund a decade later. After that, life insurance really took off. Check out the interactive timeline below for the rest of the story. And if we're missing something important, send an email to banderson@sbmedia.com, so we can add it.

Nowadays ,timeline is the key part in the insuarance industry.insurance company as well as insure is bounded by certain timeline. For more than 75 years, Allstate leaders, employees and agency owners have been passionate about leading positive change in this country. Serving as a consumer advocate - and an advocate for the American economy - is an integral part of Allstate's heritage. In the 1930s, Allstate was one of the first companies to create a sophisticated rate classification system, giving better rates to safe drivers; in the 1950s Allstate opened its first drive-in claim office, revolutionizing the way automobile claims are handled; in the 1960s the company helped convince the government to make seat belt use mandatory; in the 1970s and 1980s Allstate played an instrumental role in advocating the safety benefits of air bags; and in the 1990s and 2000s Allstate has continued to take a public stand on issues that are important to consumers. Today, Allstate is reinventing protection and retirement to help consumers protect what they have and better prepare for tomorrow. it was the Great Depression. Many long-term businesses were closing their doors at an alarming rate. General Wood, however, recognized the automobile was fast becoming a mainstay of American life, and an automobile insurance company was an opportunity to extend Sears services to the public. After undertaking an exhaustive study on insurance issues, he convinced the Sears Board of Directors to finance this insurance company with $700,000. 1931 With a name borrowed from an automobile tire sold in the Sears catalog, and the backing of Sears, the great adventure of Allstate Insurance Company begins on April 17, 1931. On May 17, William Lehnertz, a tool and die maker from Aurora, Ill., becomes Allstate's first policyholder. He pays $41.60 for a 12-month policy on his 1930 Studebaker. Allstate pays its first claim on the spot when an insured walks into the one-room Allstate office holding an auto door handle broken off in a theft attempt. By year-end, Allstate has 4,217 policies in force, a premium volume of $118,323 and 20 employees. The company suffers a $76,000 loss for the year. 1933 At the Chicago World's Fair, Richard Roskam becomes Allstate's first agent when he sets up a card table in the Sears exhibit and is swamped with applications. 1934 The change in sales methods from direct-mail to Allstate-agent representation begins with the opening of the first Allstate sales location in a Chicago Sears store. 1937 Allstate hires its first full-time salaried claim adjuster.

1939 Allstate startles the insurance industry by tailoring auto rates by age, mileage and use of car. The plan is so popular the industry follows suit. Written premium is $3.7 million with 113,472 policyholders and 529 employees. Allstate receives 25,461 claims for the year. Learn more about Allstate in the 1940s. 2001 Allstate acquires Sterling Collision Centers Inc., a leader in the auto body repair industry. Allstate recognized as a Top Company for Diversity by DiversityInc. Allstate announces that it will be the Official Home and Auto Insurance Sponsor of the 2002 Olympic Winter Games in Salt Lake City and the 2002 and 2004 U.S. Olympic Teams. 2002 Continuing to execute its strategy to become broader in financial services, Allstate ends the year with nearly 7,000 personal financial representatives (more than half of Allstate exclusive agencies) licensed to sell a broad range of financial services and products. They issue more than $1.6 billion in new premiums and deposits - a total greater than 1999, 2000 and 2001 combined. 2003 Allstate establishes a Supplier Diversity Program to broaden procurement of goods and services with diverse suppliers. The Allstate Foundation establishes the $1 million Emergency Response Fund to help devastated communities recover from natural disasters. The first $1 million grant helps the people of Southern California recover from the wildfires that ravaged the area. 2004 Allstate announces an agreement to become the Official Home and Auto Insurance sponsor for USA Basketball and its Athens-bound 2004 U.S. men's and women's basketball teams. Allstate and USA Basketball also announce plans to host a series of 10 youth basketball clinics at select Boys & Girls Clubs. The United States Olympic Committee and Allstate announce the return of the U.S. Olympic Hall of Fame Presented by Allstate, which had been inactive since 1992. The Class of 2004 is announced during a special induction ceremony on July 1. 2005 Allstate signs a multiyear NASCAR sponsorship agreement, becoming the official insurance sponsor of NASCAR, with the "Allstate 400 at the Brickyard" as its cornerstone. Hurricane Katrina strikes the Gulf Coast, becoming the costliest natural disaster in U.S. history with estimated industrywide, insured losses of nearly $40 billion. Allstate employees and agencies and The Allstate Foundation together contribute more than $6 million to help thousands of victims rebuild their lives.

InformationWeek names Allstate one of the nation's top 50 innovative users of information technology. Allstate is ranked as the second most-admired company in the Property & Casualty industry in the 2005 Fortune magazine Most Admired Companies. With Allstate Your Choice Auto Insurance, Allstate revolutionizes car insurance in America, breaking the mold of products traditionally offered by many insurers with more choices, innovative features and enhanced rewards for safe drivers. The Allstate Foundation launches a Domestic Violence Program to address economic challenges of domestic violence survivors. Hispanic Business magazine names Allstate as one of the "Top 50 Companies for Hispanics." Allstate initiates ProtectingAmerica.org, a broad coalition that seeks to better prepare and protect Americans from natural disasters. The Allstate Foundation releases Chronic: A Report on the State of Teen Driving, including original research into teen attitudes and behaviors about driving. The report, one of the most comprehensive on the issue, serves as a launch for Allstate Foundation's unique, multiyear teen driving program, addressing the number one killer of teens: motor vehicle crashes. 2006 Institutional Investor ranks Allstate first in a survey rating the effectiveness of corporate investor relations among insurance companies in the property-casualty sector. Allstate announces a multiyear sponsorship agreement with the FOX Broadcasting Company and the Sugar Bowl Committee to become the title sponsor of the Allstate Sugar Bowl in New Orleans. On April 17, Allstate celebrates its 75th anniversary. With the introduction of the Allstate Your Choice Home, consumers choose their level of protection. Your Choice Home offers unique features, such as Claim-Free Bonus, Claim RateGuard and Guaranteed Renewal for Claims. "Keep the Drive," The Allstate Foundation's national teen-to-teen smart driving movement, takes on the No. 1 killer of teens - car crashes. The movement is led by a "Drive Crew" - a group of diverse teens from across the country who want to make a difference in the lives of their friends and classmates. The Web site, www.keepthedrive.com, educates and motivates teens to spread the smart driving message. The Allstate Foundation and the National Network to End Domestic Violence Fund host the first-of-its-kind national leadership forum as one component of the Foundation's Domestic Violence Program. Allstate is awarded U.S. Patent 7,080,032 on July 18, 2006, for the innovative methods behind the deferred fixed annuity products, the Allstate TreasuryLinked Annuity (T-Link) and Allstate Treasury-Linked Annuity Plus (T-Link Plus).

Allstate tests Allstate Blue in Virginia. Allstate Blue works to complement the current standard auto products, but allows a more comprehensive offering with two key optional components for the nonstandard market: Loyalty Bonus and Roadside Help. The Allstate Foundation Domestic Violence Program rolls out its Financial Empowerment Curriculum in more than 20 states, and releases the releases the results of its first annual national poll on domestic violence and economic abuse. 2007 The Allstate Parent-Teen Driving Contract is a key tool in Allstate's launch of a national Teen Safe Driving campaign that includes TV, print and a commissioned song to promote awareness of teen driving deaths and what can be done to prevent them. Allstate launches Beyond February, an ongoing initiative that creates, supports and sponsors programs that empower and enrich the African-American community throughout the entire year - not just during Black History Month in February. Bumper-to-Bumper Basics and Ballpark Estimator debut on allstate.com, offering consumers new online interactive auto insurance-related tools that answer common questions in plain English and help consumers better understand their insurance needs. Allstate Green, an innovative new eco-friendly insurance option, launches and helps to offset auto emissions by funding reforestation and clean energy projects in the United States. The Allstate Foundation launches www.EconEmpowerment.org, a Web site of the Foundation's Domestic Violence Program which provides information and resources to support survivors of domestic violence. The Allstate "Good Hands" Field Goal Net program continues to grow, including more than 350 college football games where field goals raise money for 57 Partner Schools' General Scholarship Funds. 2008 The teen driving program conducted by Allstate and The Allstate Foundation wins the U.S. Chamber of Commerce's U.S. Community Service Award for "exemplifying the highest ideals in corporate citizenship." Allstate begins working with Posit Science Corporation, a leader in clinically validated brain fitness programs, to provide customers and consumers with an innovative solution that offers them access to products that can improve their quality of life and driving performance. InformationWeek 500 annual ranking names Allstate one of nation's top innovative users of technology and recognizes Allstate's Next Generation Claim Systems and Consumer 2.0 technologies. As primary sponsor of National Youth Traffic Safety Month in May 2007 and 2008, The Allstate Foundation's funding engages more than 25,000 youth in delivering safe driving messages in more than 250 communities.

Allstate launches allstategarage.com, a Web site catering to motorcycle owners. Allstate acquires Retirement Bridge, an innovative Web-based customer engagement and reporting tool that goes beyond the numbers to help consumers achieve retirement dreams. Allstate celebrates U.S. Olympic Hall of Fame Induction Ceremony with rare reunion of the "Magnificent Seven" members of the historic 1996 U.S. Women's Gymnastics Team. The Partnership Marketing Group acquisition broadens product and service offering and doubles Allstate Motor Club retail membership. Allstate signs a three-year sponsorship agreement with Little League Baseball and Softball. The Allstate Foundation launches ClicktoEmpower.org to raise funds for domestic violence survivors, donating funds to the Education and Job Training Assistance Fund.

1.7:MEANING OF HEALTH INSURANCE


In February 2002, the Federal Governments Interdepartmental Committee on Employment-based Health Insurance Surveys approved the following set of definitions for use in Federal surveys collecting employer-based health insurance data. The BLS National Compensation Survey currently uses these definitions in its data collection procedures and publications. These definitions will be periodically reviewed and updated by the Committee. ASO (Administrative Services Only) An arrangement in which an employer hires a third party to deliver administrative services to the employer such as claims processing and billing; the employer bears the risk for claims. This is common in self-insured health care plans. Coinsurance - A form of medical cost sharing in a health insurance plan that requires an insured person to pay a stated percentage of medical expenses after the deductible amount, if any, was paid. Once any deductible amount and coinsurance are paid, the insurer is responsible for the rest of the reimbursement for covered benefits up to allowed charges: the individual could also be

responsible for any charges in excess of what the insurer determines to be usual, customary and reasonable. Coinsurance rates may differ if services are received from an approved provider (i.e., a provider with whom the insurer has a contract or an agreement specifying payment levels and other contract requirements) or if received by providers not on the approved list. In addition to overall coinsurance rates, rates may also differ for different types of services. Copayment - A form of medical cost sharing in a health insurance plan that requires an insured person to pay a fixed dollar amount when a medical service is received. The insurer is responsible for the rest of the reimbursement. There may be separate copayments for different services. Some plans require that a deductible first be met for some specific services before a copayment applies. Deductible - A fixed dollar amount during the benefit period - usually a year - that an insured person pays before the insurer starts to make payments for covered medical services. Plans may have both per individual and family deductibles. Some plans may have separate deductibles for specific services. For example, a plan may have a hospitalization deductible per admission.

Flexible spending accounts or arrangements (FSA) - Accounts offered and administered by employers that provide a way for employees to set aside, out of their paycheck, pretax dollars to pay for the employees share of insurance premiums or medical expenses not covered by the employers health plan. The employer may also make contributions to a FSA. Typically, benefits or cash must be used within the given benefit year or the employee loses the money. Flexible spending accounts can also be provided to cover childcare expenses, but those accounts must be established separately from medical FSAs. Flexible benefits plan (Cafeteria plan) (IRS 125 Plan) A benefit program under Section 125 of the Internal Revenue Code that offers employees a choice between permissible taxable benefits, including cash, and nontaxable benefits such as life and health insurance, vacations, retirement plans and child care. Although a common core of benefits may be required, the employee can determine how his or her remaining benefit dollars are to be allocated for each type of benefit from the total amount promised by the employer. Sometimes employee contributions may be made for additional coverage. Fully insured plan - A plan where the employer contracts with another organization to assume financial responsibility for the enrollees medical claims and for all incurred administrative costs. Gatekeeper - Under some health insurance arrangements, a gatekeeper is responsible for the administration of the patients treatment; the gatekeeper coordinates and authorizes all medical services, laboratory studies, specialty referrals and hospitalizations. Group purchasing arrangement Any of a wide array of arrangements in which two or more small employers purchase health insurance collectively, often through a common intermediary who acts on their collective behalf. Such arrangements may go by many different names, including cooperatives, alliances, or business groups on health. They differ from one another along a number of dimensions, including governance, functions and status under federal and State laws. Some are set up or chartered by States while others are entirely private enterprises. Some centralize more of the purchasing functions than others, including functions such as risk pooling, price negotiation, choice of health plans offered to employees, and various administrative tasks. Depending on their functions, they may be subject to different State and/or federal rules. For example, they may

be regulated as Multiple Employer Welfare Arrangements (MEWAs). Association Health Plans This term is sometimes used loosely to refer to any health plan sponsored by an association. It also has a precise definition under the Health Insurance Portability and Accountability Act of 1996 that exempts from certain requirements insurers that sell insurance to small employers only through association health plans that meet the definition.

1.8:HISTORY OF HEALTH INSURANCE


Although people have been paying for medical care since ancient times, early versions of what we would call health insurance policies did not begin to appear in the US in the 19th century. Most policies were designed to protect employees against mishaps at work or while travelling. Health insurance was still not a well-defined concept until the early 20th century when insurance became formalised in British law: most policies protected against lost earnings, rather than the cost of treatment, as earnings were more valuable at the time. The history of health insurance is complex, and modern policies were not needed until medical care evolved to a stage where it became expensive. Rising costs and the history of health insurance As medicine has advanced, the cost of healthcare has risen, and health insurance has become more of a concern. In the early 20th century, researchers began to understand more about infection and illness, and medical staff were formally trained for the first time. Surgery was now conducted in sterile environments specially designed for the purpose, rather than in private dwellings. As a result, mortality rates improved. Insurers such as AXA launched their first healthcare insurance schemes for working people around the same time. After the second world war, the NHS was founded, providing healthcare that was free at the point of use. By the 1980s, the evolution of a powerful global pharmaceutical industry helped ensure new treatments were developed, but these treatments were normally patented, and a course of medication, an operation or an x-ray could cost hundreds or thousands of pounds. The cost burden of the NHS had grown substantially, and successive governments began to try to save money by re-organising and re-structuring the health service a

process which continues today. History of health insurance and the NHS Over the last 50 years India has achieved alot in terms of health improvement. But still India is way behind many fast developing countries such as China, Vietnam and Sri Lanka in health indicators (Satia et al 1999). In case of government funded health care system, the quality and access of services has always remained major concern. A very rapidly growing private health market has developed in India. This private sector bridges most of the gaps between what government offers and what people need. However, with proliferation of various health care technologies and general price rise, the cost of care has also become very expensive and unaffordable to large segment of population. The government and people have started exploring various health financing options to manage problems arising out of growing set of complexities of private sector growth, increasing cost of care and changing epidemiological pattern of diseases. The new economic policy and liberalization process followed by the Government of India since 1991 paved the way for privatization of insurance sector in the country. Health insurance, which remained highly underdeveloped and a less significant segment of the product portfolios of the nationalized insurance companies in India, is now poised for a fundamental change in its approach and management. The Insurance Regulatory and Development Authority (IRDA) Bill, recently passed in the Indian Parliament, is important beginning of changes having significant implications for the health sector. The privatization of insurance and constitution IRDA envisage to improve the performance of the state insurance sector in the country by increasing benefits from competition in terms of owered costs and increased level of consumer satisfaction. However, the implications of the entry of private insurance companies in health sector are not very clear. The recent policy changes will have been far reaching and would have major implications for the growth and development of the health sector. There are several contentious issues pertaining to development in this sector and these need critical examination. 4. Health Insurance scene in India Health insurance can be defined in very narrow sense where individual or group purchases in advance health coverage by paying a fee called "premium". But it can be also defined broadly by including all financing arrangements where

consumers can avoid or reduce their expenditures at time of use of services. The health insurance existing in India covers a very wide spectrum of arrangements and hence the latter- broader interpretation of health Insurance is more appropriate. Health insurance is very well established in many countries. But in India it is a new concept except for the organized sector employees. In India only about 2 per cent of total health expenditure is funded by public/social health insurance while 18 per cent is funded by government budget. In many other low and middle income countries contribution of social health insurance is much higher . It is estimated that the Indian health care industry is now worth of Rs. 96,000 crore and expected to surge by 10,000 crore annually. The share of insurance market in above figure is insignificant. Out of one billion population of India 315 million people are estimated to be insurable and have capacity to spend Rs. 1000 as premium per annum. Many global insurance companies have plans to get into insurance business in India. Market research, detailed planning and effective insurance marketing is likely to assume significant importance. Given the health financing and demand scenario, health insurance has a wider scope in present day situations in India. However, it requires careful and significant effort to tap Indian health insurance market with proper understanding and training. There are various types of health coverages in India. Based on ownership the existing health insurance schemes can be broadly divided into categories such as: Government or state-based systems Market-based systems (private and voluntary) Employer provided insurance schemes Member organization (NGO or cooperative)-based systems Government or state-based systems include Central Government Health Scheme (CGHS) and Employees State Insurance Scheme (ESIS). It is estimated that employer managed systems cover about 20-30 million of population. The schemes run by member-based organizations cover about 5 per cent of population in various ways.Market-based systems (voluntary and private) have Mediclaim scheme which covers about 2 million of population. There are many employers who reimburse costs of medical expenses of the employees with or without contribution from the employee. It is estimated that about 20 million employees may be covered by such reimbursement arrangements. There are several government and private employers such as Railway and Armed forces and public sector

enterprises that run their own health services for employees and families. It is estimated that about 30 million employees may be covered under such employer managed health services (Ellis et al. 1996). General Insurance Corporation (GIC) and its four subsidiary companies and Life Insurance Corporation (LIC) of India have various health insurance products. These are Ashadeep Plan II and Jeevan Asha Plan II by Life Insurance Corporation of India and various policies by General Insurance Corporation of India as under: Personal Accident Policy, Jan Arogya Policy, Raj Rajeshwari Policy, Mediclaim Policy, Overseas Mediclaim Policy, Cancer Insurance Policy, Bhavishya Arogya Policy and Dreaded Disease Policy (Srivastava 1999). The health care demand is rising in India now days. It is estimated that only 10 per cent of health insurance market has been tapped till today. Still there is a scope of rise up to 35 percentage.

Health Care Plans and Systems Indemnity plan - A type of medical plan that reimburses the patient and/or provider as expenses are incurred. Conventional indemnity plan - An indemnity that allows the participant the choice of any provider without effect on reimbursement. These plans reimburse the patient and/or provider as expenses are incurred. Preferred provider organization (PPO) plan - An indemnity plan where coverage is provided to participants through a network of selected health care providers (such as hospitals and physicians). The enrollees may go outside the network, but would incur larger costs in the form of higher deductibles, higher coinsurance rates, or non-discounted charges from the providers. Exclusive provider organization (EPO) plan - A more restrictive type of preferred provider organization plan under which employees must use providers from the specified network of physicians and hospitals to receive coverage; there is no coverage for care received from a nonnetwork provider except in an emergency situation. Health maintenance organization (HMO) - A health care system that assumes both the financial risks associated with providing comprehensive medical services (insurance and service risk) and the responsibility for health care delivery in a particular geographic area to HMO members, usually in return for a fixed, prepaid fee. Financial risk may be shared with the providers participating in the HMO. Group Model HMO - An HMO that contracts with a single multispecialty medical group to provide care to the HMOs membership. The group practice may work exclusively with the HMO, or it may provide services to non-HMO patients as well. The HMO pays the medical group a negotiated, per capita rate, which the group distributes among its physicians, usually on a salaried basis. Staff Model HMO - A type of closed-panel HMO (where patients can receive services only through a limited number of providers) in which physicians are employees of the HMO. The physicians see patients in the HMOs own facilities. Network Model HMO - An HMO model that contracts with multiple physician groups to provide services to HMO members; may involve large single and multi-specialty groups. The physician groups may provide services to both HMO and non-HMO plan participants. Individual Practice Association (IPA) HMO- A type of health care provider organization composed of a group of independent

practicing physicians who maintain their own offices and band together for the purpose of contracting their services to HMOs. An IPA may contract with and provide services to both HMO and nonHMO plan participants. Point-of-service (POS) plan - A POS plan is an "HMO/PPO" hybrid; sometimes referred to as an "open-ended" HMO when offered by an HMO. POS plans resemble HMOs for in-network services. Services received outside of the network are usually reimbursed in a manner similar to conventional indemnity plans (e.g., provider reimbursement based on a fee schedule or usual, customary and reasonable charges).

1.9:KEY FEATURES OF HEALTH INSURANCE


The individual insured person's obligations may take several forms:

Premium: The amount the policy-holder or his sponsor (e.g. an employer) pays to the health plan to purchase health coverage. Deductible: The amount that the insured must pay out-of-pocket before the health insurer pays its share. For example, policy-holders might have to pay a $500 deductible per year, before any of their health care is covered by the health insurer. It may take several doctor's visits or prescription refills before the insured person reaches the deductible and the insurance company starts to pay for care however, most policies do not apply co-pays for doctor's visits or prescriptions against your deductible. Co-payment: The amount that the insured person must pay out of pocket before the health insurer pays for a particular visit or service. For example, an insured person might pay a $45 co-payment for a doctor's visit, or to obtain a prescription. A co-payment must be paid each time a particular service is obtained. Coinsurance: Instead of, or in addition to, paying a fixed amount up front (a co-payment), the co-insurance is a percentage of the total cost that insured person may also pay. For example, the member might have to pay 20% of the cost of a surgery over and above a co-payment, while the insurance company pays the other 80%. If there is an upper limit on coinsurance, the policy-holder could end up owing very little, or a great deal, depending on the actual costs of the services they obtain. Exclusions: Not all services are covered. The insured are generally expected to pay the full cost of non-covered services out of their own pockets. Coverage limits: Some health insurance policies only pay for health care up to a certain dollar amount. The insured person may be expected to pay any charges in excess of the health plan's maximum payment for a specific service. In addition, some insurance company schemes have annual or lifetime coverage maxima. In these cases, the health plan will stop payment

when they reach the benefit maximum, and the policy-holder must pay all remaining costs.

Out-of-pocket maxima: Similar to coverage limits, except that in this case, the insured person's payment obligation ends when they reach the out-of-pocket maximum, and health insurance pays all further covered costs. Out-of-pocket maxima can be limited to a specific benefit category (such as prescription drugs) or can apply to all coverage provided during a specific benefit year. Capitation: An amount paid by an insurer to a health care provider, for which the provider agrees to treat all members of the insurer. In-Network Provider: (U.S. term) A health care provider on a list of providers preselected by the insurer. The insurer will offer discounted coinsurance or co-payments, or additional benefits, to a plan member to see an in-network provider. Generally, providers in network are providers who have a contract with the insurer to accept rates further discounted from the "usual and customary" charges the insurer pays to out-of-network providers. Prior Authorization: A certification or authorization that an insurer provides prior to medical service occurring. Obtaining an authorization means that the insurer is obligated to pay for the service, assuming it matches what was authorized. Many smaller, routine services do not require authorization.Explanation of Benefits: A document that may be sent by an insurer to a patient explaining what was covered for a medical service, and how payment amount and patient responsibility amount were determined.

1.10:BENEFITS OF HEALTH INSURANCE


Basic benefits that health plans usually cover

Doctor services Hospital services, including inpatient serviceswhen you have to stay overnight in the hospitaland outpatient services, such as minor surgery in a surgery center Many laboratory tests Diagnostic services, like X-rays and mammograms Preventive and routine care, like vaccinations and regular checkups Mental health care for some serious problems Emergency and urgent careeven if you are outside your health plan's service area Rehabilitation therapy, such as physical, occupational and speech therapy Some home health or nursing home care after a hospital stay

Most individuals simply assume that their health insurancepolicy pays only for the hospitalisation expenses. However, contrary to this common belief, many health policies foot the bill for associated expenses, too. There are several under-publicised benefits in health insurance that remain unused due to lack of awareness. Irrespective of whether your insurer or advisor has educated you about these benefits, it would be a great idea to read the policy document yourself. Remember, the utility of your cover depends not only on its features, but also how well you are able to utilise them. Read on to understand such benefits. Daily hospital cash allowance All health policies take care of the cost of hospitalisation. However, what about the expenses incurred on, say, food or refreshments? Or, the money spent by your family while commuting between hospital and home? After all, even these add up to a substantial amount. Well, the solution lies within your policy in the form of Daily Hospital Cash Allowance. Check if your policy offers this pre-fixed, per-day cash hand-outs. "This sum is handed over without the insured having to produce any bill to support the claim, no questions asked," says Sanjay Datta, head, underwriting & claims, ICICI Lombard. Convalescence benefit Hospitalisation costs apart, some companies also take care of the insured's recovery expenses. Also termed as recuperating benefit, this feature promises a lump sum in case of a prolonged stay at the hospital. "The duration of prolonged stay usually varies between 7 and 10 days among policies. This benefit is usually provided to ensure supplementary costs due to the stay in hospital, such as a loss of income for the number of days in hospital," says Antony Jacob, CEO, Apollo Munich. "Associated costs, such as compassionate visits by family members, are also covered to some extent." In case of some policies, the post-hospitalisation stage could be treated as the recuperating period. You need to be aware of the eligible benefit amount and period, which are usually pre-defined. Alternative treatment

The recent Insurance Regulatory and Development Authority (Irda) draft guidelines may nudge all companies into covering non-allopathic forms of treatment, like Ayurveda, Unani and Homeopathy, but some of them do so even today. For instance, New India Assurance undertakes to reimburse 25% of such expenses, provided the treatment is taken at a government hospital. The proposed norms seek to let insurers to pay for these expenses even if the treatment has been availed at any institute that is either recognised by the government, accredited by Quality Council of India/National Accreditation Board on Health or any other suitable institution. Treatment taken at home The general impression of health insurance covers is that their scope is restricted to hospitalisation or day-care procedures. However, many policies widen their coverage ambit to include domiciliary treatment, too. That is, treatment undergone at home as per doctor's advice. Primarily, this would be because the patient is unable to visit a hospital. "Here, the insured may be asked to submit bills from the doctor's clinic. The pay-out is percentage or value-based," says Datta. The amount and the number of days for which the benefit period is payable is capped in terms of percentage of the sum insured or absolute amount. For instance, your policy wordings could make it clear that the benefit is restricted to 10% of the sum insured or Rs 25,000, whichever is lower. Expenses related to organ donors Any transplantation surgery puts tremendous strain on the insured financially and emotionally. What's more, besides the cost of the organ recipient's treatment, the donor's expenses are also included in the hospital bill. Now, there is a provision in your insurance policy to claim expenses related to the donor as well. "As per Irda regulations, the coverage offered during organ donation in all health policies now include treatment undertaken by the organ donor to the insured person. The treatment costs cover the expenses in surgery and harvesting the organ," says Antony Jacob. "However, the coverage does not include screening charges." Attendant allowance For adults looking after an insured child at a hospital, some policies promise a fixed allowance. "If a child aged 12 years or less is hospitalised, a daily cash amount for one accompanying adult for each day after the third day of hospitalisation is included in health insurance policies," adds Jacob.

The specific parameters could vary as per the insurer and the product. For instance, Oriental General Insurance's health plan offers 500 for each day of hospitalisation, which will be paid for a maximum of 10 days per illness. Lump sum for critical illnesses Typically, all policies cover expensive procedures like dialysis and chemotherapy. However, certain products offer a higher sum insured limit for certain critical illness. For instance, L&T Insurance's health policy offers double the sum insured for treatment of these serious ailments. Then, there are others that hand out a pre-defined amount once such illnesses are diagnosed - much like a critical illness cover, just that you need not buy a separate one for the purpose. Certain high-end plans also provide a lump sum as survival benefit 180-270 days after discharge.

1.11 Role of health insurance in the growth of economy


The healthcare industry is often one of the largest employers in a rural community and serves as asignificant driver of economic development. The healthcare sector plays four major roles in ruraleconomic development. First, because the local healthcare system serves local residents, healthcareexpenditures stay local, and as a result, the dollars stay within the local economy. Second, healthcaresystems attract external dollars into a community from outside a local area, largely through paymentsfrom private insurance companies, Medicare, and Medicaid. Third, the existence of a quality localhealth care system is important to retaining existing local businesses as well as attracting new industriesinto a community. Finally, a local healthcare system can support and promote a healthy and productiveworkforce within a community. in many instances the economic importance of the healthcare sector is described as itseconomic impact on the local economy through the number of jobs, revenue and income created fromthe industry. . The total impact includes the direct, indirect and induced impacts, incorporating themultiplier effect. Overall, the healthcare sector generates approximately $15,920,216 dollars in sales,$8,359,014 dollars in labor income, and 269 jobs within Webster County.Prepared By: Community and Economic Development Initiative of Kentucky (CEDIK), 2012Questions or concerns regarding this analysis should be directed to Dr.AlisonDavis,ExecutiveDirectoatCEDIKandntProfessor of Agricultural

Economics at the University of Kentucky, College of Agriculture, email: Alison.Davis@uky.edu. 2 I. Introduction Over the last two decades, health care services have become a critical engine of growth in ruralKentucky. The health care is the second largest industry category in rural Kentucky trailing only localgovernment. Very few rural communities have realized the full potential of local health care as aneconomic and community development tool. Rural communities have an extraordinary opportunity toimprove their local economies and develop health care as a local business. Every health care serviceprovided locally benefits the rural community twice. First, it improves peoples health and second, itimproves the health of the local economy.This summary report documents the economic impact of Webster Countys health care system. The impact is measured by the number of jobs and income directly and indirectly associated with thelocal health care system. The report begins by describing the role of health care in rural economicdevelopment. The next part examines the current status of the local economy and the relative place ofthe health care industry. The third section demonstrates the direct and indirect economic impact of thehealth care system on the local economy. Finally provides a summary of the economic impact onWebster County due to the local health care system. The role of healthcare in economic development is based on financial and nonfinancial linkages withthe rest of the local economy. Financial linkages are based on the link between the health careproviders expenditures and revenues and other local firms expenditures and revenues. The health caresector and other industries often mutually support one another through purchases and sales. Thesefinancial linkages create a larger local economy. The most important financial role for the local health care system is to keep local health caredollars at home. There are many sources of local health care dollars including private insurance,consumer outofpocket payments, and Medicare and Medicaid transfer payments. If these expenditures leave the community, they represent a potential loss of income and jobs for the localresidents. An outmigration of healthcare services is payment for services that are received outside ofthe local area. This bypass of local healthcare remains an important issue for many rural health careproviders and rural communities. If healthcare providers can attract patients from outside of their community, the healthcareindustry can act as an export industry. The Identification of a communitys supplydemand gapwillassista

community in keeping health care dollars at home. A supplydemand gap occurs when a localeconomy does not supply (provide) the goods or services demanded (needed or wanted) by anindividual or a community. Consequently, residents are then forced to outshop and make purchases outside their own community. Over the last 3 decades, market reforms and trade liberalization policies have brought significant wealth and economic prosperity to the people of China. The downside to these changes, however, has been a decline in access to health care for the poor and increasing levels of out-of-pocket payments for health care. The high costs of health care has meant that many people face the tragic choice of either forgoing treatment or incurring financial hardship with the onset of illness. Stroke is an enormous health issue in China as the second most common cause of death, accounting for almost 20% of all deaths in both rural and urban settings.As its huge population undergoes rapid aging, urbanization, and other lifestyle and social changes, stroke is an ever-increasing burden on the Chinese healthcare system.In common with other forms of cardiovascular disease, stroke can have serious economic consequences to families due to loss of income and the cost of health care. In China, where 60% of healthcare expenditure is financed from out-of-pocket payments, illness is a major cause of economic hardship and poverty.7There is no one accepted criterion for defining a level of payment that is defined as catastrophic; criteria vary from 10% of income, 10% of household consumption, and 40% of disposable income. In a recent population-based survey, 13% of households in China were found to have incurred a catastrophic payment when defined as 10% of total household expenditure and 5% when defined as 40% of nonfood expenditure.Alternatively, healthcare payments can be seen as catastrophic if, once payments are deducted from annual income, they push households below an absolute poverty threshold. It is estimated that 13.7% of the population of China have incomes below a poverty threshold of US $1.08 per day and 44.6% below a threshold of US $2.15 per day. Out-of-pocket payments for health care have been shown to result in 32 million individuals (2.6% increase) being pushed below the US $1.08 a day income threshold and 23 million individuals (1.8% increase) pushed below the US $2.15 threshold. Health insurance is seen as an important means of offering financial protection from such economic catastrophe. In urban areas of China, social health insurance schemes based on employment were introduced in 1998 with coverage provided principally to employees of state enterprises and some areas of the private sector. In its early phase, the urban health

insurance initiative was shown to have had some success in reducing the financial burden on patientsand in reducing overall cost pressures. However, recent data suggest that the anticipated expansion of coverage has not materialized and that levels of participation among vulnerable groups such as women, low-income earners, rural to urban migrant workers, and employees on short-term contracts has been falling. Furthermore, copayments and gaps in benefit packages can lead to potentially significant out-of-pocket costs, even for those with insurance.The effects are being felt by the population; health care was the social issue of most concern of people interviewed as part of a recent nationwide survey of 101 029 families conducted by the National Bureau of Statistics of China. In a large hospital registry study, we aimed to examine the economic impact of stroke on households in China using data on self-reported healthcare expenditures. We aimed to determine the influence of health insurance coverage with varying levels of reimbursement and the socioeconomic situation on healthcare costs faced by families. Health benefits are, of course, valuable to people, and the increase in their cost over the last generation which those statistics on rising compensation show partly reflects that medicine can do more than in the past. It also reveals a lot of waste and inefficiency, however, rather than increased well-being.The less peoples wages rise, the less they feel theyre getting ahead, regardless of whats happening to their health premiums.During the middle of the last decade, conservatives talked about the Bush boom and wondered why it wasnt more widely appreciated. One reason: Wages were flat even as compensation rose.Because conservatives didnt see the importance of cash wages, they misunderstood the politics of the economy.Flat or slowly rising wages have probably also reduced public support for useful reforms such as freeing trade and cutting corporate-tax rates.The research that conservatives cite, in other words, doesnt show that wage stagnation is nothing to worry about. It helps explain a troublesome trend.If you ignore the role of health costs in suppressing wage growth, you might be tempted to rely too much on other explanations, such as a technology slowdown or the decline of unions. The data also make clear that reducing health inflation would go a long way toward boosting wages.President Barack Obamas health-care law is supposed to bring costs down, although there is reason for skepticism.Conservatives have their own ideas, but Republican politicians

havent done much to advance them, partly because they havent paid much attention to the link between health costs and wages. (In fairness, Democrats sometimes get this link wrong, too.)Conservatives shouldnt say that the wage-stagnation problem is an illusion because health benefits have been rising. They should say, instead, that the problem is real and that surging health costs are a major cause.
What the numbers mean is that increases in health-care costs have depressed wage growth, and sometimes kept wages from rising at all.If theres a consensus among health economists about anything, its that employer-provided health benefits come out of wages.If health insurance were cheaper, or the marketplace were structured so that most people bought health coverage for themselves rather than getting it with their jobs, people would be paid more and raises would be higher. Academic studies and news media regularly report that in recent decades the middle class has been stagnating economically.Conservative and libertarian analysts often downplay these stories by saying that while wages for people in the middle of the economic spectrum may look flat, their total compensation has been rising steadily.

2. INTRODUCTION TO THE COMPANY 2.1: ABOUT APOLLO MUNICH HEALTH INSURANCE


Apollo Munich Health Insurance, a joint venture between Apollo Hospitals and Munich Health has launched a new insurance plan. Titled Optima Restore the plan is a one of a kind health insurance plan with two unique features. Here is a look at the plan in detail, covering its features, benefits and exclusions. Optima Restore- What Sets it Apart What sets the plan apart from other plans are its two unique benefits.

2.2:HISTORY
Apollo Munich Health Insurance Company Limited was previously known as Apollo DKV Insurance Company Limited. The company started as a joint venture between Apollo Group of Hospitals and DKV AG, Europe's largest private health insurer (Deutsche Krankenversicherung AG) on the 8th of August, 2007. Apollo DKV started on a journey to re-define the health insurance sector in India. The stake holding of the two companies were in the ratio of 74:26 (Apollo Group of HospitalsDKV AG). About the promoters: DKV, with its headquarters in Cologne, Germany, was the market leader in Europe and one of the top 5 health insurance providers in the world. The company was represented across Europe and Asia. Since DKV was a part of the ERGO Group, it was a part of Munich Re Group, one of the worlds largest re-insurers.

Apollo Group of Hospitals is the largest healthcare provider in Asia. The group changed the way healthcare was perceived in the nation. Apollo Hospitals brought many modern medical techniques which were previously not available in the country. This gave Indians the chance to get world-class treatment without having to leave the country. Branding and Positioning of Apollo DKV: Apollo DKV changed the focus of the market and customers from curative to preventive healthcare. The brand identity of Apollo DKV, in the form of the joyful and healthy man, depicted the innovative stand of the company. Since Apollo DKV started on the journey with the prime aim of helping people stay healthy regardless of medical care expenses, the Happy Man also illustrated the companys Lets Stay Healthy philosophy. Apollo DKV was the only health insurance provider in the country that was backed by an integrated healthcare group and one of the largest pure health insurance providers in the international market. The mission of the company was to constantly provide customers with innovative healthcare solutions to meet their healthcare needs. Products launched by Apollo DKV: Apollo DKV launched a number of health insurance products, which are till date, among the best medical insurance policies in the nation. The plans launched by Apollo DKV were:

Easy Health Individual Health Insurance Plan Easy Health Family Health Insurance Plan Insure Health Maxima Easy Travel Insurance Plan Personal Accident Insurance Plan Apollo DKV to Apollo Munich: In December 2009, Apollo DKV was renamed as Apollo Munich Health Insurance. The company continues to bring out innovative products. Apollo Munich offers a

large number of customer care services to help people stay healthy and fit always. The journey of uncomplicating health insurance in the country has just begun and has a long way to go. Apollo Munich Health Insurance is a venture between the Apollo Hospitals Group of India and Munich Health. In this venture the Apollo Group holds 76% stake and the remaining 26% is held by Munich health. The Apollo group of hospitals is one of the biggest hospitals chains in India with 50 hospitals spread across different cities. It has a mix of both owned and managed hospitals providing high quality healthcare facilities to its patients. The company can be called a pioneer in its class having brought to India, the concept of integrated quality healthcare across a large chain of hospitals. The entry into health insurance can be considered a natural transition. Munich Health is part of the global insurance conglomerate Munich Re. Munich health is one of the 3 primary focus areas of Munich Re along with insurance and re-insurance. The Munich health brand was officially launched in 2009. The company is headquartered in Munich, Germany.

The Restore Benefit The restore benefit is an innovative benefit in health insurance. It aims to reinstate the basic sum assured of the policy holder, in case it has been exhausted during the policy year. For example, let us say you have a policy with a sum assured of Rs. 3 lakh and the entire amount is claimed by way of some illness or hospitalization. In such a case, Apollo Munich restores the Rs. 3 lakh sum assured, and this could be used for some other illness or for other members of the family(in case of a floater plan). The Multiplier Benefit: Almost all health insurance providers offer a No Claim Bonus (NCB) for claim free policy years. Optima Restore offers the same benefit but with a difference. For the first claim free year the NCB is 50% of the basic sum assured. If the second year also goes claim free, the basic sum assured gets doubled. So, by the third policy year your sum assured stands doubled, if you have had claim free policy

years. We as an organization are always very excited (to an extent overwhelmed sometimes) with any new innovation in the Health Insurance Industry in India. This could be reasoned to very very rare innovations and more of cut-copy-paste or unnecessary frills, we witness in our Insurance industry in India. Since its launch, Apollo Munich Health Insurance Company (earlier Apollo DKV) has created quite a flurry in the market, with its innovative marketing and costeffective health insurance products; Apollo Munich very recently, introduced a new Health Insurance product in its basket called Optima Restore, with some fresh and more importantly, meaningful benefits making this product worth your attention, time and money too. No Loading on Claims:
There will be no additional premium charged on renewal, due to any claim in the previous year. However, if there is a Multiplier Benefit accrued, this will be deducted at 50% of the Basic Sum Insured per year of claims. So in the same example, if you go another year without claim, your sum insured will be Rs. 10 Lakhs. Say, you claim in the third year, your sum insured will be reduced by 50% of basic sum insured, which is 2.5 Lakhs to Rs. 7.50 Lakhs. In short, at any stage, there will be no loading on your premium, niether any effect on your core cover, due to a claim.

Pre-and Post Hospitalization of 60 and 180 Days

Generally Mediclaim plans in India cover around 30 days of related medical expenses prior to Hospitalization (Doctor Visits, Laboratory Reports etc.) , and 60 Days of related medical expenses after discharge from the hospital (Follow up visits with Doctor, Physiotheraphy etc.). There are many treatments (including treatment for accidents) which require more than 60 days post discharge from the hospitalization, such expenses were earlier not paid by Health Insurance products in India. The Optima Restore product provides an extended benefit of covering 60 days pre and 180 days post hospitalization, and hence could be beneficial for treatments which require more time to heal/cure.

Parents Coverage:

Yes, this product can be bought for parents too. In fact, you can include one of your parents in a floater too, provided there are only 2 Adults you want to cover. Ofcourse, the product requires a medical test .

2.3:JOURNEY SO FAR
An insurance company is authorized to provide you with multiple insurance policies to serve you rightly. They are meant to resolve the difficulties that people face during certain uncertainties. In the like manner health insurance companies

also takes the responsibility of serving people quality medical insurance services. They aim at improving the healthcare condition by emerging with affordable healthcare products to make healthcare easy for all. Today, the health insurance market is enriched with several new players. They all have come up with various new options to serve people with better facilities. Ample variety offers wide range of choice to all the buyers. One can choose the plan as per the specific healthcare needs. Going through all the policies available, it is easy to select the plan that can make healthcare journey easy and comfortable. But at the same time, it generates confusion for many buyers. Having the option of multitude of policies, people get confused. To get an answer to this confusion, every buyer need to undergo detail research and close study. It will help pick the plan that can satisfy maximum of your healthcare needs. It is important to differentiate amongst the policies to take a final decision. For this, it is again essential to understand the kind of coverage policies are ready to offer. With the help of insurance websites, it just require few minutes to select the policy for self or for your dear ones. It has simplified the process for all the buyers. Besides making you familiar with available medical insurance products, it also gives you an access to get acquainted with the services offered by different health insurance companies. You need to be sure that insurance provider you have invested with will look after your healthcare need in times of needs. To choose the best health insurance company, it is required to go through the company website. It will help you know about the services and products offered by the insurer. While looking for a health insurance company, you must consider the credentials of the company. It assists in forming a clear idea about the kind of coverage, the insurer can offer you. By investing with best health insurance company you can enjoy quality services as the company will make every possible effort to serve you with widest possible range of products and assured returns. It will look after your range and needs thereby giving the option that can fit into your frame. Ensuring hassle free services, best health insurance company will make sure that you dont have run from pillar to post for availing different insurance services. Medical insurance companies make health insurance coverage feasible for income groups. Having formulated policies in different variants they give wide range of

options to buyers. With regular researches and analysis of the changing needs of people, best health insurance company India devise plans accordingly. It aims at offering you best solution with a promise of varied health insurance benefits. To further help people and assist them at every step, the insurance companies appoint agents to maintain client contact with a regular check. The agents, authorized by insurance companies, help the buyers to get acquainted with the best possible option. If happen to face any confusion or when in a dilemma, the agents help people to uncomplicate the understanding of the policies. He understands the technical jargon and translates it for the customer to help you proceed in the right direction. This in turn makes it clear for the buyers to understand all the covered and uncovered benefits to enjoy maximum benefits out of the policy purchased. Besides, making themselves available to people at large by way of their online portals, the medical insurance providers offers another help. Through their online existence they makes themselves easily accessible to all. Making the communication process faster and easier, it enable the buyers to get all the doubts clarified even without the assistance of agents. All such practices by the best health insurance companies enhances the process. It makes the whole process much less time consuming and smooth. The buyer can directly communicate with insurance companies to lay hands on the right policy and best insurer. So, if you are searching for a best health insurance company, you are advised to go through all the related details. The goodwill and the reputation of the company are must watch features. Thereafter, you need to check through the plans it offers you and the kind of coverage available. Insurance websites are of great help in this regard. Displaying authentic information not only about the products but also about the company, the portals enable you to take the right decision and acquire the required coverage. Thus, it is the moment to think about personal well being and a secured future. Go ahead and make this wise investment for a stress free life ahead.

2.4 Role of IT at Apollo munich health insurance

In todays times when the customer is well informed, well read and wants best-inclass-service, Information Technology (IT) has a huge role to play in any business. It is not just a support function anymore but a key factor in deciding the sustainability of business. Policy servicing is a key area which determines customer satisfaction and therefore repeat business. The products and distribution strategy can make a customer buy a product once but to ensure that the customer retains the policy, buys another policy and is an advocate for the company, one has to make every interaction an excellent overall experience for the customer. Innovation in customer services will be a key differentiator for companies in future. A complete customer experience programme should be designed right from the point where the customer is introduced to the company to the point of purchase, to policy servicing such as endorsements and premium payment services. Also recognizing special occasions in a customers life, can be a differentiator that companies are always looking for. One should remember however, that often the benchmark and customer expectation is defined not just by competitors in our own industry but equally by companies in other industries. Also recognizing special occasions in a customers life, can be a differentiator that companies are always looking for. One should remember however, that often the benchmark and customer expectation is defined not just by competitors in our own industry but equally by companies in other industries. The turn around time for handling customer requests and complaints therefore should be based on the customers expectations and often this can be achieved by deploying innovative technology-led solutions. Web-based and SMS-based policy servicing can ensure a higher degree of satisfaction and reduce response time. Increasingly, customers benchmark their insurance companies not against other insurers but against the other world class service providers that touch their lives daily. IT has an integral role to play through its 3 pillars - Customer Relationship Management, Business Intelligence and Data Mining. IT has an important role to play in the success and sustainability of any insurance business. Technology is not just a catalyst to enhance business process, it has

taken on the role of a thought leader in building the business process. Insurance landscape has undergone a fundamental change.The ever-growing demand for better insurance products and the growing consumer movement has put forth a lot of challenges for this sector. Technology is not just a catalyst to enhance business process; it has taken on the role of an innovation agent in building the business processes using best practices and creating new products.
"Technology In The Insurance Sector" is one of it's kind publication on the

It is a collection of 8 papers and 2 case studies. Contributors include- Chief Operating Officer, Aviva Life Insurance; Vice President, Information Technology, Reliance General Insurance; Sr.Consultant, Microland; Sr. Manager, Nelito; faculty from Mody Institute of Technology & Science, Rajiv Academy for Technology and Management and National Insurance Academy (NIA)
technology in insurance sector.

The papers in this publication cover various aspects of the use of IT in the insurance sector- Integration Technologies and Standards , Information Security, Claim Management, Insurance Inclusion, CRM Technology etc. In addition to these there are case studies from Verizon Business & Hewlett-Packard (HP Exstream) that highlight the use of IT in insurance for business benefits. Brief abstract is given below. "Technology In The Insurance Sector" was released at Banknet's 5th International Bank Tech Summit on 24th Sept 2009 at Mumbai. The opening of the insurance sector to the private players has provided stiff competition resulting into quality products with the use of innovative techniques. The paper attempts to explore the possibilities of application of information technology to support the insurance industry in terms of clients servicing areas such as premium payments, after sales service, electronic policy dispatch, redressal of grievances etc. as IT injection can revitalize the insurance sector.

2.5 : Mission

Constantly introduce innovative Health Insurance and Wellness solutions that meet customer needs.

Build an organisation on the principles of transparency, trust and integrity. Create opportunities for our employees to learn and grow in an enjoyable work culture. Constantly deliver on our commitments to all the stakeholders.

Cashless Mediclaim
Cashless mediclaim is the service in which an insured is able to get the hospitalization treatment free of cost. All the medical bills of hospitalization, up to the sum insured, are directly settled by an insurance company. Only the prior approval of TPA (Third-Party Administrator) is required in this process. You need not have to run for the arrangement of funds at the time of emergency. But, this cashless mediclaim facility can be availed only in network hospitals. Therefore, always have names of a few of the network hospitals in your mind, which you can visit at the time of emergency. The cashless mediclaim is of two types:

Planned claimit is when an insured is aware of the hospitalization 2-3 days in advance. Emergencyit is when an insured or his/her family member required immediate hospitalization, either due to grave illness or an accident. Points to consider during cashless mediclaim

Inform your TPA before admission to hospital or in emergency case, ask one of your family members to do so. Remember to have your ID card, as proof at the time of hospitalization Have necessary investigation and medical reports Provide complete information to your health insurer in a prescribed format. Apart from this, remember that admission to network hospitals is only availability of bed and the entire facility is subject to terms and conditions. In addition, you should have complete knowledge of your coverage limits so that your claim would not be rejected. Therefore, it is better to understand all the terms and conditions of the policy and to have knowledge of different aspects

related to health insurance arena in order to avail the benefits of your plan to the fullest. Apollo Munich Health Insurance Company offers you this facility of cashless mediclaim with its products. There is a large network of more than 4000 hospitals, where our clients can avail this feature and can get quality healthcare.

2.6 Core Values


Inspiring passion Delivering on our promises Being responsive to our customers Managing relationships Thinking and acting transparently

2.7 Future Plans


Human life can be unpredictable at times. It is always associated with the factor of uncertainty. This element can bring a good or bad change. Any good change leads to happiness but if it happens to put forth a bad change, life gets affected to a great extent. There may be several reasons for such changes in life. Predominant among them is health. There is no doubt that a healthy life leads to a happy and cheerful life. A person in good health can enjoy every bit of his/ her life. It relieves any kind of mental stress allowing him/ her to plan for future. With a relaxed mind people can concentrate on the priorities of life. Hence in this way a healthy person can lead a better life. Unlike this an unhealthy individual will live occupied with the thoughts of healthcare. Any sickness can affect the health of the person to a great extent. Unless the ailment is cured the person cannot live stress free. Not only does it affect the physical state of the person but also the mental state. In addition to health worries, today the healthcare is a big challenge. The high medical care cost keeps a majority of people devoid of quality healthcare. The expensive treatment cost goes beyond the budget range of many people. Hence people end up compromising with the quality or else borrow or sell off their precious articles in order to meet the expenses. In such cases people face high level risk in terms of health. But this critical situation can be avoided with the facilities available. There are a number of policies available in the health insurance sector that can provide a solution to this problem faced by majority of us. Today with ample variety available, it is possible to get the entire family covered under one health insurance plan. The health insurance providers have formulated numerous family mediclaim plans. This facility allows the person to get all dependent members to avail of

healthcare benefits. A family medical care plan is meant to provide health security to the spouse, dependent children and dependent parents. As compared to individual health insurance, family healthcare plans are highly affordable. At the cost of a single premium all members can avail of the health coverage. It provides a comprehensive canopy to the family resolving the need to buy medical cover separately for all members. The primary aim of family health plans is to take care of the healthcare needs of covered members. For every individual it becomes extremely important to satisfy or fulfill the healthcare necessities of his/ her dear ones. Health coverage is one amongst the essential requirements of life. A health crisis can affect the life of anyone to a great extent. When any of our family members face any such situation, we would want them to recover as soon as possible with the best treatment. But the financial constraints curb the quick recovery. But today people can get rid of this problem easily. By purchasing a family health plan as per the personal budget, all members of the family can get secured from health related risks. Innumerable such affordable health plans are available. This is an attempt to increase the number of insured people and thus improve health conditions. In doing so it takes care that it resolves all the complications faced by people in the process. The biggest impediment while seeking a healthcare treatment or health cover is that people face affordability issues. The expensive treatment goes beyond their reach and they dont want to spend much on health insurance. Looking into this matter, insurance providers have emerged with various affordable family medical care plans. They are flexible enough to get adjusted in varied budget sizes. An affordable family health cover resolves the affordability issue for all. All the members can acquire the healthcare benefits under the coverage of one medical insurance plan. It is an affordable tool that has been devised to quench the quality medical care need of all. Also there are different kinds of health risks that require specific health coverage. So, plans like travel insurance, accidental insurance and other health insurance plans make sure that all the healthcare needs of people are taken care of as and when required in life. One such good family health plan can offer the provision of cashless hospitalization. Under this facility the policy holder or the covered members can

enjoy health treatment on cashless basis in any network hospital. The insurer maintains a network with a certain number of hospitals. Acquiring medical care from the listed hospitals, the person can leave the hospital premises without dealing with the hospital bills. But that does not mean that in non- network hospital the person cannot enjoy any healthcare benefit. While seeking treatment in a hospital that is not covered under the network, the insured can avail of the facility of reimbursement from the provider post the treatment. Besides this a family mediclaim like Easy Health Family Plan offered by Apollo Munich Health Insurance comes under the affordability bar of people in general. This insurer works with the expertise Apollo Groups of Hospitals, leaders in the healthcare group and Munich Health, the new business segment of Munich Re. They aim at providing the best healthcare solution to people of India. Considering the need to improve health conditions in the country, the company has formulated various innovative health plans. Easy Health family plan is a comprehensive medical insurance plan that is available in three variants: Standard, Exclusive and Premium. It enables people to select the plan as per ones budget. Also the person can extend this health coverage for a longer period of time by opting for life- long renewal. Hence the health insurance coverage can be acquired in a much simpler and easier way without spending much time.

2.8 Head- Office


Apollo Munich Health Insurance Company Limited is situated in Gurgaon, Haryana. Grievance Redressal Cell Apollo Munich Health Insurance Company Limited. 10th Floor, Building No. 10, Tower B, DLF cyber city, Dif City Ph-2, Gurgaon-122002 Land - STD - 0124-4584320; Fax - 0124 - 4584111

2.9 Branches
HYDERABAD

To Ms Ennala Deepa Apollo Munich Health Insurance Company Limited Aditya JR Towers, 8-2-120/86/9/ A&B 3rd & 4th Floor, Road No-2, Banjara Hills, Hyderabad 500033 Tel: 040-44330333 Fax: 040-44330311

CHENNAI
To Mr M R Lakshmanan No.4, 3rd Floor Valluvarkottam High Road, Nungambakkam Chennai600034 Tel: 044 - 42280300 Fax: 044 - 42280311

KOLKATA
To Ms Suchandra Basu 9th Floor, Plot No 44, Park Street Kolkata - 700016 West Bengal Tel: 033 - 40008333 Fax: 033 - 40008311

PUNE

To Mr Deep Raj Das 7, 562/7, Riverview Apartment 1st Floor, Congress House Road, Shivaji Nagar, PUNE 411005 Tel: 020 - 66278400 Fax: 020 - 66278500

DELHI
To Mr Pankaj Raman 1st Floor, Peerless Building, 6 & 7 B.K.Roy Court, Asaf Ali Road, Daryaganj, Delhi 110002 Tel: 01143585333 Fax: 01143585311

COCHIN
To Ms Cimimol Peter No. 39/ 4967 G, Uznaz Towers, 5th Floor Medical Trust Junction Pallimukku, M.G.Road, Ernakulam Cochin 682016 Phone: 0484 -4143555 Fax: 0484 - 4143500

JAIPUR
To Mr Manoj Tewari 806, Vijay City Point D-52, Ashok Marg, C Scheme Jaipur 302001 Rajasthan Tel:0141-4098303 Fax:0141-4098311

BANGALORE
To Ms Radhika Kamath Office Units, 1001-1010, C Wing 10th Floor, Mittal Tower's, MG Road Bangalore- 560001 Tel: 080-41435333 Fax: 080-41435311

MUMBAI
To Mr Subramanian N No-349, Ground Floor, Business Point Unit -1, Western Express Highway Andheri ( East) Mumbai 400069 Tel: 022 67242333

Fax: 022 67242311

AHMEDABAD
To Ms Riddhi Rushi Vachharajani 106, Sahajanand Complex C.G.Road, Navarangpura, Ahmadabad - 380009 Ph: 079-40049671-74 Fax: 079-40049675

LUCKNOW
To Mr Amit Kapoor Apollo Munich Health Insurance Co. Limited Unit no 1,2,3&4, Halwasia Estate Habibula Estate, 111h KG Marg Hazratgang, Lucknow 226001 Tel:0522 -4044754 Fax:0522-4061311 CHANDIGARH To Mr Balwinder Singh Apollo Munich Health Insurance Co. Limited SCO - 865, Cabin No. - 2, Ist Floor, NAC Mani Mazara

Chandigarh-160047 Tel: 0172-4322000

AHMEDABAD
To Ms Riddhi Rushi Vachharajani 106, Sahajanand Complex C.G.Road, Navarangpura, Ahmadabad - 380009 Ph: 079-40049671-74 Fax: 079-40049675

3.PRODUCT MIX