Insurance Concepts and IRDA [Insurance Regulatory and Development Authority] - Classification of Insurance Business

Classification of Insurance Business

Insurance business is divided into four classes namely:

1. Life Insurance
2. Fire Insurance
3. Marine Insurance and
4. Miscellaneous Insurance

Life Insurers transact life insurance business whereas General (non-Life) Insurers transact the rest. No composites are permitted as per law.

Life Insurance

Under Life Insurance, the highly popular insurance products are: Endowment Assurance (Participating) and Money Back (Participating). More than 80% of the life insurance business is derived from these products.

General Insurance:

Under General (Non-Life) Insurance, Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory under Indian Law. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products. In India, Health Insurance is placed under General Insurance category. Till date the penetration of Health Insurance in India has been miniscule and is in the process of making a bigger impact amongst Indian masses.