21034540 ppt on insurance

7/30/2019 21034540 Ppt on Insurance

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INSURANCE

(Governed by Insurance Act -1938,Now By IRDA act-1999)

History:-Methods of transferring or distributing risk were

practiced by Chinese and Babylonian traders as long ago as

the 3rd and 2nd millennia BC.

The Greeks and Romans introduced the origins of health and

life insurance c. 600 AD.

India:- First Indian insurance company was Calcutta Insurance

Company which setup in 1798 exclusively for Europeans. The

Bombay Life Assurance Society formed in 1870 Insured

Indians first time.


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. Indian life assurance companies act ,1912 wasfirst statutory act to regulate life business.

In 1928 the indian insurance companies act

enacted.

In 1938 insurance act amended to consolidate

legislation and effective control over the

activities of insurer.

19th Jan.1956 LIC is formed by absorbing 154

Indian,16 non-indian insurer and 75 provident

societies.


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. GIC was Incorporated as a company in Year1971 . In 1972 General Insurance

Business(Nationalization) Act passed witheffect from 1st Jan 1973 GIC is formed by

amalgamation of 107 insurer and 4 company

formed named as National Insurance Co. Ltd.

The New India Assurance Co. Ltd.

The Oriental Insurance Co. Ltd.

The United India insurance co. Ltd.


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Cont

In Dec. 2000 subsidiaries of GIC were

restructured as independent company. And in

July 2002 parliament passed a bill of De-

linking of four subsidiaries of GIC.

Today there are 14 General insurance

companies including ECGC & Agricultural

insurance corporation of India and 14 lifeInsurance company operating in India.


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Definition:-

Insurance is pooling of risks. In contract of

insurance ,the insurer (insurance company)

agree/undertakes, in consideration of a sum

of money (premium) , to make good the loss

suffered by the insured against a specified risk

such as fire , accident etc or any contingency.


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Indian Insurance company

a company defined and registered under the

companies act in which aggregate holding of

equity shares by a foreign company either by

itself or by nominees/subsidiaries ,does not

exceed 26% paid up equity capital and whose

sole purpose is to carry on

life/general/reinsurance business


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Insurer

(a) any individual or unincorporated body ofindividuals or body corporate incorporated under thelaw of any country carrying on insurance businesswhich

(i) carries on that business in or

(ii) has his or its principal place of business or isdomiciled in

(iii) with the object of obtaining insurance business,

employs a representative, or maintains a place ofbusiness, in India


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CONTINUED.

(b) Any body corporate carrying on the

business of insurance, which is a body

corporate incorporated under any law for the

time being in force in or stands to any such

body corporate in the relation of a subsidiary

company within the meaning of the Indian

Companies Act, 1913


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Insurance agent

Means an insurance agent licensed under

section 42 who receives or agrees to receive

payment by way of commission or other

remuneration in consideration of his soliciting

or procuring.


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Life insurance business

Business of effecting contracts of insurance

upon human life, including any contract

whereby the payment of money is assured on

death (except death by accident only) or the

happening of any contingency dependent on

human life.


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Parties :- There are two parties to an

Insurance contracts as:-

Insurer/assurer/underwriter,

Insured/assured/beneficiary

Policy :- The document laying down the term

of contract is called (insurance) policy.


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Principal Agent

A person who is in consideration of any

commission,--

(i) performs any administrative and organising

functions for the insurer, and

(ii) procures general insurance business

whether wholly or in part by employing or

causing to be employed insurance agents on

behalf of the insurer.


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Special agent

A person who is consideration of any

commission, procures life insurance business

for the insurer whether wholly or in part by

employing or causing to be employed .


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Restriction on name of insurer

An insurer shall not be registered by a name

identical with that by which an insurer in

existence is already registered, or so nearly

resembling that name .


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Fundamental principals

Principle of Insurable interest.

Principle of Utmost good.

Principle of Indemnity .

Principle of Subrogation.

Principle of Contribution.


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Type of Insurance

Life insurance

Grant of disability and double/triple indemnity

accident benefits,

Grant of annuities upon human life and

Grant of superannuation allowance/ annuities

payable out of any fund applicable solely to

the relief and maintenance of person

engaged.


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Type of Life Insurance Polices

Endowment Policy

Whole Life Policy

Limited Payment Life Policy Joint Life Policy

Convertible Whole Life Policy

Annuities


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Contin

Sinking Fund Policy

Double Accident Indemnity Policy

Janata Policy


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General insurance

It means fire, marine / miscellaneous

insurance business whether carried on

singly or in combination with one/more of

them


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Types of General Insurance

Fire insurance Policies

(a) Specific Policy

(b) Comprehensive Policy (c) Valued Policy

(d) Floating Policy

e) Replacement or Reinstatement Policy:


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Marine Insurance Policies

(a) Voyage Policy

(b) Time Policy

(c) Mixed Policy (d) Valued Policy:

(e) Open and Unvalued Policy

(f) Floating Policy


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Other Type of insurance

Property insurance

Automobile insurance

Aviation insurance Boiler insurance

Builder's risk insurance

Crop insurance Earthquake insurance


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Cont

A fidelity bond

Flood insurance

Home insurance Landlord insurance

Marine insurance

Surety bond insurance Terrorism insurance etc.


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Duties, Powers and Functions of IRDA

To regulate, promote and ensure orderly growth of the

insurance business and re-insurance business.

Issue to the applicant a certificate of registration, renew,

modify, withdraw, suspend or cancel such registration . Protection of the interests of the policy holders in

matters concerning assigning of policy, nomination by

policy holders, insurable interest, settlement of insurance

claim, surrender value of policy and other terms andconditions of contracts of insurance;


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Cont.

Specifying requisite qualifications, code of

conduct and practical training for intermediary

or insurance intermediaries and agents.

Specifying the code of conduct for surveyors

and loss assessors.

Promoting efficiency in the conduct of

insurance business.


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Cont..

Levying fees and other charges for carrying out the

purposes of this Act

Calling for information from, undertaking inspection

of, conducting enquiries and investigations includingaudit of the insurers, intermediaries.

Control and regulation of the rates, advantages,

terms and conditions that may be offered by insurers

in respect of general insurance business .


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Cont

For life business , a sum equivalent to 1% of

total gross premium not exceeding 10 crore

written in India in any Financial year.

For General business 3% of total gross

premium not exceeding 10 crore.

Reinsurance business Rs.20 crore; Rs.100,000.

For cooperative life insurance business /

assurance companies should be Rs.2 lakh.


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Cont

The receipt showing payment of fee (as

determined by IRDA regulation) not exceeding

Rs.50,000 for each class of business.

Such other document as may be specified by

IRDA.


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Cont

He defaults in complying with or contravenes

any requirement of insurance act/any

rule/order made or direction issued there

under,

The IRDA has reason to believe that any claim

are unpaid for 3 month after final court order

in India.

He carries on any other business,


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INVESTMENT..

Assets of insurer should be invested as

25% in Government securities(including deposit in RBI),

At least 25% in Government/other approved securities;

Up to 15% of the controlled fund of the insurers can beinvested in other insurance;

Up to 25% of the assets of GIC can be invested in other

investment;

No fund of policy holder can be invested outside India.


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LICENCING OF INSURANCE AGENTS

An insurance agent is a licensed agent withIRDA. For getting license an agent has to

pay Rs 250

Eligibility:- The agent should not

Minor

Unsound mind

Guilty of criminal misappropriation

/breach of trust/forgery


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Cont

Have not been found in the course of

Any judicial proceeding relating to any insurance

policy/winding up of an insurance company

-Guilty of knowingly participated incommitting

fraud/dishonesty/misrepresentation against

an insurer/insured


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Cont.Carrying on business in contravention of

requirement of registration and deposits if notthen fine up to Rs. 5lakh.

False statement in document

Investment of assets

Prohibiting investment of fund outsideof India

Manner and condition of investmentFine up to Rs. 5lakh for each failure.


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CURRENT NEWS


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CURRENT NEWS:-

Indias insurance sector is expected to grow

17% in 2008-09 fiscal year if the economyexpands at 7.6%, Insurance Regulatory and

Development Authority (IRDA) chairman J.

Hari Narayan said on Wednesday. In October, the federal cabinet approved

changes to insurance laws and proposed

raising the foreign investment limit to 49%from the present 26%.


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Li t f Lif I


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List of Life Insurers..

Bajaj Allianz Life Insurance Company Limited

Birla Sun Life Insurance Co. Ltd

HDFC Standard life Insurance Co. Ltd

ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance Company Ltd.

Life Insurance Corporation of India

Max New York Life Insurance Co. Ltd Met Life India Insurance Company Ltd.


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Cont Kotak Mahindra Old Mutual Life Insurance Limited

SBI Life Insurance Co. Ltd

Tata AIG Life Insurance Company Limited

Reliance Life Insurance Company Limited.

Aviva Life Insurance Co. India Pvt. Ltd. Shriram Life Insurance Co, Ltd.

Sahara India Life Insurance

Bharti AXA Life Insurance

Future Generali Life Insurance

IDBI Fortis Life Insurance


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Cont National Insurance Company Ltd

New India Assurance

Oriental Insurance Company

Reliance General Insurance

Royal Sundaram Alliance Insurance

Shriram General Insurance Company Limited

Tata AIG General Insurance

United India Insurance

Universal Sompo General Insurance Co. Ltd


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21034540 ppt on insurance

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