INTRODUCTION TO INSURANCE
The sale of general insurance business in India is controlled by two major statues, which are Insurance Act, 1938 General Insurance Law (National) Act, 1972 Intervention Act, 1938
This law was passed in 1938 and came into effect from July 1, 1939. This act applies to GIC with four branches. The act was revised several times internally 1950s, 1968, 1988, 1999. This Act specifies limitations and limitations
Insurance laws applies as determined by the Central Government under the authority provided by the clause of the General Insurance Business Act. Key provisions of the Act relate to:
Registration: Each insurer is required to obtain a Registration Certificate from
Insurance Regulator, for making the payment of the fee required. Registration is a must
renewed annually.
Accounts and audits: Insurance is required to maintain separate accounts receipts and payments in each class of insurance restrictions. Fire. Marine and Miscellaneous Insurance. In addition to regular financial statements, companies are required maintain the following documents for each insurance class:
Record details of the Cover noting the hazard information covered
Policy record
Payment record
Record of consent
Bank securities record
Record of claims
Registration of the agency's power and the business purchased by each and the details of
commission
Staff registration
Financial Books
Details of reinsurance
Subscription claims
Investment: Insurance company investment is usually made by adoption
investment under the provisions of the Act. Guidelines and limitations are provided
and the Central Government from time to time.
Restriction on the cost of management: The law specifies the maximum limits of
management costs including commission that can be paid by the insurer.
The percentages are allocated in relation to the total recorded direct business
and insurance in India.
Restriction Prohibition: The law prohibits anyone from making any payment
commission or payment of premiums for anyone taking insurance. Anyone found
The guilty would be fined up to five hundred rupees.
General insurance policies and practices
Examination Ability: The central government can at any time direct
Regulator or any other person by statute, to investigate any insurance matters and
Report to the central government.
Other Terms: Other provisions of the Act deal with the licensing of agents,
researchers, the early payment of the TAC Advisory Committee (TAC).
Prohibition of payment
The power of inquiry
Licensing of agents
Payment of advance payments
Tax Advisory Committee
THE SIGNIFICANCE OF SOCIAL SOCIETY SOCIETY,
1972
This Act came into effect on January 1, 1973. This Act came into effect (c) of s
Article 39 of the constitution of India.
Article 39 (c) read as follows:
"The government will focus its policy on ensuring the operation of the economy
the system does not provide the accumulation of wealth and means of production in order
it proves the consequences for the common good of society ”.
Under this Act, there was no more insurance in the country.
As a result general insurance business became a State domain. General Insurance
The Company of India (GIC) became a holding company of four branches, which is
Indian Insurance Company India and Head Office in Madras, Eastern Insurance
Company and Head Office in New Delhi, National Insurance Company with General
Offices in Calcutta and New India Assurance Company and Head Office in Bombay.
Ownership of all Indian and foreign insurance company shares
insurance from that time approved by the Central Government from 1.1.1973. The
the services of all staff in the private sector were also transferred to securities
company and subsidiaries based on factors such as qualification, seniority, position
and location.
Insurance laws
The objects of the Act
On the basis of the Act,
Offer purchase of existing general insurance stock
company
To serve the needs of the economy for general insurance development
business
Establish a GIC with the central government under the terms of
Company Act 1956, with the first approved capital stock of seventy-five
crores
To assist, assist, and advise the company in terms of establishing standards
in the conduct of general insurance business
Promote healthy competition within the company as much as possible.
To ensure that the operation of the economic system does not result
accumulation of wealth by ordinary destruction.
To ensure that no one will take out insurance in relation to any property in India
and insurer whose head office is registered outside India
Proceed with any part of the general insurance business if it thinks fit
to do so.
Advising a company in terms of control their experience and investment
of money. GIC message
Providing general and low cost insurance coverage for rural areas
population Managing crop insurance program for the benefit of farmers
Develop and establish cover and benefits for social security
Establish a marketing network across the country including sub-areas
premium capacity
Promoting regional development equitably regardless of cost considerations
Make insurance benefits accessible to citizens.
IMPORTANT RELATIONSHIPS (IRA)
The Insurance Act, 1938, recommended the appointment of the Regulator
Insurance, to ensure compliance with various provisions under the Act and
insurance companies. Control authorizes a variety of terms and conditions
General insurance policies and practices
planning and payment adequacy. Authorities are also investigating
return on investment, annual accounts, and the normal valuation period presented
and insurance companies.
The IRA has a minimum of seven members (see below) who are the Chairman
and two members representing the Business and general business insurance are appointed
on a complete basis. Full-time participants will hold positions for 5 years or up
age 62 (65 years for the Chair) whichever is earlier. Participants section
hold the office for more than 5 years.
Structure of Authority
The Authority shall consist of the following members, namely: -
(a) The Chairperson;
(b) not more than five full-time participants;
(c) no more than temporary participants,
be appointed by the Central Government from among the people of power, integrity
and those who have experience or experience in life insurance, general insurance,
economics, finance, economics, law, accounting, administration or any other
discipline which may, in the opinion of the Central Government, be necessary for
Authorities.
Key responsibilities of the IRA include the following:
To regulate, promote and ensure the economic growth of the insurance business
Exercise all the powers and duties of the Authority
Protect the policyholder's interests regarding litigation and
other terms
Develop and manage professional bodies linked to insurance
organization
Conducting company audits, audits, and audits,
and other organizations related to the insurance business.
In order to regulate and regulate the rates of general non-tariff policies that are tax-free
section 64 (u) of the Insurance Act.
Determine the structure of maintenance and presentation of accounts and
insurance
To control financial investment
To control the edges of the solvency
Determine the dispute between the insurer and the mediator.
Insurance laws
The insurance industry reform committee under the chairmanship of
Shri R N Malhotra, former governor of the Reserve Bank of India, suggested in a
The creation of a better financial system and a financially competitive system in line with the world situation. It is recommended reforms to regulate the insurance industry to adjust to the economy
privatization policies. The government in compliance with the request
committee, it decided to establish Temporary Insurance and Development Control
Authority in 1996, replacing an authority called Insurance Regulator
was created under the Insurance Act, 1938, which had previously operated under the Ministry
of Commerce and later transferred to the Ministry of Finance.
Finally, the decision to establish the Insurance Regulatory and Development Authority
was implemented with the passing of Insurance Regulation and Development
Powers Act, 1999. In India, shortly after the opening of the insurance industry,
the regulator of monitoring of insurance company operations is
IRDA, with its head office in Hyderabad. The control system is intentional
focus on three areas, etc.,
Consumer interest protection
To ensure the financial soundness of the insurance industry
To put in place a way to support the healthy growth of the insurance market where both
governments and private players play simultaneously.
Some of the key roles, powers and responsibilities of the Authority include
Certificate of registration, for applicants interested in insurance, and
also to modify, amend, revoke, suspend or cancel such registration
Mention the required qualifications and practical training for insurance mediators
and agents Specify the code of conduct for investigators and risk assessors
Taxes and other fees for carrying out the purposes of this Act
Manage and control the standards, terms and conditions that may be provided by the insurer
with respect to general insurance business
Manage financial investments with insurance companies
Control the volume maintenance of solvency
To determine disputes between insurers and insurance mediators
Supervise the performance of the Tax Advisory Committee
General insurance policies and practices
Specify the percentage of business and total life of the insured
insurance in a rural or social sector.
The Authority shall consist of the following members who are chairs, five full-time members and four full-time members, nominated by the Central Government.
from people of ability, integrity and owners who have knowledge or
life insurance experience, general insurance, science government, finance, economics,
law, accounting, administration or any discipline.
The Chairman and every full-time member shall hold the post for a period of time
five years as long as no one will hold office as a full-time member after him
he has attained the age of sixty-two years (65 years for the Chairman) years. Temporary member
shall also hold office for a period not exceeding five years from the date on which he
he enters his office.
IRDA will create a fund called "Insurance Regulation and
Development Authority Fund ”and will be credited with -
(a) All Government grants, fees and charges received by the Authority;
(b) Total amount received by the Authority from any other source that may be determined
on Central Government;
(c) Percentage of fixed income received from insurers.
The fund will be used for the meeting -
Salaries, allowances and other pay of members, officers and others
Authority staff;
Other expenses of the Authority in connection with the discharge of its duties
and for the purposes of this Act.
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