Irda

• Issue to the applicant a certifcte of registration ;

to renew,modify , withdraw,or cancel such
registration.
• Protection of interest of policy holdersin matters
concerning assigning policy.
• Specifynf requistie qualification and practical
training for insurance intermediers and agents
• Promoting efficiency in the conduct of insurance
business.
• Promoting and regulating proff org connected with
insurance and reinsurance
• Calling for information from,undertaking inspection
and other org connected with insurance bus.
• Control and regulation of the rates ,terms,and
conditons offered by insurers
• Regulating investmnt of funds by insurance
companies regulating maintainence of margin of
solvency
• Adjuction of disputes btw insurers and
intermediers.
• Supervising the function of tarrif advisory
committee
• Specifyng the %age of premium income of
the insurer
• Exchanging such other powers as may be
prescribed.
 Bills of ex
• Demand bill- this is payable immediately ‘at sight’
or ‘on presentment’ to the drawee. A bill on which
no time payment or due date is specified.
• Usance bill- also called time bill.it refers to time
period recoganised by custom or usage for
payment of bills.
• Documentary bill-these are b/e that are
accompanied by documents that confirm that a
trade has taken place .
• -- d/a bills- documentary evidence accompanying
the bill of exchange is deliverable against
acceptance by the drawee.
• -d/p bills– a bill is a ‘documents against payment ‘
bill and has been accepted by th drawee.the doc of
the titlle will be held by the bank till the maturity of
the b/e
• Clean bill- these bills are not accompanied by any
documents that show that a trade has taken place
bw buyer and seller .becaouse of this , the interest
rate charged on such bills is higher than the rate
charged on documentary bills
 Utmost Good Faith -

• Is the duty to disclose all material facts relating to the

risk to be covered. A material fact is a fact which would
influence the mind of a prudent underwriter in deciding
whether to accept a risk for insurance and on what
terms.
• Examples:
Motor: Age of drivers, licence status, details of any
accidents, claims or convictions, exact model of vehicle
etc.
Household: Construction of house, location of house ie.
close to river, any previous claims etc.
 Subrogation

• Is the right of an insurance company who has paid a claim to

its client to persue another party who may have caused the
incident resulting in the claim.
• Notes:
• The Insurer must exercise the right of recovery in the name
of the Insured (prevents the Insured from obtaining more
than one indemnity)
• Subrogation rights only apply where there is a legal liability
under the policy i.e. where policy cover existed.
• Example:
• A client makes a claim under his/her own comprehensive
policy for damage done to his vehicle by another person.
His/her insurance company pay the claim but persue the
negligent third party for the cost of the claim they have paid.
 Insurable Interest

• To insure anything the Insured must have an insurable

interest in the subject matter of insurance, i.e. he/she must
benefit by its safety or be prejudiced by its loss.
• Notes:
Insurable Interest may be created either by:
- Obligation to Insure- Statute- Contract- Custom

• Option to Insure:     - Owners- Mortgagors- Lessors- Trustees-

Tenants
• Examples: Everybody would have an insurable interest in
their own personal possessions e.g. house, car, or watch but
your next door neighbour would not normally have an
insurable interest in your house.