W 8ased on Lhe recommendaLlons of Lhe MalhoLra

CommlLLeeţ Lhe l8uA AcLţ 1999 was lealslaLed and
Lhe auLhorlLv so esLabllshed under Lhls AcL has made
reaulaLlons for Lhe smooLh conducL of Lhe lnsurance
buslnessŦ
W 1he 8eaulaLorv AuLhorlLv ls appolnLed bv Lhe CenLral
CovernmenL bv a noLlflcaLlon ln Lhe Cfflclal CazeLLeŦ
W 1he AuLhorlLv ls a corporaLe bodv havlna perpeLual
successlon wlLh a power Lo hold Lhe properLv and Lo
do all Lhe acLs of Lhe lnsurance buslnessŦ
2 8lZvl CCLLLCL
W 1he l8uA has made a number of reaulaLlons for Lhe
appolnLmenL and llcenslna of aaenLsţ survevors and
loss assessorsţ adverLlsemenLs and dlsclosuresţ and
oLher maLLers relaLlna Lo Lhe lnsurance buslnessŦ
W An efforL ls made Lo explore Lhe lmporLanL
provlslons of law and reaulaLlons of Lhe lnsurance
buslness ln a slmple wav Lo enable Lhe cusLomer of
lnsurance servlceţ undersLand Lhe leaallLles of Lhe
lnsurance buslnessŦ
3 8lZvl CCLLLCL
W Mr n 8anaacharl was Lhe flrsL ChalrmanŦ Mr C
S 8ao was Lhe second Chalrman of l8uAŦ Mr
Parl naravana ls Lhe Lhlrd Chalrman of l8uA Ŧ
W 1he Insurance kegu|atory and Deve|opment
Author|ty %l8uA) ls a naLlonal aaencv of Lhe
CovernmenL of lndlaţ based ln PvderabadŦ
W lL was formed bv an acL of lndlan ÞarllamenL
known as l8uA AcL 1999ţ whlch was amended
ln 2002 Lo lncorporaLe some emeralna
requlremenLsŦ
4 8lZvl CCLLLCL
W Mlsslon of l8uA as sLaLed ln Lhe acL ls ƍLo
proLecL Lhe lnLeresLs of Lhe pollcvholdersţ Lo
reaulaLeţ promoLe and ensure orderlv arowLh
of Lhe lnsurance lndusLrv and for maLLers
connecLed Lhere wlLh or lncldenLal LhereLoŦ"
W 1he maln ob[ecLlve of lealslaLlna Lhls
lnsurance Law ls Lo deslan rules and
procedures Lo admlnlsLer [usLlce for Lhe
beneflL of Lhe lnsurance buslnessŦ
3 8lZvl CCLLLCL
W SecLlon 14 of l8uA AcLţ 1999 lavsdown Lhe
duLlesţpowers and funcLlons of l8uA Ŧ
W Sub[ecL Lo Lhe provlslons of Lhls AcL and anv
oLher law for Lhe Llme belna ln forceţ Lhe
AuLhorlLv shall have Lhe duLv Lo reaulaLeţ
promoLe and ensure orderlv arowLh of Lhe
lnsurance buslness and reŴlnsurance buslnessŦ
W WlLhouL pre[udlce Lo Lhe aenerallLv of Lhe
provlslons conLalned ln subŴsecLlon %1)ţ Lhe
powers and funcLlons of Lhe AuLhorlLv lncludes
from %a) Ŷ %q)
8lZvl CCLLLCL 6
W %a) lssue Lo Lhe appllcanL a cerLlflcaLe of realsLraLlonţ renewţ modlfvţ
wlLhdrawţ suspend or cancel such realsLraLlonŤ
W %b) proLecLlon of Lhe lnLeresLs of Lhe pollcv holders ln maLLers
concernlna asslanlna of pollcvţ nomlnaLlon bv pollcv holdersţ lnsurable
lnLeresLţ seLLlemenL of lnsurance clalmţ surrender value of pollcv and
oLher Lerms and condlLlons of conLracLs of lnsuranceŤ
W %c) speclfvlna requlslLe quallflcaLlonsţ code of conducL and pracLlcal
Lralnlna for lnLermedlarv or lnsurance lnLermedlarles and aaenLsŤ
W %d) speclfvlna Lhe code of conducL for survevors and loss assessorsŤ
W %e) promoLlna efflclencv ln Lhe conducL of lnsurance buslnessŤ
W %f) promoLlna and reaulaLlna professlonal oraanlzaLlons connecLed
wlLh Lhe lnsurance and reŴlnsurance buslnessŤ
8lZvl CCLLLCL 7
W %a) levvlna fees and oLher charaes for carrvlna ouL Lhe purposes of Lhls AcLŤ
W %h) calllna for lnformaLlon fromţ underLaklna lnspecLlon ofţ conducLlna enqulrles and
lnvesLlaaLlons lncludlna audlL of Lhe lnsurersţ lnLermedlarlesţ lnsurance lnLermedlarles
and oLher oraanlzaLlons connecLed wlLh Lhe lnsurance buslnessŤ
W %l) conLrol and reaulaLlon of Lhe raLesţ advanLaaesţ Lerms and condlLlons LhaL mav be
offered bv lnsurers ln respecL of aeneral lnsurance buslness noL so conLrolled and
reaulaLed bv Lhe 1arlff Advlsorv CommlLLee under secLlon 64u of Lhe lnsurance AcLţ
1938 %4 of 1938)Ť
W %[) speclfvlna Lhe form and manner ln whlch books of accounL shall be malnLalned and
sLaLemenL of accounLs shall be rendered bv lnsurers and oLher lnsurance lnLermedlarlesŤ
W %k) reaulaLlna lnvesLmenL of funds bv lnsurance companlesŤ
W %l) reaulaLlna malnLenance of maraln of solvencvŤ
8lZvl CCLLLCL 8
W %m) ad[udlcaLlon of dlspuLes beLween lnsurers and
lnLermedlarles or lnsurance lnLermedlarlesŤ
W %n) supervlslna Lhe funcLlonlna of Lhe 1arlff Advlsorv CommlLLeeŤ
W %o) speclfvlna Lhe percenLaae of premlum lncome of Lhe lnsurer
Lo flnance schemes for promoLlna and reaulaLlna professlonal
oraanlzaLlons referred Lo ln clause %f)Ť
W %p) speclfvlna Lhe percenLaae of llfe lnsurance buslness and
aeneral lnsurance buslness Lo be underLaken bv Lhe lnsurer ln
Lhe rural or soclal secLorŤ and
W %q) exerclslna such oLher powers as mav be prescrlbed
8lZvl CCLLLCL 9
W 1he lnsurance secLor ln lndla aoverned bv lnsurance
AcLţ 1938ţ Lhe Llfe lnsurance CorporaLlon AcLţ 1936
and Ceneral lnsurance 8uslness %naLlonallsaLlon)
AcLţ 1972ţ lnsurance 8eaulaLorv and uevelopmenL
AuLhorlLv %l8uA) AcLţ 1999 and oLher relaLed AcLsŦ
W lL was due Lo Lhls lmmense arowLh LhaL Lhe
reaulaLlons were lnLroduced ln Lhe lnsurance secLor
and ln conLlnuaLlon º,a|hotra Comm|ttee" was
consLlLuLed bv Lhe aovernmenL ln 1993 Lo examlne
Lhe varlous aspecLs of Lhe lndusLrvŦ
W 1he kev elemenL of Lhe reform process was
ÞarLlclpaLlon of overseas lnsurance companles wlLh
26Ʒ caplLalŦ
8lZvl CCLLLCL 10
W 1odav lL sLands as a buslness arowlna aL
Lhe raLe of 13Ŵ20 per cenL annuallvŦ
W 1oaeLher wlLh banklna servlcesţ lL adds
abouL 7 per cenL Lo Lhe counLrv's CuÞŦ
W Slnce Lhe llberallzaLlon of Lhe lndusLrv Lhe
lnsurance lndusLrv has never looked back
and Lodav sLand as Lhe one of Lhe mosL
compeLlLlve and explorlna lndusLrv ln
lndlaŦ
8lZvl CCLLLCL 11
W 1he buslness of llfe lnsurance ln lndla ln lLs
exlsLlna form sLarLed ln lndla ln Lhe vear 1818
wlLh Lhe esLabllshmenL of Lhe CrlenLal Llfe
lnsurance Companv ln CalcuLLaŦ
W Ceneral lnsurance was however a
comparaLlvelv laLe enLranL ln 1830 when 1rlLon
lnsurance companv seL up lLs base ln kolkaLaŦ
W PlsLorv of lnsurance ln lndla can be broadlv
blfurcaLed lnLo Lhree erasť a) Þre
naLlonallsaLlon b) naLlonallsaLlon and c) ÞosL
naLlonallsaLlonŦ
8lZvl CCLLLCL 12
W Llfe lnsurance was Lhe flrsL Lo be naLlonallzed ln
1936Ŧ
W Ceneral lnsurance followed sulL and was
naLlonallzed ln 1973Ŧ
W MalhoLra CommlLLee was formed durlna Lhls vear
who submlLLed Lhelr reporL ln 1994 and lnsurance
8eaulaLorv uevelopmenL AcL %l8uA) was passed ln
1999Ŧ
W 8esulLanLlv lndlan lnsurance was opened for
prlvaLe companles and ÞrlvaLe lnsurance Companv
effecLlvelv sLarLed operaLlons from 2001Ŧ
8lZvl CCLLLCL 13
W 1here are baslcallv Lhree Lvpes of
lnsuranceť
%1) LllL lnSu8AnCLŦ
%2) MLulCLAlMŦ
%3) CLnL8AL lnSu8AnCLŦ
8lZvl CCLLLCL 14
W |fe |nsurance or ||fe assurance ls a conLracL beLween Lhe pollcv
owner and Lhe lnsurerţ where Lhe lnsurer aarees Lo pav a
deslanaLed beneflclarv a sum of monev upon Lhe occurrence of
Lhe lnsured lndlvldualƌs or lndlvldualsƌ deaLh or oLher evenLţ
such as Lermlnal lllness or crlLlcal lllnessŦ
W Llfe lnsurance mav be dlvlded lnLo Lwo baslc classes Ŷ Lemporarv
and permanenLť
%1)1erm assurance provldes llfe lnsurance coveraae for a
speclfled Lerm of vears ln exchanae for a speclfled premlumŦ
%2) ÞermanenL llfe lnsurance ls llfe lnsurance LhaL remalns ln
force %lnŴllne) unLll Lhe pollcv maLures %pavs ouL)ţ unless Lhe
owner falls Lo pav Lhe premlum when due %Lhe pollcv explres C8
pollcles lapse)Ŧ
8lZvl CCLLLCL 13
W A Medlclalm pollcv or a healLh lnsurance pollcv
wlll help vou cover Lhe medlcal expenses ln case
vou have Lo underao cerLaln medlcal LreaLmenL or
are hosplLallzed for some reasonŦ
W 1he Medlclalm pollcv can be Laken on an
lndlvldual basls or for Lhe enLlre famllv lf Lhe need
beŦ
W 1he medlcal aae for a Medlclalm pollcv dlffers and
Lhus ln cerLaln cases Lhe appllcanL mav be
requlred Lo underao a medlcal LesL or ln cerLaln
cases Lhe appllcanL mav noL be asked Lo underao a
medlcal LesLŦ
8lZvl CCLLLCL 16
W lnsurance oLher Lhan 'Llfe lnsurance' falls under
Lhe caLeaorv of Ceneral lnsuranceŦ
W Ceneral lnsurance comprlses of lnsurance of
properLv aaalnsL flreţ buralarv eLcţ personal
lnsurance such as AccldenL ţ and llablllLv lnsurance
whlch covers leaal llablllLlesŦ
W A Marlne Carao pollcv covers aoods ln LranslL
lncludlna bv seaţ alr and roadŦ
W lnsurance of moLor vehlcles aaalnsL damaaes and
LhefL forms a ma[or chunk of Ceneral lnsuranceŦ
8lZvl CCLLLCL 17
W A number of webŴslLes are comlna up on lnsuranceţ
a few flnanclal maaazlnes excluslvelv devoLed Lo
lnsurance and also a few Lralnlna lnsLlLuLes belna seL
up hurrledlvŦ
W Manv of Lhe unlverslLles and manaaemenL lnsLlLuLes
have alreadv sLarLed or are conLemplaLlna new
courses ln lnsuranceŦ
W Llfe lnsurance has Lodav become a malnsLav of anv
markeL economv slnce lL offers plenLv of scope for
aarnerlna larae sums of monev for lona perlods of
LlmeŦ
8lZvl CCLLLCL 18
W wwwŦwlklpedlaŦcom
W 8eference from books
8lsk manaaemenL and
lnsurance secLor
LlC lnsurance
W wwwŦlrdaŦcom

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