CIA- 3

INSURANCE LAW

TOPIC

AWARNESS SURVEY ON THE INTRACACIES OF INSURANCE POLCIES

SUBMITTED BY
H.ARUN JAGANATHAN
1750519
7 BBA LLB ‘B’
 Insurance Law CIA 3

The title of my survey was Awareness survey on the intricacies of Insurance policies.The survey
for the insurance law was conducted by using the platform Google forms. For this survey, my
sample size has been 46 people in varying many age groups. The link to the form is

https://forms.gle/yGYVBbSHKbTy8ewH6

I have also attached the link to excel sheet of responses of this form for the CIA – 3. Please
verify the same.

https://docs.google.com/spreadsheets/d/1-
1pRPHrvMvBMW4kyhBKTmXazkUGYFO6Yt5wwlMeoD9s/edit?usp=sharing

Introduction:

The term insurance has not been defined Section 2 of the Insurance act, 19381. But most the
definition of the term insurance is based the business upon on what the business. E.g general
insurance business Sec.2 (6A)2 , Marine insurance Sec.2 (13A)3 , life insurance business Sec.2
(11)4etc. Insurance is also a contract, so it comes under the scope of The Indian Contract Act,
18725 act as well, especially contingency contract Sec 31 of the The Indian Contract Act, 18726.
Insurance is the Subject matter of Solicitation it means that insurance is a Subject Matter of
asking for it. In simpey terms it means that Insurance policies should be asked for it which
further has to be accepted and solicitated. It also means that it is not a product for sale. One who
asks for the policy should sit and discuss with his or her agent and should set the insurance
contract according to their own requirements than to buy a readymade contract.

The term solicitation has been defined in the guidelines issued by the IRDA by exercising the
power conferred upon it based upon Sec.14 (1) 7 of the IRDA act, 1999. Sec.2 (xii) of the
guidelines defined the term Solicitation as “For the purpose of these guidelines, solicitation is

1
The Insurance Act, 1938
2
The insurance Act, 1938
3
The Insurance Act, 1938
4
The Insurance Act, 1938
5
The Indian Contract Act, 1872
6
The Indian Contract Act, 1872
7
https://www.irdai.gov.in/ADMINCMS/cms/frmGuidelines_Layout.aspx?page=PageNo1094
defined as the approach of a client by an insurer or an intermediary with a view to induce the
client to purchase an insurance policy” 8 . The IRDA with respect to solicitation has clearly
mentioned that insurance isn’t a ready-made standard product like say, a chocolate bar that can
be sold outright; it has to be discussed and understood. The effect of this small line means that it
is you who has to choose and finalize the product & not the seller’s responsibility. But the IRDA
The “IRDA (Insurance Advertisements and Disclosure) Regulations, 2000” regulates what
advertisements related to insurance can and cannot contain. An important purpose of these
regulations is to ensure that advertisements should not be “unfair or misleading.” “Clause 99
says: Identity of advertiser — Every advertisement for insurance shall:
(i) state clearly and unequivocally that insurance is the subject matter of solicitation; and
10
(ii) state the full registered name of the insurer/ intermediary/ insurance agent.”
This means that “the product being sold in this advertisement (“solicitation”) is insurance.” The
idea that even if the insurance is ainly about investment and the “sum assured” and its returns,
we should focus on the fact that what is the “subject matter” of this particular “solicitation.”In
any case, on November 4th, 2015, IRDAI published an amendment which removed 9(i) from
these regulations, so future advertisements are no longer required to have this dictum11.

8
https://www.irdai.gov.in/ADMINCMS/cms/frmGuidelines_Layout.aspx?page=PageNo1094

9
https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo61&flag=1
10
https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo61&flag=1
11
https://www.shriramgi.com/news-events/why-insurance-is-the-subject-matter-of-solicitation/
 Awareness survey on the intricacies of Insurance policies

“Gender”

I have requested the sample group to fill out this question to get the idea that which gender has
more awareness with respect to insurances policies

Based upon the results of the survey most of the were male followed by female & one person
preferred not to mention.

“Occupation”

This question was included in the questionnaire to know the level of awareness of with regards to
occupation.
Based upon the survey student (9) were more predominant followed by government servant (2)&
(2) supervisor.

“Age”

This question was posted to identify the range of age groups has more awareness with respect to
insurances policies.

Based upon the survey the age category of (20 – 30) was more followed by the category of (40 –
50) & by the category (50 – 60).

“Educational qualification?”

This was question was put up in the questionnaire to ascertain how educational qualification
influences the awareness with respect to insurance polices
Based upon the survey majority of the persons have completed Under Graduate followed by post
Graduate & one person has opted for SSLC/SHC.

“Have you taken any insurance policy?”

This question was included in order to determine whether the person who has filled the survey
has taken any insurance policies or not.

Based upon the survey 87% of the persons have taken a insurance policy & 13% have not taken
the policy.

“What kinds of policies have you taken?

(a) Life insurance policy

(b) Motor vehicle insurance policy
(c) General Insurance
(d) Fire insurance
(e) Any other insurance”

This question was posted in the questionnaire in order to find out which insurance policy was
predominant among the sample group.
Based upon the survey majority of the person have taken Life insurance followed by motor
vehicle insurance policy & by general Insurance and any other insurance.

“If you have opted for any other policy, kindly specify it below”

If the sample group did not find their option in the questionnaire they may answer this question.

Based upon the survey most stated answer was medical policy.

“Kindly mention the number of policies you have taken”

This question was put up in the survey to have a perception on number policies taken by the
person who have participated in the survey.
Based upon the survey most of the people taken a minimum one policy followed by four policies
& followed 2 policies tied with 5 polcies.

“How do you know about insurance policy? Through

(a) Advertisement
(b) Agent
(c) Friends
(d) Others”

This was question was put up in the questionnaire to know how the person had the awareness
with respect to insurance policies.

Based upon the survey most of the person most of the persons have had awareness about
insurance from their agent followed by others tied with advertisement.

“How have you taken an insurance policy?

(a) Online
(b) Agent
(c) Directly approaching the Insurance company”

This question was included to know the medium through which the person has taken the
insurance policy
Based upon the survey most of the person have taken their policy through their agent followed
by online & followed by directly approaching the company.

“Who approached first to take an insurance policy?

(a) self
(b) the insurance agent
(c) The insurance company”

This question was included in the survey to know the preferred mode of obtaining the insurance
policy

.
Based upon the survey most of the persons have been approached by the agent first followed by
self.

“Why have you taken an insurance policy?

(a) To have safety in life

(b) For saving benefits
(c) Tax benefits
(d) All of the above”

The question was put up in the questionnaire to know for which purpose the person has taken
the insurance policy

Based upon the survey most of the persons have taken insurance policies for all of the above
followed by for a safety measure & followed by as a option of saving money.

“Do you know that insurance is contract between you & the insurance company?”

This question was added to know whether the person knows the very basic idea policies.
Based upon the survey most of the persons have read the terms & conditions of the insurance
policies.

Who filled the credentials in the insurance form? *

(a) Self
(b) The agent

This question was posted in the questionnaire to ascertain the practice being followed in the
process of filling the form.

Based upon the survey most of credentials of insurance policies of the sample group have been
filled by themselves.
“Were you able to negotiate the terms & conditions of the policy taken by you?”

(a) Yes
(b) No

This question was included in the survey to ascertain whether the policy holder was able to
bargain with respect to their Insurance contract.

Based upon the survey most of persons from the sample group were not able to negotiate the
terms & conditions of the contract.

“Have you read all the terms & conditions of your insurance policy before going for the
insurance?”

This question was posted in order to know whether they had full knowledge of their insurance
policy.
Based upon the survey most of the persons have not read the terms & conditions of their
insurance policies.

“Do you know the meaning of the term “solicitation “? *

(a) Yes
(b) No
(c) Maybe”

The question was put up in the survey to know whether the person has any knowledge of the
term.

Based upon the survey most of the persons know the term solicitation.
“Do you know about the "rule of solicitation" under insurance law? *

(a) Yes
(b) No
(c) Maybe”

The question was put up in the survey to know whether the person has any knowledge of the
rule under the insurance law

Based upon the survey most of the person do not have the knowledge of the rule of solicitation.

“Do you know about the solicitation clause in the insurance contract?”

This question was put up in the questionnaire to ascertain the awareness of the sample group
with respect to Solicitation clause in the Insurance contract.
Based upon the survey most of the persons do not have the knowledge of the rule of solicitation
in their insurance contract.

“Have your insurance agent or company explained the term “solicitation” to you?”

This question was posted to identify that whether the company has explained the term to the
person at the time of taking the insurance policy.

Based upon the survey most of persons have not received any explanation of the term
solicitation from their company or their insurance agent.

“Do you know the fact that the insurance policy is not a product for sale?”

The question was put up in the questionnaire to ascertain whether the people have the knowledge
that insurance cannot be sold.
Based upon the survey most of the persons have the knowledge that insurance is not the subject
matter of sale.

“If in any case, do you know that, even though the agent approached you to take the
insurance policy, but in the eyes of law, it was you who asked for such policy?

This question was included in the survey to get an idea whether the sample group has awareness
of the essence of rule of solicitation.

Based upon the survey most persons have the knowledge though the agent approached you to
take the insurance policy, but in the eyes of law, it was you who asked for such policy.

Conclusion:

Based upon the survey i have taken on the small the sample group I can conclude that, most of the
persons have the knowledge that insurance cannot be bought but should be solicited. But most of do not
know that, it means the rule of solicitation or the very essence of rule of solicitation. Since Insurance
sector being one of the biggest part in the economy the IRDA has to make continuous awareness among
the general society .