Scribd Logo
Upload

Welcome to Scribd!

  • Insurance PDF

    Uploaded by

    sureshbeliver005
    11 views38 pages

    Original Title

    Insurance pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    11 views38 pages

    Insurance PDF

    Uploaded by

    sureshbeliver005

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 38
    ) (an INSURANCE ACT, 1938 ction ance Act was the first comprehensi i saa foun atthe a eee rma eae ; on in Inia is belived to be in cae ated ome be Pu see ogi of rn woe Society Act and Ce Lids naa oe ween ame, Prove zi Sins a 2 insurance Act. The aim of eres ee on insurance Act Was passed, Saal insurance companies in India. similar, in 1988, te eee ees : aimed to consolidatae and amend the ened e ps ing to the ee Indian insurance Act, 193 Te I | 1938 was the first legislati + syide strict state contro} i ee legislation govern : At 1538 wat het ei ew ct on ith effect from July af 9, The Act was amended i i i ] from time to time since 1938, and there were six amend: jendments up to a 410 © Risk AND Insumance MANAGEMENT 1945, tn 1950 certain changes were effected in order to limit expenses and control investmeny, 4, Insurance Act 1938 contains 120 sections and eight schedules The Salient Features of the Act 1. Wide Scope Application ‘The Act applies to all types of insurance business—fe, fire, marine, ele. = done by companig, incorporated in India or elsewhere. It also governs the provident companies, mal offices cooperative societies. Assessments in or dividing insurance business is prohibited Prohibition and According to Section 2-c of the Act, there is prohibition of transaction of insurance business yy certain persons. “Save as hereinafter provided, no person shall, after the commencement of the Insurance Agy, begin to carry on any class of insurance business in India and no insurer carrying on any class of insurance business in India shall after the expiry of one year from such commencement, continue jg carry n any such business unless he is i. a public company, or ii, a society registered under the Cooperative Societies Act, 1912 or under any other la for any country outside India not being of the nature of a private company: iii, @ body corporate incorporated under the law of any country outside India not being of the nature of a private Company: every notification issued under the sub-section shall be laid before Parliament as soon as may be afier it is issued 2. Requirement as to Capital Section 6 No insurer incorporated after or who contained carrying on the business of life insurance in t States whether solely or in connection with any other business after the 26" day of January, 193 shall be registered unless he has a working capital of a net sum of not less than fifty thousand rupe excluding the deposit to be made before registration under sub-section (5) of Section 7 of this and exclusive in the case of a company of any sums payable as preliminary expenses in the for of the company. Voting Powers Notwithstanding anything to the contrary contained in any law for the time being in force or in memorandum ot articles of association but subject of the other provisions contained in this secti the voter's right of every shareholder of any public company as aforesaid in all cases be stri proportionate to the paid up amount of the shares held by him. ye Laat Fan we or eumar & All went? of Rogisters of Mombers ; ya any tala in ation tt i Act, a regtater of shares in. wt Ernie ret ee ares in which shall he inserted th ot mpanies ya Sof me peneficial owner Of each share and shall i “el Ct es ee tmoxporat there an cha popasits cen ane growel of insurers of small financial Sarr ail kad ancial resources oF speculative concerns, the Act ation of all insurers and a substantial deposit orth the By i thank men ne Reserve Ban! (iii) of clause (i) of Section 2 shall in deposit and keep deposited with the alf of the Central estimated pproved oy insurer not being an insurer specified in sub-clause i ae insane business carried on by him in India spa ni momo the four offices in India of the bank for and on bel Sern ‘The amount hereafter specified. cither in cash or im approved securities ane val of the Sees the day of Gepost oF pay I ssh : * so estimated : = ee business done or to be done is life insuran of to be done is fire insurance only, and partly in a red thousand rupees. and fifty thousand only, two und ‘one hundred sorties whe where the business don and fifty thousand . one hundred Where the DI insurance only. usiness done or to be done is marine ups: Where the business done fancous insurance only, ONC hundred and fifty nousand rupees. Where the business done or to be done 'S life i ified in clauses (ii) (in) and (iv), three hundred thot tees shall be the deposit for Jife insurance business. Where the business done or to be done Vife insuranee and any (wo of the thes ol pected in clauses (1), GHD vind div), Four hundred thousand rupees of ‘which two hundred thousat fall be the deposit for life insuranee business Where the business done oF 10 Be done is life ii), Gii) and (iv), four hundred and fifty thousand Tp. shall be the deposit for life insurance business Where the business done oF (© be done does not includ slasses specified in clauses (ii), (iti) and (iv), (WO hundred an Where the business gone dos not include life insurance specified in clauses (ii) an dred and fifty thousand rupees. of to be done is miscell the three classes one o| and surance and any co tnundred thous f whic tw nd rupees 0 all three classes specified in claus’ undred thousand TPE insurance and ‘of which two b but is any wo of | le life insuran 4 fifty thousand, done or to be Dut is all three clas 4 Gi), three hun 4. Registration fof insuti pall atte’ any Section 3 commencement of this Act, begin 6 carry on any class carrying, on any class of insurance ‘business int India any or carty Of ‘om the commencement of this Act, continue of e controller @ certificate of registrauon for the parti No person shall, after the business in India and no insurer expiry of threee months fr business, unless he has obtained from the class of insurance business. ————— certified cop © Name, nddrese and occupation of directors © A tumement of the elaes or classes of insurance business done of to be done business ot domicile outside Ind * Principle place + © acertified coy of the pu ‘bed manner of the prescribed fee which shall not 1 in the preser © The receipt showing paym be moe than five hundred rupees 2A On receipt of an application for controlle 6 that © The financial condition and sound The volume of business likely to be available to, and the capital structure and earning prospects of the applicant will be adequate. ed to any other insured, registration and after making such inquiry as he deems fit the natisfi racter of management of the applicant are ansf © The business has been t © Deposits have been returned to insurer When clause 9 of Section 2 related to insurer’s definition ceased or cancelled or suspendd, Defaults in complying with any rules, © Insurer has reason to cancel Carry any business other than insurance busin ntroller will give notice of his decision not more than two months before termination s or any prescribed business. ec 5. Submission of Returns The Act provided for the ereation of a past of Superintendent of Insurance and it was made obli on all companies including the foreigner returns to submit all the quinquennial in the prescribed form within a stated period. The Superintendent had been given wide powers to reject all incomplete ory ie returns, ete. , and inaccur Section 14 The audited accounts and balance sheet and actuarial report and abstract and four copies thereot shall be furnished as returns to the controller in the case of the accounts and balance sheet and the acturil report and abstract withing nine months from the end of the period to which they refer. If the principla place is outside India, the peiod of submission may be extended by three months. Of the four copies so furnished one shall be signed in the case of company by the CI two directors and by the principal officer of the Company and if the Company has director or managing agent, by that director or managing agent, in the case of a firm, by to partners of the firm, and in the case of an insurer being an individual by the insurer himself nd rman and a managing heme 413 gc HE a0" WO ATE eo eau wh ae vain eee principal ae of snes ot deme tee na, sal pe ih A AMES eres ng 8 i pers MOTT at the close of the perio of ye ams ui Period covered by the aid document at tse India, shall, within the time specified én sub-section (1 aoteelfer four certified copies in the English lang e me uuage of every balance-sheet oo pont an stare, supplied to the public authority and in addition thereto four re ntish angunge ofeach of the following statement ‘ audited by an auditor or by a person duly qualified under the law of the Sountry showing the assets held by the insurer in India atthe date if any balance furnished account of receipts and payments and a revenue account for the peiod covered ' iy vi ya AE ptract of the Valuation report in respect ofall business al ' i we or sub-class of insurance business, and 3h aon inthe prescribed form stating that ll amounts recived by te insurer diecty ely whether from his head office or from any ather source outside and have been oi |in ove revenue account qo tl jon of Rebating, Restriction of Commission and Licensing of Agents (ransacted in India in “0 ie snot payment by way of commission or otherwise for procuring business” son shall, after the expiry of six months from the commencement of this Act, pay or Ba pay any remuneration or reward whether by way of commission or otherwise ¥ for 2i%e procuring insurance business in India to any person except an insurance agent or a 4h eta or special agent. 4 parece agent shall e paid or Contract o be pad by way of commission or as remuneration van amount exceeding, in the case of life insurance business, 40% of the ftst year's “npyable on any policy or policies effected through him and 5% of a renewal premium, ‘asuch a policy, or, in the case of business of any other class 15% vig that insurers, in respect of life insurance business only, may pay, during the first af their business, to their insurance agents 55% of the first year's premium payable on (8 or policies effected through them and 6% of the renewal premium payalble on such “Aliniaions of Expenditure on Commission |yssn shall pay or contract to pay to an insurance agent, and no insurance agent shall receive ‘tel to receive by way of commission or remuneration in any form in respect of any policy “urance issued in India by an insurer after the 31* day of December 1950, and effectes aninsurance agent, an amount exceeding. Were the policy grants for immediate annuity or a deferred annuity in consideratic pene premium, or where only one premium is payable on the policy, 2% of th ium, j nee Raa an Racer MANGIA Wow the potey grams fered aut a cons “| Foe ene em min and 2a af each renewal prema payable a the potcy 414 © val In any other case, 35% of the first year's premium, 7/4 % of the second and third year's Ach renewal premium payable on the policy the first 10 years of his renewal premium and thereatter 5% of ¢ an insurer du urance agent may receive from such an Provided that in a ease referred to in clause (c) business, may pay to an insurance agent. and £ insurer, 40% of the first year’s premium payable on the policy 2. No person shall pay or contract to pay to a special agent, and no special agent shall receive or contract to receive. by way of commission or as remuneration in any form, in respect of any policy of life insurance issued in India, by an insurer of the 31 day of December, 1950 and effected through a special agent, an amount exceeding E ; in a case referred to in clause (a) of Sub-section (1) one half per cent of the premium, ) two percent of the first year’s premium in a case referred to in clause (b) of Sub-section (1 a b. payable on the policies. : cin a case referred to in clause (c) of Sub-section (1) fifteen percent of the first-year's premium payable on the policies Section 41 Prohibition at rebates 1, No person shall allow or offer to allow either directly or indirectly as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk, relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Provided that acceptance by an insurance agent of commission connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is bona fide insurance agent employed by the insurer. 2. Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to % 500. 7. Licensing of Insurance Agents Section 42 ‘he controller or an officer authorized by him in this behalf shall, in the prescribed manner and on ayment of the prescribed form which shall not be more than ten rupees, issue to any person making 1 application in the prescribed manner and a licence to act as an insurance agent for the purpose “soliciting or procuring insurance business, ovided that: (a) in the case of an individual, he does not suffer from any of the disqualification: that the person is a minor that he is found to be of unsound mind by a court of competent jurisidiction UGA Peanr wor tniparer AVS sen found guilty of ¢ “pas been foun F F criminal misappee ne BA Ge forgery OF an abetment of Melation or crianinal Wi if tras arene or tone pinal breach of tru 9p Tecete Competent urisdiction PLO Commit any such offence by wo fo least five years have ¢| cote ere a i have elapsed since the of such person that his conviction shall cease ra et wemence union Nall cease to operate as a disqualification company oF HEM any of iS diteetors oF py 1 coe e company oF firm was immed jons+ ect ‘diately before « sro ed under Section A2-A entitling ito a before the 1" day or August 1957. iss siness. Act as a principal agent for the purpose . iners does not suffer from any of the og under this section shall entitle the holder to act as an insurance agent for any A ion, under this section, after the commencement of the Insurance (Amendment) Act ut + fc it yi in fore i steed of three Years only from the date of issue, but shall, if the Gn Femot suffer fror isqualification mentioned above and the application for 4 goes tice reaches the issuing authority at least thirty days before the date on which the Iemain in force, be renewed for a period of three years at any one time on payment ee which shall not be more than ten rupees, and an additional fee of a prescribed Vo paceoding three rupees by way of penalty if the application for renewal of the licence ot he issuins authority at least thirty days before the date on which the licence ceases Py fore © aments 7 wn that 55% of net life liabilities of an Indian or a British insurer should be invested vs ernment and Approved Securities with at least 25% in Indian Government Rupee ie All other companies had to invest 100% of their Indian liabilities in Indian Government 6M “Securities with at least one-third in Indian Government Rupee Securities. This 7 een made for the prevention of the misapplication of assets and for their preservation had bee! Ff apa ee funds of ever insurer could not only be safely invested but they could also be invested open readily available and, if necessary, to be readily convertible into liquid funds. | A asurer shall invest or Keep invested any part of his controlled fund otherwise than in any of “sowing approved investment, namely, 1 Approved Securities. } Securities guaranteed by Government of U. K. + Debentures of Municipality in a State { Debentures issued by a body constituted by any Central Act or Act of State Legislature. ‘. First Mortgage on immovable property under any housing or building scheme. { Debentures secured on first charge on immovable property. First debentures secured by a floating charge on all its assets. 416 © Risk AND INSURANCE MANAGEMENT h. Preference share of any company i, Shares of any company which is j. First Mortgage on immovable property all also submit to the controller a return in the pr aforesaid during cach of the qu aranteed by any company ibed form s riers lowing all the nding on the las, Every ins changes that oc day of Mareh. rer 9. Prohibition of Loan Section 29—1 No insurer shall grant loans or temporary advances cither on hypothecation of property or oy personal security or otherwise except loans on life policies issued by him within their surrende, uditor, of officer of the insurer if thy value to any director, manager, managing agent, actuary company or where the insurer is a firm to any partner therein, or to any other company or firm jy Which any such director, manager, managing agent, actuary officer or partner holds such position 10. Investigation Section 33 The Central Government may, at any time, by order in writing direct the controller or any othe person specified in the order to investigate the affairs of any insurer and to report to the Centr; Government on any investigation made by him. 11. Duties and Power of Controller of Insurance The duties and power of controller are discussed under general duties, special duties and righ about investigation. General Duties and Power The controller is authorized to grant the certificate of registration to inquire about deposit, and | receive reports and accounts from the insurers. He is empowered to issue licences to agents ar to accept the amalgamations and reorganization. He is also authorized to composed the dispu regarding claim of smaller amount, and may ask any report in this connection. He can delegate h powers and duties to his subordinate. Special Duties and Power According to Section 21(1), he is authorised to get completed the incomplete reports. He m: require from the insurer such further information, certificates and documents as he may consid necessary. He may call upon the insurer to submit for his examination at the principal place business of the insurer in the states any book of account, register, etc. He may examine any offic of.the insurer on oath in relation to the return. He may decline to accept any such return unless inaccuracy has been corrected or the deficiency has been supplied. He may examine the accou and reports of past years. He is empowered to rectify the mistakes. ights about Investigation The controller is authorized to investgate the organizational set-up and administration of the insun He may get special audit or actuarial or any reports by the auditors, actuaries or investigat appointed by him. He is authorised, after giving a short notice, to cancel the registration of insurer and may order for liquidation or may take action for breach of law. lion He Ireweaner AV? NCE CORPORATION ACT 1956 956 6 vgs in Incl Was NP sine UN a6 Nabionalisedd with ef etleet tron ves Was Haunsaeted by ni Vy 154 India Lite Ot le Othe ring 10 ni ANE TS Provident * Act vats passed by the Partiamenn aes NASH SME AE Ania COMMENCES ag Ju netio vost Legs governed By the LIC Aer Honing in} N19 January, 1956. Peon that date Me Indian Wisiness of 14 aiken Whe, L956, ne and came into ctfeet a8 a corpor inte effect trom Me body from 1% September t pefini jons ae : © defi if ne Act contains the definitions adopted under vO ee context otherwise requi he Act eos tne context otherwise requites, are: Act, oy unl Some of the ‘ome of the important definitions means the date on Which the corporation wa : as establishes s oe yrer Ht means an insurer carting on, in additi smears . + In addition to controlled busines ss, any other ai jness: J lies ‘a ess: It applies to the ca: sn laDSe (9) of Section 2 7 oe insurer specified in the sub-clause (a) oF i eons ¢ Insurance Act, and carrying on life insurance Cs bse ono other class of instnanee business. A surance busin FEATURES ggNTIAL $ 2 Act of 19 . esl features Ore Act of 1956 have been discussed in the following headings: ination of Personal Management : ~ * resmination of Private Ownership + Meplsment of the Life Insurance Corporation of India 4 constitution 5 capital ' Functions of * ransfer of Services set-up of the Corporation + Committee of the Corporation \, f the Corporation + Authorities ~~ + Zonal Bodies » Finance, Accounts and Audit + Investment Provisions + Provisions pertaining to commission + Provisions to Policy holder's Rights ‘yporss of nationalization of Life Insurance is divided into wo parts: Temination of Personal or Private Management, and Abolition of Private Ownership ‘mination of Personal Management I ‘Pirate management was eliminated on March 21, 1956 and was replaced by the Corporation Bement governed by the Life Insurance Corporation Act, 1956. AVE Rise anu transact Mann Mf Life Insurance (Emergency Provisian) Act 1986, the mana On According 1 Section cated in Government of commencement of this Act (Emergen Mf controled business were \ the management of the centrofied business of ind from the 10% January, 1986 the appointed date n the Central Government, and pending the appointment of a custedy fer the nll insurers ehall vc Controlied husinest immediately before the appointed day shall, on and from the appoint businese for and on behalt of the Central Governme nd the in charge of the management controlled busines« of the insurer shall be carried on by them subject to the provisions contained in, sub sections (2) and (5) and to such further directions, if any. as the Central Government may give to them by notice addressed and sent to the principal officer of the insurer. Any contract. whether express or imphed. providing for the management of the controlicd business of an insurer made before the appointed day between the insurer and any person in charge of the management of the business immediately before the appointed date shall be deemed to have terminated on the appointed day No insurer shall, without the previous approval of the person specified by the Central Government in this behalf in respect of that insurer (hereinafter referred to as the authorized person) * Make any payment or grant any loan in respect of a policy of life insurance otherwise than in accordance with the normal practice observed by him in respect of such matters immediately before the appointed day + Incur any expenditure from the assets appertaining to the controlled business otherwise than for the purpose of making routine payments of salaries or commission to employees, insurance agents, special agents or chief agents or for the purpose of meeting the routine day-to-day expenditure * Transfer or otherwise dispose of any such assets or create any charge hypotheca other encunibrance thereon * Invest in any manner any money forming part of such assets * Enter into any contract of service or agency, whether expressly or by implication, for Purposes connected wholly or partly with the controlled busines conditions of any such contract subsisting on the appointed day, and * Enter into any other transaction relating to controlled business other than a contract relating to the issue of a new policy of life insurance or vary the terms and conditions of any nt relating to any such transaction subsisting at the commencement of this Act, ion in or agreem Appointment of Custodian Section 4 ‘The Central Government may, as soon as it is convenient administratively so to do, appoint any petson as custodian for the purpose of taking over the management of the controlled business of an insurer On the appointment of a custodian all persons in charge of the management of the controlled business of the insurer for and on behalf of the Central Government immediately before such appointment shall cease to be in charge of such management and shall be bound to deliver to the custodian all books of account, registers or other documents in their custody relating to the controlled business of the insurer. The custodian shall receive such remuneration as the Central Government may, by order, direct that he hole or any part of the deposit fix and the Central Government may at any time cancel the appointment of any person as custodian and appoint some other person in his stead. or vary the terms and” 14 Vssserorcine o9 WF sits Made Undor Insurance Act ape” E seamen nny, Yee, cet thal the whe ot ’ Made by at Insurer under Section 7.7 1 9 of the F Nequrned 10 the custodian who has been appanted te ta ' ‘ Mness of the Hnsurer, and every such order shall | singel el Hnvanie Insurance Act hall deliver forthwith at the place and to the person specified i ‘ incl r inser pent respect Of ha insurer the folowing documer minule book or any other book in India containing, all resolution ap & he apprnnten ane persons im charge of the management of the controlled business befor oe ated day apn? iyrrent cede books relating to the controlled business which are at (he head A Ts principal office of the insurer. E: a oy registers OF other books containing particulars relating fo the investments of 4% 5 ae aining 10 We controlled business including investment on morigaged properties J and advances made otherwise than on policies : ans Brantes i roKers* Hotes: OF certificates in the possession of th artes 4 the invesument of any moncy appertaining to the controlled business patio” for Acquiring Management oa controlled business of an insurer has been transferred (0 re IF act, compensation shall be given by the corporation to that insure ae gles containe wae the amount OF ¢ ys dorermined according to cannot be dete sa surplus rie come of © 2,000 oF part thereof is the basis of amo in respect of any 1 vested in the corporation in accor .d in the first Schedule of compensation is determincd as the last two valuations of such surplus rmined, the basis of Income on premium is take unt of compensation One-twelfth of annual average of He wn inte account. Re 1 for 6 fe Insurai fe Ownership: The official management of Lil Act was pas! 1 .n of Privat nlm ‘january 19, 1956 0 June 30, 1956. During this period the sas Fe rom July 1, 1956 and from this date the Act was implemented. nent n and Functions of Life Insurai ogenizatior ince Corporation 1, consutitution section 3 ssablishment ani With effect from su‘ arte, appoint there sh bin The corporation shall be a bos pwer, subject to the provisions o! tune sue and be sued. ¢ Corporation of India: Government may, by notification in led the Life Insurance C the off .d Incorporation of Life Insurance ich date as the Central all be established a corporation cal rpetual succession and a cone 1d and dispose of propery and © .dy corporate having pe f this Act to acquire, hol Risk ato Iysumancr MANADrsy 420 € Section 4, Constitution of the Corporation The corporation shall consist af such number of persons not exceeding AMEN a6 the Cony Greco ay inh Hes appoint thereto anon of them shall He ARPOIMT hy the Cenqa Government to be the Chairman thereat Refore appointing a person to be a member dhe Central Government shall satity set the person has to such financial or other interest as is likely (0 affect prejudictally the exer, je om performance by: him of his functioning as a member, and the Central Government shall akg Sites itcelt Irony rime to time with respect to every member that he has no sucl iNtetst, and any 1 Government proposes 10 appoint and who has consented person who is. or whom the Central 1 S010 do, furnish (0 1 such be a member shall, whenever required by the Central Government information as the Central Government considers necessary for the perfor ly or indircetly interested in a contract made oF proposed ty eof its duties Under this sub-section. ‘A member who is in any way dire be made by the corporation shall as soon as possible report to the Corporation. 2. Capital Section 5. Capital of the Corporation al of the corporation shall be five crores of rupees provided by the Central The original cap Government after due appropriation made by Parliament by law for the purpose and the terms and conditions relating to the provisions of such capital shall be such as may be determined by the Central Government 3. Function of the Corporation 1. Subject to the rules, ifany, made by the Central Government in this behalf it shall be the genera and the whether in or outside India, cercise its duty of the Corporation to Carry on life insurance busines: Corporation to carry on life insurance business, whether in or outside India shall so ler this Act as to secure that life insurance business is developed to the best advantage powers un of the community 2. Without prejudice to the generality of the provisions contained in Sub-section (1) but subject to the other provisions contained in this Act, the Corporation shall have power: to carry on capital redemption business, annually certain business, or re- in so far as such re-insurance business appertains to life insurance business b. subject to the rules, if any, made by the Central Government in this behalf, to invest the funds of the Corporation in such manner as the Corporation may think fit and to take all such steps as may be necessary or expedient for the protection or realise of any investment, including the taking over of and administering any property offered as security for the investment until a suitable opportunity arises for its disposal c. to acquire, hold and dispose of any property for the purpose of its business d. to transfer the whole or any part of the life insurance business carried on outside India to any other person or persons, if in the interests of the Corporation it is expedient so to do to advance or Jend money upon the security of any movable or immovable property or insurance business a. otherwise to borrow or raise any money in such manner and upon such security as the Corporation may think fit ance by se oF Hatough any uh ‘ ees tn 2 at) omesiness was being carried on by a 7 wit er aansferred to a vested inthe Cosporai A fess My cer busness which may seem to the Corporation tobe capable ob rt 8 NUgeied on connection with its husness and caleuated di indir : 2 ye ost le the business of the Corporation, and : pert gach thine a MAD be incidental or conducive to the proper exercise of o 180” «the Corporation ; of ers of = : wrt services ' : ff ¢ except chief agent will be vested into new life business. The salary and term think fit to change the f wil emain the same unless insurance busine net the penefit of the policyholder. 7 for ee js not acceptable to an employee, he can be terminated by s esa pres as the Central Government may make in this behalf, every whole-time salaned ro ee chief Agent of an insurer 3 opt rolled pusiness has been transferred to and vested in the Corporation, and trolled aot as employed by the Chief Agent wholly or mainly in connection with the con ro We insurer, fe ithe appointed day did not exceed five hundred rupees per mensem, and ae SP ne employment of the Chief Agent for @ continuous perio’ of not less than one on Way before the appointed day. sn and from tne appointed day, Become an employee of the Corpo! wal 11 shall, so far as may be, apply in relation to such employee as wee of the insurer. ection shall not apply except in cases ‘rms of his contract with the insurer to render the pre ration and the provisions they apply in relation to s where the Chief Agent of the insurer “pete emplo: scribed service top pide tat his 5 Fred under the (emer of the insurers. |on 14 | qxof Corporation ( ‘ion 15, in respect of certain transaction of the insurer: of Corporation to seek relief ere an insurer whose controlied business has been transferred to and vyestd in the c [seis Act, has at any time within five years before the 19 day of January, 1956 "Made any payment to any person without consideration, Sad or disposed of any property of the insurer without consideration or ‘0 sileration, Acquired any property or rights for : 1 excessive consideration, fnered into or varied any agreement so as to require an excess conside: | fated into any other transaction fo modify contracts of life insurance is given in certain cases Fan inadequate ee OR {© Ram asa femmnncr Maren aE Section 18 The Central Office of the Corporation shall be at such a place as the Central Government ma Potification in the Official Gazette, specify The Corporation shall establish 2 zonal office at cach of the following places. 1 © Bombay 9. Delhi, Kanpur and Madras and subject to the previous approval of the Central Government Calcu may establish such other zonal offices as it thinks fit The territorial limits of each zone shall be such as may be specified by the corporations There may be established as many divisional offices and branches in each zone as the zonal manager thinks fit 5. Committee of the Corporation Section 19 The corporation may entrust the general superintendence and direction of its affairs and business to an executive committee consisting not more than five of its members and the executive committee may exercise all powers and do all such acts and things as may be delegated to it by the corporations The Corporation may also constitute an Investment Committee for the purpose of advising it in ts funds, and the Investment amount shall consist of not more matters relating to the investment o than seven members of whom not less than three shall be members of Corporation and the remainin, members shall be person (whether memioers of the corporation or not) who have special knowledge and experience in financial matters, particularly matters relating to investment of funds The corporation may constitute such other committees as it may think fit for the purpose to discharge such of its functions as may be delegated to them. 6. Authorities (a) Managing Director The corporation may appoint one or more persons to be the Managing Director or Directors of the Corporation and every Managing Director shall be a whole-time officer of the Corporation, and shall exercise such power and perform such duties as may be entrusted or delegated to him by the Executive Committee or the Corporation. In the dischare of its function under this Act, the Corporation shall be guided by such directions in matters of policy involving public-interest as the Central Government may give to it in writing, (b) Zonal Managers The Corporation may entrust the superintendence and direction of the affairs and b is a zonal office to a person, whether a member or not, who shall be known as a Zonal Manager and the Zonal Manager shall perform all such functions of the Corporation as may be delegated to him with respect to the area within the jurisdiction of the Zonal Office. 2. The Corporation may constitute for each zone a Board consisting of such number of persons as it thinks fit to appoint thereto for the purpose of advising the zonal manager in respect of such matters as are referred to it under the regulations made by the Corporation. The Corporation shall constitute in the prescribed manner for each zonal office an Employee and Agents Relations Committee consisting of such number of person as it thinks fit and every such commiue shall consist of representatives of the Corporation. iness of 3. Lion Feamwom Of hevennce 6 42d stish one board at eve oar establist om dal every zone. The appointment of members and the on in according . corporation. These boards suggest on the zor ri jon a the Corporation zonal management pull ints Relations Committee gait consttate 12 the prescribed manner for each zonal office an Employees and ce consisting of such number of the persons at it thinks fit and ever: Le ests or representation of the Corporation and of its employees and agents. so fe resentatives of the employees and agent on the comm tee shall not be less Big representatives of the Corporation and it shall be the duty of the committee to el er on matters which relate to the welfare of the employees and agents of the oat fare likely t© promote and secure amity and good relations between them and ego! “or gcounts and Audit fr a a ge Corporation shall be audited by auditors duly qualified to act as auditors of | 0 jer tne LAW for the time being in force relating to companies, and the auditors shall a "the CO oration with the previous approval of the Central Government and shall ged BY trom the Corporation as the Central Government may fix. (9 emmeration itor in the performance of his duties shall have at all reasonable time access to the fy a0 other documents of the Corporation. 0 Mints and i shall submit their report to the Corporation and shall also forward a copy of their a 1d eral Government. fd ywircrne al Valuation ation shall, once at least in every two years, caus 0 pancial condition of the business ofthe Corpor 10 - go ri ‘Corporation and submit the report of the actuaries iReport of Activities of Corporation aor aon shall, #5 007 a Tay be, after the end of each financial year, prepare and submit to yea coverament i such form as may be prescribed a report giving an account of its activities pepe previous financial year, and the report shall also give an account of the activities, if any, ata ely to be undertaken by the Corporation in the next financial year. gas how to be Utilised angular of any investigation unde {eps not less than 95% of such surpl Feoporation and the remainder may be utilized for such purposes ‘xlGovernment may determine. “igors to be laid before Parliament ‘Matra Government shall cause the report o ‘zis under Section 26 and the report giving an accoun fe an investigation to be made of ation, including a valuation of the to the Central Government. rtaken by the Corporation under Section 26 and surplus tus shall be allocated to or reserved for the policyholders, and in such manners as the ff the auditors under Section 25, the report of the tof the actuaries of the Corporation under A24 Rise AND INSURANCE Manacrsin Section 27 10 be laid before both Houses of Parliament as soon as may be after cach such report ig received hy the Central Government Section 30, Corporation to have the exclusive privilege of carrying on Life Insurance Business Except to the extent otherwise expressly provided in this Act, on and from the appointed day the Corporation shall have the exclusive privilege of carrying on life insurance business in India ang on and from the said day any certificate of registration under the Insurance Act held by any insurer immediately befoe the said day shall cease to have effect in so far as it authorises him to carry on life insurance business in India Section 31. Exception in the case of insurance business in respect of persons residing outside India Notwithstanding anything contained in Section 30 or in the Insurance Act, the Central Government may, by order. permit any person who has made an application in that behalf, to carry on life insurance business in India in respect of the lives of persons ordinarily resident outside India, trictions and conditions as may be specifified in the order and any such order shall istration issued by the Controller to such subject to such ri be deemed to have effect as if it were a certificate of re person under Section 3 of the Insurance Act in respect of that class of business. Nothing in sub-section I shall authorize any person permitted to carry on life insurance business of the nature referred to in that sub-section, to insure the life of any person ordinarily reasident outside India, during any period of his temporary residence in India. Section 32. Power of Corporation to have official seal in certain cases The Corporation may have for use in any zonal office, divisional office or in any office outside India an official seal which shall be a facsimile of the common seal of the Corporation, with the addition on its face of the name of the zonal office, divisional office where it is to be used and any such official seal may be affixed to any deed or document to which the Corporation is a party. Section 33. Requirement of foreign laws to be complied with in certain cases Where any property or rights appertaining to the controlled business of an insurer are transferred to and vested in the Corporation under this Act on would be so transferred and vested but for the fact that such transfer and vesting are governed otherwise than by the law of India, the insurer shall comply with such directions as may be given to him by the Corporation for the purpose of securing that the ownership of the property or, as the case may be, that the right is effectively transferred to the Corporation. Section 34, Revesting of certain shares vested in the Administrator-General Notwithstanding anything contained in the Insurance Act, all shares which have vested in the Administrator-General of any State under sub-section(8) of Section 6 A of that Act and which have not been disposed of in accordance with the provision of that sub-section before the appointed day, shall, on payment of the amount of expenditure, if any, incurred by the Administrator-General in relation to such shares by the persons who would have been entitled to those shares if the said sub-section had not been enacted revest in such persons. Loa Foauew mor biupaer MAD f assets and liabi _atustione bilitlos in tho case of foreign insurers in pein 5 . cq outside Tndia may, before the appointed d ed day, make ora ae rsxating that AMONG ile: WGeell aprerialalig (ation a Sgro nto Tea BS the sure for dhe pur eas : " fy dri 81 Hy notwithstanding anything contained in Section 7 cents : 2% joes og in the Corporation lta hould Inot be Psi ves : gn pation wer sub-section 1, the Central Government sal a ov nt shall determine the ¢ insurer appertaining to his controlled business in ¢ f , : ss in existence on the ps5. computed a at tha date in accordance with the provs Me or. 1999" First Schedule, . sions contained in bef 1 of the First Schedule, and deduct therefrom the total amount of the liabilit ie tt att Py of PO raining this controlled business in existence on the 31° day of Decer a ate in accordance with the prov omar fies ae iG h the provisions contained in the Second Schedule «ite exces the Central Government may, by order, direct that such assets equivalent A gany OC as may be specified in the order shall not be transferred to or vested in the Se exe ne jer is made cite where the order is made after the appointed day, that the Corporation shall be fo pid SES “i , insurer incorporated outside India, the Central Government may also, by ase OF ac Liabilities in respe aay sue Tl jlities in respect of life insurance policies expressed in any foreign te on the Hi cified in the order ives of Persons who are not citizens of India as are sp ss 3 #9 y suck hp assets Mecessary to meet the liabilities, as may be so specified, shall not be mY ested in the Corporation or if the order is made after the appointed day, that the tobe divested of such liabilities and assets as aforesaid. 21003 of liabilities in respect of the policies refered to in an order made under sub- OF gall computed as at the 31% day of December 1955 3 oe were in respect of the insurer concerned an order has bi the provisions contained in clause of the Second Schedule, and a ce with rice : é ibe case, it ‘accordance with method A specified in the Second Schedule Fon in computing the amount of liabilities in respect of the policies referred to in this ee “jowance shall be made for receipts and payments in respect ‘of such policies from the cet emir, 1955, up 10 the date of the onder, yey order made BY We Central Government under this section shall be carried out by the ‘a in such manner as the Central Government may direct. vgnts. contracts of chief agents and special agents to terminate rissnding anything contained in the Insurance Act or in any other law for the time being in ‘eer entract appertaining to controlled business subsisting immediately before the appointed + “iqvem an insurer and his chief agent or between an insurer and special agent, or iaween the chief agent of an insurer and a special agent; shall as from the appointed day, cease “setfet and all rights accruing to the chief agent or the special agent under any such contract -2eminate on that day. huvided that in every such case compensation shall [Exe special agent, as the case may be, in accor ‘Scheduled, and the provisions of sub-section 2 of Sec "ey such case, een made under sub-section 1 be given by the Corporation to the chief dance with the principles contained in the ‘tion 16 shall, so far as may be, apply ee I Ric ano INSURANCE MANAGE Section 37. Policios to be quarantood by Central Government The cume accured by all policies issued by the Corporation including any bonuses declared in respect thereof and, subject to the provisions contained in Section 14 the amounts assured by af} policies issued-by any insurer the Habihities under which have vestec in the Corporation under this Act, and all bonuses declared in respect thereof, whether before or after the appointed day, shall be guaranteed as to payment in cash by the Central Government Section 38. Liquidation of Corporation No provision of law relating to the winding up of companies for corporations shall apply to the Corporation established under this Act, and the Corporation shall not be place in liquidation save by order of the Central Government and in such manner as that Government may direct Section 39. Special provision for winding up of certain insurers Where any insurer being a company (other than a composite insurer) whose controlled business has been transferred to and vested in the Corporation under this Act has in accordance with the provisions of this Act collected and distributed any moneys paid to him by the Corporation by way of compensation or otherwise and has also complied with any direction given to him by the Corporation for the purpose of securing that the ownership, of any property or any right is effectively transferred to the Corporation,the Central Government may on application being made to it in this behalf by such insurer grant a certrificate to the insurer that there is no reason for the continued existence of the insurer and where such a certificate has been granted shall cause the certificate to be published in the Official gazetter ande upon the publication thereof the insurer shfall be dissolved Section 40. Penalty for: If any person willfully withholds or fails to deliver to the Corporation as required by Section 13, any poperty or any books, documents or other papers which may be in his possession ot unlawfully retains possession of any property of an insurer which has been transferred to and vested in the Corporation under this Act or willfully applies any such property to purposes other than those expressed in or, authorised by this Act, he shall, on the Complaint of the Corporation, be punishable with imprisonment which may extend to one, year, or with fine which may extend to fone thousand rupees, or with both. Section 41. Tribunal to have exclusive jurisdiction in certain matters No civil court shall have jurisdiction to entertain or adjudicate upon any matter which a Tribunal is empowered to decide or determine under this Act. Section 42. Enforcement of Decisions of Tribunals il court within the local limits of whose Any decision of a tribunal may be enforced in any ci jurisdiction the person against whome the decision is to be enforced actually and voluntarily resides or carries on business or personally works for gain or owns any property, as if it were a decree passed by that court, Section 43. Application of the Insurance Act The following sec tion of the Insurance Act shall, so far as may be, apply to the Corporation as they apply to any other insurer, namely: Sections 2,2B,3,18,26,33,41,46,47A, 50,51,52,110A, 110B 110C, 119, 121, 122 and 123. government shall, as soon ag ieree MAY by ' tae onal Carte, tied the font ter © 7 on OF ration subject 10 such « ‘Ollow r iA corns Onditions ang n - his Acy by ee AS May te ge” ACH shalt fa soit 1d 1419 20.21,22,23.95, 97, 1 P specified in the es mi 1314 and 116A 28A,35,46, 10. e Insurance Ac Sy HN gz of the Insurance Act shay have ¢ ! io an agent for the py Cet in rey, uo a a if the reference 10 ee OF so oF pr the iss 0 any MeO a Fe AO Office ang °F PPOCuring "#7 individu ‘rat pereo! included a reference yg A MWorsed surance business s 137 40.404 4088.43.44 102, 4 , ton ‘i N Office Contr Pier fficer of the Corporation 1M this behalf in nd Government may, by Motification jn : authorised by the “fl Insurance Act othe © official Or of the T than those specitieg i aioe direct that all of any of sub-section 2, (on pe Corporation subject t0 such co i ” sub-section | op Specified in nditi Z ions and Modifications as may zai ie Pectin re ao sub-section 2 OF Sub-section 3 hi A jouses of Parliament ag g, ib i na “ : i tof Pr 2 000 88 Possible after it jg isin albenben Sonne “ring the session in wh tis one im "eh it is so laid or the session je wided in this section, nothing cont it 7 ‘ained in the Insurance A ct shall apply to the 4 i ; "whet not to apply in certain Cases J onained in this Act shall apply in relation io : insurer whose business is bein i am of the Court : ite insurer in respect of the man; i ini: | aay composi ; lagement of whose affairs an Ad; es appointed under Section 524 of the Insurance Act siaieaactee , Tre scheme run by the Central Government known as the Post Office Life Insurance Fund + Aay approved superannuation fund as defined in clause (a) of Section SBN of the Indian Income tax Act of 1922 which is in existence on the appointed day ‘Any scheme in existence on the appointed day or any scheme framed after the appointed day with the approval of the Central Government whereby, in consideration of certain compulsory deductions made by the Government from the salaries of its employees as part of the conditions of service, the payment of money is assured by the Government on the death of the employee concerned or on the happening of any contingency dependent on his life. \45. Special provisions regarding transfer of controlled business of certain composite insurers ‘anding anything contained in clause (c) of section 44, the Central Government may, by min the Official Gazette, direct that on and with effect from such date as may be specified 428 © Risk AND IsuPANCE MANAGEMENT in the notification, the assets and liabilities appertaining to the controled business of & composite Lot the management of whose affairs an Administrator has been appointed under Fer in resp section $2.4 of the Insurance Act shall be transferred to and vested in the Corporation, and on the igstie of seh a nonfication the provisions of this Aet shall so far as may be. apply tn relation to such insurer and to the transfer and vesting of the assets and Habilities of his controlled business in the Corporation as they apply in relation to all other insurers and to the transfer and vesting of the abilities of their controlled business in the Corporation, subject to the modification that assets 3 in this Act to the appointed day shall be construed as references to the day specified in reference: the notification Section 46. Defects in constitution of corporation or committees not to invalidate acts or proceedings No act or proceeding of the Corporation or of any Committees of the Corporation shall be called in question on the ground merely of the existence on any vacancy or defect in the constitution of the Corporation or Committee, as the case may be Section 47. Protection of action taken under act No suit, prosecution or other legal proceeding shall lie against any member or employee of the Corporation for anything which is in good faith done or indended to be done under this Act. Section 48. Power to make rules The Central Government may, by notification in the Official Gazette make rules to carry out the purposes of this Act In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: * — The term of office and the conditions of service of members. © The manner in which the moneys and other assets belonging to any such fund as is referred to in Section 8 shall be apportioned between the trustees of the fund and the Corporation * The services which the chief agent should have rendered for the purpose of the provison to Section 12 * — The jurisdiction of the Tribuals constituted under Section 17 * The manner in which, and the persons to whom, any compensation under this Act may be paid ¢ — The time within which any matter which may be referred to a Tribunal for decision under this Act may be so referred * The manner in which and the conditions subject 1o whicb investments may be made by the Corporation * The manner in which an Employees and Agents Relations Committee may be constituted for each zonal office * The form in which the report giving an account of the activities of the Corporation shall be prepared * The conditions subject to which the Corporation may appoint employees * - The fees payable under this Act and the manner in which they are to be collected © Any other matter which has to be or may be prescribed All rules made under this section shall be laid for not less than thirty days before both Houses of Parliament as soon as possible after they are made, and shall be Subject to such modifications LrGat Framtworx Or Insurance @ A29 use session in which they are s0 laid of the session immediatel : redlate nake nt) a if make Rogulations : : pore yy, wien me previous approval of the Central government, by notification a finite regulations not inconsistent with this Aet and the rules made ie ait matters for which provision is expendient for the purpose of giving tet vide FOF A AG ' 3 £10 Pr gons oF tis Act. on out preieg (0 the generality of the foregoing power, such regulations yee wil ap ai ee - Meg tanetions of the Corportion ay ee i one po ad oF ET of employces and agents of the Corporation and the terms and ret ‘of such employees or agents 10 mils? g_ coneivions under ‘of Scetion 11: the number, ect Boards constitutred under Section 2 ee imis of ah Zone established under this Act and the business to be ci : ‘he — in each zone: esses hich the Fund of the Corporation shall be maintained eee ance of separate fonds and accounts teach ofthe zonal offices pe an con of each divisional office and the establishment of Councils representative risdiction O ‘ s riders in each arca served by 2 divisional office for the purpose of advising the of service of persons who have become employees of the term of office and conditions of service of | ¢ 0d eet may, by notification, appoint im the a day fee ! . i yer: 1 means every insurcr, the management of whose undertaking has peer ct Fgins -ament under Section 3 of the Gi sions) “ |g over! scouts oF he General Insurance (Emergency ProvisiO! to the teil Ores he undertaking of the Life Insurance Comporation in so far as it relates pusiness carried on by it, nce de yror: } means an existing insurer incorporated under the law of any country outs! ness ce Business: It means fire, marine or miscellaneous insurance bust ‘tal pita ingly or in combination with one or more of them, but does not include'cal ol jnsurar et and annuity for certain business, jed on S Fc carTien, ee sie yrance company: It means an existing insurer having a share capital Who is a comp’ gal mean of the Companies Act. any ae ean ; ; f surance corporation: Itmeans the Life Insurance Corporation of India established under pe trurance corporation Act, 1956, ite a saation® Ut means a notification published in the official gazette. ¥ ‘ mo; 1 means the scheme framed under Section 16 and Section 17A of the Act. Further, it sm atified tal- , Words and expressions used in this Act but not defined herein and defined in the Insurance ‘at shall have the meanings respectively assigned to them in that Act, and Words and expressions used in this Act but not defined herein or in the Insurance Act and defined in the Companies Act, shall have the meanings respectively assigned 10 them in tne Companies Act. bin Provisions sgimportant provisions of the Act are as follows: Transfer to Public Ownership of General Insurance Business Section (4) of this Act deals with transfer of shares of Indian insurance companies. Section (5) of this Act mentions the transfer of undertakings of other existing insurers. Secion (6) of this Act mentions the effect of transfer of undertakings. Selon (7) of this Act provides transfer of service employees in certain cases. Section (8) of this Act deals with transfer of service employees in certain case: Section (8A) of this Act mentions the provident, superannuation, welfare and other funds. Formation of General Insurance Corporation of India Sation (9) of this Act deals with the formation of General Insurance Corporation of India. Setion(10) of this Act provides the transfer to corporation of shares vested in the Central Government. AID ERIE AMINE ANAT Nasa m, Amounts 1 Pe Paid, Acquisitions geerion 1) OF thie Acl de m eto te poatd fot tranefer and vesting of shares ip suntestab in ' tion (12) Of this s {TSENG Act mentione the dihursement of amounts by Corporations Section (FS : OF the Act mthorizes the mode of payment Section (14) oF This Act deate with amon payable to share holders which may be paid te names persons IMsIead, én certain eneee Seotion (15) of this Act memions that the payment made to the court in case of rival claims Iv. Scheme for Reorganization of General Insurance Business According to Section (16), it provides the echemes for mergers of companies, etc Section (17) of this Act deals with the schemes to be laid before the Parliament V._ Functions of the Corporation and Acquiring Companies and their Management Section (18) of this Act deals with functions of the Corporation Section (19) of this Act mentionst the functions of acquiring Companies Vion (20) of this Act mentions the balance of profit and how it be utilized, ection (21) of this Act provides the interm provisions of Management of Indian Insurance Companies Section(22) of this Act deals with power of Central Government to transfer employees Section (23) of this Act deals with the power of Central Government to issue directions, Section (30) of this Act authorizes penalty for withholding property, ete Section (31) of this Act deals with the officers and employees of the Corporation or Companies to be public servants Section (32) of this Act deals with indemnity Section (33) of this Act deals with dissolution of the Corporation and Acquiring Companies, ‘ction (34) of this Act deals with referen ion (35) of this Act mehtions the application of Insurance Act, ection (36) of this Act deals with the exemption. tion (37) of this Act deals with the vacancies etc., not to invalidate proceedings. ection (38) of this Act provides the protection of action taken in good faith. Section (39) of this Act deals with power to make rules CONSUMER PROTECTION ACT, 1986 equiring, to existing insurer in other laws, There was a marked awareness amongst the consumers of goods that they were not getting their ‘y's worth and were being exploited by both traders and manufacturers. Therefore, a very progressive legislation, known as Consumer Protection Act, was enacted in 1986 to safeguard the interest of consumers. This Act applies to all goods and services unless specifically exempted by the Central Government. The Act covers all sectors whether private, public or co-operative. Even insurance and telecommunication comes within its purview. Objectives of the Act The main objective of the Act is to provide simple, speedy and inexpensive redre consumers’ grievances such as: to the trom Fen ' a4 cast oF RHENANCES OF HE polleyholders Mie Ombynt cece opera Bena Isaac , “ ay the Central Gov wet ri cHment May exempt an i cot it gc satisfiee that the wnsprance company has i Hye requirements of this re “ ip mencettes . ls wt erorthe Schome a pect oF the Insurance Ombudsman Scheme 4s to resolve al am Fim on the part of insuance companies in cost effectivce, eff ietundeaetitiae, | % effictent and impartial manne paturre of Complaints a cams of the Redressal Rules, complaints of following ance ‘Ombudsman hature come within the purview of Complaints relating to any partial and total repudiation of claim by an insur petal insurer Any dispute in regards (0 premium paid or payable in terms of the policy ny dispute on the construction of the policies in so far as such disputs relate to clain pelay in settlement of claim a Non-sue of insurance document to customers after receipt of premium, who can Make a Complaint? | person who has grievances against an insurer may himself or through his legal heirs may make Amt mpaint in writing to the Ombudsman within whose jurisdietion the Branch or office of the ‘furer complained agains! is located, Firms and corporate houses cannot move the Omatsman wath dveir Brievances: when can Complaints be Sent to Ombudsman? ‘pre complainant can send his written complaints to insurance ombudsman only it His written representation to the insurer has been rejected, or He has not received a reply for over a month, or He is not satisfied with the reply given by the insurance company. ner of Settlement of Complaint n case both life assured and insurance company consent in writing to the mediatory to give his ‘Recommendation’ within a period of one month for mplainant accepts the Recommendation’, then the insurance Mani Mediatory Ro role, the Ombudsman will have resolving the complaints. If the cor company shall implement the ‘Recommendation’. If the complaint is not settled by agreement as discussed above, the Ombudsman shall pass a detailed speaking “Award” based on the facts and circumstances of the case within a period of 3 months. If the “Award” is acceptable to the complainant, then the insurance com| implement the award and intimate the Ombudsman accordingly. Expenses of the Institution of Ombudsman ¢ will have to be shared by the Life Ins ‘on and withing each industry by the companies } pany shall The expenses incurred in Ombudsman’s offic General Insurance industry in equal proporti proportion to their Gross premium income. ee REGULATORY AND OPMENT AUTHORITY (IRDA) so fee e To understand main objectives of IRDA «To explain various functions of fecal » To discuss the important regulations of insurance ax of IRDA # Te discuss the duties and pow vers of opens #3 of the co ae ation the Government o gexwit Shri. RN. Malh sommes submitted its report Saopment ‘Authority, The insurance bill was pect matter was discussed and debated Ss sonnce Regulatory and Development sarsnce sector for private companies W 488 A _Risx AND INSURANCE MANAGEMENT monopoly of the Life Insurance Corporation and General Insurance Corporation in the tnsarance sector of the country CONSTITUTION OF THE IRDA The IRDA shall consist of not more than nine members, not more than five members of whom, including. the chairperson to be full time. ‘The full ime members shall hold office for 5 years or unt the age of 62 (65 in the case of chairperson), whichever is earlier and the part time members with hold office for not more than 5 years, The above said members are to be appointed by the Central Government from among persons of ability and standing who have knowledge of experience tn life insurance, general insurance, actuarial science, finance, economies, law aecountancy, administration fof any other discipline which would, in the opinion of the General Government, be useful to the Authority OBJECTIVES OF IRDA ‘The main objectives of the Insurance Regulatory and Development Authority are : 1, To take care of the policyholders’ interest 2. To open the insurance market for private sector 3. To ensure continued financial soundness and solvency 4, To regulate insurance and re-insurance companies 5. To eliminate dishonesty and unhealthy competition 6. To supervise the activities of intermediaries 7. To amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Business Nationalisation Act, 1972 DUTIES AND POWERS OF IRDA For smooth running in insurance business, the regulatory authority has been vested with adeq power and duties. The duties and powers of the IRDA are: 1. To regulate, promote and ensure orderly growth of insurance business 2. To exercise all powers and functions of the controller of insurance 3. To protcet the interest of the policyholders in settlement of claims and terms ancl cond of the policies ‘To promote and regulate professional organizations connected with insurance busin 5. To call for information, undertake inspection and conduct investigations including 2 the insurer, intermediaries and other connected organizations and persons 6. To control and regulate the rates and terms and conditions that may be offered insurers in respect of general insurance matters, not so controlled by the Traiff Committee Under Section 64 (U) of the Insurance Act 7. To prescribe the manner and form in which accounts will be maintained and subr the insurers and intermediaries 8. To regulate investment of funds 9. To regulate margins for solvency 10. To adjudicate disputes between insurer and intermediaries yron APPOINTWENT OF AZvENES at appenne are hatin gat POE on ed TION OF INSURANCE ACT 1938 eines {AND POWERS OF IRDA ind functions of IRDA have . J of IRDA Act and 8 ywers @ fies ; oe tt purposes of the wos or ionic 1 of the following matters registration of smsuTTS aner of suspension oF cancel i 1 3 ssue of duplicate certificate of registe: 4 Renewal of The manner and procedure for div The preparation of Balance sh 1 8 9 pistration heet and Pr /gubmission of abstract of report by Act Time, manner and conditions of in Licensing of insurance agents qualification, practical wiring, Ps and issue of duplicate license jo, Tariff Advisory committee matiers 11, Licensing of surveyors and los renewal of license, requisite ination and prescribing code of conde! sess0rs 12. Valuation of assels and liabilit 13, Re-insurance matters 14, Matters relating 10 redressal of grievan 15, Any other matter) 7 (NSURANCE REGULATIONS {policy holders, and 8 by IRDA Act, 1999, IRDA fas ed therein, The (RDA he Government. We can ‘eeiion ofa new section 114 A in the Insurance Act, 193! pean the authority to make regulations on the subjects enumeral ig the regulations, is not required 0 take the prior approval ol U $ ROLE OF DEVELOPMENT : OFFICER (ee ues) ¢ To discuss the role of Development Officer in insurance ¢ To highlight the qualities of a successful Development Offic « To discuss the duties of Development Officer in insurance business ytRODUCTION ye development officer is born, but not made. It is true to a certain extent. Development officers are vey important in the modern ever-widening insurance market by making distribution of insurance ‘cts easy and smooth. They create time, place and possession utility, development officers oncentrate their effort on insurance products through agents. He has real concern and care for the cnet has to improvise a lot and find his own style of operation, draft his own plans, devise own strategies for the development of the insurance business. The role and importance of the evelopment officer for the growth of insurance business are discussed briefly MPORTANCE OF DEVELOPMENT OFFICER athe present day, the development officer plays an important part in the growth of insuran «nese, The development officer is the immediate friend, philosopher and guide to the agent. The vcsent era of liberalisation of insurance business, is one anticipating high demand. The insurance cnet expands along with high competition. This makes selling of insurance products difficult and complex factor in the face of competition. The expansion of the insurance market and growing ompetition make the role of a development officer very important. s~ 2A6 Rien avo Inman Marencrmen’ Development officers, hy viene of thelr Fee arenes ND Cont ge, the tneurance marketing finetions mare economically aml ¢ ah ely than the ina, The development oMicet has to work ag the eye and car for the insurance Cony evoator of tnaurance demand opment offices CNEOMARE savin gy The development officer has toy appealing or advertising about yet " eet the neds of the entire put Ty capnure the new insurance market, devel in onder to achieve the Organization objectives the doctrine of insurance by appointing agents pany tom schemes issued by the Insurance company = crpanizes ateam of agents and performs the fy, Nt objectives, a development officer " Te and responsibilities are of prime importanes. them Because of these reasons, his rel DUTIES OF DEVELOPMENT OFFICER boy an individual is called duty, activities thay ay “Authority is a right or power required 1 ven as evelopment officer is like an authorised py. es of the development officer can ‘sn Performance of a function of service required to perform are duties to him the basis of duty agsigned to a person. The d empowered to do the assigned job. The various dt under the following heads |, Appointing Agents Jopment officer is to find or select suitable persons 10 wor, it of acknowledging the potentiality in the other and accepting ‘an island, Thus, the development officer sine) basis of their educational qualification, ah " sail An important duty of a de Appointing agents is an that _no one can achieve everything being arrangements for appointing suitable persons on the experience, written test and interviews. the Ul. Training of Agents "Phe training, programmes are organised procedures and methods through which knowledge as skill, for a definite purpose is acquired. By training, an agent can increase knowledge insurance field. The agent is not born but can be made effective through training, ‘Thus, the development officer should give introductory training or repeated traning 4 agents. This is essential 10 keep the agents with up-to-date Knowledge, in respect of new and insurance products. Training in a systematic approach gives scope for improvement, my Ill, Motivating Agents Agents are the backbone of the insurance business, A good agent makes poor selling inn products into a progressive one. The success or failure of an insurance company depents the ability and initiation of insurance agents, Thus, the development officer should perfon® following duties with regard to motivation of agents. 1. Development officer should help the agent o meet his physiological safety and sw needs. 2, He should arrange conventions and meetings with agents for exchange of ides opinions. 3. Development officer should give proper recognition and honour to his ageats. This» greatly encourage the agents to do more hard work. 4, He should give satisfactory solutions to the agent's problems or discuss thei (010% satisfactory solutions, 236 AD Rise AN INSURANCE Manact Mtn! ation. EXpEFHEHCE AH Coney, anit cffectively than the insure tor the Insurance compa, hy vine of their special Development offices pnomieally fimetions more e he insurance marketing The ay the eye and ¢ The development afticer has t0 work creator of insurance dennand a pvket, devetogmnent officers ENCOMABE S¥iN99 yy, ryan aijectives: THC development officer has ty ty yy agents, appe to meet the ‘eam of agents and petlorns the fy,

    You might also like