Hello Readers welcome to the site of IndJobsPortal.In, Insurance is the part of Banking Sectors. So it is the most important sections for IBPS/SBI or other bank exams.The Insurance industry, till the year 1999-2000, comprised mainly of two players. In the life insurance segment, life insurance corporation (LIC) of India ltd. was the sole player and in the general insurance segment, general insurance corporation of India (GIC) was the player with its four subsidiaries, namely:
(1). The Oriental Insurance Company Limited.
(3). National Insurance Company Limited.
(4). United India Insurance Company Limited.
General Insurance Corporation of india (GIC) has been converted into National reinsurer and these four subsidiaries have been delinked from the parent company and made into an independent insurance company.
Opening Up of the Insurance Sector-
- 1 Opening Up of the Insurance Sector-
The insurance sector was opened up in the year 1999, facilitating entry of private players into the industry. the entry level capital requirements were kept sufficiently high at Rs. 1 crore to deter corporates other than those who had sufficiently long-term interests and which had the capability to continuously raise funds through equity contributions from the promoters till such time as the operations stablise. the regulatory framework, which was designed for the operations of insurance companies, laid down the ground rule for insurers and is equally applicable to both the state owned and private insurers.
Types of Insurance Business-
Insurance business are divided into following classes:
(1). Life Insurance.
(2). Fire Insurance.
(3). Marine Insurance.
(4). Miscellaneous Insuarnce.
Insurance is a faderal subject in India. The primary legislation that deals with the Insurance business in Inada:
1. Insurance Act 1938.
2. Insurance Regulatory & Development Authority Act 1999.
Endowmewnt Assurance, Money Back, And Assurance Policies. (more than 80% of the business)
Fire and miscellaneous insurance business are predominant in this category.
taken by a business from on the life of key employee to protect the firm against finencial loses.
Group Insurance Schemes:
plan of insurance which provides life cover to a no of persons under a single policy called the ‘Master Policy’.Under the single contract, many persons are covered. important feature is selection and underwriting of lives, individual lives are not assessed.
the insurance industry has ombudsmen in 12 cities. each ombudsmen is empowered to redress customer greviances in respect of insurance contracts on personal lives.
Insurance Regulatory And Development Authority (IRDA)-
The IRDA was constituted as an autonomous body to regulate and develop the business of insurance and reinsurance in the country in terms of the IRDA Act, 1999. The Authority was constitued on 19 April 2000 vide Government of India’s Notifiacation no 227. The key objective of the IRDA is to promote market efficiency and ensure consumer protection.
Duties, Powers and Functions Of IRDA-
The IRDA shall have the duty to regulate, promote and ensure an orderly growth of the insurance business and reinsurance business.The powers and functions of the IRDA shall include:
1. Issuing to the applicant a certifate of registration, renew, modify, withdraw, suspend or cancel such registration.
2. protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance.
3. Specifing the code of conduct for surveyors and loss assesors.
4. promoting and regulating professional organisations connected with the insurance and reinsurance business.
5. promoting efficiency in the conduct of insurance business.
6. Regulating investment of funds by insurance companies.
7. Regulating maintenance of the margin of solvency.
8. Supervising the functioning of the TAC.
9. Adjudication of disputes between insurers and intermediaries.
10. Exercising such other powers as may be prescribed.