01. What do you know by the history of insurance?
·
The idea of insurance was mooted out during 14th
century
·
Marine insurance is the oldest form of insurance
throughout the world
·
Fire insurance and life insurance were
subsequently undertaken by insurers
·
Fire insurance originated in Germany during 16th
century
·
Life insurance started in England during 16th
century
·
The first life that was insured was of Mr.
William Gybbons on 18.6.1653
·
The first registered office of life was in
England with the name Hand in Hand society in 1696
·
Life insurance was started during the year 1818
in Bengal Presidency
·
The name of the company was Orient Life Assurance
Company
·
Bombay Life Assurance Company was started in 1823
·
Triton insurance company was commenced for
general insurance in 1850
·
During 1871, Bombay Mutual Life Assurance Society
was established
·
During 1874 Oriental Government Security Life
Assurance Co Ltd was established
·
The first company which transacted general
insurance business was the Indian Mercantile insurance company limited
·
During 1912, in order to regulate insurance the Indian Life Assurance companies
act was formulated
·
During the year 1928, the Indian Insurance
companies act was enacted
·
During 1938, there were 176 insurance companies
in India
·
The image of insurance was tainted on account of
frauds during 1920 and 1930
·
Insurance act was passed during 1938
·
245 Indian and foreign life insurers and
provident societies were under one nationalized corporation during 1956
·
Life Insurance Corporation was formed by an act
of Parliament vide LIC act 1956
·
The initial capital for LIC was Rs. 5 crore
·
During 1968, insurance act was amended to
regulate investment and also set up of tariff advisory committee
·
Non life insurance business/general insurance
remained with private sector till 1972
·
There were 107 companies involved in the business
of general operations
·
General Insurance business was nationalized in
India as per General Insurance Business (Nationalisation) act 1972 with effect
from 1.1.1973
·
107 private insurance companies were amalgamated
and grouped into four companies namely – National Insurance Company, New India
Assurance Company, Oriental Insurance Company and United India Insurance
Company
·
The above companies were the subsidiaries of
General Insurance Company – GIC
·
Malhotra committee was formed during the year
1993 headed by former Finance Secretary and RBI governor R N Malhotra
·
During the year 1999, IRDA act was passed and
paved way for privatization of insurance sector in India
·
During the year 2002, IRDA act and insurance act
have been amended
02. What is the present level
of insurance industry in India?
·
Insurance business in India can be classified
into Life Insurance business and General Insurance Business
·
LIC of India is taking care of life insurance
business
·
General Insurance Corporation of India namely GIC
Limited is taking care of general insurance business
·
United India Insurance Company, Oriental
Insurance Company, New India Assurance Company and National Insurance Company
are part and parcel of General Insurance Corporation of India
·
Insurance sector in India was liberalized in
March 2000 by the formation of IRDA
·
IRDA means Insurance Regulatory and Development
Authority
·
As on 2,2.2011, there were 23 life insurance
companies and 24 non life insurance companies in the market.
03. What are the concepts of Insurance?
·
Insurance business can be divided in four classes
namely: Life Insurance, Fire insurance, Marine insurance and Miscellaneous
insurance
·
Life insurers transact life insurance business
·
General insurers transact the rest
·
No composites are permitted as per law
04. What are the specific
principles of insurance?
·
The specific principles of insurance are –
uberrima fida(utmost good faith); insurable interest; indemnity; proximate
clause; subrogation
05. What are the benefits of
life insurance?
·
The benefits of life insurance are – protection
against untimely death, saving for old age, encourage savings, initiates
investment, credit worthiness, social security, tax benefits.
06. What are the objectives of
nationalization of insurance industry?
·
To ensure general insurance business to the best
advantage to the community
·
To promote competition in the economy
·
To prevent monopoly growth and concentration of
wealth
·
To spread the activities over geograp0hical
frontiers
·
To innovate new products to suit the requirements
of the different sections of the population
·
To meet the social objectives by formulating
policies for weaker sections
07. What are the major
recommendations of Malhotra committee?
·
Insurance intermediaries
·
Surveyors
·
Product pricing
·
Rural insurance
·
Regulation of insurance business
·
Liberalisation
·
Investment
·
Restructuring of general insurance
·
Detariffing
08. What do you mean by
Insurance Institute of India?
·
Insurance Institute of India was established in
1955
·
The examinations conducted by Insurance Institute
of India are –
·
The Inspector’s examination (general insurance)
·
Certificate of insurance salesmanship (agents)
·
Licentiate, associate and fellowship
·
Pre recruitment test to insurance agents
09. Persons have insurance
interest in which types of properties?
·
Persons who have insurance interest in different
types of properties are as detailed below:
·
Immovable properties
·
Movable properties
·
Business
·
Ships
·
Commencement of risk
·
Cause proxima
·
Payment of premium
·
Right to contribution
·
Mitigation of loss
10. What are the different classifications
of insurance?
·
Life insurance
·
Non life insurance – namely fire insurance
business, marine insurance business, miscellaneous insurance business
·
Retail insurance
·
Corporate insurance
·
Coinsurance
·
Universal insurance
·
Direct insurance
·
Reinsurance
11. What are the various acts
connected with insurance?
·
Indian contract act 1872
·
The Insurance company act 1938
·
General Insurance Business (Nationalisation) act
1972
·
Life Insurance act 1956
·
IRDA act 1999
·
Consumer protection act 1986
·
Foreign exchange maintenance act 1999
·
Motor vehicles act 1988
·
Marine Insurance act 1963
·
Married women’s property act 1874
12. What do you mean by
actuary?
·
Actuary is a technical expert who combines an
understanding of the risks involved in insurance
·
He also understands the mathematical techniques
to develop insurance products to manage these risks
·
He advises on pricing the insurance products
·
He calculates the reserves to be held for meeting
the financial risks of the insurance products
·
IRDA has made it compulsory for any life
insurance company to appoint an actuary
·
Without actuary insurance companies cannot carry
on their life insurance business
13. What are the essentials of
a valid contract?
·
Offer and acceptance
·
Intention
·
Consideration
·
Capacity of parties
·
Free consent
·
Lawful object
·
Agreement not declared valid
·
Certain
·
Legal formalities
14. What are the different kinds
of contract?
·
Voidable contract
·
Void agreement
·
Void contract
·
Illegal agreement
·
Express contract
·
Implied contract
·
Executed contract
·
Executor contract
·
Unilateral contract
·
Bilateral contract
15. What are the various types
of life insurance policies?
·
Term insurance
·
Whole life policy
·
Endowment
·
Health insurance
·
Joint life policy
·
With profit
·
Without profit
·
Double accident benefit
·
Annuity policy
·
Policies for women
·
Pension insurance
·
Postal life insurance
·
Rural insurance plans
·
Group life insurance
·
Insurance policies for children
·
Money back policy
·
Unit Linked Policy
16. What do you mean by term
insurance?
·
Term insurance offers pure risk cover without any
element of saving for a given term.
·
No benefits are available to the policyholder
till his death
17. What do you mean by whole
life insurance?
·
The premium is payable for the life time of the
assured or for a lesser period.
·
Sum assured is payable only on the death of the
assured
18. What do you mean by
endowment plans?
·
This is considered to be the most popular plan of
life assurance.
·
It covers the life of the assured in the event of
his early death
·
It also provides for repayment of a lump sum to
the assured if he survives on the date of maturity
19. What do you mean by money
back policy?
·
It provides life insurance cover
·
Periodical payments are also paid to the assured
·
The policyholder need not wait to get the returns
till the date of maturity
20. What do you mean by
children’s assurance plan?
·
The life of a child can be covered from the age
of 7.
·
Once the child becomes a major he can continue
the policy
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