21395030

Rella Geetha

Insurance Management

Insurance Laws and Regulations

Assignment 2

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Unit 3

Q1.

Explain difference between group and individual. insurance contracts.

Answer

Group company insurance is as the group offered to employees of company benefits. The
members are provided a certain fixed and uniform cover. The cumulative risk of all
mumbers. is considered while deciding upon amount. Members part of leave. the the
premium when they are covered till when. company are and removed when they a

Individual plan caters to customised as per one person and is his needs and requirements.
The time period is chosen by policyholder and premium is fixed

Q2

What are the types of group Superannuation Schemes? In India, superammation plans. come
in 2 types:

Answer

→ For accumulating retirement savings

For generating pensions after retirement The common annuity options are:
Annuity payable for life

Anmity payable for 5 years /10 years / 15 years life. guaranteed.

Anmity payable for life with capital return

Annuity payable jointly life of husband & wife on

Q3.

Explain different methods 1. Facultative. Protects - reinsurance. insured for an

Answer

specific risk cover. If several risks. are needed to be reinsured, each must be negotiated
seperately. The reinsurer

has right to accept or decline any proposal.

2. Greaty lay A treaty time cover is in effect for rather than on or contract basis. For a insures
all risks that a per risk duration the reinsu may

3. Proportional pro rata The reinsurer will receive a share of premime of all policies sold.
When clim is made, heinsures wit bear - portion of losses.

4. Now- proportional - The reinsurer involved if the insurance specified amount or a will
only ge 's losses excer company's retention limit.

5. Excess of coverage. exceeding Less Non proportional form of The reinsurer will only a
retained to catastrophic events. limit. cover loss Typically appli

Q4

Explain about Keyman Insurance.

Answer

Keyman Insurance is defined as policy a as premium payer. be insured is where the proposer
as well is the employer, the life to the employee and benefit goes. employer. to Key person
would be The 'Keyman' any employee having Special set of a or responsibilities who
contribute profits of company. Skills significantly to

Q5

What do are the you mean by nomination and what importance of Section 39.? Nomination
is the process by which policyholde appoints a person or persons to receive policy benefits in
case of death claim. So in the Case pays of eventuality, the the life insurance company policy
proceeds to the appointed puson called Nomince.

Answer

Section 39of Insurance Act 1938,The policyholder of life may secured a life insurance on his
nominate a person to whom money by policy shall be paid in event of his death.

When nomince is minor, the policyholder appoint any person to receive the money death.
Securedby the policy "Nomination" in the event can be made at any point before.maturity of
policy. • Nomination can be cancelled or time leefore policy natures. at Changed any

Q6.

Explain about Married women property Act.

Answer

The Married Women's Property Act 1874 (MUUPA) came into effect to help secure the
assets owned by woman against her husband, his creditors. and relatives. MWP act is
applicable for all married. The team plan ん women all religions. under MWP Act is
considered. ferm of trust. In the event the proceeds are handled of death by trust then. only
claimed by argents. Cannot be claimed by relatives.

Unit 4

UNIT 4

Q1

Explain the claim settlement under life insurance

Ans
policies. Steps to file a 1. Claim intimation / notification

The claimsant as soon must submit neritten intimatic as possible to enable insurance compor

to initiate claim processing. Claim intimation should contain basic information

2. Documents required for claim processing The claimant will be required to provide a
statement, original policy document, death certificate, police" police FIR and various and
post mortem additional documents. report.

3. Submission of required documents for processing A life insurer will not be able to take
decision until all requirements are complete

4. Settlement of Claim

As per regulation 14 (2)(1) of IRDAI Regulations 2017, insurer. is required to settle the claim
within 30 days of receipt of all documents

Q2.

Explain documents required for death claimsettlement.

Answer

Death claim settlement would require

the following documents: The death certificate

1 original policy document

2 ID proof of beneficiary Age proof of isurer

3 Discharge form (excecuted & witnessed) • Medical certificaté

4 Police FIR

5 Post-mortem report.

6 Hospital records.

7 Cremation certificate
8 employer certificate

Q3.

Discuss about presumption of death and different Kinds of evidence of bitle.

Answer

A presumption of death occurs. is thought dead when a person by an individual despite

In India, Presumption of Sections death is governed by 107 and 108 of the Evidence Act,
which allows for presumption of death for a person 7 missing for years proceedings before
court. to be raised in appropriate.

Kinds of Evidence of Abstract and opinion Title:

Certificate of title

title insurance.

Torrens certificate.

Q4.

Explain appointment of life insurance agents. per IRDAI horms as

Answer

(1) Agents may be appointed in any place within India for purpose of soliciting insurance
business. or procuring life

(2) All appointments referred to in sub shall be made conducting Sub-regulation (1)
competent authority after interview of candidate and satisfying itself about sustamability.

(3) In making such appointments the competent authority shall be guided by such rules of
procedure as are laid down

are laid down by IRDAL. (4) on and from commencement of these regulation
every agent appointed under the provisions of LIC Rules 1972 shall be deemed to be an
appointed and confirmed.

(5) An applicant seeking appointment as an Composite agent Insurer with shall provide
whom his details agency the exists in App f

Q5.

Explain rights and responsibilities of agents.

Answer

Rights of Agents:

Right to Remuneration. Lee ongoods Right to be indemnified

Duties of Agents An that agent shall act within scope of authority his principal confers upon
him. Also, heshall follow directions of principle. He shall work with reasonable skill andhis

diligence. An agent shall disclose properly any information material fact to principal.

An agent shall not disclose information of his principal. any confidential.

· An agent shall not principal. No compete with his conflict interests in in his duty.

Q6.

Explain termination of agents Commission. and hereditary

Answer

Termination of agency (1) of of him in business required agent fails to bring the business an
ageway year. (2) the agent under sub Retion (1)

if found that his control under subsection (1) may be reinstated. there were reasons beyond

(3) where an agency is reinstated under sub(2), it shall be treated as continuous for all
purposes.

Hereditary commission: Commissions due to a deceased life insurance. inherited by his that
inherited Insurance nominees the Act 1938 specified rules under which commission were
paid to life insurance agents after they served no. of years.
 Unit 5

Q1.

Explain the exchange control regulations.

Answer

applicable to life to life insurance. or hold life insurance policy Permission to take or hold

issued by an insurer outside India. (1) A puson resident in India. may take or continue to
hold life insurance policy issued ん outside India. by insurer under permission of RBI.
granted it is

A may continue issued person to hold by an person resident in India my life insurance policy
insurer was outside India when such. resident outside India 7

Q2.

Explain settlement. policyholders. claims of overseas.

Answer

The basie rule is that payments in

foreign arrency in proportion will be permitted only in which the amount of premium paid
in foreign currency in

relation to total premium paid.. → The surrender valive / maturity amount may

be permitted to credit the same to NRE/ FCNR account.

→ Claims in respect of life policies issued to NRO NRIS may be paid only be paid only in
rupees to of beneficiary. Account

Q3

Explain about Insurance Ombudsman scheme. Ombudsman is an officer appointed by

The Insurance Ombudsman Scheme. was created

by GOI for individual policyholders to have their complaints settled system in a cost-
effective out 7 courts effective, efficient and impartial way. The time suring of Ombudsman
is 3 years.

THE END