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
· Product pricing
· Rural insurance
· Regulation of insurance business
· Restructuring of general insurance
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
· 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
· Universal insurance
· Direct insurance
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
· Capacity of parties
· Free consent
· Lawful object
· Agreement not declared valid
· 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
· 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