What are the salient features of Insurance Act 1938?
Asked by: Garry Rohan I | Last update: February 11, 2022Score: 4.6/5 (33 votes)
The salient features of this Act were as follows: Constituting a Department of Insurance to supervise and control insurance business. Compulsory registration of insurance companies & submission of annual financial returns. Provision for initial deposits to allow only serious players in the field.
What are the salient features of IRDA?
Features & Benefits of IRDA:
Acts as a regulator for the insurance industry. Protects the policyholder's interests. Rules and regulations are framed by the apex body under Section 114A of the Insurance Act, 1938.
What are the features of an insurance contract?
- Insurable interest. ...
- Contract of 'Uberrimae fidei' or Contract of Utmost good faith. ...
- Indemni0. ...
- Mitigation of Loss. ...
- Causa proxima. ...
- Subrogation. ...
- Contribution. ...
- Re-insurance.
What is the definition of health insurance business as per Insurance Act, 1938?
(9) “insurer” means— (a) any individual or unincorporated body of individuals or body corporate incorporated under the law of any country 20 [other than India, 21 [***]] carrying on insurance business [not being a person specified in sub-clause (c) of this clause] which— (i) carries on that business in 22 [ India ], or.
When did the Insurance Act 98 came into force?
The Insurance Act, 1938. (1) This Act may be called the Insurance Act, 1938. 1[(2) It extends to the whole of India 2[***].] (3) It shall come into force on such date3 as the Central Government may, by notification in the Official Gazette, appoint in this behalf.
Insurance Act | Notes of Insurance Act Features of Insurance Act
What are the principles of insurance?
In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution. The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized.
Which section of Insurance Act, 1938 defines the process of assignment?
Assignment or transfer of a Policy should be in accordance with Section 38 of the Insurance Act, 1938 as amended from time to time. ... An Assignment may be effected in a Policy by an endorsement upon the Policy itself or by a separate instrument under notice to the Insurer.
Which section of the Insurance Act, 1938 defines marine insurance?
Section 2(13A) in The Insurance Act, 1938.
What are the important features of insurance contract How is insurance beneficial to individuals?
Following are some of the important benefits of insurance: Provides peace of mind: Insurance provides protection against various uncertainties that can put you or your family in financial crisis. By covering the uncertainties of human life and businesses, insurance provides a sense of security.
What is the most important insurance principle?
Indemnity is a very important principle of insurance and stems form the value of the insurable interest.
Who regulates insurance in India?
Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999) for overall supervision and development of the Insurance sector in India.
What is the role of IRDA in insurance?
IRDA or Insurance Regulatory and Development Authority of India is the apex body that supervises and regulates the insurance sector in India. The primary purpose of IRDA is to safeguard the interest of the policyholders and ensure the growth of insurance in the country.
What are the provisions of IRDA Act?
4.2 The IRDA Act provides for the composition of the Authority, terms and conditions of the Chairperson and members including their tenure and removal; duties, powers and functions of the Authority including regulation making power and delegation of powers; establishment of Insurance Advisory Committee; Insurance ...
What is insurance law PDF?
Insurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the expiry of a certain period in case of life insurance or ...
What does Section 39 of the Insurance Act, 1938 allow?
(1) The holder of a policy of life insurance 419 [on his own life 420 [***]] may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death: 421 [Provided that, where any nominee is a ...
Who acts on behalf of insured?
Agent — a person or organization who/that is authorized to act on behalf of another. An insurance agent is a person or organization who/that solicits, negotiates, or instigates insurance contracts on behalf of an insurer and can be independent or an employee of the insurer.
Who is insurer under insurance?
1) An insurance policy is a contract between the insurer and the insured. 2) The insured is the person whose life is being covered against the risk under the policy. 3) The insurer is the insurance company that provides the insurance cover.
Is the full form of IRDA?
Insurance Regulatory and Development Authority (IRDA) Act, 1999 spells out the Mission of IRDAI as: “... to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto......”
What is the minimum period of life insurance?
Age: The minimum age of eligibility to purchase a term insurance plan is 18 years, and the maximum age is limited to 65 years.
What is insurance and its features?
Insurance is defined as a cooperative device to spread the loss caused by a particular risk over several persons exposed to it and who agree to insure themselves against that risk. ... The risk is the uncertainty of a financial loss.
What is the important of insurance?
Insurance turn accumulated capital into productive investments. Insurance also enables mitigation of losses, financial stability and promotes trade and commerce activities those results into sustainable economic growth and development. Thus, insurance plays a crucial role in the sustainable growth of an economy.
What are the three principles of insurance?
- Principal of Utmost Good Faith. ...
- Principle of Insurable Interest. ...
- Principle of Indemnity. ...
- Principle of Contribution.
Which of the following types of insurance is mandatory?
The general insurance cover that is mandatory is third-party liability car insurance. This is the minimum coverage that a vehicle should have before they can ply on Indian roads.