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Unit 14: Trends in Insurance Sector

5. ………………………………. have been issued to insurers to file their existing and new Notes
products with the Authority.
6. ………………………………… income is a key determinant in the calculation of premium
rates for any insurance company.
7. The companies are required to honour the awards passed by an ………………………………
within three months.
8. Underwriters should give up the old ……………………………… approach.

Case Study Insurance Cover for Overseas Students

private general insurance company has launched a policy for Indian students
studying abroad or planning to do so. The policy pays for expenses incurred by
Athe immediate family member if they visited the insured student in case of
emergency or if the student had to visit them in similar circumstances.
The ‘Student Suraksha - Student Overseas Travel’ policy provides cover against unforeseen
expenses such as hospitalisation, accidental death, permanent disablement and dental
treatment. It has additional covers such as personal liability, bail bond, sponsors’ protection,
study interruption, loss of passport and checked-in baggage loss.

It includes worldwide cover for students from 30 days to 2 years without any medical or
health check-up requirements. The policy can be bought by an individual between the age
of 16 and 35, who is a full-time registered student of an education course outside India.
Question
Express your opinion on the insurance cover for overseas insurance.

Source: http://articles.timesofindia.indiatimes.com/2013-03-25/news/38009483_1_overseas-students-
study-interruption-private-general-insurance

14.3 Summary

Actuarial service refers to the method by which corporations determine, assess and plan
for the financial impact of risk.
Actuarial science is used to evaluate and predict future pay-outs for insurance and other
financial industries such as the pension industry.
Before liberalization the Insurance sector was controlled by Controller of Insurance but
now the corporate body known as Insurance Regulatory & Development Authority (IRDA)
has been formed under IRDA Act 1999.
In the case of general insurance, investment income compensates underwriting losses, if
any, of the insurance company, which in turn enables then to keep their premium rates
competitive.

An investment policy has to be submitted to the Authority by an insurer before the start
of an accounting year.
IRDA has recently notified regulations for Licensing of Third Party Administrators
(TPA) – Health Services in order to popularize health insurance.

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