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Unit 6: The Insurance Act, 1938
Rupesh Roshan Singh, Lovely Professional University

Unit 6: The Insurance Act, 1938 Notes

CONTENTS
Objectives
Introduction

6.1 Definitions
6.1.1 Short Title, Extent and Commencement
6.2 Main Provisions of the Insurance Act, 1938

6.2.1 Appointment of Authority of Insurance
6.2.2 Requirements as to Capital
6.2.3 Deposits
6.2.4 Audit
6.2.5 Investment of Assets

6.2.6 Power to Appoint Staff
6.3 Registration of Principal Agents, Chief Agents and Special Agents
6.4 Regulation of Employment of Principal Agents

6.5 Renewal of Registration
6.6 Capital Requirements
6.7 Summary
6.8 Keywords
6.9 Review Questions

6.10 Further Readings

Objectives

After studying this unit, you will be able to:

Discuss the definitions given in the Insurance Act, 1938
Explain the main provisions of the Insurance Act, 1938
Describe the registration of principal agents, chief agents and special agents
Discuss the regulation of employment of principal agents
Explain the renewal of registration

Describe the capital requirements

Introduction

In the previous unit, you have studied about the various principles of insurance such as principle
of utmost good faith, principle of insurable interest, principle of indemnity, principle of
contribution, principle of subrogation and principle of causa proxima (nearest cause).

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