Page 254 - DMGT303_BANKING_AND_INSURANCE

Unit 12: Insurance

Specifying requisite qualifications, practical training and code of conduct for insurance Notes
intermediaries, insurance brokers and agents.

Specifying the code of conduct for surveyors and loss assessors.
Promotion of efficiency in the conduct of insurance business.
Promoting and regulating professional organizations connected with the insurance and
reinsurance business across India.

Levying fees, commission and other charges for carrying out the purposes of this Act.
Calling for data or information from, undertaking inspection of, conducting enquiries
and investigations, conducting audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business.
Under section 64U of the Insurance Act, 1938 (4 of 1938), controlling and regulation of the
rates, advantages, terms and conditions etc. that may be offered by insurers (or Insurance
Companies) in respect of general insurance business not so controlled and regulated by
the Tariff Advisory Committee.
Specifying the manner and form in which books of account shall be maintained and
statement of accounts, financial statements etc shall be rendered by insurers and other
insurance intermediaries.
Keeping a tab, exercising control and regulating investment of funds by insurance
companies.
Regulating the maintenance of margin of solvency by the Insurers.
Adjudication of disputes between insurers and intermediaries or insurance intermediaries,
hospitals, healthcare organizations or with customers.
To effectively supervise the functioning of the Tariff Advisory Committee.
Specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organizations referred to in clause (f);
Specifying the percentage of life insurance business and general (or non-life) insurance
business to be undertaken by the insurance company in the rural or social sector.

Exercising any such other powers that may be prescribed with passage of time.

Self Assessment

State whether the following statements are true or false:
6. One of the features of IRDA Act is to reduce the efficiency in the conduct of insurance
business.

7. The uncertainty is changed into certainty by insuring property and life because the insurer
promises to pay a definite sum at damage or death.
8. Insurance is not that device which shares the financial losses, which might occur to an
individual or his family on the happening of a specified event.
9. The payment is made on happening of a certain contingency insured. It is true for all non-
life insurances that payment will be made on happening of the specified contingency
only.

10. In life insurance, the purpose is not to make good the financial loss suffered. Moreover
one cannot estimate the value of a human being.

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