Page 133 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes 4. The Insurance Regulatory and Development Authority (IRDA) Act of 1999 deregulated the
insurance sector in India and allowed the entry of ........................... into the insurance sector.
5. Insurance is actually a contract between 2 parties whereby one party called insurer
undertakes in exchange for a fixed sum called .........................
6. Insurance ..................... analyze insurance applications, determining whether they should
be accepted or rejected.
7. The periodic payment made on an insurance policy is known as ......................
8. ..................... is a document evidencing issuance of an insurance policy and gives a summary
of the information given in a certificate of insurance.
9. Travel Insurance takes care of expenses incurred due to any ..................... during travel.
10. In ULIPs the withdrawals are allowed only after ..................... years.
11. The term ULIP stand for ......................

12. The basic feature of ..................... plans is that they provide death risk-cover.
13. Life insurance policy can be renewed .................. the expiry.
14. ..................... means the active, efficient cause that sets in motion a train of events which
brings about a result.
15. Annuities are ..................... to life insurance.

8.9 Review Questions

1. What do you mean by insurance? What are the main insurance companies in public sector
in India?
2. Critically evaluate the effect of IRDA on insurance sector of India.
3. “Insurance sector in India has come of age”. Comment.
4. Which insurance company do you prefer for general insurance and why?

5. If you were to join the insurance sector in India, which company would you prefer to join
as an employee and why?
6. What is more important – life insurance or general insurance and why? (You cannot say
both are equally important)
7. Analyse the role of underwriters in Indian Insurance sector.
8. Do you think IRDA has successfully performed its functions till date? Justify your statement
with factual reasoning.
9. What are the main challenges ahead of IRDA in particular and Indian Insurance sector in
general for the future?
10. What do you see as the main advantages of Life insurance? Is there any lacuna in the life
insurance industry in India? If yes, suggest measures to improve it.
11. Where do you think are the main possibilities for general insurance industry in India to
work upon and get at par with those of developed economies?

12. What do you see as the main advantage of the insurance companies to start selling their
products online? Why wasn't it done earlier?

128 LOVELY PROFESSIONAL UNIVERSITY