Akash Insurance

8/12/2019 Akash Insurance

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Insurance & IRDA

History of insurance

The history of general insurance dates back to the Industrial Revolution in the

west and the consequent growth of sea-faring trade and commerce in the 17 th

century. It came to India as a legacy of British occuation. !eneral Insurance in

India has its roots in the establishment of Triton Insurance "omany #td.$ in the

year 1%&' in "alcutta by the British. In 1('7$ the Indian )ercantile Insurance

#td$ was set u. This was the first comany to transact all classes of general

insurance business.

1(&7 saw the formation of the !eneral Insurance "ouncil$ a wing of the

Insurance *ssociaton of India. The !eneral Insurance "ouncil framed a code of

conduct for ensuring fair conduct and sound business ractices.

1%1% saw the advent of life insurance business in India with the establishment

of the +riental #ife Insurance "omany in "alcutta. This "omany however

failed in 1%,. In 1%($ the )adras /quitable had begun transacting life

insurance business in the )adras 0residency. 1%7' saw the enactment of the

British Insurance *ct and in the last three decades of the nineteenth century$ the

Bombay )utual 1%712$ +riental 1%72 and /mire of India 1%(72 were

started in the Bombay Residency. This era$ however$ was dominated by foreign

insurance offices which did good business in India$ namely *lbert #ife

*ssurance$ Royal Insurance$ #iverool and #ondon !lobe Insurance and the

Indian offices were u for hard cometition from the foreign comanies.

Meaning of insurance

In lawand economics$ insurance is a form of risk managementrimarily used to

hedgeagainst the riskof a contingent$ uncertainloss. Insurance is defined as the

equitable transfer of the risk of a loss$ from one entity to another$ in e3change

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for ayment. *n insurer is a comany selling the insurance4 an insured$ or

olicyholder$ is the erson or entity buying the insurance olicy. The insurance

rate is a factor used to determine the amount to be charged for a certain amount

of insurance coverage$ called the remium. Risk management$ the ractice of

araisingand controlling risk$ has evolved as a discrete field of study and

ractice.

Insurance involves ooling funds from many insured entities known as

e3osures2 to ay for the losses that some may incur. The insured entities are

therefore rotected from risk for a fee$ with the fee being deendent uon the

frequency and severity of the event occurring. In order to be insurable$ the risk

insured against must meet certain characteristics in order to be an insurable risk.

Insurance is a commercial enterrise and a ma5or art of the financial services

industry$ but individual entities can also self-insurethrough saving money for

ossible future losses.61

The business model is to collect more in remium and investment income than

is aid out in losses$ and to also offer a cometitive rice which consumers will

accet. 0rofit can be reduced to a simle equation8 0rofit 9 earned remium:

investment income - incurred loss - underwriting e3enses.

Insurers make money in two ways8

1. Through underwriting$ the rocess by which insurers select the risks to

insure and decide how much in remiums to charge for acceting those

risks4

. By investingthe remiums they collect from insured arties.

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;on termination of a given olicy$ the amount of remium collected and the

investment gains thereon$ minus the amount aid out in claims$ is the insurerlosses to

remiums. * combined ratio of less than 1'' ercent indicates an underwriting

rofit$ while anything over 1'' indicates an underwriting loss. * comany with

a combined ratio over 1''? may nevertheless remain rofitable due to

investment earnings.

"laims and loss handling is the materiali@ed utility of insurance4 it is the actual

=roduct= aid for. "laims may be filed by insureds directly with the insurer or

throughbrokers or agents. The insurer may require that the claim be filed on its

own rorietary forms$ or may accet claims on a standard industry form$ such

as those roduced by *"+RA.

Insurance comany claims deartments emloy a large number of claims

ad5usters suorted by a staff of records management and data entry clerks.

Incoming claims are classified based on severity and are assigned to ad5usters

whose settlement authority varies with their knowledge and e3erience. The

ad5uster undertakes an investigation of each claim$ usually in close cooeration

with the insured$ determines if coverage is available under the terms of the

insurance contract$ and if so$ the reasonable monetary value of the claim$ and

authori@es ayment.

The olicyholder may hire their ownublic ad5usterto negotiate the settlement

with the insurance comany on their behalf. or olicies that are comlicated$

where claims may be comle3$ the insured may take out a searate insurance

olicy add on$ called loss recovery insurance$ which covers the cost of a ublic

ad5uster in the case of a claim.

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Insurance & IRDA

*d5usting liability insurance claims is articularly difficult because there is a

third arty involved$ the laintiff$ who is under no contractual obligation to

cooerate with the insurer and may in fact regard the insurer as a dee ocket.

The ad5uster must obtain legal counsel for the insured either inside =house=

counsel or outside =anel= counsel2$ monitor litigation that may take years to

comlete$ and aear in erson or over the telehone with settlement authority

at a mandatory settlement conference when requested by the 5udge.

If a claims ad5uster susects under-insurance$ the condition of average may

come into lay to limit the insurance comany


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Insurance & IRDA

,. )edical coverage$ for the cost of treating in5uries$ rehabilitation and

sometimes lost wages and funeral e3enses.

Home insurance

Come insurance rovides coverage for damage or destruction of the

olicyholder


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Insurance & IRDA

Eorkers< comensationinsurance

Casualty insurance

"asualty insurance insures against accidents$ not necessarily tied to any secific

roerty. It is a broad sectrum of insurance that a number of other tyes of

insurance could be classified$ such as auto$ workers comensation$ and some

liability insurances.

Life insurance

#ife insurance rovides a monetary benefit to a decedent


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Insurance & IRDA

In many countries$ such as the ;D and the ;F$ the ta3 lawrovides that the

interest on this cash value is not ta3able under certain circumstances. This leads

to widesread use of life insurance as a ta3-efficient method of savingas well as

rotection in the event of early death.

In the ;D$ the ta3 on interest income on life insurance olicies and annuities is

generally deferred. Cowever$ in some cases the benefit derived from ta3 deferral

may be offset by a low return. This deends uon the insuring comany$ the

tye of olicy and other variables mortality$ market return$ etc.2. )oreover$

other income ta3 saving vehicles e.g.$ IR*s$ '1k2 lans$ Roth IR*s2 may be

better alternatives for value accumulation.

Property insurance

This tornadodamage to an Illinoishome would be considered an =*ct of !od=

for insurance uroses

0roerty insurance rovides rotection against risks to roerty$ such as fire$

theftor weatherdamage. This may include seciali@ed forms of insurance such

as fire insurance$ flood insurance$ earthquake insurance$ home insurance$ inland

marine insurance orboiler insurance.

IRADInsurance Regulatory and Aeveloment *uthority2

This millennium has seen insurance come a full circle in a 5ourney e3tending to

nearly '' years. The rocess of re-oening of the sector had begun in the early

1(('s and the last decade and more has seen it been oened u substantially. In

1((,$ the !overnment set u a committee under the chairmanshi of RG

)alhotra$ former !overnor of RBI$ to roose recommendations for reforms in

the insurance sector.The ob5ective was to comlement the reforms initiated in

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Insurance & IRDA

the financial sector. The committee submitted its reort in 1(( wherein $

among other things$ it recommended that the rivate sector be ermitted to enter

the insurance industry. They stated that foreign comanies be allowed to enter

by floating Indian comanies$ referably a 5oint venture with Indian artners.

ollowing the recommendations of the )alhotra "ommittee reort$ in 1((($

the Insurance Regulatory and Aeveloment *uthority IRA*2 was constituted

as an autonomous body to regulate and develo the insurance industry. The

IRA* was incororated as a statutory body in *ril$ '''. The key ob5ectives of

the IRA* include romotion of cometition so as to enhance customer

satisfaction through increased consumer choice and lower remiums$ while

ensuring the financial security of the insurance market.

The IRA* oened u the market in *ugust ''' with the invitation for

alication for registrations. oreign comanies were allowed ownershi of u

to H?. The *uthority has the ower to frame regulations under Dection 11*

of the Insurance *ct$ 1(,% and has from ''' onwards framed various

regulations ranging from registration of comanies for carrying on insurance

business to rotection of olicyholders interests.

In Aecember$ '''$ the subsidiaries of the !eneral Insurance "ororation of

India were restructured as indeendent comanies and at the same time !I"was converted into a national re-insurer. 0arliament assed a bill de-linking the

four subsidiaries from !I" in July$ ''.

Today there are general insurance comanies including the /"!" and

*griculture Insurance "ororation of India and , life insurance comanies

oerating in the country.

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Insurance & IRDA

The insurance sector is a colossal one and is growing at a seedy rate of 1&-

'?. Together with banking services$ insurance services add about 7? to the

countrys !A0. * well-develoed and evolved insurance sector is a boon for

economic develoment as it rovides long- term funds for infrastructure

develoment at the same time strengthening the risk taking ability of the

country.

The Insurance Regulatory and Aeveloment *uthority IRA*2 is a national

agency of the !overnment of India$ based in Cyderabad. It was formed by an

act of Indian 0arliamentknown as IRA* *ct 1((($ which was amended in ''

to incororate some emerging requirements. )ission of IRA* as stated in the

act is =to rotect the interests of the 0olicyholders$ to regulate$ romote and

ensure orderly growth of the Insurance industry and for matters connected

therewith or incidental thereto.=

In '1'$ the !overnment of Indiaruled that the ;nit #inked Insurance 0lans

;#I0s2 will be governed by IRA*$ and not the market regulator Decurities and

/3change Board of India

Duties,Powers and unctions of IRDA

Dection 1 of IRA* *ct$ 1((( laysdown the duties$owers and functions of

IRA*8

1. Dub5ect to the rovisions of this *ct and any other law for the time being in

force$ the *uthority shall have the duty to regulate$ romote and ensure

orderly growth of the insurance business and re-insurance business.

. Eithout re5udice to the generality of the rovisions contained in sub-section

12$ the owers and functions of the *uthority shall include$

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Insurance & IRDA

1. issue to the alicant a certificate of registration$ renew$ modify$

withdraw$ susend or cancel such registration4

. rotection of the interests of the olicy holders in matters concerning

assigning of olicy$ nomination by olicy holders$ insurable interest$

settlement of Insurance claim$ surrender value of olicy and other

terms and conditions of contracts of insurance4

,. secifying requisite qualifications$ code of conduct and ractical

training for intermediary or insurance intermediaries and agents4

. secifying the code of conduct for surveyors and loss assessors4

&. romoting efficiency in the conduct of insurance business4

H. romoting and regulating rofessional organisations connected with the

insurance and re-insurance business4

7. levying fees and other charges for carrying out the uroses of this *ct4

%. calling for information from$ undertaking insection of$ conducting

enquiries and investigations including audit of the insurers$

intermediaries$ insurance intermediaries and other organisations

connected with the insurance business4

(. control and regulation of the rates$ advantages$ terms and conditions

that may be offered by insurers in resect of general insurance business

not so controlled and regulated by the Tariff *dvisory "ommittee

under section H; of the Insurance *ct$ 1(,% of 1(,%24

1'. secifying the form and manner in which books of account shall be

maintained and statement of accounts shall be rendered by insurers and

other insurance intermediaries4

11. regulating investment of funds by insurance comanies4

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Insurance & IRDA

1. regulating maintenance of margin of solvency4

1,. ad5udication of disutes between insurers and intermediaries or

insurance intermediaries4

1. suervising the functioning of the Tariff *dvisory "ommittee4

1&. secifying the ercentage of remium income of the insurer to finance

schemes for romoting and regulating rofessional organisations

referred to in clause f24

1H. secifying the ercentage of life insurance business and generalinsurance business to be undertaken by the insurer in the rural or social

sector4 and

17. e3ercising such other owers as may be rescribed from time to time.

Ad!isory committee

IRA* consists of a "hairman and some ermanent as well as art time

members. The regulations$ however$ are enacted under the guidance of a

statutory advisory committee. The advisory committee consists of following

individuals and e3-officio authorities8

"hairman8 Cari Garayan J. is the current "hairman of IRA*.

ull-time )embers8 "urrently$ they are )r ). Ramarasad Gonlife

)ember2$ Dri ! 0rabhakara #ife )ember2$ Ar R Fannan)ember$

*ctuary2 and Dri R.F. Gair )ember$ K I2. There is rovision for a

anel of other members and art time members. IRA* formed a high

owered Insurance #aw Reforms "ommitteeknown as F0G "ommittee

with imortant insurance advisors like )r G !ovardhan and Ar F "

)ishraas its members. There were also a few non-advisory committee

members like )r #iaquat Fhanand )r T Liswanathanetc.

age 11
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Insurance & IRDA

ull force and utility of various institutions like *dvisory "ommittee and self-

regulatory organi@ations are not yet reali@ed as the regulator seems to be in a

long learning mode. Aue to over delegations$ Individual incumbents decide the

ace and e3tent of utili@ation of rudential and statutory bodies. Research is

limited to oinion seeking through legacy channels. )arket waits for revision of

insurance act and establishment meaningfully functioning regulatory organs

devoid of e3cess delegation and sub5ective locali@ation of develoment

agencies.

IRA* Journal is available as soft coy in its website.6 ;nlike other Indian

administrative Regulatory *gencies IRA* is erceived as a silent regulator with

activities confined to its local e3istence.

Insurance Regulatory and Aeveloment *uthority IRA*2 in India consists a

"hairman and some ermanent and art time members in the administration.

Cowever$ the regulations are enacted under the guidance of a statutory advisory

committee.

IRDA regulates pri!ate insurance companies in India such as

M Royal Dundaram *lliance Insurance "omany #imited

M Reliance !eneral Insurance "omany #imited.

M I"+ Tokio !eneral Insurance "o. #td

M T*T* *I! !eneral Insurance "omany #td.

M Ba5a5 *llian@ !eneral Insurance "omany #imited

M I"I"I #ombard !eneral Insurance "omany #imited.

M *ollo AFL Insurance "omany #imited

M uture !enerali India Insurance "omany #imited

M ;niversal Domo !eneral Insurance "omany #td.M "holamandalam !eneral Insurance "omany #td.

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Insurance & IRDA

M /3ort "redit !uarantee "ororation #td.

M CA"-"hubb !eneral Insurance "o. #td.

M Bharti *3a !eneral Insurance "omany #td.

M Rahe5a NB/ !eneral Insurance "o. #td.

M Dhriram !eneral Insurance "o. #td.

C"MP"#ITI"$ " A%TH"RIT& %$D'R IRDA ACT, ()))

*s er the section of IRA* *ct< 1((($ Insurance Regulatory and

Aeveloment *uthority IRA*$ which was constituted by an act of arliament2

secify the comosition of *uthority

The *uthority is a ten member team consisting of

a2 a "hairman4

b2 five whole-time members4

c2 four art-time members$

These all are aointed by the !overnment of India.

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Insurance & IRDA

I$#%RA$C' R'*%LAT"R& A$D D'+'L"PM'$T A%TH"RIT&

The Insurance Regulatory and De!elopment AuthorityIRA*2 is a national

agency of the !overnment of India$ based in Cyderabad. It was formed by an

act of Indian 0arliament known as IRA* *ct 1((($ which was amended in ''

to incororate some emerging requirements. )ission of IRA* as stated in the

act is =to rotect the interests of the olicyholders$ to regulate$ romote and

ensure orderly growth of the insurance industry and for matters connected

therewith or incidental thereto.=

In '1'$ the !overnment of India ruled that the ;nit #inked Insurance 0lans

;#I0s2 will be governed by IRA*$ and not the market regulator Decurities and

/3change Board of India

'stalishment of Insurance Ad!isory Committeesection &2

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Insurance & IRDA

Composition of IRDA-

The IRA* consists of a chairerson and not more than nine members of

whom not more than five would be full-time members$ to be aointed bythe government from amongst ersons of ability$ integrity$ and standing who

have knowledge and e3erience of life insurance or general insurance or

actual services$ finance$ economics$ law$ accountancy$ administration or any

other disciline which in the oinion of the government would be useful to

it.

Issue of Direction-

The IRA* is bound by the direction of the government on question of

olicy other than those relating to techniques and administrative matters in

writing from time to time. The decision of the government weather a

question is one of olicy or not would be final.

#uppression-

The government may by notification and for secified reason suersede

the IRA* for a eriod not e3ceeding si3 months in circumstances secified

below and during the eriod of suression aointed a erson to act as the

"ontrollers of Insurance under the Insurance *ct$ 1(,%.

.a/ +n account of circumstances beyond its control$ the IRA* is unable to

discharge its functions.

./ 0ersistent default by it in comlying with any direction given by the

government under the IRA* *ct or in discharge of functions or duties

imosed on it by or under the rovisions of the *ct and as a result of

such default the financial osition of the IRA* has suffered.

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Insurance & IRDA

.c/ "ircumstances e3ist which render it necessary in ublic interest to do

so.

"0ecti!es

The otential for the growth and sread of life insurance in India is high

as in many other *shian countries. )ore then 7&? of Indias insurance industry

requires a high degree of regulation. The Insurance *ct$ 1(,%$ rovides for the

institution of the "ontroller of Insurance to act as a strong and owerful

suervisory and regulatory authority. It has owers to direct$ advise caution$rohibit$ investigate$ insect$ rosecute$ search$ sei@e$ fine$ amalgamate$

authori@e$ register and liquidate insurance comanies. Cowever$ the role of

"ontroller of Insurance diminashed over a eriod of time after the

nationalisation of life insurance in 1(&H and the general insurance in1(7.

The !overnment of India set u a high owered committee in 1((,$

headed by Dhri R. G. malhotra$ former !overnor$ RBI to e3amine the structure

age 16


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Insurance & IRDA

of the insurance industry and recommend changes in other arts of the financial

system of the economy. The "ommittee submitted its reort on 7 th January$

1(($ felt that insurance regulatory aaratus should be activated even in the

resent set u of nationalised insurance sector and recommended the

establishment of a strong and effective Insurance Regulatory *uthority in the

form of a statutory autonomous board on the lines of the securities and

e3change board of India. The "ommittee also recommended oening u of

Insurance "omanies only H? initially but it has been raised to (? in ''.

In 1((H$ interim Insurance Regulatory *uthority was formed and in 1((( the

IRA* Bill was assed in the 0arliament. The IRA* *ct rovides for the

establishment of an authority to rotect the interest of the holders of insurance

olicies$ to regulate$ to romote and ensure orderly growth of the insurance

industry.

'1pectations-

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Insurance & IRDA

The law of India has following e3ectations from IRA*

1. To rotect the interest of and secure fair treatment to olicyholders.

. To bring about seedy and orderly growth of the insurance industryincluding annuity and suerannuation ayments2$ for the benefit of the

common man$ and to rovide long term funds for accelerating growth of

the economy.

,. To set$ romote$ monitor and enforce high standards of integrity$ financial

soundness$ fair dealing and cometence of those it regulates.

. To ensure that insurance customers receive recise$ clear and correct

information about roducts and services and make them aware of their

resonsibilities and duties in this regard.

&. To ensure seedy settlement of genuine claims$ to revent insurance

frauds and other malractices and ut in lace effective grievance

redressal machinery.

H. To romote fairness$ transarency and orderly conduct in financial

markets dealing with insurance and build a reliable management

information system to enforce high standards of financial soundness

amongst market layers.

7. To take action where such standards are inadequate or ineffectively

enforced.

%. To bring about otimum amount of self-regulation in day to day working

of the industry consistent with the requirements of rudential regulation.

Duties, Powers and unctions of IRDA-

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Insurance & IRDA

Dection 1 of IRA* *ct$ 1((( laysdown the duties$owers and functions of

IRA*

1. Dub5ect to the rovisions of this *ct and any other law for the time beingin force$ the *uthority shall have the duty to regulate$ romote and ensure

orderly growth of the insurance business and re-insurance business.

. Eithout re5udice to the generality of the rovisions contained in sub-

section 12$ the owers and functions of the *uthority shall include$

1. issue to the alicant a certificate of registration$ renew$ modify$

withdraw$ susend or cancel such registration4

. rotection of the interests of the olicy holders in matters

concerning assigning of olicy$ nomination by olicy holders$

insurable interest$ settlement of insurance claim$ surrender value of

olicy and other terms and conditions of contracts of insurance4

,. secifying requisite qualifications$ code of conduct and racticaltraining for intermediary or insurance intermediaries and agents4

. secifying the code of conduct for surveyors and loss assessors4

&. romoting efficiency in the conduct of insurance business4

H. romoting and regulating rofessional organisations connected

with the insurance and re-insurance business4

7. levying fees and other charges for carrying out the uroses of this

*ct4

%. calling for information from$ undertaking insection of$ conducting

enquiries and investigations including audit of the insurers$

intermediaries$ insurance intermediaries and other organi@ations

connected with the insurance business4

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Insurance & IRDA

(. control and regulation of the rates$ advantages$ terms and

conditions that may be offered by insurers in resect of general

insurance business not so controlled and regulated by the Tariff

*dvisory "ommittee under section H; of the Insurance *ct$ 1(,%

of 1(,%24 Decifying the form and manner in

which books of account shall be maintained and statement of

accounts shall be rendered by insurers and other insurance

intermediaries4

11. regulating investment of funds by insurance comanies

1. regulating maintenance of margin of solvency4

1,. ad5udication of disutes between insurers and

intermediaries or insurance intermediaries4

1. suervising the functioning of the Tariff *dvisory

"ommittee4

1&. Decifying the ercentage of remium income of the insurer to

finance schemes for romoting and regulating rofessionals

orgnisations4

1H. secifying the ercentage of life insurance business and

general insurance business to be undertaken by the insurer

in the rural or social sector4

17. e3ercising such other owers as may be

rescribed in the *ct

*dvisory committee8

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Insurance & IRDA

IRA* consists of a "hairman and some ermanent as well as art time

members. The regulations$ however$ are enacted under the guidance of a

statutory advisory committee. The advisory committee consists of following

individuals and e3-officio authorities8

"hairman8 Cari Garayana is the current "hairman of IRA*.

ull-time )embers8 "urrently$ they are )r F F Drinivasan Gonlife

)ember2$ Dri ! 0rabhakara #ife )ember2$ Ar R Fannan)ember$

*ctuary2 and Dri R.F. Gair )ember$ K I2. There is rovision for a

anel of other members and art time members. IRA* formed a high

owered Insurance #aw Reforms "ommitteeknown as F0G "ommittee

with imortant insurance advisors like )r G !ovardhan and Ar F "

)ishraas its members. There were also a few non-advisory committee

members like )r #iaquat Fhanand )r. T Liswanathanetc.

ull force and utility of various institutions like *dvisory "ommittee and self-

regulatory organi@ations are not yet reali@ed as the regulator seems to be in a

long learning mode. Aue to over delegations$ Individual incumbents decide the

ace and e3tent of utili@ation of rudential and statutory bodies. Research is

limited to oinion seeking through legacy channels. )arket waits for revision of

insurance act and establishment meaningfully functioning regulatory organs

devoid of e3cess delegation and sub5ective locali@ation of develoment

agencies.

Case Law

"ases of fraudulent comanies selling insurance roducts in India without alicence from the sector regulator$ Insurance Regulatory and Aeveloment

age 21
http://en.wikipedia.org/w/index.php?title=Insurance_Law_Reforms_Committee&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=N_Govardhan&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=K_C_Mishra&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=K_C_Mishra&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Liaquat_Khan&action=edit&redlink=1http://en.wikipedia.org/wiki/T_Viswanathanhttp://en.wikipedia.org/w/index.php?title=Insurance_Law_Reforms_Committee&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=N_Govardhan&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=K_C_Mishra&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=K_C_Mishra&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Liaquat_Khan&action=edit&redlink=1http://en.wikipedia.org/wiki/T_Viswanathan


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Insurance & IRDA

*uthority Irda2$ are on the rise. Deveral such incidents have come to Irdas

attention in the last eight to ten months.

*ll these comanies were found to be involved in selling life insurance$healthcare insurance olicies and related roducts to the ublic in certain

ockets of Aelhi$ )umbai and Bengaluru. They used to ro5ect themselves as

art of global insurance comanies and are said to have collected large amounts

of money from the ublic.

Irda came to know of at least two such incidents over the last few days.

Bengaluru-based *etna Cealthcare Getworks India2$ claiming to be a unit of

*etna of the ;D$ was found to be involved in selling health insurance roducts

and collecting money from alicants subscribing to the same. Dimilarly$

)umbai-based Aarwin 0latform #ife Insurance and inance "omany and A0

#ife Insurance inance$ claiming to be units of Aarwin 0latform !rou of the

Getherlands$ were also involved in offering life insurance roducts and have

allegedly collected a large amount of money$ Irda ointed out.

+ther such incidents too have been unearthed during the last eight to ten

months. *n unknown Aelhi-based comany was involved in selling olicies$

retending to be art of a Belarus-based insurance comany. Dimilarly$

)umbai-based Einner Insurance Benefits was caught issuing certificates of

rotection for health schemes and collecting money from alicants subscribing

to the same.

Ehile the insurance industry in India claims to be clueless about such incidents$

ersons closely involved in this business are believed to have blown the whistle

and brought these facts to Irdas notice for stringent action.

The regulatory body said that Othe above named comanies have not been

issued any licence>certificate of registration by itself under any of the rovisions

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Insurance & IRDA

of the Insurance *ct$ 1(,% and the Irda *ct$ 1((($ for carrying on the said

business. It is hereby clarified that carrying on insurance business without

obtaining the mandatory licence or certificate of registration from the Irda in

terms of rovisions of the Insurance *ct$ 1(,% and the Irda *ct$ 1((( amounts

to violation of the said statutes for which aroriate actions$ civil or criminal$

under the Insurance *ct and the Irda *ct could be taken u by the regulator

against such comanies.P

Bibliograhy

htt8>>en.wikiedia.org>wiki>InsuranceQRegulatoryQandQAevelomentQ*uthorit

yAuties."0owersQandQunctionsQofQIRA*

htt8>>en.wikiedia.org>wiki>InsuranceQindustry

htt8>>en.wikiedia.org>wiki>InsuranceQRegulatoryQandQAevelomentQ*uthorit

y*dvisoryQcommittee

age 23
http://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority#Duties.2CPowers_and_Functions_of_IRDAhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority#Duties.2CPowers_and_Functions_of_IRDAhttp://en.wikipedia.org/wiki/Insurance_industryhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority#Advisory_committeehttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority#Advisory_committeehttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority#Duties.2CPowers_and_Functions_of_IRDAhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority#Duties.2CPowers_and_Functions_of_IRDAhttp://en.wikipedia.org/wiki/Insurance_industryhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority#Advisory_committeehttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority#Advisory_committee


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Insurance & IRDA

htt8>>en.wikiedia.org>wiki>Insurance
http://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurance

Documents

Akash Insurance