INSURANCE - LAW PRACTICE

1 Relevant for December 2019 SessionOnwardsSTUDY MATERIALPROFESSIONALPROGRAMMEINSURANCE-L AW&PRACTICEMODULE 3 ELECTIVE PAPER (ii) THE INSTITUTE OF COMPANY SECRETARIES OF INDIATIMING OF HEADQUARTERSM onday to FridayOffice Timings to Dealing TimingsWithoutfinancialtransactions to Typesetting by AARUSHI GRAPHICS, Prashant Vihar, New DelhiPrinted at M. P. Printers/June 2019(iii) PROFESSIONAL PROGRAMME INSURANCE LAW & PRACTICE The world we live in is full of uncertainties and risks. Individuals, families, businesses, properties and assets are exposed to different types and levels of risks.

2 These include risk of losses of life, health, assets, property, etc. While it is not always possible to prevent unwanted events from occurring, financial world has developed products that protect individuals and businesses against such losses by compensating them with financial resources. INSURANCE is a financial product that reduces or eliminates the cost of loss or effect of loss caused by different types of risks. In order to safeguarding the interest of people from loss and uncertainty, INSURANCE has evolved as a process of indemnifying the people against the loss and uncertainity.

3 It may be described as a social device to reduce or eliminate risk of loss to life and property. Apart from protecting individuals and businesses from many kinds of potential risks, INSURANCE contributes a lot to the general economic growth of the society by provides stability to the functioning of process. The INSURANCE industries develop financial institutions and reduce uncertainties by improving financial resources. It also provides stability to the functioning of businesses and generating long-term financial resources for the industrial projects.

4 Among other things, INSURANCE sector also encourages the virtue of savings among individuals and generates employments for millions, especially in a country like India, where savings and employment are important. Considering the various recommences the INSURANCE industry provides to the society, economy, businesses and people on one side and considering the capital invested by the people by the people through the instrument of INSURANCE on other side, it is mandated to regulate INSURANCE sector. Though since ages, regulation exists for ensuring the maximum utilization of the INSURANCE sector for the benefit of the society and for avoiding the probability of misuse of the INSURANCE as a instrument related to finance and capital, yet the privatization of INSURANCE sector in early 90s has made it compulsory to have stricter standards of laws and regulation over INSURANCE sector.

5 In order to realize the benefits of INSURANCE , one should be through in adhering the compliances related to INSURANCE and related products. Considering the significance of the INSURANCE Sector for the Company Secretaries as a specialized area of their expertise and also the plethora of laws and regulation governing the INSURANCE sector in India, this Study material aims as guiding the consolidated understanding of INSURANCE , the sector, and the laws and practices related to INSURANCE industry in India. The legislative changes made up to June, 2019 have been incorporated in the study material.

6 However, on one hand, where the subject of Intellectual Property Rights: Laws and PRACTICE is inherently fundamental to understand the basics and advanced principles related to Intellectual Property Rights and on the similar end it is subject to the refinement of Legislation, Rules and Regulations. Henceforth, it becomes necessary for every student to constantly update with legislative changes made as well as judicial pronouncements rendered from time to time by (iv)referring to the Institute s monthly journal Chartered Secretary , E-Bulletin Student CompanySecretary as well as other legal and professional journals along with the aid of reference booksrelated to the the event of any doubt, studentsmay write to the Directorate of Professional Development,Perspective Planning and Studies of the Institute for due care has been taken in publishing this study material, the possibility of errors,omissions and /or discrepancies cannot be rules out.

7 This publication is released with anunderstanding that the Institute shall not be responsible for any errors, omissions and /ordiscrepancies or any action taken in that there be any discrepancies, errors or omissions noted in the study material, the Instituteshall be obliged, if the same is brought to its notice for issue of corrigendum in the e-Bulletin Student Company Secretary .(v)PROFESSIONALPROGRAMMEM odule 3 Paper LAW & PRACTICE (Max Marks 100)SYLLABUSO bjectiveTo impart knowledge on INSURANCE related concepts to the students with the aim of broadening professionalopportunities inthe arena of Contents1.

8 Concept of INSURANCE :Risk Management; The Concept of INSURANCE and its Evolution; The Business ofInsurance; The InsuranceMarket; INSURANCE Customers; The INSURANCE Contract; INSURANCE Terminology;Life Assurance products; General Regulatory Framework of INSURANCE Business inIndia:Development of INSURANCE Legislation in Indiaand INSURANCE Act 1938; INSURANCE Regulatory and Development Authority of India (IRDAI) Functions andInsurance Councils; IRDAI and its LicensingFunctions; Policy Holders Rights of Assignment, Nominationand Transfer; Protection of Policy Holders Interest; Dispute ResolutionMechanism; Financial RegulatoryAspects of Solvency Margin and Investments; International Trends In INSURANCE Life INSURANCE Practices:Life INSURANCE Organization;Premiums and Bonuses; Plans of Lifeinsurance; Annuities; GroupInsurance; Linked Life INSURANCE Policies; Applications and Acceptance; PolicyDocuments; Premium payment, Life InsuranceCorporation ( ) of India; Policy Lapse and Revival.

9 Assignment, Nomination and Surrender of policy; Policy Life INSURANCE Underwriting:Underwriting: Structure and Process; Financial Underwriting;Occupational, Avocational andResidential Risks; Reinsurance; Blood Disorders; Nervous System; DiabetesMellitus; Thyroid diseases; Urinary system; TheRespiratory System; Gastrointestinal (Digestive) System;Cardiovascular system; Special Senses: Disorders of the eyes, ears andnose; Law of contract; LifeInsurance Contract; Protection of Interest of Applications of Life INSURANCE :Financial Planning and Life INSURANCE ; Life INSURANCE Planning; HealthPolicies; Pensions andAnnuities; Takaful (Islamic INSURANCE ).

10 6. Life INSURANCE Finance:Accounting Procedures-Premium Accounting; Accounting Procedures Disbursements; AccountingProcedure: Expenses of Management; Investments; Final Accounts, RevenueAccount and Balance Sheet; Budget and BudgetaryControl; Innovative Concepts in Financial Reporting;Accounting Standard Applicable to Life INSURANCE Companies; FinancialAnalysis; Management Environmentin India; Application of Financial Management Concepts in INSURANCE Industry; TaxationNew Syllabus forExecutive and Profess ional ProgrammeS(Current Scenario); Anti-Money Laundering Guidelines and PMLAct.