2. INSURANCE Insurance is a form of contract under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make good the loss to something in which the insured has a pecuniary interest as a result of some uncertain event. It is a device by which the loss likely to be Caused by an uncertain event is spread over a large number of persons who are exposed to it & who propose to insure themselves against such an event.
3. LIFE INSURANCE Life insurance is a contract under which one person known as the insurer in return for a premium undertakes to pay an assured amount to another person known as the insured either on the event of death or on the expiry of a specified period of time whichever is earlier.
4. LIFE INSURANCE CORPORATION OF INDIA (LIC) Establishment LIC was established on September 1st 1956 under an Act passed by the Parliament as a wholly owned Corporation of Govt of India with a capital of Rs. 5 Crore The Govt of India in 1956 brought together over 240 private life insurers & provident societies under one nationalized monopoly corp i.e., LIC.
5. LIFE INSURANCE CORPORATION OF INDIA (LIC) Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development." Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
35. Financial Assistance LIC has been increasing its financial assistance in the last 33 years to the corporate sector. In 1970-71, assistance sanctioned was Rs. 17.8 crore while it increased to Rs. 4341.5 crore in 2002-03. In 2000-01, there was a sudden increase in assistance provided which went to Rs. 10867.3 crore from Rs. 6825.5 crore a year earlier showing an increase of 59.2%. Trend in Assistance sanctioned & disbursed to Corporate Sector Source : IDBI Report, 2003-04
37. GENERAL INSURANCE CORPORATION (GIC) The GIC was formed as a Government Company under Sec 9 of the General Insurance Business (Nationalisation) Act, 1972. It was registered as a private company under the Companies Act, 1956.
38. Subsidiaries of GIC The National Insurance Company The New India Assurance Company The Oriental Fire & General Insurance Company The United India Fire & General Insurance Company Ltd.
44. SERVICES OF GIC Marine Insurance Fire Insurance Vehicle Insurance Crop Insurance House Insurance Any other insurance except life insurance.
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46. 10% of the fresh accrual of funds to be invested in State Govt securities, bond & debentures of public sector corporations & semi Govt bodies.
47. 35% as loan to State Govts for housing & bonds & debentures of Housing & Urban Development Corp.
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49. Insurance Development & Regulatory Authority (IRDA) IRDA bill was passed in December 1999.The IRDA became the statutory body in April 2000 & has been framing regulations & registering the private sector insurance Companies. The insurance sector was opened up to private players in August 2000. Consequently many Indian & foreign Companies have entered in the insurance business.
50. Mission of IRDA To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith. Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re- insurance business.
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52. Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance.
53. Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business.
