The INSURANCE ACT, 1938


>

a. Registration of insurers
b. Insurers’ Accounts and Returns
c. Investments by insurers.
d. Limitation in insurers’ Expenses of Management.
e. Prohibition of Rebates (to induce any person for taking insurance policy)
f. Licensing of Agents and other insurance intermediaries.
g. Survey of losses [Sec 64-UM] – insurers are prohibited to admit any claim in respect of a loss of Rs.20,000 or more without first obtaining a report on the loss from a licensed surveyor/loss assessor.
h. Advance Payment of Premium [Sec 64-VB] – insurer is not allowed to assume any risk unless
1. premium has been received; or
2. has been guaranteed to be paid; or
3. a deposit has been made in advance
i. Limit on Commission to the insurance intermediaries [Sec 42E (1)] – commission, fee or remuneration in any form to any insurance intermediary shall not exceed 30% of the premium in respect of any policy effected through him. However, there is a proviso to this section whereby IRDA may specify different amount payable by way of commission, fee or as remuneration.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s