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http://www.nationalinsuranceindia.com/
For detailed strategy and structure of Exam:
Click Me and for August Current Affairs
Part I;
Part II ;
Part III
So continuing about Insurance business : Indurance Business in India is divided into four classes
a)Life Insurance b)Fire c)Marine d)Miscellaneous Insurance.Life Insurer(Statutory body) undertake the Life Insurance and rest is taken care by General Insurers(Statutory body).
History Of Life Insurance
In terms of Pooling Resources it finds mention in the writings of Manu (
Manusmrithi ), Yagnavalkya (
Dharmasastra ) and Kautilya (
Arthasastra ).
In Modern India: 1818 saw the
advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta.This Company however failed in 1834.
An Ordinance was issued on 19
th January, 1956
nationalizing the Life Insurance sector and Life Insurance Corporation
came into existence in the same year. The LIC absorbed 154 Indian,16
non-Indian insurers as also 75 provident societies—245 Indian and
foreign insurers in all. The LIC had monopoly till the late 90s when the
Insurance sector was reopened to the private sector.
In 1972 with the passing of the General Insurance Business
(Nationalisation) Act, general insurance business was nationalized with
effect from 1
st January, 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd and the United India Insurance Company Ltd.
Insurance Regulatory and Development Authority (IRDA)
Chairman of IRDA - TS Vijayan
- Following the recommendations of the Malhotra Committee report, in
1999, the Insurance Regulatory and Development Authority (IRDA) was
constituted
- The IRDA was incorporated as a statutory body in April, 2000.
- Foreign companies were allowed ownership of up to 26%.
- The key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and
lower premiums, while ensuring the financial security of the insurance
market.
- In December, 2000, the subsidiaries of the General Insurance Corporation of India
were restructured as independent companies and at the same time GIC was
converted into a national re-insurer. Parliament passed a bill
de-linking the four subsidiaries from GIC in July, 2002.
- Together with banking services, insurance services add about 7% to the country’s GDP
National Insurance Company Limited (NICL)
Chairman of NICL- NSR Chandraprasad
- The company headquartered at Kolkata was established in 1906 and nationalized in 1972.
- After nationalisation in 1972, NICL operated as a subsidiary of General Insurance Corporation of India (GIC).
- In April, 2004, NICL signed an agreement with Nainital Bank for
distribution of its general insurance products through the bank's
branches in Uttarakhand, Haryana and New Delhi.
- NICL's foreign operations are carried out from its branch offices in Nepal.
- As of 2010, NICL has a AAA rating from Indian rating agency, CRISIL, a subsidiary of Standard and Poor's Company
Life Insurance Corporation of India (LIC)
Chairman of LIC- S. K. Roy
- LIC is the largest insurance group and investment company in India. It's a state-owned company where Government of India has 100% stake.
- Headquartered in Mumbai,
financial and commercial capital of India, the Life Insurance
Corporation of India currently has 8 zonal Offices and 118 divisional
offices located in different parts of India
- Slogan of LIC is "Yogakshemam Vahamyaham" which translates from Sanskrit to "Your welfare is our responsibility".
Mock Questions
1) Which of the following is not a principle of Insurance?
Principle of :
a)Uberrima fides
b)Supply and demand
c)Contibution
d)Subrogation
2)What does 'Causa Proxima' stand for in the principle of Causa Proxima in Insurance?
a)Cause of Insurance
b)Nearest Cause
c)Closest type of Insurance
d)Closest Relation b/w insurer and insured
3)What is the term used for compensation paid by insurer to the insured for particular loss suffered by latter?
a)Loss minimization
b)Claim
c)Indemnity
d)Subrogation
4)Which of the following statements regarding underwriting is correct?
a)is essenial in all form of insurance
b)process of determining level of risk presented by insurer
c)It is deciding whether to accept level of risk and if so at what terms and at what price.
d)All of the above
5)The Insurance Act(1938) is applicable to:
a)Whole of India
b)J&K
c)Whole of India(except J&K)
d)None of the above
6)In accordance with the protection of policy holders interest Regulations ,2002,In how many days one should claim under a life policy be paid or be disputed ?
a) 7 days
b)15 days
c)30 days
d)60 days
7)All Insurances purchases involve contracts,In fact insurance is distinct branch of contract law,This law of contract governed by the:
a)Indian contract Act,1856
b)Indian contract Act,1872
c)Indian contract Act,1891
d)Indian contract Act,1911
8)In which year medicalim policy introduced in India for the first time?
a)1978
b)1981
c)1993
d)1996
9)Which of the following is not public sector general insurance company of India?
a)Oriental Insurance Company Limited
b)New India Assurances Company Limited
c)Life Insurance Corporation
d)National Insurance Company Limited
10)The birth place of social insurance is
a)England
b)Italy
c)America
d)Germany
11)The term "insurers " as defined by Indian Insurance Act(1983) included
a)Proprietary Joint stock companies
b)Mutal joint stock Comapnies
c)Partnership firms to which the Inidan Partnership Act of 1932 applied
d)All of the above
12)Which of the following insurance companies were started in the Bombay Residency in the 19 century?
a)Bombay Mutual
b)Oriental
c)Empire of India
d)All of the above
13)Exporters of India get insurance and risk cover from which of the following organizations?
a)SIDBI
b)NABARD
c)ECGC
d)RBI
14)Which of the following institutions deals with credit to Agriculture and rural development?
a)IDBI
b)NABARD
c)SIDBI
d)ICICI
15)In which year did LIC come into existence?
a)1947
b)1950
c)1956
d)1969
Answers:
1)b 2)b 3)c 4)d 5)c 6)c 7)b 8)b 9)c 10)b 11)d 12)d 13)c 14)b 15)c
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