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GENERAL INSURANCE

GENERAL INSURANCE. Formed under Act.,1972. General insurance companies such as. New India insurance companies Ltd. Oriental fire and general insurance companies Ltd. National insurance companies Ltd. Reliance General insurance company. Details of general insurance are as follows.

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GENERAL INSURANCE

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  1. GENERAL INSURANCE Formed under Act.,1972.

  2. General insurance companies such as • New India insurance companies Ltd. • Oriental fire and general insurance companies Ltd. • National insurance companies Ltd. • Reliance General insurance company.

  3. Details of general insurance are as follows • Property insurance- (fire insurance & marine insurance) • Liability insurance- (theft, fidelity, motor & machine insurances )

  4. Importance of Insurance • Importance of insurance may be studied under four heads: • Importance to an individual • Importance to business • Importance to commerce and industry • Importance to society.

  5. Importance to an Individual • Insurance provides security and safety. • It provides peace of mind. • It eliminates dependency. • It serves as a source of savings. • Life insurance as a sound investment. • It protects mortgage property. • Others (family needs, old age needs and so on)

  6. Importance to business • Financial help. • Reduces uncertainty of business losses. • It improves efficiency. • Indemnification. • Grant of credit facilities. • Continuous business. • Employee’s security.

  7. Importance to commerce and industry • Economic development. • Earns foreign exchange. • Source of capital formation. • Source of income

  8. Importance to society • Protection to society’s wealth. • Economic growth. • Standard of living. • Social security benefits. • Equitable distribution of loss. • Removal of social evils. • Accelerate the production cycle. • Reduction in inflation. • Huge funds.

  9. Insurance as a social security tool • Security and safety. • Peace of mind. • Encourage savings. • Provides investment. • Meets various needs. • Helps in loss reduction. • Increases efficiency. • Enhancement of credit. • Control inflation rate. • Confidence in work.

  10. Insurance and economic development • Relationship between insurance and economic development. • Factor affecting E.D. • Investment necessary. • Huge funds. • Accelerate the production cycle. • Protection against risk. • Promotes foreign trade. • Promotes financial stability.

  11. Fundamental of agency law(chapter-2) • Definition of an Agent • A person can be an agent only when he is authorised to act for the principal.

  12. Section 182 of the Indian contract Act defines the word ‘Agent and principal’. • To be an Agent- The person employed must be authorised to do any act for another. • Principal- The person for whom such act is done of who is so represented.

  13. Authority of Agents • Express authority. • Implied authority. • Ostensible or Apparent authority.

  14. Duties of Agent to Principal • The act with in scope. • Proper care. • To deduct lawful charges. • Reasonable diligence. • Not adverse title. • To render accounts. • In interest of principal. • Not to deal on own name. • No conflict. • Not delegate further.

  15. Rights of an Agent • Right to remuneration. • Right to get compensation. • Right to return money. • Right to indemnity. • Right to retention.

  16. Liabilities of Agent • Towards principal. • Towards third party.

  17. Agent regulations • Licence is required under section 42 of insurance Act,1938 which is regulated by the insurance regulatory and development authority(IRDA) ````````````````````````````````````````````

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