Pptx.
MODULE IV
Legal Aspects of insurance-Insurance Act1938-Indian Contract Act-Consumer Protection Act 1986-Insurance ombudsman-Contract of agency-Special principles of insurance contracts including reinsurance and double insurance
LEGAL FRAMEWORK OF INSURANCE BUSINESS
Insurance is made available to the public through the medium of contracts that detail the rights and duties of the parties to the insurance agreement. These contracts may range from implied or oral agreements, to formal written contracts issued by companies.
Most of the insurance contracts are expressed in writing even when an oral binder initiates the transaction.
Insurance contracts are complicated because of the technical nature of the subject matter, the statutory requirement that certain language be employed, and the need to avoid terms that may be construed as ambiguous. However, the need for legal clarity may lead to a contract that is beyond the comprehension of the typical insurance consumer. Furthermore, the technical nature of many contracts often distracts from the mutual understanding of its terms by the parties to the contract.
Insurance contract can broadly be classified into two categories (a) life and (b) non-life insurance. The subject matter of life insurance is life of the assured. In a life policy the life is covered for a certain amount which is payable on the maturity of the policy or on the death of policyholder which is earlier. The amount is payable on death to the nominee/legal heir of the deceased.
Non-life insurance can again be categorised according to the uncertainties and events covered by the respective policies. Some examples of non-life insurance policies are householders insurance and fire insurance. Personal accident insurance is linked to human life hence would not strictly fall in the category1 of non-life insurance though the characteristic of uncertainty which attracts to non life insurance is manifested even in personal accident and medical insurance
Legal Aspects of insurance-Insurance Act1938-Indian Contract Act-Consumer Protection Act 1986-Insurance ombudsman-Contract of agency-Special principles of insurance contracts including reinsurance and double insurance
LEGAL FRAMEWORK OF INSURANCE BUSINESS
Insurance is made available to the public through the medium of contracts that detail the rights and duties of the parties to the insurance agreement. These contracts may range from implied or oral agreements, to formal written contracts issued by companies.
Most of the insurance contracts are expressed in writing even when an oral binder initiates the transaction.
Insurance contracts are complicated because of the technical nature of the subject matter, the statutory requirement that certain language be employed, and the need to avoid terms that may be construed as ambiguous. However, the need for legal clarity may lead to a contract that is beyond the comprehension of the typical insurance consumer. Furthermore, the technical nature of many contracts often distracts from the mutual understanding of its terms by the parties to the contract.
Insurance contract can broadly be classified into two categories (a) life and (b) non-life insurance. The subject matter of life insurance is life of the assured. In a life policy the life is covered for a certain amount which is payable on the maturity of the policy or on the death of policyholder which is earlier. The amount is payable on death to the nominee/legal heir of the deceased.
Non-life insurance can again be categorised according to the uncertainties and events covered by the respective policies. Some examples of non-life insurance policies are householders insurance and fire insurance. Personal accident insurance is linked to human life hence would not strictly fall in the category1 of non-life insurance though the characteristic of uncertainty which attracts to non life insurance is manifested even in personal accident and medical insurance