STERLING INSURANCE ATI SERVICES IC-38 NEW SYLLLABUS (LIFE)

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CONTENTS Chapter no. Title Page no SECTION 1 COMMON CHAPTERS 1 Introduction to Insurance 3 2 Customer Service 8 3 Grievance Redressal Mechanism 13 4 Regulatory aspects of Insurance Agents 17 ... 5 Legal Principle of an Insurance Contract 19 SECTION 2 LIFE INSURANCE 6 What Life Insurance Involves 23 7 Financial Planning 26 8 Life Insurance Products – I 30 9 Life Insurance Products – II 34 10 Applications of Life Insurance 38 11 Pricing and Valuation in Life Insurance 42 12 Documentation – Proposal Stage 48 13 Documentation – Policy Condition - I 52 14 Documentation - Policy Condition - II 56 15 Underwriting 65 16 Payments Under a Life Insurance Policy 71 SECTION 3 HEALTH INSURANCE CHAPTERS 17-21 Health Insurance Chapters 76 MOCK TEST QUESTION PAPERS P a g e | 3 Sterling Insurance ATI Services Chapter – 1 Introduction to Insurance Insurance – in simple language it means to transfer risk to someone who is capable of handling it generally to insurer (Insurance Company). A) Life insurance history and evolution:-  The origin of insurance business started from London‟s Lloyd coffee house.  1st Life insurance company in the world was Amicable society for Perpetual Assurance.  1 st life insurance company to be set up in India was The Oriental Life Insurance company ltd.  1 st Non-life insurance company established in India was Triton Insurance company ltd.  1 st Indian insurance company was Bombay Mutual Assurance society ltd found in 1870 in Mumbai.  National Insurance company ltd. is the oldest insurance company founded in 1906.  In 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business.  The Life Insurance Companies Act 1912 made it compulsory that premiumrate tables and periodical valuation of companies be certified by an actuary.  The Insurance Act 1938 was the first legislation enacted to regulate the conduct of insurance companies in India.  Life insurance Business was nationalized on 1st September 1956 by merging 170 insurance companies and 75 Provident Fund societies and Life Insurance corporation of India ( LIC ) was formed.. P a g e | 4 Sterling Insurance ATI Services  Non – Life insurance business was nationalized in 1972 by amalgamating 106 insurers, General Insurance Corporation of India (GIC) & its 4 subsidarieswas formed. Malhotra committee and IRDA : Malhotra committee – setup in 1993 to explore and recommend changes for development & it submitted the report in 1994.  IRDAI – Insurance regulatory and Development Authority of India was setup by an act IRDA Act 1999 as a statutory regulatory body for both life and nonlife Life insurance industry today: a) Life Insurance Corporation (LIC) of India is a public sector company. b) There are 23 life insurance companies in the private sector c) The postal department, under the Government of India, also transacts life insurance business via Postal Life Insurance, but is exempt from the purview of the regulator How Insurance Works: There must be an asset which has economic value (Car-physical; Goodwill-nonphysical; Eye-personal). These assets may lose value due to uncertain event. This chance of loss/damage is known as risk. The cause of risk is known as peril. Persons having similar risks pool (contribute) money (premium) together. There are 2 types of Risk Burdens – Primary burden of risk – losses actually suffered. E.g. Factory getting fire. . Secondary burden of risk – losses that might happen. Eg. physical/mental Stress strain. Risk management techniques: - The various types of techniques that can be used to manage risk are Risk avoidance - Controlling risk by avoiding a loss situation Risk retention - One tries to manage the impact to risk and divides to bear the risk and its effects by oneself. [Show More]

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