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IC 34 GENERAL INSURANCE BOOK PDF

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Saturday, April 13, Insurance Institute of India · Insurance Institute of India. IC Search: College Of Insurance · Sign In New Users:: Create An Account. You need good practice for before you appear for the IC GENERAL INSURANCE Exam. The website has been thoroughly revised with IC INSURANCE AGENTS. GENERAL. ACKNOWLEDGEMENT. This course is based on revised syllabus prepared by Insurance Institute of Page


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IC - 34 Book Soft Copy - Download as PDF File .pdf), Text File .txt) or read online. CHAPTER 2 FUNDAMENTALS / PRINCIPLES OF GENERAL INSURANCE. IC 34 Workbook. Insurance Institute of India. Page 2. GENERAL INSURANCE WORK BOOK. IC - Work Book. Revised Edition - ALL RIGHTS. IRDA Exam: Download IC 33 Book as per new syllabus for 50 hours in course material for prerecruitment test for general insurance agents in consultation with.

It also gives an insight to the exact nature of each form, how to fill it and the reasons for calling specific information. Certificate of Insurance — Motor Insurance Provides existence of insurance in cases where proof may be required Issued in addition to the policy, as required by the Motor Vehicles Act IC General Insurance Provides evidence of insurance to the Police and Registration Authorities Chapter 5 Documentation Policy document: formal document which provides an evidence of the contract of insurance. Chapter 5 Documentation Interpretation of policies The most important rule of construction the intention of the parties must prevail and this intention is to be looked for in the policy itself The principal rule of construction the intention of the parties of the contract must prevail, that intention must be gathered from the policy document itself and the proposal form, clauses, endorsements, warranties etc. An insured has to be very careful in choosing the limit of indemnity, for that is the maximum amount that would be reimbursed at the time of claim.

Which of the following would attract discount in premium in Motor vehicle insurance? After 5 years how is IDV fixed? IC 34 Workbook e Warranties? With reference to fire policy please give examples. Will the following attract additional premium or become eligible for discount in case of a private car policy?

What are the questions in the proposal form which identifies the insured? Why is it necessary to identify the insured? What is a warranty? What is the impact. A general insurance policy usually contains: This is loaded for cost of administration expenses of Management. On the other hand. These are known as hazards.

There may be certain features that may enhance the risk of the subject matter of insurance. Insurers therefore create risk classifications depending on the degree of risk present and apply rates price or premium per unit of insurance for each such classification. Rates vary according to the likelihood and potential size of loss. Careful underwriting is required as all risks are not equal.

Each rate is established after looking at past trends and changes in the current environment that may affect potential losses in the future.

The rate charged to the insured should be adequate and reasonable. Underwriting is the process for determining acceptability of a risk. Rating factors and the information given in the proposal form as also any pre inspection survey helps the insurer to decide on the rate. Since arriving at common pure premium rates is rendered difficult by the subjectivities of each risk. While the above work in case of physical hazards. The mathematical value of the risk arrived at by applying ratio of past losses to the value at risk known as pure premium.

To cover administrative costs. IC 34 Workbook To prevent insured taking cover only during part of the year when the risk is high. The sum insured is fixed by the insured keeping in the view the exposure to his asset and the financial and legal loss he is likely to suffer. This is the maximum liability that an insurer is going to pay in the eventuality of a claim. The selection of sum insured is based on the type of policy taken. The insurance company aims to cover not less than vehicles against theft.

What other details would be required for rating purpose? What measures will you advise him to take to reduce the hazards involved so that he gets a good rate of premium? State any five measures.

An insurer has a rate of 0. Out of two wheelers each costing Jag Mohan has private car with an IDV 5. He is your valued client and is looking for insurance. He approaches you for the insurance coverage. Two Cores and Fifty Lacs what would be the premium required annually? How much premium rate should they charge for each vehicle if they have to stay in business? To insure a dwelling house for Rs. A factory owned by your client is under construction.

After meeting him you realise that he will be storing hazardous goods. It is expected that on an average. Give some examples of the hazards in health insurance. Evaluate the various steps followed while underwriting?

What are the main components of premium and their importance? Define hazard. Discuss in brief how rating is done and what are its objectives. If you are to insure these houses.

In a village there are houses. What measures are taken by the insurers to reduce their losses from the hazard? A group may also be provided with PA cover as long as it is centrally monitored. In any economy. Burglaries in homes are as common as burglaries in shops. There is travel insurance coverage offering various options for students. It is but natural.

It is mandatory under the Motor Vehicles Act. A householder or a shopkeeper may need various different kinds of insurances. A flower pot accidentally falling off a terrace of a householder and damaging a car parked below would make the resident liable in law to make good the damage to the car.

A peril that causes damage to assets does not differentiate between assets of commercial houses and those of individuals. Similarly health insurance coverage provides cover for all age groups and there are many plans and products from OPD to hospitalisation and day care surgeries.

Employees compensation liability to paid drivers and cleaners is also covered. Personal Accident insurance provides coverage for Death. IRDA comes out with various regulations for the health insurance industry from time to time.

Even in matters like contingencies and liabilities. It provides for cashless facility with the help of TPAs and network of hospitals which has made things easier for the customers.

Insurances like Personal Accident and Health are by definition people-oriented. These insurances can be given as a package. Personal accident cover is available for owner. This cover also has extensions to cover travel related risks like repatriation.

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Again it may vary from insurer to insurer. They all have different methodologies for deciding the sum insured and calculation of premium. All these coverage's have perils that are either covered or excluded or can be added after paying extra premium. IC 34 Workbook The above insurances together constitute personal and retail insurances.

Dutta has taken an insurance policy for health which is serviced by a TPA and network of hospitals. He died in a road accident. When he took the PA policy. Will the claim be accepted by the insurer? Justify your answer with reasons. Which company will pay his claim. What will be the rate? He approaches you for advice. Rathaur who was engaged in administrative work moves to that. Please guide him. Mahipal has a family of six.

He wants to download a health insurance product. On visit to Sholapur for his cousins wedding. In what way does cash less facility operate? He does not have enough cash with him immediately and does not know the procedure to be followed and contacts you. Chavan has taken a health insurance policy from you and has to suddenly undergo an appendix operation.

Kavita who is a resident of India. What is the advantage of taking a family floater policy? IC 34 Workbook What do you understand from the terms: How will you guide her on the cover for her daughter? What is the deciding factor for the premium rates charged under travel insurance? Some losses are excluded but can be covered by other policies and some can be covered on payment of additional premium. This also covers money in safe. The majority of policies issued are to commercial and manufacturing organization.

These insurances provide cover against perils and hazards that properties and assets. It has to be noted that in modern world there is a clear trend for making certain classes of insurance compulsory by legislation and sometimes as an aspect of business prudence.

Burglary insurance policy covers contents against loss or damage by burglary housebreaking. For a claim to get triggered off under this policy actual.

Fire could result in interruption of business and cause loss of profits for which the insured can take a business interruption cover by a separate policy. For example. In the context of modern complexities. All the Covers are provided in terms of the Institute time clauses. Marine Hull insurance covers loss or damage to ocean going ships and fishing and.

It covers loss or damage to specified property by fire and allied perils including burglary when in the premises or when property is in custody of persons not in regular employment of the insured and property in transit Engineering insurance includes several policies: Freight and stores are also covered under disbursement policies. Jewelers block policy was initially devised for establishment dealing with diamonds.

Covers for professional indemnity to doctors. Some insurance are compulsory that under the Public Liability Insurance Act for those as handling hazardous goods. These are generally allowed for large industries Marine cargo insurance provides cover for goods in transit by sea.

Directors and officers liability provides coverage for them for any wrongful acts in performance of their duties. Liability policies: However now it is also given to shops dealing in jewellery. War cover is also given separately. Towards this purpose. He employs more than 15 persons: He has asked you to meet him in his office so that he can finalize his insurance program.

What are the insurances you would suggest to MN Limited and how will you convince MN Limited about their need to have each such insurance? MN Limited will use their employees in collecting the money from the bank. MN Limited is contracted by a bank for their inclusive banking program under which MN Limited will collect large sums of money and reach them in small amounts to farmers in remote rural areas that have no bank branches.

On salary day he has cash of more than Rs. MN Limited has approached you seeking a complete insurance cover for their operations.

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What are the types insurances that you would suggest to him? Two persons entered Ms. How would you guide him? An employee of Ms. Soma has approached you seeking a cover for all the stocks in a comprehensive manner. Soma Auto-components Limited is a dedicated component supplier to a large automobile manufacturer who have production facilities in 4 locations. A bottle manufacturer wants to set up a plant in your locality. While it is known that the total value across all locations at any given point in time will be Rs.

He is importing all the automated machinery from Germany. The manufacturer wants to understand the insurance coverages he should take and wants to know the advantages of a pre risk inspection survey. Will the claim be payable under the policy terms? She raised an alarm and other employees cordoned the exit to prevent the culprits getting away.

What is the coverage under Machinery Breakdown policy? Name and discuss different types of Marine Cargo Policies? What does Fidelity Guarantee insurance cover and what it excludes? Briefly enumerate different types of fire policies. What is liability insurance? Briefly discuss three types of liability policies. Insurance Company seeks to mitigate their loss by disposing off the salvage damaged material and by claiming from third parties responsible for the loss by getting subrogated to such rights of recovery as available to insured claimant.

It enables to get full information regarding the circumstances. If claimant is dissatisfied with the settlement. Fire Brigade. Settlement of claim is made based on these inputs after ascertaining if the loss actually occurred. If all is fine.

These surveyors are licensed by the IRDA. Settlement of claims has to be based on consideration of fairness and equity. Different policies require different documents or reports to be submitted as per the requirement of the insurers. Insurance ombudsman in case of Personal line claims. Various steps in claims processing include intimation of claim to insurance company as well as to other agencies like Police.

Each company has internal guidelines based on IRDA regulations about time taken for claims processing. The purpose of an immediate notice is to allow the insurer to investigate a loss in its early stages as delays may result in loss of valuable information.

Then the insurance company carries out investigation to ascertain the cause and the quantum of loss through surveyors who are unbiased in their opinion. Consumer forums and civil courts and arbitration generally. Post settlement. If the loss is big and delay in proper assessment is expected. A bus had suffered frontal damage as a result of being hit by an oncoming truck. Following a fire claim. What steps should Mr. Ujawal Singh asks you to get him insurance for Rs. Please explain the procedure of claim settlement to them.

What would be your advice to him and why? Vijay had intimated the loss to the Police and in the First Information Report. Ujawal Singh has a warehouse where he regularly stocks goods worth Rs.

Vijay follow immediately and what are his responsibilities. Vijay had mentioned the quantum of loss to be Rs. They approach you for marine cargo insurance. What documents will have to be submitted along with the claim form to the insurer? Since the bank insists on an insurance to cover the loan. Sheena exporters trade cotton textile and send their consignment to all major countries of the world.

What are the documents required to be submitted in PA. Her claim is rejected by the company on the grounds of preexisting condition of knee problem. Please guide her regarding the grievance redressal mechanism available to her at all levels. The total loss is estimated at Rs. She approaches you for advice. What qualities are required to become a good professional handling claim?

Following a massive short circuit his shop catches fire. How will his claim be calculated? Shayam Sunder has insured his shop for Rs. When is investigation of loss necessary? She is hospitalised following a knee ailment and undergoes an operation on 6. He sends in a request that the total sum insured be calculated taking the sum total of both his shop and residence.

At the time of survey it is discovered that the actual value of his shop is Rs. What role does a surveyor play in the insurance industry? What are the most important aspects to be considered in an insurance claim? The quality of service needs to reflect reliability.

In order to ensure long term retention of clients all insurers are mandated by IRDA to have in place Grievance redressal mechanism. Then comes the proposal stage at which support is required by the customer to fill the proposal form.

The acceptance stage results in issuance of cover note. The agent needs to advice the various ways by which the risk can be managed by the customer. Commitment to serving their customers is the mantra for the success. These clients are also the source for acquiring new customers. Despite all efforts if there are disputes. At the stage of point of sale it's important for agents to understand that recommendations have to be based on the risk perceptions. Role of agent gets activated at this stage as there may be negative emotions involved.

Customer service becomes paramount at the same level by understanding the needs of the customer. Insurance being a service sector. The claims stage is where the agent has a crucial role to play in terms of prompt reporting and procedural advice given to the customer. Hence he needs to be a risk assessor. The patronage and support of existing clients also helps to build business.

Insurance Ombudsman: The act has been amended by the Consumer Protection Amendment Act District Consumer Redressal Forum: Insurance is included as a service. The decision of the ombudsman is binding on the insurance company. Hence if there is deficiency of service in terms of policy issuance or claim settlement then the insured can seek redressal in the District consumer redressal forum if the claim amount is up to Rs. The policy issued to your client is due for renewal and the insurance company has not issued a renewal notice in advance of the date of expiry.

Your client. During the term of the policy the owner of a private car dies. What should be your action as an agent? If the legal heirs approach you to assist them to have the insurance policy transferred in their name. As he is necessarily required to be out of India on an important business meet. Your client who has taken a health insurance policy calls you at 2 a. How would you deal with the situation? What would be your duty and how would you guide him?

More than 15 days have lapsed from the submission of proposal and the insurance company has not communicated anything. Your client is of the opinion these corrections are absolutely necessary if any hospitalization arises in the future. What are the various stages in the role of agents for effective service delivery. How will you handle this? Why is great customer service important in the insurance industry?

In spite of repeated requests the insurance company has not given your client an endorsement correcting the spelling of his name and his age in his health insurance policy.

How would you help the client? What are the barriers to effective communication? Explain the provisions of Consumer Protection Act What is the role of non-verbal communication?

With experience a successful agent can also branch off within the insurance industry into domains like branch manager. Banking Company. The major rewards of a career in insurance sales includes social recognition as a knowledgeable worker and a professional. Rural Banks. The insurance environment is constantly changing and hence awareness is essential in terms of distribution channels.

Insurance selling career opportunities are available as corporate agents. Thus there is a wide array of choices available with someone who has chosen insurance agency as a career. A firm. Co-operative Societies and Banks. Thus they have the unique advantage to work as per their own career ambitions and decide the level they want to reach. You have been a successful agent for the last twenty years.

Your friend who sells consumer durables tells you that you should rather sell things whose performance can be demonstrated to prospects instead of selling an abstract thing like insurance.

People think insurance agents as nuisance. In spite of this agents are a crucial link in the marketing channel. How would you explain unique advantages of agency as career? How would an agent compete with them? Your uncle tries to dissuade you from taking up insurance agency saying you could be running after people begging for premium.

You are invited to address a gathering of newly recruited agents. What will be your response? The distribution channels of insurance companies have now diversified to brokers and bancassurance. What tips would what you give to encourage them in their career choice?

As an agent. They look upon them with distrust. What are the rewards and recognition of being a sales agent? What is bancaassurance?

What is the difference between a broker and an agent? Who all can become a corporate agent? What are alternative career choices available to an insurance agent? In the Indian context the Insurance Act. The Insurance Act defines an insurance agent as one who is licensed under Section 42 of the Act and is paid by way of commission or otherwise. Anything tangible or intangible that gives benefit and has an economic value for the owner.

The policy covers contents against loss or damage by burglary. It is a condition of some insurance policies and it is invoked where the insurance company has accepted liability but there is a dispute regarding the amount claimed by the insured and the amount offered for settlement by the insurance company.

It is a combination of several covers and provides protection to banks against losses to money. The main points to active listening are paying attention. In short an agent is an authorized sales person for insurance and needs a license from IRDA to do so. An insurance broker has the liberty to deal with many insurance companies Costs. All these mannerisms say something about us. Positive body language creates confidence and trust in prospects which translates into policy holders.

It has emerged as an important distribution channel globally and has operational cost effectiveness and efficiency. The procedure for sorting out the differences is as per the Arbitration and Conciliation Act. Premium is the consideration paid by the proposer to download the insurance. Adjustment and Settlement: Advance payment of premium: Body Language: Burden of risk: Burglary It is letting the other person know you hear and understand what they are saying by asking pointed questions and summarizing.

After a claim on receipt of the survey report. Active listening enables a person to make need based selling and avoid mis-selling.

The insurance given should match the insurance asked for with reference to the subject matter. A deductible is a sum of money the insured pays before a company will provide the benefits outlined in an insurance policy. The term 'cold' refers to the fact that you haven't laid any groundwork for your call.

Cover Note is issued by Insurance Companies as proof of cover once premium is paid till the Insurance Policy is ready and issued. Proof can be asked for. For a valid contract both the parties to the contract must be of the same mind.

The object of these clauses is to eliminate small claims. A form designed to get full information regarding the circumstances. Also known as Interim Protection Note.

This certificate provides evidence of insurance to the Police and Registration Authorities. There is no need to take the statements on trust.

Commercial contracts are normally subject to the principle of caveat emptor i. It is assumed that each party to the contract can examine the item or service which is the subject matter of the contract. Ensures that the indemnity provided is proportionately borne by other insurers in case of multiple policies where the subject matter is covered for the same peril and duration and the claim occurs within the same policy period as of the other insurers.

Cold calling is soliciting potential customers who were not expecting to speak with you. And is available to commercial establishment. Each party can verify the correctness of the statement of the other party.

Provides proof of existence of insurance policy. IC 34 Workbook Insurance: Caveat emptor: Certificate of insurance: Claim forms: Closing the sales: Cold calling: Consensus ad idem: Cover note: Customer Protection Act. In Motor Insurance. Disputes in claim settlement can arise out of the following. The ability to feel as the other person does by putting oneself in the Insurance Institute of India Page In this process the agent may find customers reluctant to listen to them and even if they listen they may turn down the proposal.

District Consumer Forum Ego drive: Established under the consumer protection act. Claims get triggered only if the assessed loss amount exceeds the excess amount. Since this is a package policy the insured gets discount for availing covers under more than one section. Both Personal Accident and Health insurances are available for groups on the above basis. Condition or situation that creates or increases chance of loss in an insured risk.

The individuals are beneficiaries. The insurance contract is entered into with the body that represents the individuals. Includes several policies: In a group policy a large number of individuals are covered under a single policy called a master policy.

The definition of family varies according to different insurers. The majority of policies issued are to commercial or financial organization. This enables the agent to sell the right kind of product and to provide appropriate level of service especially in event of a claim and grievance.

IC 34 Workbook Engineering Insurance: Ethical behavior: Excess Family covers: Fidelity guarantee insurance: Fire insurance of Property: Group policy: Health insurance: Householders Insurance: A contract between the insurer and the insured wherein insurer agrees to pay hospitalization expenses to the extent of an agreed sum insured in the event of any medical treatment arising out of an illness or an injury. Variants of this insurance are reinstatement value insurance.

This is a package policy meant for householders. Fire insurance covers loss or damage to property insured arising on account of any perils listed therein and consequential loss following thereafter.

Television and other electronic items are also covered. The premium may attract a family discount. Consequential loss insurance pays for loss of profits resulting from an event that leads to a payable claim towards Material Damage. Domestic appliances. They will also send a surveyor depending on the estimate of loss to assess the loss within the term of the policy. IC 34 Workbook Industrial all Risk: Insurable interest: Insurance density: Insurance penetration: Intimation of loss: Investigation and assessment: Jewelers block policy: Lawful consideration: Loading of improvements.

As per the policy condition. Assessment is essential as it quantifies the amount keeping in view the indemnity principle. It is measured by premium per head of population and is arrived at by dividing the total amount of premiums in a country [or given market] by its population.

Investigation is also done in respect of personal accident claims. Delay in intimation may result in the claim being denied. Premium paid by the insured must be from known source of income and legal income.

Coverage is for Mega risk policies and on all risks terms with exclusions. Marine insurance being an exception. Penetration is a measure of the economic significance of insurance. Density is a measure of the reach and spread of insurance in a given population. The policy was initially devised for establishment dealing with diamonds. However now it is also given to shops dealing in Jewelry. The insurance company on receipt of intimation of loss will verify the policy for liability in respect of the period of insurance and peril covered and would send an investigator if there is any doubt regarding the genuineness of cause of loss.

It cannot be from unknown source or amount to money laundering. Insurable interest is required at the time of taking a policy and continues throughout the policy term. Requires risk inspection before insuring and wordings guided by the reinsurance market Insurable interest arises out of financial relationship between the insured and the subject matter of the insurance.

It covers damage to specified property by fire and allied perils and burglary when in the premises. These policies provide indemnity to insured in respect of damages payable under law for injuries to third parties or their property. The insurance company accepts the offer if it is satisfied with the risk elements.

Customized plans to suit certain types of travel such as business trips. Personal accident cover is available for owner driver and passengers. IC 34 Workbook premiums: Marine Hull Insurance Marine cargo insurance: Material facts: Money insurance: Moral Hazard: Motor Insurance: Offer and Acceptance: Personal accident Insurance: Physical Hazard: Policy form: Prohibition of Rebates: This also covers money in safe premises.

Dishonest persons are likely to attempt frauds and make money by misusing insurance. Marine cargo insurance provides cover for goods in transit by sea. The stamped and legal document that evidences the contract between the insured and the insurer specifying the subject matter. The agent needs to deftly act to reconcile these differences so as to arrive at a win-win situation. Huts located near coasts where tidal waves occur frequently are physical hazard for flood related perils as the probability of damage is greater in this case.

Personal accident policy is available for residents of India and their dependent family members. Collecting numerous individual contributions called premium from various persons having similar assets exposed to similar risks. For a valid insurance contract there has to be a legal offer and the acceptance of the same to be conveyed to the insured.

An insurance that covers medical expenses incurred arising out of illness or accident occurring while travelling abroad along with extensions. Electronic Equipment like computers. The former must disclose everything within their knowledge about the risk involved. Surveyors are service providers to a general insurance company.

They carry out claim surveys and estimate the quantum of loss. Refers to reliability. The student should understand this in the context in which it is used. It covers the building and stock and other contents of the insured for fire. Prospecting is the process of gathering names of people whom we can approach and secure a sales interview with. Is an important process in the insurance office.

Prospects are people to whom we can sell insurance. Once the proposal is Insurance Institute of India Page Transferring the burden of loss to another party i. IC 34 Workbook Prospecting: Proximate cause: Quality of service: Rate making: Renewal notice: Risk Avoidance: Risk control: Risk financing: Risk retention: Risk transfer: Shop Keepers Insurance Subrogation: Uberrima fides: This is more as a courtesy rather than statutory.

It is also used to denote a peril. Continuous prospecting is absolutely vital to a successful agency career. Creating funds to meet losses that may occur. Means the happening or not happening of an event.

The latter. It also advices the insured to intimate material changes if any so that actual premium can be charged. Personal Baggage and Personal accident cover is also included. For this purpose. The insurer would like to ensure that the risk remains the same as it existed at the time of the proposal and be protected against the introduction of some feature which may increase the risk.

Assessing and classifying the risk is an important aspect of underwriting. These may be printed on the policy itself. IC 34 Workbook Warranty: First of all Health Insurance also covers hospitalization resulting from accident. The risk profile of a flat and factory is completely different. He can do a risk assessment of the office and find out probable causes of loss and if it occurs.

He can have a service maintenance contract. Here the fire took place on 9. Good health can only reduce the incidence of falling ill. However it would be advisable to insure the equipment.

The probability and impact of risk is going to be more in a factory and the extent of which will depend on the manufacturing process carried on. The insurance company is not liable to pay the claim as the risk can commence only from the date on which cheque is posted as per sec 64 VB of Insurance Act. I do not agree with him.

The proximate cause of death was the original accident and pneumonia disease not covered under the policy is only a remote cause. The amount payable would be calculated keeping the underinsurance in view and applying the condition of Average. IC 34 Workbook Chapter 2 Cases 1. This applies to each item separately.

The bank will have full insurable interest to the extent of the loss as the loan still remains unpaid. Overseas Travel and also Baggage insurance. Her domestic appliances against breakdown. Health Insurance. IC 34 Workbook Chapter 3 Cases 1. Comparison may be made from various websites. She needs to get a valuation done for her jewelry.

The insurer should initially tap the segment of young executives who take loans for downloading car and house. The other segments would be Motor Dealers. An analysis of risks in the operations and some advices on risk management will increase their interest.

He would require a motor insurance. Industrial houses and high net worth individuals. Since it is an industrial unit. IC 34 Workbook Chapter 4 Cases 1. The offer will have to be refused and opportunities explored to complete the business target through legal and ethical ways. She has to: Please go to IRDA site — www. Since she is a graduate. Sharing the commission proceeds with the proposer is prohibited and can lead to cancellation of license and other punitive actions.

Non life agents have now been permitted to become agent of one stand alone health insurance company also. One of the situations where Section 64 VB is considered complied even where the total premium is not received by insurance company is where premium is short paid due to genuine clerical error. Further indicating that he may have to choose additional sections of cover to ensure that minimum numbers of covers are obtained by him as required by the insurance company.

In the subject case. Insurance companies send renewal notice as a service and it is not obligatory on their part to do so. Additional premium Additional premium 6. Revised IDV is arrived at by adjusting the current manufacture's listed selling price of the vehicle with depreciation percentage as prescribed. IC 34 Workbook Chapter 5 Cases 1. If not. And by renewing the policy without revealing to the insurance company that the car has already met with an accident. Fire and burglary proposal forms to be filled up by Mr.

Insurance company therefore has a right to void his renewed policy. Completion of fresh proposal form may also be required. The rules of interpretation of policy are clear that what is typewritten will overrule the printed matter.

The claim is therefore payable. The client should disclose the material fact of change in risk specifically when there is an enhancement of sum insured.

Chandran cannot hold his non-receipt of renewal notice against the insurance company to justify his claim. General exclusions: Exclusions that apply to all policies of the particular type of insurance. Specific exclusions: Exclusions that apply only to that particular policy Warranties: Compliances specifically applicable to the particular policy. General conditions: Conditions that apply to all policies of the particular type of insurance. Specific conditions: Conditions that apply only to that particular policy.

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IC 34 Workbook 9. Zero depreciation. Automobile Association membership. Segregating the hazardous goods are some of the measures which can be suggested to him. Sum Insured: Regular fire risk inspection. Total number of two wheelers stolen in 10 years: Some companies also load for factors like color of the car. IC 34 Workbook Chapter 6 Cases 1. More details required for rating: As per given details: Total value of two wheelers covered i.

What will be your response? Your uncle tries to dissuade you from taking up insurance agency saying you could be running after people begging for premium. How would you explain unique advantages of agency as career? The distribution channels of insurance companies have now diversified to brokers and bancassurance. How would an agent compete with them? People think insurance agents as nuisance. They look upon them with distrust.

In spite of this agents are a crucial link in the marketing channel. As an agent, how will you overcome the distrust referred? What are the rewards and recognition of being a sales agent?

Who all can become a corporate agent? What is the difference between a broker and an agent? What are alternative career choices available to an insurance agent?

What is bancaassurance? The main Adjustment and points to active listening are paying attention, acknowledging that the Settlement: other person is talking, and giving feedback. Active listening enables a person to make need based selling and avoid mis-selling. Asset: Premium is the consideration paid by the proposer to download the insurance. The Insurance Act defines an insurance agent as one who is licensed Insurance: under Section 42 of the Act and is paid by way of commission or Body Language: otherwise, in consideration for soliciting or procuring insurance business, including business relating to the continuance ,renewal or Brokers: revival of policies.

In short an agent is an authorized sales person for Burden of risk: insurance and needs a license from IRDA to do so. It is a condition of some insurance policies and it is invoked where the Burglary insurance company has accepted liability but there is a dispute regarding the amount claimed by the insured and the amount offered for settlement by the insurance company. The procedure for sorting out the differences is as per the Arbitration and Conciliation Act, Anything tangible or intangible that gives benefit and has an economic value for the owner, by way of generating income or adding value.

It has emerged as an important distribution channel globally and has operational cost effectiveness and efficiency.

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It is a combination of several covers and provides protection to banks against losses to money, securities on premises, in transit, against forgery or alteration, dishonesty of any employee, fraud in respect of hypothecated goods, and fraud of appraisers. All these mannerisms say something about us, and what is happening inside us.

Positive body language creates confidence and trust in prospects which translates into policy holders. The policy covers contents against loss or damage by burglary,Insurance Institute of India Page 56 IC 34 Workbook Insurance: housebreaking, theft, robbery as defined under appropriate sections of the Indian penal code.

And is available to commercial establishment, Caveat emptor: factories and shops. Commercial contracts are normally subject to the principle of caveat Certificate of emptor i. It is assumed that each party to the insurance: contract can examine the item or service which is the subject matter of the contract. Each party can verify the correctness of the statement Claim forms: of the other party. There is no need to take the statements on trust. Closing the sales: Proof can be asked for.

Provides proof of existence of insurance policy. In Motor Insurance, the Cold calling: form is as prescribed under the motor vehicles Act This certificate provides evidence of insurance to the Police and Registration Consensus ad Authorities. Customer Cold calling is soliciting potential customers who were not expecting to Protection Act, speak with you.

The term 'cold' refers to the fact that you haven't laid any groundwork for your call. In this process the agent may find customers reluctant to listen to them and even if they listen they may turn down the proposal. Deductibles For a valid contract both the parties to the contract must be of the same mind.

The insurance given should match the insurance asked forDisputes in Claim with reference to the subject matter, perils and add on cover if any. Settlement: Ensures that the indemnity provided is proportionately borne by other insurers in case of multiple policies where the subject matter is coveredDistrict Consumer for the same peril and duration and the claim occurs within the same Forum policy period as of the other insurers.

The act has been amended by the Consumer Protection Amendment Act A deductible is a sum of money the insured pays before a company will provide the benefits outlined in an insurance policy. The object of these clauses is to eliminate small claims. Further, as the insured is made to pay part of a loss, he is encouraged to exercise more care and to practice loss prevention. Disputes in claim settlement can arise out of the following; a denial of liability b underinsurance c depreciation d salvage e excess.

Established under the consumer protection act. This enables the agent to sell the right kind of product Insurance: and to provide appropriate level of service especially in event of a claim and grievance.

Ethical behavior: Includes several policies: a All risk cover for contractors in civil engineering projects, building Excess bridges, tunnels etc. Property: helps in better claims management by taking care of small losses.

Health insurance: are health insurance covers given to families. The definition of family varies according to different insurers. The premium may attract a family Insurance: discount. The majority of policies issued are to commercial or financial organization.

Fire insurance covers loss or damage to property insured arising on account of any perils listed therein and consequential loss following thereafter.

Variants of this insurance are reinstatement value insurance, declaration policies and floater policies. Consequential loss insurance pays for loss of profits resulting from an event that leads to a payable claim towards Material Damage. In a group policy a large number of individuals are covered under a single policy called a master policy.

The insurance contract is entered into with the body that represents the individuals, the employer or the association, who is the policy holder. The individuals are beneficiaries. Both Personal Accident and Health insurances are available for groups on the above basis. Condition or situation that creates or increases chance of loss in an insured risk, separated into two kinds Physical and Moral hazard.

A contract between the insurer and the insured wherein insurer agrees to pay hospitalization expenses to the extent of an agreed sum insured in the event of any medical treatment arising out of an illness or an injury. This is a package policy meant for householders, which cover the residential building and contents of the insured for fire, and contents against burglary. Domestic appliances, Television and other electronic items are also covered.

Since this is a package policy the insured gets discount for availing covers under more than one section. Coverage is for Mega risk policies and on all risks terms with exclusions. Insurable interest: Requires risk inspection before insuring and wordings guided by the reinsurance marketInsurance density: Insurable interest arises out of financial relationship between the insured and the subject matter of the insurance, such that he stands to Insurance lose by the destruction of the same.

Insurable interest is required at Ombudsman: the time of taking a policy and continues throughout the policy term.

IC34 work book Pages 51 - - Text Version | FlipHTML5

Marine insurance being an exception. Insurance It is measured by premium per head of population and is arrived at by penetration: dividing the total amount of premiums in a country [or given market] by Integrated its population. Density is a measure of the reach and spread of insurance in a given population. Grievance are appointed under the Redressal of public grievances rules to Management resolve complaints in respect of dispute between policy holders and System [IGMS]: insurer relating to only personal lines of insurances in a cost effective,Intimation of loss: efficient and impartial manner.

The decision of the ombudsman is binding on the insurance company. Penetration is a measure of the economic significance of insurance. Delay inLiability policies: intimation may result in the claim being denied. Loading of The insurance company on receipt of intimation of loss will verify the policy for liability in respect of the period of insurance and peril covered and would send an investigator if there is any doubt regarding the genuineness of cause of loss.

They will also send a surveyor depending on the estimate of loss to assess the loss within the term of the policy. Assessment is essential as it quantifies the amount keeping in view the indemnity principle. Investigation is also done in respect of personal accident claims. The policy was initially devised for establishment dealing with diamonds. However now it is also given to shops dealing in Jewelry. It covers damage to specified property by fire and allied perils and burglary when in the premises, property in custody of persons not in regular employment of the insured and property in transit.

Premium paid by the insured must be from known source of income and legal income. It cannot be from unknown source or amount to money laundering. These policies provide indemnity to insured in respect of damages payable under law for injuries to third parties or their property. Covers for professional indemnity to doctors, hospitals, engineers, accountants, advocates, are also available is resorted to by the insurer to take care of any adverse feature or badInsurance Institute of India Page 59 IC 34 Workbook premiums: claims experience.

Marine Hull covers loss or damage to ocean going ships and other vessels against Insurance perils of sea. Freight and stores are also covered under disbursement Marine cargo policies. This also covers money in safe premises. Negotiation: means character of persons proposing for insurance. Dishonest persons are likely to attempt frauds and make money by misusing insurance.

Employees compensation liability to paid drivers and cleaners is also covered. Personal accident a methodology used to reconcile the differences between the Insurance: requirements of the insured and the offer of the insurer. The agent needs to deftly act to reconcile these differences so as to arrive at a Physical Hazard: win-win situation.

For a valid insurance contract there has to be a legal offer and the Policy form: acceptance of the same to be conveyed to the insured. The insurance Pooling: company accepts the offer if it is satisfied with the risk elements. Prohibition of An insurance that covers medical expenses incurred arising out of illness or accident occurring while travelling abroad along with extensions. Rebates: Customized plans to suit certain types of travel such as business trips, family trips etc.

Huts located near coasts where tidal waves occur frequently are physical hazard for flood related perils as the probability of damage is greater in this case. The stamped and legal document that evidences the contract between the insured and the insurer specifying the subject matter, the peril, the liability of insurer and the amount of premium payment.

Collecting numerous individual contributions called premium from various persons having similar assets exposed to similar risks. Prospects are people to whom we can sell insurance.

Prospecting is the Prospecting: process of gathering names of people whom we can approach andProximate cause: secure a sales interview with. Continuous prospecting is absolutelyQuality of service: vital to a successful agency career. Rate making: Renewal notice: Active, direct, and efficient cause of loss Risk Avoidance: in insurance that sets in motion an unbroken chain of events which Risk control: Risk financing: bring damage, destruction, or injury without the intervention of a new Risk: and independent force.

Insurance a procedure for fixing rate of premium according to exposure and Subrogation: dependent on classification of risk and past loss experience. This is more as a courtesy rather than statutory. It also advices the insured to intimate material changes if any so that actual premium can be charged.

Creating funds to meet losses that may occur, by way of Self-fund, risk transfer to insurance. Means the happening or not happening of an event. It is also used to denote a peril. The student should understand this in the context in which it is used. Transferring the burden of loss to another party i. It covers the building and stock and other contents of the insured for fire, and burglary. Surveyors: Surveyors are service providers to a general insurance company, usually at the time of claim or carrying out pre inspection of risk.

They carryUberrima fides: out claim surveys and estimate the quantum of loss. Underwriting: means Utmost good faith: applies to both the insured and the insurer. The former must disclose everything within their knowledge about the risk involved, which would affect the contract of insurance. Is an important process in the insurance office. Once the proposal isInsurance Institute of India Page 61 IC 34 WorkbookWarranty: received it is scrutinized to decide if the risk is to be accepted or rejected, subject to what rate, terms and conditions.

Assessing and classifying the risk is an important aspect of underwriting. These may be printed on the policy itself, or more commonly, attached to the policy in separate warranty forms. The insurer would like to ensure that the risk remains the same as it existed at the time of the proposal and be protected against the introduction of some feature which may increase the risk.

For this purpose, warranties are inserted in the policy. The insurance company is not liable to pay the claim as the risk can commence only from the date on which cheque is posted as per sec 64 VB of Insurance Act. Here the fire took place on 9. He can do a risk assessment of the office and find out probable causes of loss and if it occurs, ways of minimizing them.

He can have a service maintenance contract, follow safe housekeeping practices. However it would be advisable to insure the equipment. No, I do not agree with him. First of all Health Insurance also covers hospitalization resulting from accident. Further, one cannot predict ill health. Good health can only reduce the incidence of falling ill. People, with robust health, developing ailments are not unheard of.

The risk profile of a flat and factory is completely different. The probability and4. The amount payable would be calculated keeping the underinsurance in view and applying the condition of Average. This applies to each item separately. Hence, a Building Rs. Further, selection of risk is not acceptable, in most insurance contracts. The bank will have full insurable interest to the extent of the loss as the loan still remains unpaid, to the extent of Rs.

The proximate cause of death was the original accident and pneumonia disease not covered under the policy is only a remote cause. Accordingly, even though diseases are not covered under such policies, the claim is payable. The insurer should initially tap the segment of young executives who take loans for downloading car and house. The other segments would be Motor Dealers, Industrial houses and high net worth individuals. He would require a motor insurance, personal accident, electronic equipment, and all risk cover for mobile and wrist watch.

Overseas Travel and also Baggage insurance. Her domestic appliances against breakdown, personal accident cover for accident risks considering she travels a lot. Since it is an industrial unit, it will be appropriate to fix an appointment with the decision makers and make presentation to them. An analysis of risks in the operations and some advices on risk management will increase their interest. Comparison may be made from various websites.

Since she is a graduate, and assuming she is above 18 years of age, she meets the criteria to become an agent. She has to: a Undergo 50 hours practical training in general insurance b Pass the pre-recruitment examination c Pay the fees of Rs.

Sharing the commission proceeds with the proposer is prohibited and can lead to cancellation of license and other punitive actions. The offer will have to be refused and opportunities explored to complete the business target through legal and ethical ways. Non life agents have now been permitted to become agent of one stand alone health insurance company also. Please go to IRDA site — www.

Yes, the commissions are regulated. If not, convey the reaction of the proposer to the insurer for review. One of the situations where Section 64 VB is considered complied even where the total premium is not received by insurance company is where premium is short paid due to genuine clerical error. In the subject case, therefore, the claim is payable. The client should disclose the material fact of change in risk specifically when there is an enhancement of sum insured.

Completion of fresh proposal form may also be required, if called for by the insurer. The rules of interpretation of policy are clear that what is typewritten will overrule the printed matter.

The claim is therefore payable. However, refund if policy discontinued by insured and no claim had occurred till then. Revised IDV is arrived at by adjusting the current manufacture's listed selling price of the vehicle with depreciation percentage as prescribed.

Insurance companies send renewal notice as a service and it is not obligatory on their part to do so. Chandran cannot hold his non-receipt of renewal notice against the insurance company to justify his claim. And by renewing the policy without revealing to the insurance company that the car has already met with an accident, he has breached the principle of utmost good faith. Insurance company therefore has a right to void his renewed policy.

Fire and burglary proposal forms to be filled up by Mr.