Professional Documents
Culture Documents
v_1.0_Sept_09
Objectives
By the end of the session you will be able to :
Draw out advantages of life insurance products over other savings/investment instruments
Amendments have been made in the Insurance Act 1938 in 1950 and later through the IRDA Act 1999
The IRDA has powers to adjudicate on disputes between the insurers and intermediaries or between intermediaries up to Rs.2000
Consists of not more than 16 members appointment by Central Government One member is appointed as Chairman
Passed by the Parliament in December 1999 provided for the establishment of the authority to protect the interest of policy holders.
It is advised by insurance advisory committee consisting of not more than 25 members These members represent the interest of commerce, industry, transport, agriculture, consumer forums, surveyors etc.
Under this act an individual can approach various forums for redress in case he is not satisfied with the goods or services provided
A defect or deficiency is a fault, imperfection or shortcoming or inadequacy in the quality, nature or manner of performance in any goods or services
CONSUMER FORUM
When giving a written presentation always to ensure correct information is being given
Personal intervention of agent can help reduce the delay in office procedures which are mainly due to non-compliance with requirements or ambiguity in title
Ombudsman
Ombudsmen are appointed by the governing body of the insurance council.
Their function is to resolve complaints in respect of dispute between policyholders and insurers in cost effective, efficient and impartial manner.
Delay In Settlement Of Claims Non Issue Of Any Insurance Document To Customer After Receipt Of Premium
The complainant and insurer are permitted to make their personal submissions but lawyers are not permitted to argue in this case
Complaint to the ombudsman shall be entertained only when insurer has rejected the complaint or no reply was received within 1 month of the complaint to the insurer or the reply was unsatisfactory.
The subject matter should not be before any court or consumer forum or arbitration.
A copy of the recommendation shall be sent to a insurer who shall comply within 15 days of such recommendation and inform the ombudsman accordingly.
The ombudsman shall pass an award in writing, stating the amount awarded
The amount shall not be in excess of what is required to cover the loss suffered by the complainant as a direct consequence of the insured peril or for an amount not exceeding Rs.20,00,000 which ever is lower.
Ombudsman : Award
Award has to be passed within 3 months of the receipt of the complainant
The insurer has to comply with the award within 15 days and inform the ombudsman
If the complainant does not intimate the acceptance, the award shall not be implemented
The tax laws in India encourage people to save through life insurance and other instruments by providing relief from tax liabilities
Knowledge of tax provisions is important for an agent as it affects the benefits under a policy
Any sum received under life insurance policy including the bonus additions is exempt from income tax
Maturity claim payments are taxable if the premium paid in any one year exceeds 20% of the sum assured
Exception Insurance premiums paid under partnership insurance or key man insurances are allowed as expenses
Section 10(10d)-on claim of life insurance, the claim amount will be treated as non-taxable.
Section 80 DD- on amount deposited in a plan taken for the maintenance of a handicapped relative-to the extent of Rs. 40,000 Section 80D - on amount invested for medical insurance to the extent of Rs. 10,000
In case of rural areas 1st financial year 7 % 2nd financial year 9 % 3rd financial year 12%
1st financial year - 5000 lives 2nd financial year - 7500 lives 3rd financial year-10,000 lives 4th financial year-15,000 lives 5th financial year- 20,000 lives
Covers small families including husband wife, dependent parents and up to three children.
Covers Health Insurance, Hut, Livestock Or Tools Of Instruments And Personnel Accidents.
Micro insurance agents receive 10% Commission on single premium and 20% on Regular premiums
Thank You