qualifications and set norms/code of conduct for them. iii. It promotes and regulates the professional organizations related with insurance business to promote efficiency in insurance sector iv. It regulates and supervises the premium rates and terms of insurance covers.
v. It specifies the conditions and manners, according to which the insurance companies and other intermediaries have to make their financial reports. vi. It regulates the investment of policyholder’s funds by insurance companies.
vii. It also ensures the maintenance of solvency margin (company’s ability to pay out claims) by insurance companies. Key Terms utmost good faith, Indemnity, Causa Proxima, Subrogation, Mitigation, Surrender value Student Activity a) Sanjana insured her factory for ₹ Lakh against fire. Due to fire she suffered a loss of ₹ lakh.
How much amount she can recover from the insurance company? Why? b) A factory owner gets his stock of goods insured, but he hides the fact the electricity board has issued him a statutory warning letter to get his factory’s wiring changed. Later on, the factory catches fire due to short circuit of wiring.
Can he claim compensation? commerce - - . . PM .
Which one of the following is a type of marine insurance? a) Money Back Policy b) Cargo Insurance c) Hull Insurance d) both b & c Answers . a . b .
d . c . d II. Very Short Answer Questions .
List any five important types of policies. . What is health insurance? III.
Short Answer Questions . Define Insurance. . Give the meaning of Crop insurance.
. Write a note on IRDAI. IV. Long Answer Questions .
Explain the various types of Insurance. (any ) . Explain the principles of Insurance. (any ) Reference .
Kapoor. N.D. Principles of Commerce, . Nael G.
Bunni, Risk and Insurance. Exercise I. Choose the Correct Answer . The basic principle of insurance is a) Insurable Interest b) Co-Operation c) Subrogation d) Proximate causa .
is not a type of general insurance a) Marine Insurance b) Life Insurance c) Fidelity Insurance d) Fire Insurance . Which of the following