IC14-REGULATION OF INSURANCE BUSINESS Mock Test

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Insurance Business

Insurance is a kind of assurance from the insurer to the insured. The first life insurance company, Oriental Life Insurance Company, was founded in 1818. Similarly, the first General Insurance Company was founded in Calcutta in 1850. Life insurance, health insurance, long-term disability insurance, and auto insurance are the four types of insurance.. Business losses due to events that can occur during regular business operations are protected by Business insurance coverage. Business insurance comes in a variety of forms, including coverage for legal liability, property damage, and employee-related risks. Regulation of Insurance: Like other industries and businesses, the insurance business is also regulated. The insurance business is regulated by IRDA-Insurance Regulatory and Development Authority. It monitors the investment of funds by insurance companies and governs the maintenance of the margin of solvency. It regulates the investment of funds by insurance companies and the maintenance of the solvency margin. It is a judicial body that hears disputes between insurers and intermediaries or insurance intermediaries. In fact, IRDA's work includes monitoring and preserving insurance companies' financial solvency; regulating market behaviour and preventing unfair trade practices; and regulating fair practices in the insurance market.

The primary aim and work of IRDA are:

1.) The ultimate goal/motive is to protect the interests of policyholders during claims, policy issuance, and policy cancellation. The IRDA ensures that no insurance company may refuse a claim of their free will unless it is outside the policy/cover.

2.) The IRDA clearly states the code of conduct for all insurance companies' loss, assessors, and surveyors. 3.) To prevent any misbehavior, it calls for both annual and need-based audits, investigations, and requests for information from insurance companies or intermediaries.

4.) Regulating the rates and terms offered by insurance companies in order to ensure customer equality.

5.) If a dispute arises between the insurer and the policyholder, IRDA will step in to provide a resolution.

6.) Different insurers quote rates based on their convenience; the major risks are bound to the Tariff Advisory Committee. Following that, insurers should consider the percentage of premium income that is required to fund professional organizations.

7.) IRDA requires insurers to carry a minimum percentage of both life and non-life industry for the growth of both the urban and rural sectors.

8.) Setting guidelines and maintaining diligence to prevent scams and frauds.

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