NIACL AO Mains 2019 – Insurance Questions for Mains | 21st February

Shri A. V. Girija Kumar is present Chairman-Cum-Managing Director of Oriental Insurance Company Limited (OICL).

NIC (National Insurance Company Ltd.) is India’s oldest general insurance Company. It was incorporated in Kolkata on 5th December, 1906 to fulfil the nationalist aspiration for Swaraj. 66 years later, after nationalisation it was merged along with 21 foreign and 11 Indian companies to form National Insurance Company Ltd, one of the 4 subsidiaries of the Govt. owned General Insurance Corporation of India.

The Oriental Insurance Company Ltd was incorporated at Bombay on 12th September 1947. The Company was a wholly owned subsidiary of the Oriental Government Security Life Assurance Company Ltd and was formed to carry out General Insurance business. The Company was a subsidiary of Life Insurance Corporation of India from 1956 to 1973 ( till the General Insurance Business was nationalized in the country). In 2003 all shares of our company held by the General Insurance Corporation of India have been transferred to Central Government.

Tajinder Mukherjee is present Chairman-Cum-Managing Director of National Insurance Company Limited.

The Head Office of OICL is in New Delhi.

Agriculture Insurance Company of India Limited was incorporated under the Indian Companies Act 1956 on 20th December, 2002 with an authorised share capital of INR 15 billion and paid up capital of INR 2 billion. AIC commenced business from 1st April, 2003.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000.

Agriculture Insurance Company of India Limited (AIC) has been formed at the behest of Government of India, consequent to the announcement by the then Hon'ble Union Finance Minister in his General Budget Speech FY 2002-03 that, "to subserve the needs of farmers better and to move towards a sustainable actuarial regime, it was proposed to set up a new Corporation for Agriculture Insurance". Authorised Share Capital of AIC was Rs. 1500 Crores.

Section 14 of the IRDA Act, 1999 lays down the duties, powers and functions of IRDA. Registering and regulating insurance companies. • Protecting policyholders’ interests. • Licensing and establishing norms for insurance intermediaries. • Promoting professional organisations in insurance. • Regulating and overseeing premium rates and terms of non-life insurance covers. • Specifying financial reporting norms of insurance companies. • Regulating investment of policyholders’ funds by insurance companies. • Ensuring the maintenance of solvency margin by insurance companies. • Ensuring insurance coverage in rural areas and of vulnerable sections of society.

Registered Office and Head Quarters of Agriculture Insurance Company of India Limited is in New Delhi.

Insurance Regulatory and Development Authority (IRDA) set up as autonomous body under the IRDA Act, 1999.

Mrs?. Alamelu T. Lakshmanachari is current Chairman-cum-Managing Director of Agriculture Insurance Company of India Limited.

Parliament has passed Insurance Laws (Amendment) Bill, 2015. It was first passed in Lok Sabha on 4 March 2015 and later in Rajya Sabha on 12 March 2015, which will become an Act when the President signs it. The amendment bill aims to bring improvements and revisions in the existing laws relating to insurance business in India. The bill also seeks to remove archaic provisions in previous laws and incorporate modern day practices of insurance business that are emerging in a changing dynamic environment, which also includes private participation. It is expected that the foreign investment would bring about `20,000-`25,000 crore in short funds. The amendment bill hikes Foreign Direct Investment (FDI) cap in the insurance sector to 49 percent from present 26 percent.

Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is loss of income to the household.

Surrender Charges- A surrender charge may be deducted for premature partial or full encashment of units wherever applicable, as mentioned in the policy conditions.