InsuranceLIFE INSURANCE: CONCEPT, NATURE AND IMPORTANT PROVISON UNDER THE ACT

7/24/2019 InsuranceLIFE INSURANCE: CONCEPT, NATURE AND IMPORTANT PROVISON UNDER THE ACT

1/26

LIFE INSURANCE: CONCEPT, NATURE AND IMPORTANT

PROVISON UNDER THE ACT

Project report on Insurance Law

SubmittedTo:

Assistant Po!" Sa#antani das

Submitted $#:

S%i&ani 'ais(a)

$"$"A"LL"$ *Hons"+ VII Semeste

MATS Uni&esit#

MATS La( S-%oo), Rai.u

1


2/26

TA$LE OF CONTENTS

S"No" To.i- Pa/e No"

1 INTRODUCTION WITH DEFINATION AND MEANINNG 7

2 HISTORY AND OBJECTIVE OF LIFE INSURANCE 10

3 NATURE OF LIFE INSURANCE CONTRACT 12

4FORMATION OF LIFE INSURANCE CONTRACT

15

5 STATUTORY POSITION OF LIFE INSURANCE CORPORATION 18

ADVANTAGES OF LIFE INSURANCE 23

7 CONCLUSION 25

8 BIBLIOGRAPHY 2

2


3/26

DISCLAIMER

T!"# $%&'()* %($&%* "# +,*!&%(- ./ #*,-(* & 4 *! /(+% ,-(% *!( "( /(+% BBALLB H P%&6%+

" MATS L+ S)!&&9: R+"$,% T!( %($&%* "# $,%(9/ +)+-(") " +*,%( +- #!+99 &* .( *%(+*(- +#

+ 9(6+9 &% .,#"(## +-")( T!( "(# (;$%(##(- " *!"# %($&%* +%( $(%#&+9 *& *!( #*,-(* +- -&

&* %(9()* *!( "( & 9+ #)!&&9 &% +/ & "*# #*+ &% $(%#&(9 A99 *!( )&$/%"6!*# %(9+*"6 *&

*!"# &%< +%( (#*(- " *!( +,*!&%= *!( #+( #!+99 &* .( (;$9&"*(- "*!&,* *!("% (;$%(##

$(%"##"&

S!"+" J+"#+9

4*!Y(+%: MATS L+ #)!&&9: R+"$,%

3


4/26

AC0NO1LED2EMENT

F"%#*9/: I + (;*%((9/ 6%+*(,9 *& A##* P%& S+/+*+" D+#: &% 6%+*"6 ( *!( &$$&%*,"*/ *&

+


5/26

A$STRACT

T!( &.'()*"( & *!"# $%&'()* %($&%* "# ++9/(- +.&,* *!( )&)($* "*! *!( $%")"$9( & L"(

I#,%+)( I "*%&-,)*"& & *!"# $%&'()* %($&%* -(+9# "*! &,*9"(# & I#,%+)( "*! +%"&,# )+#(

9+# A*(% *!+* (;$9+"(- +.&,* *!( !"#*&%/ +- .+#") &.'()*"(# & *!( L"( I#,%+)( A)*: 15:!&((% "* (;$9+" *!+* " !+* +(% +- " !+* )"%),#*+)(# )+( "*& I-"+ F,%*!(% "*!

*!( !(9$ & )+#( 9+#: *!( +,*!&% +*# *& -(#)%".( *!( *!%(( *!"6# !")! ")9,-(# !+* +%( *!(

+*,%( & 9"( "#,%+)(: *!( %&9( & $%")"$9(# ,-(% *!( "#,%+)( +- " !+* +/ *!( )&*%+)* "#

&%(- "*!" *!( $,%"( & I-"+ C&*%+)* A)*: 1872

F,%*!(% I (;$9+"(- +.&,* *!( 9(6+9 $%&"#"& ,-(% *!( L"( I#,%+)( A)*: 15 " !")! !+(

6"( *!( &(%"( & *!"# +)* "*! "$&%*+* $%&"#"& A*(% *!+* *!( +,*!&% (;$9+"(- +.&,* *!(

+%"&,# +-+*+6( "*! )+#( 9+# !")! #+/# *!+* !& "* "# .(("*(- *& *!( $,.9"): $%"+*( +# (99

+# $,.9") #()*&% !")! $%& *!+* "#,%+)( "# + #&)"+9 -(")(

5


6/26

RESEARCH METHODOLO23

I !+( +-&$*(- *!( &-( & $%"+%/ %(#(+%)! #&,%)( !(%( I !+( %((%((- #&( .&&


7/26

CHAPTER4I

INTRODUCTION

T!( !&9( "-(+ & "#,%+)( !+# -((9&$(- & *!( +)* *!+* !,+ 9"( "# ,99 & ,)(%*+"*"(# +-

*!( 9"( & + $(%#& "*#(9 "# (%/ ,)(%*+" I* "# (99 #+"- *!+* ?L"( "# ,99 & %"#


8/26

I #"$9( &%-#: "* (+# + +6%(((* " !")! &( $+%*/ +6%((# *& $+/ + 6"( #, &

&(/ ,$& *!( !+$$("6 & + $+%*"),9+% ((* )&*"6(* ,$& -,%+*"& & !,+ 9"( "

(;)!+6( & *!( $+/(* & + )"-(%+*"& T!( $(%#& !& 6,+%+*((# *!( $+/(* "# )+99(-

I#,%(%: *!( +&,* 6"( "# )+99(- P&9")/ A&,*: *!( $(%#& & !( 9"( *!( $+/(* "#

6,+%+*((- "# )+99(- I#,%(- &% A##,%(- T!( $+%*"),9+% ((* & !")! *!( $+/(* "# 6,+%+*((-

*& .( 6"( +/ .( D(+*! &% L"( T!( )"-(%+*"& "# )+99(- *!( P%(", T!( -&),(*

("-()"6 *!( )&*%+)* "# )+99(- P&9")/4

T!(%( "# & #*+*,*&%/ -(""*"& & 9"( "#,%+)(: .,* "* +/ .( -("(- +# + )&*%+)*

!(%(./ + $(%#& "#,%(% +6%((# &% + )"-(%+*"& *!+* "# $+/(* & + #, & &(/ &% +

$(%"&-")+9 $+/(*: )+99(- *!( $%(", *& $+/ *& +&*!(% "#,%(- &% !"# (#*+*(# + #*+*(- #, &

&(/ & !+$$("6 & + ((* -($(-(* & !,+ 9"(5

?L"( "#,%+)( "# + )&*%+)* *& $+/ + )(%*+" #, & &(/ & *!( -(+*! & + $(%#& "

)"-(%+*"& & *!( -,( $+/(* & + )(%*+" +,"*/ &% !"# 9"( )+9),9+*(- +))&%-"6 *& *!(

$%&.+.9( -,%+*"& & 9"(@

?L"( "#,%+)( "# + )&*%+)* " !")! &( $+%*/ +6%((# *& $+/ + 6"( #, & &(/ ,$&

*!( !+$$("6 & + $+%*"),9+% ((* )&*"6(* ,$& *!( -,%+*"& & !,+ 9"( " )"-(%+*"&

& "(-"+*( $+/(* & + #+99(% #, &% &*!(% (,"+9(* $(%"&-")+9 $+/(*# ./ *!( &*!(%@7

I I-"+: L"( I#,%+)( .,#"(## "# -("(- ,-(% S()*"& 2 11 & I#,%+)( A)*: 138: !")!

%(+-# +# ? L"( I#,%+)( .,#"(##@ (+# *!( .,#"(## & (()*"6 )&*%+)*# & "#,%+)( ,$&

!,+ 9"(: ")9,-"6 +/ )&*%+)* !(%(./ *!( $+/(* & &(/ "# +##,%(- & -(+*! (;)($*

-(+*! ./ +))"-(* &9/ &% *!( !+$$("6 & +/ )&*"6()/ -($(-(* ,$& !,+ 9"( +- +/

4M N M"#!%+: ?Law of Insurance@: E"6!*! E-"*"&: 2010: $1: C(*%+9 L+ A6()/: A99+!.+-

5F(-(%+*"& & I#,%+)( I#*"*,*(: M,.+"

6Dalby India and London Life Assurance Co!any "1854 15 CB 3513 AII ER45 S(( +9#&

#o!aratna $ ors LIC of India $ % ors:200 2A-! LD C R($&%*(%# 10= L+ F"-(% D&) I-

400314

7Jose!h Law Inte&rity Insurance Co!any "112 82 LJ187

8


9/26

)&*%+)* !")! "# #,.'()* *& $+/(* & $%(", &% + *(% -($(-(* & !,+ 9"( +- #!+99 .(

-(((- *& ")9,-( *!( 6%+*"6 &

-"#+."9"*/ +- -&,.9( &% *%"$9( "-("*/ +))"-(* .(("*#: " #& $%&"-(- " *!( )&*%+)*

& "#,%+)(= +,"*"(# ,$& !,+ 9"(=

#,$(%+,+*"& +99&+)(# +- +,"*"(# $+/+.9( &,* & +/ ,- +$$9")+.9( #&9(9/ *& *!(

%(9"( +- +"*(+)( & $(%# (6+6(- &% !& !+( .(( (6+6(- " +/ $+%*"),9+%

$%&(##"&: *%+-( &% ($9&/(* &% & *!( -($(-(*# & #,)! $(%#=

In )i/%t o! t%e abo&e de!initions t%e essentia) !eatues o! )i!e insuan-e 5-an be summed u.

as unde:

" I* "# + )&*%+)* %(9+*"6 *& !,+ 9"(

"" T!(%( ((- &* .( + (;$%(## $%&"#"& *!+* *!( $+/(* "# -,( & *!( -(+*! & *!( $(%#&

""" T!( )&*%+)* $%&"-(# &% $+/(* & 9,$ #, &(/

" T!( +&,* "# $+"- +* *!( (;$"%+*"& & )(%*+" $(%"&- &% & -(+*! & *!( $(%#&

8A*+% S"6!: ?Law of Insurance, 2004: $41: E+#*(% B&&< C&$+/: L,)


10/26

CHAPTER4II

HISTOR3 OF LIFE INSURANCE

T!( !"#*&%/ & 9"( "#,%+)( " I-"+ #*+%*(- +*(% *!( (#*+.9"#!(* & + B%"*"#! "%: " 1818

O%"(*+9 L"( I#,%+)( C&$+/: *!( "%#* 9"( "#,%+)( )&$+/ & I-"+ #&"9 #*+%*(-

,)*"&"6

1870 B&.+/ M,*,+9 L"( A##,%+)( S&)"(*/: *!( "%#* I-"+ 9"( "#,%+)( )&$+/ #*+%*(- "*#

.,#"(##

112 T!( I-"+ L"( A##,%+)( C&$+"(# A)* (+)*(- +# *!( "%#* #*+*,*( *& %(6,9+*( *!( 9"(

"#,%+)( .,#"(##

128 T!( I-"+ I#,%+)( C&$+"(# A)* (+)*(- *& (+.9( *!( 6&(%(* *& )&99()*

#*+*"#*")+9 "&%+*"& +.&,* .&*! 9"( +- &9"( "#,%+)( .,#"(##(#

138 E+%9"(% 9(6"#9+*"& )&9"-+*(- +- +(-(- *& ./ *!( I#,%+)( A)* "*! *!( &.'()*"( &

$%&*()*"6 *!( "*(%(#*# & *!( "#,%"6 $,.9")

15 245 I-"+ +- &%("6 "#,%(%# +- $%&"-(* #&)"(*"(# +%( *+


11/26

!&9(= *!( ,-# *& .( -($9&/(- *& *!( .(#* +-+*+6( & *!( "(#*&%# +# (99 +# *!(

)&,"*/ +# + !&9(:


12/26

CHAPTER4III

CONTRACT OF LIFE INSURANCE

A )&*%+)* & "#,%+)( "# + )&*%+)* ("*!(% *& "-("/ + $(%#& +6+"#* + 9# !")! +/ +%"#(

& *!( !+$$("6 & + ((* &% *& $+/ + #, & &(/ & *!( !+$$("6 & #&( &% +/ ((*

&% + +6%((- )"-(%+*"& U-(% #,)! + )&*%+)* &( $+%*/ +6%((# *& *+


13/26

*b+ Pin-i.)e o! Indemnit#

I#,%+)( )&*%+)*# &*!(% *!+ 9"( "#,%+)( )&*%+)* +%( )&*%+)*# & "-("*/ " *!( #(#( *!+*

*!( +&,* $+/+.9( ./ *!( "#,%(% " )+#( & *!( )&*"6()/ #*+*(- " *!( $&9")/ &)),%%"6 "#

9""*(- *& *!( 9# *!+* *!( "#,%(- "99 #,(% T!( "#,%+)( )&*%+)* $%&"#(# *&


14/26

*e+ A)eato# Conta-t

I #,)! +


15/26

CHAPTER4IV

FORMATION OF LIFE INSURANCE CONTRACT

L"


16/26

)+#( & R+' N+%+" D+# M+!+$+*%+:14"* +# #(**9(- *!+* )+#!"6 & *!( )!(,( +# + +))($*+)(

& *!( %"#< !(*!(% $&9")/ +# "##,(- &% &*

*-+ Com.eten-e o! Paties

T!( $+%*"(# ,#* .( )&$(*(* *& (*(% "*& + )&*%+)*: *!( $+%*"(# ,#* .( & *!( +6( &

+'&%"*/:15& #&,- "- +- &* -"#,+9""(- %& )&*%+)*"6 ./ +/ 9+ *& !")! +/ & *!(

"# #,.'()*1

R(6+%-"6 *!( "#,%+)( )&*%+)*# &9/ *!( "#,%(%# )+ 6%+* "#,%+)( $&9")"(# !& !+(

.(( "##,(- 9")(#( ,-(% *!( I#,%+)( R(6,9+*&%/ +- D((9&$(* A,*!&%"*/17

*d+ Le/a)it# o! Ob7e-t

A )&*%+)* "99 .( "+9"- " *!( &.'()* "# "99(6+9 &% +6+"#* $,.9") $&9")/ T!( &.'()* & 9"(

"#,%+)( )&*%+)* "99 .( 9(6+9 " "* "# +-( &% &(# & $%&*()*"& &% &% *!( $%&*()*"& & *!(

+"9/ +6+"#* "+)"+9 9#(# I .%"(: *!( $(%#& -(#"%"6 $&9")/ ,#* !+( "#,%+.9( "*(%(#* "

*!( 9"( $%&$(- &% "#,%+)(18

T!( &.'()* & + +6%(((* "# 9+,9 ,9(##1

" "* "# &%."--( ./ 9+: &%

"" "* "# & #,)! + +*,%(: *!+* " $(%"**(- &,9- -((+* *!( $%&"#" & +/ 9+: &%""" "* "# %+,-,9(*

" "* "&9(# "',%/ *& $(%#& &% $%&$(%*/ & +&*!(%

141881 7 C+9),**+ 54

15Chandulal I(T( Coissioner AIR 17 SC

16A $(%#& !& "# &* )&$(*(* *& (*(% "*& + )&*%+)* ./ %(+#& & *!( $%&"#" & S()*"& 11 & *!(

C&*%+)* A)*: 1882: )+ #*"99 .( + .((")"+%/ ,-(% + )&*%+)* & "#,%+)( M&%(&(%: + "&%# $%&$(%*/

+/ .( "#,%(- ./ $(%# )&$(*(* *& +)* &% !" +- !( &,9- .( (*"*9(- *& %()&(% *!( "#,%+)(

&(/

17T!( IRDA A)*: 1

18Liberty +ational Life Insurance Co eldon 157 A9.++ 100 S& 2-

19T!( I-"+ C&*%+)* A)*: 1882= S()*"& 23

16


17/26

*!( )&,%* %(6+%-# "* "&%+9 &% &$$(- *& $,.9") $&9")/

I +orthern India Insurance Co!any ( -anhaya lal,%. *!( $&9")/ .()+( &"- .()+,#( *!(

"#,%(- )+,#(- !"# & -(+*! .(&%( *!( $&9")/ !+# .(( " (;"#*()( &% &( /(+%

*e+ Fee Consent o! Paties

W!( $+%*"(# *& + )&*%+)* +6%(( & *!( *(%# +- )&-"*" & *!( )&*%+)* " *!( #+( #(#(

+- #$"%"*: *!(/ +%( #+"- *& !+( %(( )(* T!( )(* "# #+"- *& .( %(( !( "* "# &* )+,#(-

./ )&(%)"&: &% ,-,( "9,()( &% %+,- &% "#%($%(#(*+*"& &% "#*+


18/26

CHAPTER4V

STATUTOR3 POSITION OF LIFE INSURANCE CORPORATION

T!( L"( I#,%+)( C&%$&%+*"& & I-"+ LICI "# *!( 9+%6(#* 9"( "#,%+)( )&$+/ " I-"+ "* "#

,99/ &(- ./ *!( G&(%(* & I-"+ L"( I#,%+)( C&%$&%+*"& & I-"+ LIC "# +

+,*&&&,# .&-/ +,*!&%"*/ *& %, *!( 9"( "#,%+)( .,#"(## " I-"+ "*! "*# H(+- O")( +*

M,.+" H(+-,+%*(%(- " M,.+": !")! "# )"-(%(- *!("+)"+9 )+$"*+9 & I-"+: *!(

L"( I#,%+)( C&%$&%+*"& & I-"+ ),%%(*9/ !+# 8 &+9 O")(# +- 101 -""#"&+9 &")(#

9&)+*"& " -"(%(* $+%*# & I-"+: +* 9(+#* 2048 .%+)!(# 9&)+*"& " -"(%(* )"*"(# +- * &

I-"+ +9&6 "*! #+*(99"*( O")(# +**+)!(- *& +.&,* #&( 50 B%+)!(#: +- !+# + (*&%< &

+%&,- &( "99"& +- 200 *!&,#+- +6(*# &% #&9")"*"6 9"( "#,%+)( .,#"(## %& *!(

$,.9") T!( L"( I#,%+)( C&%$&%+*"& & I-"+ "# *!( 9+%6(#* "#,%+)( +- "(#*(* 6%&,$

&(- ./ I-"+ S*+*( "*! +##(*#: ,-# +- $&9")"(#

L"( I#,%+)( C&%$&%+*"& & I-"+ +)* +# $+##(- ./ *!( $+%9"+(* & J,( 18: 15

+- )+( "*& (()* %& J,9/1: 15 L"( I#,%+)( C&%$&%+*"& & I-"+ )&()(- "*#

,)*"&"6 +# + )&%$&%+*( .&-/ %& S($*(.(% 1: 15 I*# &%


19/26

T!( )(*%+9 6&(%(* +/ & *!( %()&(-+*"& & *!( )&%$&%+*"&: %(-,)( *!( )+$"*+9 & *!(

)&%$&%+*"& *& #,)! (;*(* +- " #,)! +(% +# *!( )(*%+9 6&(%(* +/ -(*(%"(

TRANSFER OF SERVICES4

A99 *!( ($9&/((# (;)($* )!"( +6(* "99 .( (#*(- "*& ( 9"( .,#"(## T!( #+9+%/ +- *(%#

& ($9&/(* "99 %(+" *!( #+( ,9(## "#,%+)( .,#"(## *!"


20/26

+ *& )+%%/ & )+$"*+9 %(-($*"& .,#"(##: +,"*/ )(%*+" .,#"(## &% %("#,%+)( .,#"(##

" #& +% +# #,)! %("#,%+)( .,#"(## +$$(%*+"# *& 9"( "#,%+)( .,#"(##=. *& +),"%(: !&9- +- -"#$( & +/ $%&$(%*/ &% *!( $,%$( & "*# .,#"(##=

) *& *%+#(% *!( !&9( &% +/ $+%* & *!( 9"( "#,%+)( .,#"(## )+%%"(- & &,*#"-( I-"+ *&

+/ &*!(% $(%#& &% $(%#: " " *!( "*(%(#*# & *!( C&%$&%+*"& "* "# (;$(-"(* #& *& -&- *& +-+)( &% 9(- &(/ ,$& *!( #(),%"*/ & +/ &+.9( &% "&+.9( $%&$(%*/ &%

&*!(%"#(=

( *& .&%%& &% %+"#( +/ &(/ " #,)! +(% +- ,$& #,)! #(),%"*/ +# *!( C&%$&%+*"&

+/ *!"< "*=

*& )+%%/ & +/ &*!(% .,#"(## !")! +/ #(( *& *!( C&%$&%+*"& *& .( )+$+.9( & .("6

)&("(*9/ )+%%"(- & " )&()*"& "*! "*# .,#"(## +- )+9),9+*(- -"%()*9/ &%

"-"%()*9/ *& %(-(% $%&"*+.9( *!( .,#"(## & *!( C&%$&%+*"&=

6 *& )+%%/ & ("*!(% ./ "*#(9 &% *!%&,6! +/ #,.#"-"+%/ +/ &*!(% .,#"(## " +/ )+#( !(%(

#,)! &*!(% .,#"(## +# .("6 )+%%"(- & ./ + #,.#"-"+%/ & + "#,%(% !( )&*%&99(-

.,#"(## !+# .(( *%+#(%%(- *& +- (#*(- " *!( C&%$&%+*"& ,-(% *!"# A)*=

! *& -& +99 #,)! *!"6# +# +/ .( ")"-(*+9 &% )&-,)"( *& *!( $%&$(% (;(%)"#( & +/ &

*!( $&(%# & *!( C&%$&%+*"&

3 I *!( -"#)!+%6( & +/ & "*# ,)*" *!( C&%$&%+*"& #!+99 +)* #& +% +# +/ .( & .,#"(##

$%")"$9(#

PO1ER TO IMPOSE CONDITION

1 I (*(%"6 "*& +/ +%%+6((*: ,-(% #()*"& A & *!( A)*: "*! +/ )&)(%: *!(

C&%$&%+*"& +/ "$( #,)! )&-"*" +# "* +/ *!"< ()(##+%/ &% (;$(-"(* &% $%&*()*"6

*!( "*(%(#* & *!( C&%$&%+*"& +- &% #(),%"6 *!+* *!( +))&&-+*"& 6%+*(- ./ "* "# $,* *& *!(

.(#* ,#( ./ *!( )&)(%

2 A/ -"%()*&% +$$&"*(- +# +&%(#+"- #!+99

+ !&9- &")( -,%"6 *!( $9(+#,%( & *!( C&%$&%+*"& +- +/ .( %(&(- &% #,.#*"*,*(- ./ +/

$(%#& ./ &%-(% " %"*"6 ./ *!( C&%$&%+*"&=

. N&* "),% +/ &.9"6+*"& &% 9"+."9"*/ ./ %(+#& &9/ & !"# .("6 + -"%()*&% &% &% +/*!"6

-&( &% &"**(- *& .( -&( " 6&&- +"*! " *!( -"#)!+%6( & !"# -,*"(# +# + -"%()*&% &% +/*!"6 "

%(9+*"& *!(%(*&=

20


21/26

) &* .( 9"+.9( *& %(*"%((* ./ %&*+*"& +- #!+99 &* .( *+


22/26

#+"- .&&


23/26

CHAPTER4VI

ADVANTA2ES OF LIFE INSURANCE

" Co&es Ris; o! Deat%:

U9"


24/26

T!( $%&)(-,%( & #(**9((* & )9+"# "# (%/ #"$9( +- (+#/ A*(% *!( +


25/26

CHAPTER4 VII

CONCLUSION

I#,%+)( )+ .( -(#)%".(- +# + #&)"+9 -(")( *& %(-,)( &% (9""+*( %"#< *& 9"( +- $%&$(%*/

W!( + !,+ 9"( "# 9* &% + $(%#& "# -"#+.9(- $(%+(*9/ &% *($&%+%"9/ *!(%( "# 9# &

")&( *& *!( !&,#(!&9- S& ((%/&( !& !+# + +"9/ *& #,$$&%* +- "# + ")&( (+%(% ((-#

9"( "#,%+)( T!( "-(+ ,-(%9/"6 *!( )&)($* & 9"( "#,%+)( "# *!+* !( /&,% +"9/

(.(%# &% -($(-(*# -($(- & /&, "+)"+99/ /&, ((- *& #(),%( *!("% ,*,%( H+"6 /&,%

9"( "#,%(- "# +


26/26

REFRENCES

InsuranceLIFE INSURANCE: CONCEPT, NATURE AND IMPORTANT PROVISON UNDER THE ACT

Documents

Transcript of InsuranceLIFE INSURANCE: CONCEPT, NATURE AND IMPORTANT PROVISON UNDER THE ACT