Scribd
Upload
18 views7 pages

Control On Malpractices

The document discusses various provisions and regulations in the Insurance Act of 1938 and IRDA regulations to control malpractices in the insurance industry. It covers registration requirements for insurance companies and agents, regulations on advertisements by insurers, disclosure requirements in insurance contracts, and consumer protection measures like the insurance ombudsman and awareness programs.

Uploaded by

MayankChauhan Maharaja Agrasen College
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
18 views7 pages

Control On Malpractices

The document discusses various provisions and regulations in the Insurance Act of 1938 and IRDA regulations to control malpractices in the insurance industry. It covers registration requirements for insurance companies and agents, regulations on advertisements by insurers, disclosure requirements in insurance contracts, and consumer protection measures like the insurance ombudsman and awareness programs.

Uploaded by

MayankChauhan Maharaja Agrasen College
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Control on malpractices

• Introduction to control on malpractices


• Control on insurance companies and agents: Registrations
• Regulation on Advertisement by insurance companies
• Protection of policyholders’ Intrest
• Material Disclosures in the insurance contract
• Code of conduct for intermediaries
• Insurace ombudsman
• Consumer awareness program
• National consumer Awareness programs
• National consumer dispute redressal commission
Introduction to control on malpractices

Insurance is the contract framed by insurer and offered by proposed


insured. Thus, there is a possibility of evolving malpractices by insurer
during the formation of policy Simlarly, insurance companies can attract
proposed insured by attractive advertisements containing false
information.
To control malpractices, the Insurace Act, 1938 contains various
provisions especially pertaining to registration and investment pattern
of the insurance companies and agents
Control on insurance companies and agents: Registrations

The insurance act, 1938 provides the provision on compulsory registration of


insurance company and insurance agents to pursue insurance business in
india. As per section 2(8) of insurance Act , insurance Act, insurance company
means an insurer being a company, association or partnership which may be
wound up under Companies Act, or to which partnership Act applies.
Section 3 of insurance act, 1938 explains that no person shall carry or on any
class of insurance business
Section 2(10) reads insurance agent means an insurance agent licensed under
section 42 who receives or agrees to receive payment by way of commission
or other remuneration in consideration of his soliciting or procuring or
procuring insurance bussiness
Regulation on Advertisement by insurance
companies
Insurace Regulatory and development Authority (IRDA) issued a
regulation on entitled insurance Advertisement and disclosure in the
year 2000 to curb false advertisement
The meaning if unfair or misleading advertisement that
• Fails to clearly identify the prodect as insurance
• Makes claim beyond the ability of the policy to deliver or beyond the
reasonable expection of performance
• Desbrices benefits that do not match the policy provisions
• Gives information in a misleading way
Regulations
• Advertisement compliance officer
• Changes in advertisement
• Name of the insurance company on advertisement
• Advertisement by insurance agents
• Advertisement on the internet
• Identity of advertiser
• Endorsement and other Third- party Involvements
• Procedure for action in the case of complaint
• Asdherence to advertisement Code
Insurable interest
IRDA has issued a regulation on the protection of policyholder’s interest
regulation, 2002. the said regulation explains disclosure to be made
through a prospectus in respect of insurable interest. No insurer can
hide the insurable interest on excuse that it will be disclosed later. The
said regulation put a control on malpractices those attract propsed
insured on euther hiding the true facts or joining the benefits of
another policy with the policy as subject of insurance contract.

You might also like