Insurance Policies and Claims

Subsidy is not an element of the life insurance business.

A fixed benefit annuity is where the insurer guarantees a defined amount of monthly annuity benefit for each rupee applied to purchase an annuity. The guarantee implies that the insurer bears the investment risk.

Life insurance policies are contracts of assurance, while general insurance policies are contracts of indemnity.

In a policy document, it is now compulsory to indicate the address of the local Ombudsman.

IRDA has prescribed the design and content of a proposal form through IRDA (Standard Proposal Form for Insurance) Regulations, 2013.

Conditional assignment would suit the intended purpose because conditional assignment provides that the policy shall revert back to the life assured on his or her surviving the date of maturity or on death of the assignee.

Uberrima fides means "utmost good faith", which means every party to an insurance contract must disclose all material information.

All the options are correct, except option 3. Sharing commission with a client is illegal.

This policy is quite risky because your cash value and death benefit can fluctuate according to the performance of your investment portfolio. Therefore, if your underlying investments perform well, then your cash value and death benefit may increase accordingly. If your investments perform worse than you expected, your cash value and death benefit may decrease.

Insured - The person who obtains or is otherwise covered by insurance on his or her health, life, or property is called "insured". In consideration of this, the insured provides premium to the insurer (The Insurance Company).

Yes, a complaint can be launched against a private insurer. There are 17 Insurance Ombudsmen in different locations and you can approach the one having jurisdiction over the location of the insurance company office that you have a complaint against. 

All the above statements are correct. According to Indian Stamp Act, "Policy of insurance" includes (a) any instrument by which one person, in consideration of a premium, engages to indemnify another against loss, damage or liability arising from an unknown or contingent event (b) a life policy and any policy insuring any person against accident or sickness, and any other personal insurance

Life insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually, the insurance contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death if it occurs earlier. Obviously, there is a price to be paid for this benefit. Among other things, the contract also provides for the payment of premiums by the assured. First Premium Receipt marks the beginning of the contract. 

The calculated difference between net premium and gross premium equals the expected present value of expense loadings less the expected present value of future expenses. The typical loading to a net premium would have 3 parts: (a) a percentage of premiums, (b) a constant amount for each ‘1000 sum assured’ and (c) a constant amount per policy.

If the insured person loses the original life insurance policy document, the insurance company will issue a duplicate policy without making any changes to the contract.

Term insurance plan is pure risk cover which pays out the sum assured in case of death and does not have any maturity benefits. You do not get any maturity benefits in a pure term plan because it is a pure protection insurance plan.