1. Presented by: Swet Raj Prashant Mishra Anubha Tyagi Divya Aggarwal Rahul Amin Presented by: Swet Raj Prashant Mishra Anubha Tyagi Divya Aggarwal Rahul Amin

2. The Insurance Act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. Purpose:- to safe guard the interest of insured, setting the norms for carrying out the business of insurance smoothly, Minimizing disputes INTRODUCTION

3. Dictionary of business and Finance defines “Insurance as a form of contract agreement under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make good a loss, damage or injury to something of value in which the insured has a interest as a result of some uncertain event. INSURANCE ACT 1938

4.  Provides protection against occurrence of uncertain events.  Device for eliminating risks and sharing losses.  Co-operative method of spreading risks.  Facilitates international trade.  Serves as an agency of capital formation.  Financial support.  Medical support.  Source of employment. IMPORTANCE OF INSURANCE

5. TYPES OF INSURANCE

6.  Life insurance is a contract between the policy owner and the insurer,  where the insurer agrees to reimburse the occurrence of the insured individual's death or other event such as terminal illness or critical illness.  The insured agrees to pay the cost in terms of insurance premium for the service. Specific exclusions are often written in the contract to limit the liability of the insurer, for example claims related to suicide, fraud, war, riot and civil commotion is not covered. LIFE INSURANCE:

7. Insuring anything other than human life is called general insurance. Examples are insuring property like house and belongings against fire and theft or vehicles against accidental damage or theft. Injury due to accident or hospitalisation for illness and surgery can also be insured. Your liabilities to others arising out of the law can also be insured and is compulsory in some cases like motor third party insurance GENERAL INSURANCE

8. Insurance that is used to cover damage to a property caused by fire. Fire insurance is a specialized form of insurance beyond property insurance, and is designed to cover the cost of replacement, reconstruction or repair beyond what is covered by the property insurance policy. Policies cover damage to the building itself, and may also cover damage to nearby structures, personal property and expenses associated with not being able to live in or use the property if it is damaged. FIRE INSURANCE

9. A type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured. Health insurance can either reimburse the insured for expenses incurred from illness or injury or pay the care provider directly. Health insurance is often included in employer benefit packages as a means of enticing quality employees. HEALTH INSURANCE

10. Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred MARINE INSURANCE

11.  Risk Cover  Planning for life stage needs  Protection against rising health expenses  Builds the habit of thrift  Safe and profitable long-term investment  Assured income through annuities  Protection plus savings over a long term  Tax Benefits BENEFITS OF INSURANCE

12. BY INVESTING IN A LIFE INSURANCE POLICY, YOU CAN AVAIL THE FOLLOWING BENEFITS UNDER THE INCOME TAX ACT, 1961:

13.  Deduction is available amounting to Rs. 1,50,000/-.  The deduction would be available for life insurance premium paid restricted to 10% of the actual capital sum assured.  Surrender of Plan before premium has been paid for two years will result in reversal of the tax benefit DEDUCTIONS FROM GROSS INCOME SEC 80C

14.  Deduction in respect of contribution to pension funds  Maximum Rs. 1,50,000/-  Surrender/Withdrawal will be subjected to tax.  Pension received will be subject to tax. 80CCC

15. Under Section 80CCE, the overall limit for deduction u/s 80C, u/s 80CCC and u/s 80CCD(1) is Rs. 1,50,000/-. SEC 80 CCE

16.  Deduction in respect of medical insurance premium  Individual or HUF whether resident or non resident  Premium can be paid by any mode other than cash  For individuals the maximum deduction is Rs.15,000/- and for senior citizens age 60 years and above the deduction is Rs. 20,000/-.  Deduction for payment made for preventive health checkup subject to maximum of Rs. 5,000/- (inclusive in the aforesaid limit of Rs. 15,000 or Rs. 20,000) 80D

17.  Where parents are aged below 60 years Rs. 15,000/-  Where parents are aged 60 years & above Rs. 20,000/- ADDITIONAL DEDUCTION ALLOWED FOR INDIVIDUALS FOR TAKING HEALTH INSURANCE FOR PARENTS AS UNDER:

18.  Commuted pension: 10(10A)(iii) Commuted Pension received from Pension fund (Pension Plans approved by IRDA) would be tax-free EXEMPTION FROM THE PROCEEDS

19.  Any sum received from Life insurance policy as maturity proceeds, death benefits is tax free subject to fulfillment of the conditions mentioned therein.  Proceeds of key man insurance is taxable. A keyman policy will remain keyman policy even after assignment of the policy.  An Insurance policy in respect of which the premium payable for any of the years during the term of the policy exceeds 10 % of the actual capital sum assured will not be eligible for Sec 10(10D) benefit. This will not be applicable for any sum received on the death of a person. 10(10D)

21.  The insurance Act, 1938 to govern all form of insurance and to provide strict control over insurance business.  Insurance Regulatory and authority act, 1999 (to provide) for the establishment of an authority to protect the interest of the holder of insurance policy, to regulate, promote and ensure orderly growth of insurance industry and for matter connected therewith or incidental thereto and future to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the general insurance business (Nationalization) act, 1972.  The Actuaries Act, 2006 (An Act to provide for regulating and developing the profession of Actuaries and for matters connected therewith or incidental thereto). ACTS GOVERNING INSURANCE

22.  Insurance law regulations in India manage all the matters related to various insurance companies in the country. The concept of insurance in India dates back to the ancient period.  Entry of Private Companies.  Regulatory Authorities.  Insurance Regulatory and Development Authority. INSURANCE LAW REGULATIONS

23. Insurance Regulatory & Development Authority is regulatory and development authority under Government of India in order to protect the interests of the policyholders and to regulate, promote and ensure orderly growth of the insurance industry. INSURANCE REGULATORY & DEVELOPMENTAUTHORITY

24. POWERS AND FUNCTIONS OF IRDA.

26. The creation of IRDA has brought revolutionary changes in the Insurance sector. In last 10 years of its establishment the insurance sector has seen tremendous growth. When IRDA came into being; only players in the insurance industry were Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC), however in last decade 23 new players have emerged in the filed of insurance. The IRDA also successfully deals with any discrepancy in the insurance sector. IMPACT OF IRDA ON INDIAN INSURANCE SECTOR