Professional Documents
Culture Documents
IC 38 Crash Course Ver 1.0 Updated
IC 38 Crash Course Ver 1.0 Updated
IC 38 Crash Course Ver 1.0 Updated
Insured Consumer Forum Non Par Product PPN Utmost Good Faith
Contract
1. As per Indian Contract Act 1972 insurance is contract between Insurer and Insured.
2. Contract – Agreement between two or more than two parties.
3. Elements of a valid contract – Offer & acceptance, Consideration, Agreement between the parties
(consensus ad idem) , Capacity of the parties, and Legality.
1. Principle of Utmost Good Faith (Uberimma Fides) - Disclose of all material facts which influences
the decision of prudent underwriter at the time of assessing the risk of an individual
2. Breach of Utmost Good faith – Non disclosure and Mis-representation of material facts.
3. Principle of Insurable Interest – For whom you can take Insurance.
4. Insurable Interest (pecuniary / financial) should be present at the time of inception in Life Insurance,
at the time of Claim in marine Insurance and In Non life Insurance it should be present at the time of
Inception and claim.
5. Insurable interest is present in – Self ( one’s own financial Interest)., Husband-Wife, Parent-Children,
Creditor-Debtor, & Employer-Employee.
6. Principle of Indemnity – Indemnifying the loss or compensated up to the amount of loss.
Applicable for non life insurance only.
7. Coercion - Pressure applied through criminal means
8. Section 45 – Indisputability Clause – 3 yrs – to protect the interest of Insrured Person
Risk
1. Insurance is an Intangible Product 6. Death Benefit under ULIP Plan – Sum Assured or
2. Transactional Product – Bank Deposits Fund Value whichever is higher.
3. Contingency Products – Life Insurance 7.In ULIP policy – Investment risk is borne by the
4. Wealth Accumulation product – Shares(Equity) Insured.
5.Best time for doing Financial Planning – Once 8.House Holders Insurance – Gold and Silver
gets his 1st Salary ornaments are covered.
9. Bonus – Simple & compound Reversionary,
Terminal Bonus
OCB Training Team Initiative – Strictly for internal trainings
Type of Products
Insurance Products
Keyman Insurance
1.Keyman Insurance - The Sum Assured under the policy linked to the Business Profitability by the Key
employee till his/her tenure.
2. Premium is paid by the company.
3. In case the insured dies, benefits are paid to the company.
4.Who can be a Keyman – A key person can be anyone directly associated with the business whose loss can
cause financial strain to the business.