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TitleMain Project on birla sun life insurance
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inculcates the habit of saving compulsorily, unlike other saving instruments, wherein the

saved money can be easily withdrawn.

3. The beneficiaries to an insurance claim amount are protected from the claims of creditors

by affecting a valid assignment.

4. for a policy taken under the MWP act 1874, (married women‟s property act) a trust is

created for wife and children as beneficiaries.

5. Life policies are accepted as a security for a loan, they can also be surrendered for meeting

unexpected emergencies.

6. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are

spread globally.



INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(IRDA) ACT, 1999

The Insurance Regulatory and Development Authority (IRDA) is a national

agency of the GOVT. OF INDIA, based in HYDERABAD. It was formed by an act of Indian

Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some

emerging requirements.

Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to

regulate, promote and ensure orderly growth of the insurance industry and for matters

connected therewith or incidental thereto."

In 2010, the Government of India ruled that the Unit Linked Insurance Plans (ULIPs) will be

governed by IRDA, and not the market regulator Securities and Exchange Board of India.



FUNCTIONS OF IRDA:

1. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or

Cancel such registration.

2. Protection of the interests of the policy holders in matters concerning assigning of

Policy, nomination by policy holders, insurable interest, settlement of insurance claim,

Surrender value of policy and other terms and conditions of contracts of insurance.

3. Specifying requisite qualifications, code of conduct and practical training for Intermediary

or insurance intermediaries and agents.

4. Specifying the code of conduct for surveyors and loss assessors.

5. Promoting efficiency in the conduct of insurance business.

6. Promoting and regulating professional organizations connected with the insurance and Re-

insurance business.

7. Levying fees and other charges for carrying out the purposes of this Act.

8. Calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance intermediaries and

other organizations connected with the insurance business.

9. Control and regulation of the rates, advantages, terms and conditions that may be offered

by insurers in respect of general insurance business not so controlled and regulated by the

Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938).

10. Specifying the form and manner in which books of account shall be maintained and

http://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India

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which reasonable notice has been given to the insurance advisor. In particular the Insurance

Advisor shall attend all training and refresher sessions for Insurance Advisors unless

prevented by a cause, which in the opinion of BSLI is reasonable.

Where the Insurance Advisor intends to bring out or publish any material in any form through

any medium, concerning BSLI, its business or its Insurance Products, the Insurance Advisor

shall obtain prior written approval of BSLI. Further, he shall observe, follow and comply

with the provisions of the Insurance Regulatory and Development Authority (Insurance

Advertisements and Disclosure) Regulations, 2000 of the same.

The Insurance Advisor shall solicit and procure life insurance business for BSLI and

discharge his obligations under this Agreement in accordance with BSLI‟s corporate

objectives and with particular regard to BSLI‟s image and standing in the industry and in the

community.

The Insurance Advisor shall observe, follow and comply with all the communication,

directions and instructions given by BSLI from to time, either generally or with particular

reference to the Insurance Advisor. Such communications, directions and instructions may be

sent by courier, email, post, and fax or may be posted on the Restricted Website Area.

The Insurance Advisor shall familiarize himself with the Application Law as in force time to

time and which has a bearing on the discharge of his obligations as an insurance agent;

provided that in the event of any change in the Applicable Law resulting in a dilution or

abrogation of his obligations under this Agreement, to the extent not provided otherwise, the

Insurance Advisor shall continue to be bound by the obligations as were existent prior to such

change, unless expressly approved in writing by BSLI, or unless inconsistent with Applicable

Law.

The Insurance Advisor shall not solicit or procure life insurance business for or promote the

sales or distribution of the Insurance Products of any other Insurance company or seek or

obtain or commence any employment in any other life insurance company so long as this

Agreement is in force and for a period of six months after its termination. BSLI may however

in writing waive the conditions under this sub clause.

The Company will be entitled to levy charges of deduct them from amounts payable to the

Insurance Advisor as it may deem fit in respect to any of the services provided by the

Company to the Insurance Advisor.

Compensation and Remuneration:

As compensation and remuneration for the due performance of his obligations under this

Agreement, the Insurance Advisor shall be paid commission at such rates as may be notified

by BSLI to the Insurance Advisor from time, subject to deduction of applicable taxes under

the law in force from time to time in respect of policies effected through the insurance

Advisor; provided that the Insurance Advisor may be paid commission for effecting the

revival of lapsed policies subject to the provision of Sub-section(2A) of Section 40 of the

Act. The Insurance Advisor agrees to provide his income tax PAN number, or if acquired

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subsequently, immediately after the same has been so acquired. In the event of failure to

provide PAN number, the Company will be entitled to block the payments of the Insurance

Advisor.

BSLI shall be entitled to deduct the service tax (or any similar tax, in lieu of or in addition to

service tax), including any cess, surcharge or similar tax thereon, from the commissions or

any other amounts payable to the Insurance Advisor. However, in best commercial interests

BSLI may decide to recover only a part of such taxes and bear the rest.

The Insurance Advisor shall be deemed to have notice of the revised commission rates at the

earliest of (a) on receipt of the written notice as per (a) above; or (b) publication or posting on

the Restricted Website Area as per clause (b) above; or (c) copies of such revision being

made available to BSLI office, branch, outlet or franchise nearest to the address of the

Insurance Advisor as per clause (c) above.

BSLI shall be entitled to specify (and revise) differential commission rates for different

Insurance Products and based on various parameters including new business premiums,

renewal premiums, business done by Insurance Advisor etc.

In case of any excess or wrong payment of commission or any amount to the Insurance

Advisor or any commission or any amount which subsequent to their payment becomes

recoverable or receivable from the Insurance Advisor for any reason whatsoever, BSLI shall

be entitled to adjust such amounts (which have been paid in excess or wrongly or have to be

received / recovered back ) in the subsequent payment(s) to the Insurance Advisor,

Alternatively, or where no amounts are due to the Insurance Advisor, BSLI will require the

Insurance Advisor to repay or refund forthwith such amounts, and thereafter the Insurance

Advisor shall repay the amount within 15 days after the receipt of any communication from

BSLI in that regard.

Miscellaneous provisions:

All forms, applications, documents, properties or securities received by the Insurance Advisor

for or on behalf of BSLI shall be held by him in trust for BSLI, and shall be promptly handed

over to BSLI. Upon termination or cessation of this Agreement the Insurance Advisor shall

promptly deliver / return, to BSLI in good condition all forms, application, documents,

properties or securities and all sales literature, manuals and computer software received from

or for or on behalf to or provided by BSLI In the event of failure of the Insurance Advisor to

do so, BSLI shall be entitled to inform about such failure to IRDA, to organizations with

which the Insurance Advisor has employment or to his business associates including any

insurance company of which the Insurance Advisor becomes or proposes to become the

insurance advisor, and further I BSLI will not furnish the NOC to the Insurance Advisor till

such time the failure continues.

Definition of market potential

According to personal.umich.edu, market potential is defined as the capacity of a location,

such as a country, to become or to grow as a demander of goods and services that outside

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