SUBMITTED BY

Priyanka Dhali (43)

Priyashree Roy (44)
Pronoto sen (45)
Puja Debnath (46)
 Insurance is a term in law and economics. It is something
people buy to protect themselves from losing money. People who
buy insurance pay a “premium” (often paid every month) and
promise to be careful (a “duty of care”).
• Act was passed to control the working and activities of the
companies carrying on business of life, fire ,marine and
accident insurance.
• Apart from the above Act, the Indian insurance business is
governed by the following special Acts.
• To provide against the risk and insecurity
• But, it does not avert or eliminate loss arising from
uncertain events.
• It only spreads the loss over a large number of
people.
 Apart from the above Act, the Indian insurance business is governed by the following special

Acts. TYPES OF INSURANCE

Life Insurance Non- Life Insurance

General Insurance Miscellaneous Insurance

1. Fire insurance 1. Fidelity Guarantee Insurance

2. Marine insurance 2. Crop Insurance
3. Personal Accident Insurance 3. Burglary Insurance
4. Motor Vehicle Insurance 4. Cattle Insurance
5. Cash in transit Insurance
• Life Insurance can be termed as an agreement between the
policy owner and the insurer, where the insurer for a
consideration agrees to pay a sum of money upon the
occurrence of the insured individual’s or individuals’ death or
other event, such as terminal illness, critical illness or
maturity of the policy.
Term Insurance
Endowment Insurance Plan.
Permanent (whole) Life Insurance
Unit Linked Plans (ULIPs)
• Insurance against loss due to fire.
• A fire Insurance involves an insurance company
agreeing to pay a certain amount of equivalent to the
estimated loss caused by fire to the insured, within the
time specified in the contract.
 Building
 Electrical installation in buildings
 Machinery, plant and equipment
 Goods (raw materials, stocks in process, semi finished, finished etc)
 Godowns, Goods in open
 Contents in dwellings (Household)
 Shops, hotels etc.
 Furniture, fixture and fittings, pipelines located inside or outside the compound etc.
 Loss Due to fire cause by-
• Earthquake
• Attach of foreign enemy
• Civil strife (war)
• Mutiny (pub. Vs. Govt.)
• Military rising
 Loss caused by subterranean(underground) fire.
 Loss caused by burning of property by order of any public authority.
Personal accident insurance is an agreement between the insurance company and the
person insured where the former will provide financial compensation to the latter or
his/her family in case of permanent disability /death caused directly and only due to any
accident. You will find an accident insurance policy from several insurance companies
in the country. In case there is an injury due to an accident that requires immediate
treatment, the policy will ensure coverage for the costs in this case. These
reimbursement amounts are very useful in such situations. Several policies have risk
coverage against accidental death of the person insured. There is coverage for disability
caused by an accident. These plans are often available as add-ons with home or car
insurance policies.
• Motor insurance (also known as vehicle/car/auto insurance)is
insurance purchased for cars, trucks, and other road vehicles. Its
primary objective is to provide protection against physical
damage resulting from traffic collisions and against liability that
could also arise there-from.
Not having a valid Driving License
Under influence of intoxicating liquor/ drugs
Accident taking place beyond Geographical limits
While vehicle is used for unlawful purposes
Electrical/Mechanical Breakdowns
Provides protection against occurrence of uncertain events.
Device for eliminating risks and sharing losses.
Co-operative method of spreading risks.
Facilities international trade.
Serves as an agency of capital formation.
Financial support.
Medical Support
Source of employment.
 The contract of insurance is called an aleatory contract.
 At first sight, this would seem to be a wagering agreement, because insurer
betting with the insured that his house will not be burnt.
 But, modern view is that insurer contracts are not speculative or wagering.
 In actual practice, it is a valid contract, because the insured is only
imdemnified for his loss ad he dose not gain by the happening of the event
insured against.
 Plus he must have an insurable interest in the subject matter.
Contract of insurance is a species of the general contact.
Comes into existence by the process of offer by insured to
insurer.
Insurer should communicate its acceptance.
 Object of insurance must be lawful and consent must be free
and genuine.
Contract must be supported by consideration.
 Principle of utmost good faith.
Principle of insurance interest.
Principle of Indemnity
Principle of contribution.
Principle of subrogation.
Principle of loss minimization.
Principle of causa proxima ( the nearest cause)
 Case on insurance fraud:
Jeevan Suraksha Group managing director Chandan Das and his wife Sangita were arrested on May,2013 from Barasat near
Calcutta by sleuths of the criminal investigation department (CID) of Assam police.
A police source said Das, who was reportedly hiding at Barasat since October under the alias of Deepak Das, was arrested
this morning from a house in the town in Bengal’s North 24-Parganas district by a Assam CID team led by additional
superintendent of police Nirmal Baishya. The special operations group of the Bengal CID assisted the team.
Das and his wife, also a director of the company, were absconding after allegedly duping depositors across Assam of crores of
rupees.
According to the source, a large number of “incriminating documents” and more than Rs 4.5 lakh in cash were seized
from the couple, who were later produced in a Barasat court, which granted the CID a two-day transit remand to bring them to
Assam.
They were flown to Guwahati on a Jet Airways flight from Calcutta next day. Agitated depositors and employees of the group
greeted the duo outside the Lokapriya Gopinath Bordoloi International Airport at Borjhar, from where they were taken to the
CID headquarters at Ulubari amid tight security.
“The duo is likely to be produced in court here tomorrow in connection with case number 81/2012 registered against
them at the CID police station for allegedly duping their depositors,” the source said, adding that Das’s arrest was an
“important” breakthrough for the investigators.He said Jeevan Suraksha Group had made investments in a rubber plantation at
Lumding, real estate in Guwahati and a drinking water project at Hojai, apart from the dairy, food processing, warehousing,
media and education sectors in the state.
Former employees of the group had staged demonstrations under the banner of Jeevan Suraksha Workers’ Welfare
Association at Dispur Last Gate on December 10 last year and in Chirang and Bongaigaon districts on January 5
against the fraud committed by the company. They also filed a petition against as per ESI Act.
The source said three more cases were registered against the group with the Bureau of Investigation (Economic
Offences) of Assam police.
Bureau sleuths had raided the company’s office at Dimapur in Nagaland and Lumding in Assam’s Nagaon district
a couple of months ago and seized computers and documents, among other things. The seized documents were
records of the company’s public deposit collections. The bureau then sealed both offices of the company and froze
around 30 bank accounts of the company and its directors. It is alleged that the company collected money from
people as recurring deposits through agents in Assam with the promise that on maturity, the principal amount
would be returned with interest.
Markets regulator Sebi has asked Jeevan Suraksha Real Estate and its directors to refund money to investors that
the company raised illegally through redeemable preference shares (RPS).
Besides, the Securities and Exchange Board of India (Sebi) also imposed a ban on the company and its seven
directors -- Chandan Das, Ashok Chakraborty, Uttam Acharjee, Champa Biswas, Sangita Das, Arju Acharjee and
Dipamoni Acharjee -- for four years from the completion of refund.
According to Sebi, the Assam-based company raised Rs 6.30 crore from over 299 entities during 2006-07, 2008-
09 and 2009-10.
 The Employees State Insurance Act, 1948

It is one of the most important social legislation in India. It aims to guarantee certain benefits to
insurable employees working in factories and establishment.
This is because the failure of employers to carry out their obligations directly effects their
employees. In order to prevent this the act allows court to punish employers with imprisonment
as well as fines. In certain cases even employees can be liable for punishment under this act.
There are some penalties under the act which ensures the employers and managers comply with
its provisions.
Section 84 to 86 describes these penalties.
 The Penalties Under The Act

• Section 84: “Penalty for false statements”

• Section 85: “Penalty for non compliance with provision”
• Section 85 (a): “Penalty for failure to pay a contribution”
• Section 85 (b) to (g): “Penalty for non compliance with other requirements”
• Section 85-A: “Punishment for repeating an offence”
• Section 85-B: “Power of ESI Corporation to recover contribution”
• Section 84-C: “Court’s power to direct payment of contribution”
• Section 86-A: “Offences by companies”
Thank You