Page |1
STERLING INSURANCE ATI SERVICES
IC-38
NEW SYLLLABUS
(LIFE)
Sterling Insurance ATI Services
, Page |2
CONTENTS
Chapter
Title Page no
no.
SECTION 1 COMMON CHAPTERS
1 Introduction to Insurance 3
2 Customer Service 8
3 Grievance Redressal Mechanism 13
4 Regulatory aspects of Insurance Agents 17
5 Legal Principle of an Insurance Contract 19
SECTION 2 LIFE INSURANCE
6 What Life Insurance Involves 23
7 Financial Planning 26
8 Life Insurance Products – I 30
9 Life Insurance Products – II 34
10 Applications of Life Insurance 38
11 Pricing and Valuation in Life Insurance 42
12 Documentation – Proposal Stage 48
13 Documentation – Policy Condition - I 52
14 Documentation - Policy Condition - II 56
15 Underwriting 65
16 Payments Under a Life Insurance Policy 71
SECTION 3
HEALTH INSURANCE CHAPTERS
17-21 Health Insurance Chapters 76
MOCK TEST QUESTION PAPERS
Sterling Insurance ATI Services
, Page |3
Chapter – 1
Introduction to Insurance
Insurance – in simple language it means to transfer risk to someone who is capable of handling
it generally to insurer (Insurance Company).
A) Life insurance history and evolution:-
The origin of insurance business started from London‟s Lloyd coffee house.
1st Life insurance company in the world was Amicable society for Perpetual
Assurance.
st
1 life insurance company to be set up in India was The Oriental Life
Insurance company ltd.
st
1 Non-life insurance company established in India was Triton Insurance
company ltd.
st
1 Indian insurance company was Bombay Mutual Assurance society ltd found
in 1870 in Mumbai.
National Insurance company ltd. is the oldest insurance company founded in
1906.
In 1912, the Life Insurance Companies Act and the Provident Fund Act were
passed to regulate the insurance business.
The Life Insurance Companies Act 1912 made it compulsory that premium-
rate tables and periodical valuation of companies be certified by an actuary.
The Insurance Act 1938 was the first legislation enacted to regulate the conduct
of insurance companies in India.
Life insurance Business was nationalized on 1st September 1956 by merging 170
insurance companies and 75 Provident Fund societies and Life Insurance
corporation of India ( LIC ) was formed..
Sterling Insurance ATI Services
, Page |4
Non – Life insurance business was nationalized in 1972 by amalgamating
106 insurers, General Insurance Corporation of India (GIC) & its 4 subsidarieswas
formed.
Malhotra committee and IRDA : Malhotra committee – setup in 1993 to explore and
recommend changes for development & it submitted the report in 1994.
IRDAI – Insurance regulatory and Development Authority of India was setup by
an act IRDA Act 1999 as a statutory regulatory body for both life and nonlife
Life insurance industry today:
a) Life Insurance Corporation (LIC) of India is a public sector company.
b) There are 23 life insurance companies in the private sector
c) The postal department, under the Government of India, also transacts life insurance
business via Postal Life Insurance, but is exempt from the purview of the regulator
How Insurance Works:
There must be an asset which has economic value (Car-physical; Goodwill-nonphysical;
Eye-personal). These assets may lose value due to uncertain event. This chance of
loss/damage is known as risk. The cause of risk is known as peril. Persons having similar
risks pool (contribute) money (premium) together.
There are 2 types of Risk Burdens –
Primary burden of risk – losses actually suffered. E.g. Factory getting fire.
. Secondary burden of risk – losses that might happen. Eg. physical/mental Stress strain.
Risk management techniques: - The various types of techniques that can be used to manage
risk are
Risk avoidance - Controlling risk by avoiding a loss situation
Risk retention - One tries to manage the impact to risk and divides to bear the risk and
its effects by oneself.
Sterling Insurance ATI Services
STERLING INSURANCE ATI SERVICES
IC-38
NEW SYLLLABUS
(LIFE)
Sterling Insurance ATI Services
, Page |2
CONTENTS
Chapter
Title Page no
no.
SECTION 1 COMMON CHAPTERS
1 Introduction to Insurance 3
2 Customer Service 8
3 Grievance Redressal Mechanism 13
4 Regulatory aspects of Insurance Agents 17
5 Legal Principle of an Insurance Contract 19
SECTION 2 LIFE INSURANCE
6 What Life Insurance Involves 23
7 Financial Planning 26
8 Life Insurance Products – I 30
9 Life Insurance Products – II 34
10 Applications of Life Insurance 38
11 Pricing and Valuation in Life Insurance 42
12 Documentation – Proposal Stage 48
13 Documentation – Policy Condition - I 52
14 Documentation - Policy Condition - II 56
15 Underwriting 65
16 Payments Under a Life Insurance Policy 71
SECTION 3
HEALTH INSURANCE CHAPTERS
17-21 Health Insurance Chapters 76
MOCK TEST QUESTION PAPERS
Sterling Insurance ATI Services
, Page |3
Chapter – 1
Introduction to Insurance
Insurance – in simple language it means to transfer risk to someone who is capable of handling
it generally to insurer (Insurance Company).
A) Life insurance history and evolution:-
The origin of insurance business started from London‟s Lloyd coffee house.
1st Life insurance company in the world was Amicable society for Perpetual
Assurance.
st
1 life insurance company to be set up in India was The Oriental Life
Insurance company ltd.
st
1 Non-life insurance company established in India was Triton Insurance
company ltd.
st
1 Indian insurance company was Bombay Mutual Assurance society ltd found
in 1870 in Mumbai.
National Insurance company ltd. is the oldest insurance company founded in
1906.
In 1912, the Life Insurance Companies Act and the Provident Fund Act were
passed to regulate the insurance business.
The Life Insurance Companies Act 1912 made it compulsory that premium-
rate tables and periodical valuation of companies be certified by an actuary.
The Insurance Act 1938 was the first legislation enacted to regulate the conduct
of insurance companies in India.
Life insurance Business was nationalized on 1st September 1956 by merging 170
insurance companies and 75 Provident Fund societies and Life Insurance
corporation of India ( LIC ) was formed..
Sterling Insurance ATI Services
, Page |4
Non – Life insurance business was nationalized in 1972 by amalgamating
106 insurers, General Insurance Corporation of India (GIC) & its 4 subsidarieswas
formed.
Malhotra committee and IRDA : Malhotra committee – setup in 1993 to explore and
recommend changes for development & it submitted the report in 1994.
IRDAI – Insurance regulatory and Development Authority of India was setup by
an act IRDA Act 1999 as a statutory regulatory body for both life and nonlife
Life insurance industry today:
a) Life Insurance Corporation (LIC) of India is a public sector company.
b) There are 23 life insurance companies in the private sector
c) The postal department, under the Government of India, also transacts life insurance
business via Postal Life Insurance, but is exempt from the purview of the regulator
How Insurance Works:
There must be an asset which has economic value (Car-physical; Goodwill-nonphysical;
Eye-personal). These assets may lose value due to uncertain event. This chance of
loss/damage is known as risk. The cause of risk is known as peril. Persons having similar
risks pool (contribute) money (premium) together.
There are 2 types of Risk Burdens –
Primary burden of risk – losses actually suffered. E.g. Factory getting fire.
. Secondary burden of risk – losses that might happen. Eg. physical/mental Stress strain.
Risk management techniques: - The various types of techniques that can be used to manage
risk are
Risk avoidance - Controlling risk by avoiding a loss situation
Risk retention - One tries to manage the impact to risk and divides to bear the risk and
its effects by oneself.
Sterling Insurance ATI Services
