Summary |
Concept of insurance was brought into existence on the basis that in the event of unforeseen incidents like death by accidents, theft, fire and other major events, there should be made a provision for livelihood of the deceased’s family and also to make good the losses occurred by aforesaid events. It was also a sort of compulsory saving of a person who contributed slowly and gradually upto a certain period and if no unforeseen event took place, the money deposited alongwith a bonus was given. This system was run by private concerns and there was no harmonious law. It was, therefore, thought to provide a code for such type of business, its control, managements and other allied matters. It was just a codification of rules and for convenience and benefit of people and also for the business of insurance.
It was with this view a codified law known as the insurance act, 1938 was brought into existence. This act provided at large for business with insurer’s control over management, premiums, winding-up and tariff. This act has undergone several changes by other enactments from time to time. It has undergone a change in 1956, 1971 and 1992. It became standstill after nationalization of insurance business, since the insurance business was in private hands. There were anomalies which necessitated the introduction of this act. (the insurance act, 1938).
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