Insurance is a legal agreement between an insurer (insurance company) and an insured (individual/legal entity), in which an insured receives financial protection from an insurer for the losses he may suffer under specific circumstances. In insurance policy, there are three important terms viz. Premium, Sum insured, Sum assured. Premium: The insured needs to pay a…
Insurance penetration and density are two metrics, that so often used to assess the level of development of the insurance sector in a country. These metrics are normally expressed in terms of US$. Insurance Penetration: Insurance penetration is measured as the percentage of insurance premiums to the GDP of the country. For instance, if a…
Reserve Bank of India (RBI) on Thursday issued an order restraining payments by companies through intermediaries to non-card-accepting recipients for violation of section 4 of the Payment and Settlement Systems (PSS) Act. While the central bank did not name the card network, it said that one card network has arrangements to allow such payments through…
Privatisation and foreign direct investment (FDI) have been seen by policymakers, in India and abroad as key components of India’s reform program. Indian Parliament on 22 March 2021 passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49%. With the Union Cabinet approving…
Insurance denotes protection from financial loss in which, one party (an insurance company) in exchange for the amount of premiums it collects agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or…
Financial Market is a type of Market in which bonds and securities are traded. Price discovery is a process that determines market prices, mostly through interactions between buyers and sellers. Price discovery is a method for determining the spot price of a commodity through interactions between sellers and buyers – often referred to as a…
This article elucidates – Pension System and its Aspects – Pension Products – Different Types of Pension Schemes, – Employees Provident Funds Scheme – Public Provident Fund (PPF) Scheme **– Insurance Annuity Schemes – National Pension Scheme (NPS)– Atal Pension Yojana (APY).] The Royal Commission on Civil Establishments, in 1881, first awarded pension benefits to…
An annuity plan is an insurance contract between you (the annuitant) and an insurance company to provide you with a regular stream of 100% guaranteed pension for a lifetime after retirement. This helps you to secure your life goals and create a financial net for your family. The life insurance company invests your money and…
A retirement fund’s investments typically include a broad portfolio of stocks, bonds, mutual funds, and other assets. The primary goal is to gradually accumulate wealth; ensuring individuals have a sizeable nest egg to support a comfortable and financially secure retirement. Retirement mutual funds are focused funds for the golden years with a lock-in of at…
The Provident Funds Bill was introduced in the Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments. The Act is now referred to as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 which extends to the…
