The Insurance Regulatory And Devolopment Authority(IRDA)

The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned the insurance companies.

But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business).

The act extends to the whole of India and will come into force on such date as the Central Government may, by notification in the Official Gazette specify. Different dates may be appointed for different provisions of this Act.

The Act has defined certain terms; some of the most important ones are as follows:

Appointed day means the date on which the Authority is established under the act.… Read the rest

Functions of Life Insurance Corporation of India(LIC)

The life insurance business was nationalised on 19th January, 1956 and the Life Insurance Corporation of India came into being on 1st September, 1956 to carry on life business in India with capital of Rs.5 crores contributed by the Central Government. The Corporation is a body corporate having perpetual succession with a common seal with powers to acquire, hold and dispose of property and may by its name sue and be sued.

The functions of the Corporation shall be to carry on and develop life insurance business to the best advantage of the community.

The Corporation shall have power –

(a) to carry on capital redemption business, annuity certain business or reinsurance business in so far as such reinsurance business relating to life insurance business;

(b) to invest the funds of the Corporation in such manner as the Corporation may think fit and to take all such steps as may be necessary or expedient for the protection or realisation of any investment; including the taking over of and administering any property offered as security for the investment until a suitable opportunity arises for its disposal;

(c) to acquire, hold and dispose of any property for the purpose of its business;

(d) to transfer the whole or any part of the life insurance business carried on outside India to any other person or persons, if in the interest of the Corporation it is expedient so to do;

(e) to advance or lend money upon the security of any movable or immovable property or otherwise;

(f) to borrow or raise any money in such manner and upon such security as the Corporation may think fit;

(g) to carry on either by itself or through any subsidiary any other business in any case where such other business was being carried on by a subsidiary of an insurer whose controlled business has been transferred to and vested in the Corporation by this act;

(h) to carry on any other business which may seem to the Corporation to be capable of being

conveniently carried on in connection with its business and calculated directly or indirectly to render profitable the business of the Corporation; and

(i) to do all such things as may be incidental or conducive to the proper exercise of any of the powers of the Corporation.… Read the rest

Tips to organize an effective meeting in a business

What is a meeting?

A meeting is a gathering of people to present or exchange information, plan joint activities, make decisions, or carry out actions already agreed upon. Almost every group activity or project requires a meeting, or meetings, of some sort. In business organizations, different meetings of executives and employees are held to dicuss and debate upon certain matters for taking collective decisions. At these business meetings different proposals are discussed in the light of their pros and cons, and consensus is reached through interaction and influence among various persons. In business, meeting is any focused conversation that has a specific purpose, like taking decision of share capital,issue of dividents,issue of bonus shares, etc.

Purpose of business meetings:

Business meetings are held:

  • To share information or to compare notes on the findings of different memebers.
  • To solve certain problems in business.
  • To take actions through consensus
  • To motivate members in an organization.

Every business organization conducts meetings of the employees, owners and other stakeholders.The company form of organization has to hold different kinds of meetings at various stages of its existence: from the stage of commencement of business to ultimate stage of winding up.

How to organize an effective business meeting?

As discussed earlier, meetings are important in business management.The tips to organize an effective business meeting are as follows:

1. Identify the purpose of the meeting: A business meeting must be purposeful. Whether the objective is to take a decision, solve a problem, provide information, or promote team building, defining the objective ahead of time is crucial.… Read the rest

Definition and nature of a company

A company can be defined as a group of persons associated together for the purpose of carrying on a business, with a view to earn profits. The word ‘Company’ is an amalgamation of the Latin word ‘Com’ meaning “with or together” and ‘Pains’ meaning “bread”. Thus, a company is nothing but a group of persons who have come together or who have contributed money for some common person and who have incorporated themselves into a distinct legal entity in the form of a company for that purpose.

There is very good definition by Lord Justice Lindey, “A company is an association of many persons who contribute money or money’s worth to a common stock and employ it in some trade or business and who share the profit and loss arising there from. The common stock so contributed is denoted in money and is the capital of the company. The persons who contribute it or to whom it belongs are members. The proportion of capital to which each member is entitled is his share. The shares are always transferable although the right to transfer is more or less restricted.”

Characteristics of a Company

A company as an entity has several distinct features, which together make it a unique organization. The following are the defining characteristics of a company: –

1. Separate Legal Entity

On incorporation under law, a company becomes a separate legal entity as compared to its members. The company is different and distinct from its members in law. It has its own name and its own seal, its assets and liabilities are separate and distinct from those of its members.… Read the rest

Important features of database systems

A major feature of a database system is to provide users with an abstract view of data i.e. the system hides certain details of how data is stored and maintained.

1) Data Abstraction

Data abstraction is the property of showing only the necessary details to a user and hides the rest of the details from that user. Since many database system users are not computer trained, developers hide the complexity from users through several levels of abstraction, to simplify user’s interactions with the system.

  • Physical level – This level describes how data is actually stored in the database.
  • Logical level – This level what data are stored in the database and what relationship exist among those data. The entire database is described to a community of users. The logical level of abstraction is used by Database Administrators (DBA) who must decide what information is to be stored in the database. One of the main reasons for using DBMS’s is to have central control of both the data and the programs that access those data. A person who has such central control over the system is called a Database Administrator (DBA).
  • View level – This level describes only part of the entire database that a particular user group is interestedin and hides the rest of the database from that user group. The system may provide many views for the same database.

The inter-relationship between the three levels is as shown below:

2) Instances and Schemas

Databases change over time as information is inserted and deleted.… Read the rest

Introduction to database concepts

A database is a collection of related data. By data, we mean known facts that can be recorded and that have implicit meaning. For example, consider the names, telephone numbers and addresses of the people we know.

A Database Management System (DBMS) is a collection of inter-related data and a set of programs to access those data. The primary goal of a DBMS is to provide an environment that is both convenient and efficient to use in retrieving and storing database information. DBMS is a general purpose software system that facilitates the processes of defining, constructing, manipulating and sharing databases among various users and applications. Defining a database involves specifying the data types, structures and constraints to the data to be stored in the database. The database definition or descriptive information is also stored in the database in the form of a database catalog or dictionary; it is called metadata. Constructing a database is the process of storing the data on some storage medium that is controlled by the DBMS. Manipulating the database includes functions such as querying the database to retrieve specific data, updating the database to reflect the real world changes and generating reports from the data. Sharing a database allows multiple users and programs to access the database simultaneously. Other important functions provided by the DBMS include protecting the database and maintaining it over a long period of time. Protection includes system protection against hardware or software malfunctions and security protection against unauthorized or malicious access.… Read the rest