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  Study Material IC-12-2

INSURANCE BUSINESS ENVIRONMENT IC-12

QUESTION-NASWERS

Q. 1 Describe Marine Insurance Act, 1963 and discuss unique features of the Act.

The Indian Marine Insurance Act, 1963, is based on the Marine Insurance Act, 1906, passed in U.K. Before the passing of Act, marine insurance was governed by common law. The marine insurance act, 1906 codified marine insurance law comprising a large body of case laws, consist of over 200 reported cases, spanning a period of three centuries. The act forms the basis of present day marine insurance law.

Marine Insurance, being the oldest branch of insurance, its practice, over centuries, has been influenced by various customs and usages. A unique feature of the Act is that, whilst it states the law, it also allows for continuation of existing underwriting practices, conventions, etc. for example:

i. The Act provides for measure of insurable value but subject to any express provision or valuation in the policy. Thus, underwriters issues ‘agreed value’ policies in hull and cargo insurance.

ii. The Act provides that a marine policy may be transferred by assignment unless it contains terms expressly prohibiting assignment. Thus, hull policies contain a clause prohibiting assignment, unless prior consent of underwriters is obtained.

Q. 2. Which act in your opinion, seeks to regulate matters related to the transportation of goods from any place in India to any place outside India using two or more modes of transportation? Give salient features of the concerned act.

Multi Modal transportation Act, 1993, seeks to regulate matters related to the transportation of goods from any place in India to any place outside India using two or more transport, under a single transport contract.The act provides for registration of multi model transport operators, who are engaged in transportation of goods under more than one mode of transport, i.e. rail/road and sea. The act prescribes the limits of liability of the operator, contents of documents issued by them, notice of loss, etc.The salient features of this act are:

a. Those doing multi modal transportation business have to be registered.

b. The multi model transporter (MTO) has to assume responsibility for the performance of the contract.

c. Unless there is a specific reservation to the contrary, the transport contract will be prima facie evidence that the MTO had taken charge of good

d. The MTO liable for the loss or damage to consignment, unless he proves that there has been no fault or neglect on his part

e. The liability for loss shall be limited to the provisions of the laws applicable in relation to the mode of transport during which the loss or damage had occurred. Stipulation in the contract to the contrary will be void

f. The MTO’s liability is limited to the total loss of goods.

Q. 3. Why a Capitalistic System is also called the Laissez Faire System?

Laissez Faire System, in economics and politics, refers to a doctrine that an economic system functions best when there is no interference by government. It is based on the belief that the natural economic order tends, when undistributed by artificial stimulus or regulation, to secure the maximum well being for the individual and therefore for the community as a whole. The same can be seen in the Capitalistic System as:

i. The control of the state is minimal

ii. The means of production and the resources are in private hands, who decide what they would like to produce iii. The consumer is sovereign

iv. Goods and prices are determined by the market trends v. Free competition is allowed in the economy. Private profit is a major motivation.

vi. Government’s role is to protect property rights, ensure fair practices, regulate entry and exit, enforce ensure contractual obligations

Based upon the above, we can say that the Capitalistic System is also the Laissez Faire System.

Q. 4. Discuss the thrust areas of National Population policy-2001.

The National Population Commission, set up by the Government of India comprises of the Prime Minister, all the Chief Ministers and representatives of concerned departments like education, health, human resources, social justice, environment and forests, etc. the commission, in its National Population policy of 2001 has stated itsives, economic and social development so as to improve the quality of life and well being of its people.

The National Population policy- 2001 lays stress on the following:

i. Free and compulsory education for all children up to age of 14

ii. Reducing dropouts from schools to less than 20%

iii. Reducing infant mortality rate to less than 30 per thousand live births

iv. Reducing maternal mortality to less than 100 per 1 lakh live births from 437

v. Using contraceptives and better health care infrastructure

vi. Encouraging use of indigenous systems of medicine vii. Utilizing the resources of NGOs, women organizations, panchayats and nagarpalikas (Municipal Corporaotions)

viii. Collaborating with corporate sector.