Components of Insurance Law

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Components of Insurance Law by Mind Map: Components of Insurance Law

1. Premium of Insurance

1.1. The insured promises to pay to the insurer a sum of money in consideration.

1.2. Section 2(1)of Financial Services Act 2013

1.2.1. 'Premium' -the amount payable to an insurer under a policy as consideration for the obligations assumed by the insurer.

1.3. A lump sum / periodic payments.

2. Policy of Insurance

2.1. The contract which outlines what the insurance company will pay in case of loss.

2.2. Section 2(1)of Financial Services Act 2013

2.2.1. Policy - an insurance policy includes cover note / contract of insurance, whether or not embodied in or evidenced by an instrument in the form of an insurance policy, and references to --

2.2.2. (a) issuing a policy shall be construed as entering into a contract of insurance, whether or not a formal contract has been issued

2.2.3. (b) a policy of an insurer that liabilty transferred to the insurer from other insurer

3. Example of Insurance

3.1. Life insurance

3.2. Marine insurance

3.3. Fire insurance

3.4. Accident insurance

3.5. Aviation insurance

4. Financial Services Act 2013

4.1. Section 5

4.1.1. Insurance Business (1) Life business Upon untimely death of its policy holder, the insured, a financial intermediary as the insurer, shares the financial risk. (2) General business Insurance contracts that do not come under the ambit of life insurance are called general insurance. The different forms of general insurance are fire, marine, motor, accident and other miscellaneous non-life insurance.

4.2. Effective in 30th June 2013

5. Introduction

5.1. Section 8 of the Financial Service Act

5.1.1. Do not carry on any authorized business unless,

5.1.2. (a) licensed by the Minister of Finance, under Section 10 to carry on banking business/insurance business/investment banking business

5.1.3. (b) approved by Bank under Section 11 to carry on any business set out in Division 1 of Pat 1 of Schedule 1.

5.2. Minster of Finance & Bank Negara Malaysia responsible for license authorizing the holder.

5.3. Section 20 of Financial Services Act 2013 sets out the circumstances by Minister & Bank Negara revoke the licensed.

5.4. Contract where one person, "the insurer" undertakes to indemnify another "the insured"