Hello friends here in this post we will discuss about the main object clause of insurance company. In the process of formation of a company, first of all, this is the duty of the promoter to determine the main object of the company for which the company is going to incorporate. Other than Insurance Company there are many other types of company which can be incorporated in India under the Companies Act, 2013.
Like NBFC Company, BPO Company, Automobile trading company, Network Marketing Company, Coke, Coal, Charcoal manufacturing Company, Horticulture Company, Interior Decorator Company, Hotel Business Company, Logistics Company, Online Lottery Business, Manpower Consultancy Company, IT Company, Publication and Distribution company, Trading Company, Engineering Company, Petrol Extraction Company, Plastic Recycling Company, Power generation Company and many more.
Main object of insurance company
(1) To establish, organize, undertake, carry on, operate, promote, develop and conduct either in India or anywhere else (subject to the laws of the land where the business organization is to be carried on ) all kinds of insurance business, whether it is kind now known or hereafter devised and all kinds of indemnity and guarantee business, and in specific without prejudice to the generality of the foregoing words, to carry on, undertake and transact all branches of aviation, motor vehicle, health, marine, fire , accident, workmen’s compensation, loss of key-man, disease, employers liability, disease, sickness, social, failure of issue, third party liability, burglary and theft, robbery, theft, rural, credit, fidelity ,engineering and transit insurance and insurance covering risk against any liability under any law of the land, agreement or convention and to undertake all other risk usually undertaken by companies carrying on the business of General insurance or persons and further without prejudice to the generality of the foregoing words :
a. To grant or effect assurances upon or against the contingency of damage, injury or loss by reasons of accident of any description to human beings (excepting insurance against terminating fatally of accidents), and to allow or effect insurance against the damage, loss or contingency of injury due to accidents of any description to personal or real property of any kind.
b. To grant insurance against or upon the contingency of damage, loss or injury, occurring to motor vehicle and to the personal property (not artificial property) of motor vehicle clubs and motorists due to or resulting from explosions, overflow or inundation of water, tempests, fire, lightning, or due to any other accidental cause.
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c. To grant assurances to protect and to indemnify owners of motor vehicles against claims by the public for personal injuries and damage to property caused by their drivers, and to compensate to the insured damage to the property by motor vehicles of others, collision with houses, vehicles or cycles and to contribute policies or other instruments of insurance indemnifying owners against loss or damage to their motor vehicles by theft, accident and fire.
d. To carry on the business of fire insurance in all its branches, and to grant insurance against damage or injury to or loss of property directly or indirectly caused by or resulted from the explosion, lighting, accident, fire or otherwise.
e. To insure and grant, issue and effect policies and assurances in respect of surety (excluding financial guarantee) including guarantee of performance of a contract.
f. To insure and grant, issue and effect policies and assurance in respect of aircraft, vessels and other motor vehicles including for legal liability for passengers or other third parties or physical damage to the hull.
g. To carry on the business of aerial and marine insurance in all its branches, and in particular to make or effect insurance on boats, vessels, ships, craft and aeroplanes of all goods and kinds on, luggage, bullion, merchandise, live or deadstock, effects, or other respondents, property, and bloomy profits, interests, freights, and commissions.
h. To carry on all kinds of transit insurance business including of transit by land, sea, air, inland waterways and re-insurance business incidental thereto.
i. To establish different classes or clubs of insuring members upon the footing that the members of each class or club shall insure one another on the mutual principle and to manage and regulate such classes or clubs.
j. To transact insurances to protect employees and principals against liability on account of injury, loss or damage, either sustained or caused by workmen, servants, employees or agents in their employment or acting on their behalf.
k. To transact insurances to protect and indemnify principals or employers against loss or damage by fraud, breach of trust or misconduct of their servants, agents or others acting on their behalf, and to provide security for the fidelity, guarantee and good conduct of persons filing or about to appointments or fill offices and situations of trust or confidence and also to protect and mitigate private sureties against loss arising to them from their liability as cautioners or guarantors for others.
l. To transact insurances against claims upon the assured for injuries to the person and property of third parties caused by the assured or his property or by others for whom he is responsible.
m. To transact insurances against loss of property by burglary or theft by housebreaking or larceny.
n. To insure or give any guarantee in relation to any stock, shares, debentures, debenture stock, bonds, obligations or securities issued by or having any guarantee of any institution or company or of any authority supreme, local, municipal or otherwise, or of any person or persons whomsoever.
o. To insure or give any guarantee against calls and demands for contribution in respect of any liability incident to the ownership of any shares or stock in any company or undertaking.
p. To insure or guarantee the holders of, or persons interested in, or proposing or intending to become holders of any shares, stock or securities issued at a premium or standing at a premium, against loss arising from redemption at depreciation or at par or otherwise.
q. To insure or guarantee the safety of securities and property of all kinds placed on deposit with the Company or elsewhere, or entrusted to the Company or other persons or companies for transmission, or otherwise howsoever.
r. To insure and guarantee the due payment and performance of bills of exchange, promissory notes, debts, contracts and obligations of all kinds, on the del-creder system or otherwise.
s. To insure and grant, issue and effect policies and assurances in respect of horses, cattle, sheep, pigs and other livestock against death, whether arising in the course of nature or caused by or the result or arising from or out of accident or disease and against depreciation or injury in value of accident, or by flood, fire, tempest, inundation or lightning.
t. To insure and grant, effect and issue insurances upon and in respect of crops, whether severed or growing, against destruction, loss, or injury by flood, inundation or fire or in any other manner.
u. To insure and grant, issue and effect policies and assurances in respect of loss or damage to property caused by an insured peril including with respect to building, fixtures and furniture and contents including equipment and stock.
v. To insure and grant, effect and issue, assurances and policies in respect of inland marine, specialized coverage for property away from the insured premises including cargo, equipment or contractors,.
w. To insure and grant, issue and effect policies and assurances in respect of damage to property resulting in a business interruption or loss of income and continuing expenses thereto.
x. To insure and grant, effect and issue, assurances and policies in respect of machinery and boiler including accidental breakdown of any object including air conditioning equipment and heating.
y. To insure and grant, issue and effect policies and assurances in respect of legal liability for bodily injury or property damage caused by automobile or otherwise.
z. To insure and grant, issue and effect policies and assurances in respect of accidental benefits, including providing no-fault coverage, medical and loss of income caused by automobile or otherwise.
aa. To insure and grant, issue and effect policies and assurances in respect of physical damage, loss or damage to the insured vehicle or automobile or other modes of transportation.
bb. To insure and grant, issue and effect policies and assurances in respect of commercial general liability or personal liability or legal liability for bodily injury or property damage.
cc. To insure and grant, issue and effect policies and assurances in respect of umbrella or excess liability.
dd. To insure and grant, issue and effect policies and assurances in respect of errors and omissions, legal liability for economic loss caused by rendering or failing to render professional service.
ee. To insure and grant, issue and effect policies and assurances in respect of directors and officers including legal liability for designated directors and officers for wrongful acts.
ff. To insure and grant, issue and effect policies and assurances in respect of employers liability including for legal liability for employees injured in the scope of coverage.
gg. To insure and grant, issue and effect, assurances and policies in respect of crime, loss or destruction of money, securities or property by third party.
hh. To grant and insure, effect and issue policies and assurances in respect of fidelity including loss of money or securities by employees.
ii. To insure and grant, issue and effect policies and assurances in respect of legal expenses for a specified coverage.
jj. To insure and grant, issue and effect policies and assurances in respect of marine including legal liability and physical damage to the vessel.
kk. To insure and grant, issue and effect policies and assurances in respect of hail including damage to crops caused by hail.
ll. To insure and grant, issue and effect policies and assurances in respect of residual guarantee including guarantees the value of the leased property (such as a vehicle) at the end of the lease.
mm. To insure and grant, issue and effect, policies and assurances in respect of credit (personal lines only) including guarantees the payments under a mortgage, hire purchase or similar arrangement and/or the occurrence of some other event, so long as such insurance is not classified by the insurance regulatory and development authority as “life insurance”.
nn. To insure and grant, issue and effect policies and assurances in respect of accident & sickness (other than stand-alone) including medical expenses and income replacement resulting from accident or serious sickness.
oo. To insure and grant, issue and effect policies and assurances in respect of accidental death & disability including medical and income replacement results from death or permanent disability.
pp. To give to any class or section of those who insure, or have dealings with the Company, any rights over or in relation to any fund or funds, or a right to get a share in the profits of any particular branch or part of its business or the company either equally with other class or classes or otherwise and any other special privileges, advantages or benefits and either by way of rebate or otherwise subject nevertheless to the rights of existing policyholders under policies already issued to them and for the time being in force.
qq. To pay, satisfy or compromise any claims against the Company in respect of any policies or contracts granted by dealt with or entered into by the Company which claims it may deem expedient to satisfy or compromise notwithstanding that the same may not be enforceable.
rr. To take, or otherwise acquire, and hold shares, debentures, or other securities of any other company or to invest or otherwise deal in securities or securitized debt of any company, body corporate, individual or trust or the Central Government or Government of any particular state and to make investments or lend money or give credit to any company or person, and on such terms as may be considered fit, with or without security to undertake or secure in any way the payback of investments or money lent to or the liabilities incurred by any person or organization.
ss. To insure and grant, issue and effect policies and assurances in respect of workers compensation including no-fault coverage for employees injured in the scope of their duties.
tt. To provide general insurance policies in the rural sector, workers in the un-organised or informal sector or for economically vulnerable or socially backward classes and other categories of persons as may be specified by regulations made by the Insurance Regulatory and Development Authority.
uu. To provide guarantee and security for the due performance and discharge by any person including bodies corporate, Official and other receivers, Official and other executors, liquidators, administrators, committees, guardians and other legal representatives of doctors trustees, deceased persons, attorneys, agents and brokers of their respective obligations and duties.
vv. To effect savings linked insurance policies.
(2) To establish, organize, carry on, conduct, promote, provide, manage, operate and develop general insurance business in all its branches in India or anywhere else and for this purpose to operate various schemes including endowment insurance, double benefit and multiple benefit insurance, medical insurance, Engineering and Miscellaneous insurances.
And insurances covering risk against the Damage to property or perils of loss or person for various reasons such as storm, Riot, War, floods, Earthquakes, Civil commotion, Lightening, Breach of trust, Explosion, Mechanical defects, fraud, Misconduct, larceny, theft, Burglary, House-breaking.
And any other contingency or crop insurance or natural calamity or loss of profit insurance, transit insurance, theft insurance, accidental insurance, gratuity plans, limbs and organ insurance, annuity plans, pension plan, saving linked insurance plans, fixed income plans, and such other plans and schemes as may be considered expedient and necessary from time to time.
(3) To act as surveyors, representatives, agents, consultants, sub-insurance agents, franchisers, collaborators, advisors, in general insurance business and activities related thereto.
(4) To engage in all activities which are allied incidental and or related to the insurance business and for this purpose to apply, hold and procure such rights, approach acquire, titles entitlements, licenses and permissions from Government, Semi-Government, public bodies, local authorities, undertaking and from such other authorities as may be necessary to carry out the aforesaid activities.
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