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I- I. Ia Ib Ic Id If Ig Il Im In Ip Ir Is It

Indexation

Adjustment of postretirement benefits to compensate for the effects of inflation such as increasing pension benefits to the Consumer Price Index (CPI) to make up for a change in the cost of living.
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UK: A method whereby benefits or sums insured are increased periodically by a factor derived from an index of prices or earnings. Household building sums insured are linked to a rebuilding cost index and contents cover increases annually in line with an index reflecting replacement costs. Regulations oblige exempt approved schemes to increase pension payments for post April 1997 service by at the least the appropriate percentage taken from the retail price index up to 5 per cent per annum but this cap reduces to 2.5 per cent in 2005 under what is called limited price index (LPI). LPI does not apply to AVCs and FSAVCs. See ESCALATION; STABILITY INDEX CLAUSE.

Indexing, Indexation

The adjustment of a cedant’s retention and the reinsurance limit by a measure of inflation, such as the Consumer Price Index. Under indexation, the cedant’s original retention and the reinsurance limit are multiplied by the result of dividing the index on the settlement date by the index as of the effective date of the reinsurance agreement.

Indexing/Indexation

A provision, typically in an excess of loss reinsurance contract, whereby the ceding company agrees to share the excess reinsurer’s (leveraged) inflation risk. It typically involves a publically recognized measure of inflation (e.g., wage inflation index) that is used as a trigger mechanism to adjust the excess of loss retention thus allowing changes in inflation to be more equitably shared by the cedent and the excess reinsurer. This sharing of inflation risk may be recognized in the price of the excess of loss reinsurance.

India Health Insurance Commercial (Health Insurance)

The first standardized health insurance product for individuals and their families was first launched in the Indian Market by the then all the four nationalized non – life insurance companies in 1986. This products, known as Mediclaim was introduced to provide coverage for the hospitalization expenses up to a pre-defined annual limit of indemnity with certain exclusions such as maternity, pre-existing etc. It underwent several rounds of revisions the main being 2007. However, with the evolving of the market today more than 300 health insurance products are available from all the insurers in India.

Indian Insurance Company

Section 2(7A) of the Indian Insurance Act: Indian Insurance Company means any insurer being a company, which is limited by shares: (a) which is formed and registered under the Companies Act, 2013 as a public company or is converted into such a company within one year of the commence of the Insurance Laws (Amendment) Ordinance, 2014; (b) In which the aggregate holdings of equity shares of foreign investors, including portfolio investors do not exceed forty-nine per cent paid up equity capital of such Indian insurance company which is Indian owned and controlled in such manner as prescribed. (c) whose sole purpose is to carry on life insurance business or general insurance business or re-insurance business or health insurance business. As per Section 6 of the Indian Insurance Companies (Foreign Investment) Rules, 2015, foreign direct investment proposals which take the total foreign investment in the Indian insurance company above 26 per cent and up to the cap of 49 per cent shall be on the Foreign Investments Promotion Board (FIPB) route, and shall require FIPB approval subject to the compliance of the provisions of the Insurance Act, 1938.

Indian Motor Vehicles Act

(Structured Formula for Compensation) The Act was amended on 14.11.1994 to introduce a new concept of payment of compensation on structured formula basis. The new section provides for fixed compensation to be paid to victims of fatal injuries in motor vehicle accidents, based on their age and income. This would be full and final settlement.

Indian Railways Act, 1890

(as amended from time to time the latest being Indian Railways Act 2005)The Act deals with various aspects of Railways administration as is relevant also to marine Insurance practice as it deals with the responsibility of Railway administration as carriers. The Railways Claims Tribunal Act 1987 provides for formation of Tribunals to deal with claims for cargo loss, personal injuries, refund of excess freight etc., and prescribes procedures thereunder.