Important Points for IC 89 - Management Accounting Exam
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Life insurance companies offer Gratuity Insurance Plan to the employers as a Deposit Administration type of Gratuity liability. The contribution made by the employer will continue to accumulate and at the end of the financial year the income or interest earned on his contribution will be credited to his gratuity plan account.
Ulip is a genetic term used to describe insurance plans, where the choice for financial asset lies with the investors.
Ulip premium is allocated to any of the funds being Equity, Income or Balanced funds depending on the choices of customers and the gains in the value of these assets are reflected in the Net Asset value of the units. Charges towards insurance and asset managment are recovered from policyholders.
Company Fixed Deposits Vs Bank Fixed Deposits: The companies with higher risk exposures in respect of ROI (Return On Investment) try to reward the investors for extra risks the inestors are taking by investing in the company.
Investors are required to identify, analyse and evaluate the risks which they are taking in every investment decision with reference to their risk taking capacity and market trend perceptions.
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