Introduction
trip insurance liberalization process in India is now more than seven years of age. It was the first major milestone in this journey and death Insurance Regulatory Act Development Authority, 1999. This along with the amendments to the Insurance Act 1983, Libyan Company and Gulf Insurance Company work paves the way for the entry of private companies and possibly the privatization of public monopolies yet LIC Foundation Gulf Investment. The opening up of the insurance to the private sector including foreign participation in the various opportunities and challenges.
concept of insurance
in our daily life, whenever there is uncertainty there post of risk. Security instinct against these risks is one of the basic driving forces to determine the human attitudes. As a sequel to this quest for security, and the concept of insurance must have been born. The desire to provide insurance or protection against loss of life and property should be encouraging people to make some sort of sacrifice willingly in order to achieve security through collective cooperation. In this sense, the old insurance probably gave the story a human story.
life insurance, in particular, provides protection of the family against the risk of premature death to earn a member of their income. Life insurance in the modern era also provides protection against other risks, such as that relating to the life of longevity (no danger of the Ayesh source of income) and risk (health insurance) and disabling disease. Provide for longevity and pensions and annuities products (insurance against old age). Insurance provides non-life protection against accidents, property damage, theft and other liabilities. Insurance contracts, non-life and are usually shorter in duration compared with the life insurance contracts. And assembling together cover the risks and saving is a strange life insurance. Life insurance provides protection and investment.
insurance is a boon to business concerns. Short-term and long-term insurance provides relief. The aim of short-term relief to protect the insured from loss of property and life through the allocation of loss among the large number of people through the medium of the occupational hazards such as insurance companies campaign. It enables a businessman to face the unexpected loss, and therefore, it does not have to worry about the possible loss. Faces long-term going on in the economic and industrial growth of the country through the huge amounts of money available to invest with insurance companies in the Organization of industry and trade.
[1945001general] Insurancebefore the nationalization of the general insurance industry in 1973, Gulf Investment Corporation Act was passed in Parliament in 1971, but entered into force in 1973. There were 107 general insurers, including branches of foreign companies operating in the country to nationalization, was to integrate these companies and assembled in the following four subsidiaries of GIC, such as the National insurance Co.Ltd, Kolkata; New India assurance Co., Ltd., Mumbai. Oriental Insurance Company Limited, New Delhi, India, the United Insurance Company Limited, Chennai and isolated now.
general insurance in India work is divided into GIC diversified investment Fire and Marine Apart from dealing with the direct aviation business and reinsurance runs a comprehensive crop insurance, personal accident insurance, social security system, and so on GIC and its in keeping with the goal of nationalization of insurance to spread a message far and wide and provide insurance protection for the weaker section of the society is making efforts to design new covers and also to promote the work of other non-traditional.
liberalization of the insurance
brought to organize a comprehensive insurance business in India into effect with the enactment of the Insurance Act, 1983, and tried to create a strong and effective oversight regulatory authority in the insurance with the authorities to guide, advise, investigate, record and liquidation of insurance companies and so on controller, and based on the nationalization of insurance companies, most of the regulatory functions taken away from the controller of insurance, and handled by the insurance companies themselves. He added that the Government of India in 1993 formed a high-level committee appointed by RNMalhotra, former Governor, Reserve Bank of India, to study the structure of the insurance industry and recommending changes to more efficient to make and save competitive in light of the structural changes in the other parts of the financial system in the country.
Malhotra Committee's recommendations in
The Committee submitted its report in January 1994 recommending that allows private insurance companies to coexist side by side with the state-owned companies such as LIC Company and Gulf Investment Corporation. This recommendation has been prompted by several factors such as the need for more insurance coverage deeper into the economy, much broader than the mobilization of funds from the scope of the economy, and much broader than the mobilization of funds from the economy to develop the infrastructure domain. Is the motivation behind the liberalization of the insurance sector, at least in part by virtue of financial necessity to take advantage of a large reserve of savings in the economy. The Committee's recommendations are as follows:
o raise LIC and GIC capital base to invest up to Rs. 0 crore, half retained by the government and the rest sold to the public in general with some suitable for employees reservations.
o be granted the private sector to enter the insurance industry with a minimum paid-up capital of Rs. 100 crore.
o insurance of foreigners allowed to enter the float through an Indian company and would prefer to be a joint venture with Indian partners. And it started
o steps to establish a strong and effective organization of insurance in the form of an independent panel like the regular SEBI.
o a limited number of private companies to be allowed in this sector. But it does not allow for a company in this sector. But the work of the company in both lines of insurance does not allow (life or non-life).
Q Tariff Advisory Committee (TAC) and isolate the form of Gulf Investment Corporation to serve as a body separate statues under necessary supervision by the insurance regulatory authority. To be treated
oAll insurance companies on an equal footing and subject to the provisions of the Insurance Act. They are not granted any special system of government companies.
oSetting consists of a strong and effective regulatory body with an independent source of funding before they are allowed in private sector companies.
competition to the public sector:
government companies now have to face competition for the insurance companies of the private sector not only in the issuance of a variety of insurance products, but also in various aspects in terms of customers, distribution channels and technology service effective to sell products etc. privatization of the insurance sector has opened the doors to innovations in the way the transaction can be.
insurance companies are embarking on a new age of new concepts and more cost effective way to trade deals. A clear idea to meet the maximum business lest account. And slowly with time, and the old rules and standards prevailing with state-owned companies to expand through the establishment of branches apparently getting lost. Among the techniques that seem to be catching up quickly as an alternative to meet the insurance and rural social sector is the hub and spoke arrangement. I did this along with participants from non-governmental organizations and self-help groups (SHG) with most of the selling of the policies of rural and social sector.
The main challenges are the commercial banks, which has a wide network of branches. In this regard, it is important to mention here that the Libyan company has entered into an agreement with the bank companies Mangalore based on the promotion of infrastructure for the mutual benefit with the monolith secure a share of 27 strategy percent, and Bank Corporation has decided to abandon its plans to promote the company's life insurance. The bank acts as agent for LIC companies in the future, and receives a commission on policies sold through its branches. The Libyan company with a branch network of nearly 2,100 offices allow the bank company to set up counseling centers. ATMs or branches with the buildings. The company's bank in turn, the actual implementation of the cash flow of the LIC management system.
x-law infrared 0.1999
preamble to the radiation law under the red in 1999 that: "The law provides for the creation of a body to protect the interests of policyholders, to regulate, to promote and ensure orderly growth of the insurance industry and related matters or related thereto.
Article 14 of the x-law infrared, puts the duties, powers and functions of the authority. the powers and functions of the authority. it must be the powers and functions of the authority include the following.
Q number of the applicant's registration certificate , to renew and modify withdraw or suspend or cancel the registration.
o to protect the interests of policyholders in all matters relating to policy filtering, policy and the value of surrender, insurable interest, and the settlement of insurance claims, the terms and provisions of other insurance contract.
o determine required qualifications and practical training for the argument and insurance agents.
o determine the code of conduct for surveyors and residents of loss.
o promote efficiency in the conduct of insurance business
o encourage and organize professional organizers associated with the insurance and reinsurance business.
o determine the shape and the way it will be maintained books of accounts and the statement of accounts submitted by insurance companies and insurance brokers.
o chapter in the dispute between the intermediate insurance companies.
o determine the insurance rate of the life and business year and to be undertaken by insurance companies in the rural and social sectors, etc.
Article 25 stipulates that the Advisory Committee on Insurance will be formed consisting of not more than 25 members.Section 26 provides that the Authority may, in consultation with the Advisory Committee for secure version of the list consists of the provisions of this Act and the rules made thereunder to carry out the purpose of this Act.Section 29 seeks to modify some provisions of the insurance Act 1938 in the way as shown in the first table. Amendments to the Insurance Act are consequential to enable infrared to regulate effectively, promote and ensure orderly growth of the insurance industry.
Section 30 and 31 seek to amend the LIC Act 1956 and the law of Gulf Investment Corporation in 1972.
the impact of liberalization
in while the nationalized insurance companies have done a commendable job in expanding the volume of business opening up of the insurance sector to private players was a necessity in the context of the liberalization of the financial sector. If traditional goods industries infrastructure, public and semi-such as banking, airlines, telecommunications, energy and others have a significant presence in the private sector, and the continuation of the state monopoly in the provision of insurance can not defend him, and therefore, has been that the privatization of insurance as discussed earlier. Its effect must be seen in the form of creating opportunities and different challenges.
opportunities
1. If privatization was eliminated insurance monopolistic business for life insurance company in India. It may help to cover a wide range of risks in general insurance as well as life insurance. It helps to put a new set of products.
2. That would lead to better services for customers and helping to improve the variety and prices of insurance products.
3. entry of a new player would accelerate the spread in both life and general insurance. It will increase insurance penetration and density measurement.
4. The entry of the private players will ensure the mobilization of funds that can be used for the purpose of infrastructure development.
5. to allow commercial banks to insurance companies will help to mobilize funds from the rural areas because of the availability of a wide branches of banks.
6. Most importantly, today's the day will not be created less massive job opportunities in the field of insurance, which is the problem of the burning issues of existence.
current scenario
After opening the insurance in the private sector, and various leading private sector companies, including joint ventures entered the field of life insurance and non-life business. Tata - AIG, Birla Sun Life, HDFC Standard Life Insurance, public reliance Insurance and Royal Sundaram Alliance Insurance, Bajaj Alliance of Automobile, IFFCO Tokyo General Insurance, INA Vysya Life Insurance, SBI Life Insurance, Dabur CJU Insurance life and Max New York life. SBI Life Insurance has launched three products Sanjeevan, Sukhjeevan and youth Sanjeevan so far, and it has already sold 320 policies under the plan.
conclusion
From the above discussion we can conclude that the entry of private companies in the necessary insurance business and justified in order to enhance operational efficiency, and achieve greater density and insurance coverage in the country and to increase the mobilization of long-term savings to the governors infrastructure long pregnancy. New players should not be treated as competition to state-owned companies, but it can complement the achievement of the goal of the growth of the insurance business in India.
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