Introduction
The journey of the liberalization of the insurance in India is now over the age of seven. This authority and the insurance regulatory development and changes of the 1983 Insurance Act LIC and GIC Acts opens the way for the entry of private players and perhaps the privatization of public monopolies far LIC and GIC.
The journey of the liberalization of the insurance in India is now over the age of seven. This authority and the insurance regulatory development and changes of the 1983 Insurance Act LIC and GIC Acts opens the way for the entry of private players and perhaps the privatization of public monopolies far LIC and GIC.
Concept insurance
In our daily life, whenever it is uncertain, there is
a risk. Life insurance, in particular, provides protection for domestic use
against the risk of premature death of its member gain income. Life insurance
in modern times also provides protection against other risks of life, such as
longevity (ie risk of losing income) and risk (health insurance) and disabled
disease. The products offer longevity are pensions and annuities (insurance
against old age). Non-life insurance provides protection against accidents,
property damage, theft and other liabilities. Non-life insurance contracts are
typically shorter compared to life insurance contracts. The set and grouping
coverage economies is the particular life insurance. Life insurance provides
protection and investment.
Insurance is a benefit to business interests. Insurance provides short-range and long-term relief.
General insurance
Before the nationalization of the general insurance industry in 1973, GIC Act was passed by Parliament in 1971, but entered into force in 1973. There were 107 general insurance companies, including subsidiaries of Foreign companies operating in the country after the nationalization, these companies merged and they were grouped into the following four subsidiaries of GIC that the national insurance Co.Ltd, Calcutta. The New India Assurance Co. Ltd., Mumbai; The Oriental Insurance Co. Ltd., New Delhi and United India Insurance Co. Ltd., Chennai and now separated.
General insurance business in India is divided into fire, marine and other ICG beyond the direct manipulation of aviation and reinsurance manages the overall crop insurance, accident insurance, social security, etc.
Before the nationalization of the general insurance industry in 1973, GIC Act was passed by Parliament in 1971, but entered into force in 1973. There were 107 general insurance companies, including subsidiaries of Foreign companies operating in the country after the nationalization, these companies merged and they were grouped into the following four subsidiaries of GIC that the national insurance Co.Ltd, Calcutta. The New India Assurance Co. Ltd., Mumbai; The Oriental Insurance Co. Ltd., New Delhi and United India Insurance Co. Ltd., Chennai and now separated.
General insurance business in India is divided into fire, marine and other ICG beyond the direct manipulation of aviation and reinsurance manages the overall crop insurance, accident insurance, social security, etc.
Insurance
liberalization
The complete rules of the insurance business in India came into effect with the promulgation of the 1983 Insurance Act tried to create a strong and powerful supervisory and regulatory authority in the insurance supervisor, with powers to direct, advise, record and adjust the insurance companies, etc. However, following the nationalization of the insurance industry, most regulatory functions were taken away the Insurance Controller and invested in their own insurers.
The complete rules of the insurance business in India came into effect with the promulgation of the 1983 Insurance Act tried to create a strong and powerful supervisory and regulatory authority in the insurance supervisor, with powers to direct, advise, record and adjust the insurance companies, etc. However, following the nationalization of the insurance industry, most regulatory functions were taken away the Insurance Controller and invested in their own insurers.
Recommendations of the Malhotra
Committee
The committee presented its report in January 1994 recommending that private insurers are allowed to coexist with public companies like LIC and GIC companies. The liberalization of the insurance sector is, at least in part, motivated by financial need to exploit the reserves of the major economies in the economy. The private sector is allowed to enter the insurance sector with a minimum paid capital of Rs. 100 crores.
The committee presented its report in January 1994 recommending that private insurers are allowed to coexist with public companies like LIC and GIC companies. The liberalization of the insurance sector is, at least in part, motivated by financial need to exploit the reserves of the major economies in the economy. The private sector is allowed to enter the insurance sector with a minimum paid capital of Rs. 100 crores.
Foreign
insurance is allowed to enter, floating an Indian company preferably a joint
venture with Indian partners.
Train
fare Advisory Committee (TAC) is dissociated CPG operate as a separate body
statuary under supervision required by the insurance regulatory authority.
Insurance companies PAOD be treated equally and be governed by the provisions of the Insurance Act.
Insurance companies PAOD be treated equally and be governed by the provisions of the Insurance Act.
Competition in the public sector:
Government companies must now compete with private insurance companies, not only in the issue of the wide range of insurance products, but also in many ways in terms of customer service, distribution channels , effective techniques to sell products, etc. privatization of the insurance sector has opened the door to innovations in how companies can be processed.
New age insurance companies embark on new concepts and more profitable to do business. Bank Corporation, in turn, implement an effective cash flow for LIC management system.
The powers and functions of the authority.
Government companies must now compete with private insurance companies, not only in the issue of the wide range of insurance products, but also in many ways in terms of customer service, distribution channels , effective techniques to sell products, etc. privatization of the insurance sector has opened the door to innovations in how companies can be processed.
New age insurance companies embark on new concepts and more profitable to do business. Bank Corporation, in turn, implement an effective cash flow for LIC management system.
The powers and functions of the authority.
To protect the interests of policyholders in all matters relating to the appointment of the policy, the policy surrender value f, insurable interest, settlement of insurance claims, other terms and conditions of the insurance contract.
Specify the required
qualifications and practical training for intermediaries and insurance agents.
Promote efficiency in the conduct
of insurance business
Promote and regulate professional
regulators related to the business of insurance and reinsurance.
Specify the percentage of life insurance and general
business and in general to be owned by insurers in the rural and social
sectors, etc.
Article 25 provides that the Advisory Committee will consist of insurance and consists of no more than 25 members.Section 26 provides that the Authority may, in consultation with the Advisory Committee on Insurance Regulation is at present law and rules there under the objectives it aims Act.Section 29 changes in certain provisions of the 1938 Act insurance, in the form as shown in the first attachment. The amendments to the Insurance Act arise, to enable IRDA to regulate effectively, promote and ensure orderly growth of the insurance industry.
Section 30 & 31seek LIC Act 1956 and GC 1972 exchange law.
The impact of liberalization
While the nationalized insurance companies have done a commendable job in the sector of the business volume expansion opening insurance to private players was a necessity in the context of the liberalization of the financial sector. If traditional infrastructure goods industries and parapublic as banking, airlines, telecommunications, energy, etc. have a significant private sector presence, continued state monopoly on the provision of insurance is indefensible and therefore the privatization of insurance has been done, as discussed above.
Article 25 provides that the Advisory Committee will consist of insurance and consists of no more than 25 members.Section 26 provides that the Authority may, in consultation with the Advisory Committee on Insurance Regulation is at present law and rules there under the objectives it aims Act.Section 29 changes in certain provisions of the 1938 Act insurance, in the form as shown in the first attachment. The amendments to the Insurance Act arise, to enable IRDA to regulate effectively, promote and ensure orderly growth of the insurance industry.
Section 30 & 31seek LIC Act 1956 and GC 1972 exchange law.
The impact of liberalization
While the nationalized insurance companies have done a commendable job in the sector of the business volume expansion opening insurance to private players was a necessity in the context of the liberalization of the financial sector. If traditional infrastructure goods industries and parapublic as banking, airlines, telecommunications, energy, etc. have a significant private sector presence, continued state monopoly on the provision of insurance is indefensible and therefore the privatization of insurance has been done, as discussed above.
Opportunities
1. Privatization is the insurance business was eliminated monopoly Life Insurance Corporation of India. It can help to cover the wide range of risks in general insurance and life insurance.
1. Privatization is the insurance business was eliminated monopoly Life Insurance Corporation of India. It can help to cover the wide range of risks in general insurance and life insurance.
2. The
entry of the new player is expected to accelerate the spread of life and
general insurance. It will increase the penetration of insurance and
measure density.
3.
Allow commercial banks in the insurance sector will help to mobilize funds for
rural areas because of the availability of large bank branches.
Current
scenarioAfter the opening of the insurance in the private sector, several major private companies including joint ventures entered in the fields of insurance, both business life and non-life. Tata - AIG Life Birla Sun, HDFC Standard Life Insurance, Reliance General Insurance, Royal Sundaram Alliance Insurance, Bajaj Auto Alliance, IFFCO Tokio General Insurance, INA Vysya Life Insurance, SBI Life Insurance, Dabur CJU to life and Max New York life. SBI Life Insurance has launched three products Sanjeevan, Sukhjeevan and Young Sanjeevan far and who has sold 320 policies under it.
Conclusion
From the above discussion, we conclude that the entry of private players in the Mr. and justifiable insurance business to improve operational efficiency, achieve greater density of coverage and insurance in the country and for greater mobilization of long term savings for mayors of long gestation infrastructure.
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