4. NEED OF PRIVATISATION IN INDIA’S GENERAL INSURANCE SECTOR
1. Privatisation leads to more competition in the general insurance sector.
2. Customers of general insurance services will get wide range of products and services.
3. There is increased awareness of products, prices and services among the people.
4. Privatisation leads to easy access of insurance services.
5. Privatisation helps to bring Indian general insurance sector to international standards.
6. Privatisation may bring improved technology, managerial skill, cost efficiency and product innovations.
7. It helps to improve the low insurance penetration and low insurance density in India.
8. Privatisation of insurance services expected to bring increased productivity and increased
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But, there are many challenges faced by the insurers to bring into practice the global standards in the country. These challenges are capital adequacy, solvency margin, cap of foreign direct investment, financial efficiency, infrastructure development, integration and …show more content…
IMPORANCE OF THE STUDY General insurance is a very significant factor in human life. This study gives the knowledge of current situation of general insurance industry in India especially during post privaisation period.
Table-1
HISTORICAL EVENTS IN THE DEVELOPMENT OF GENERAL INSURANCE IN INDIA
Year Significant Regulatory Events
1850 Triton Insurance Company- the first general insurance company was set up.
1907 Mercantile Insurance Co.Ltd- the first Indian general insurance.
1912 Indian Life Insurance Company Act
1928 Formulation of the Indian Insurance Companies Act
1938 Insurance Act 1938, The first comprehensive legislation to regulate insurance business in India.
1956 Nationalisation of Life Insurance Business in India.
1968 Amendment of Insurance Act 1938, and providing for the establishment of the Tariff Advisory Committee.
1971 General Insurance Act- Nationalisation of General Insurance
1972 Enactment of General Insurance Business (Nationalization) Act.- Formation GIC
1993 Setting up of Malhotra
One of these new schemes was the ‘protective tariff scheme’. This was put in place as a precaution to protect ...
The Smoot Hawley Tariff Act was a United States law that was enacted in June 1930. It caused an ffs in all sectors
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
Many of the global issues that many of us face and issues that have impacts with the health care industry today are defined as some of the following:
Was a policy that determined what was good and it focused mostly on the importation of tobacco as part of the Navigation Acts of 1660.
First, Wilson enacted the Underwood-Simmons bill in 1913. This Act lowered the trade tariffs for the first time since before the Civil War, and initiated the first progressive income tax for citizens of the United States. By doing this, Wilson lowered the tariffs, opening the doors for foreign goods to be brought in at cheaper prices. Wilson lowered the tariffs on the belief that “we long ago passed beyond the modest notion of protecting the industries of the country and moved boldly forward to the idea that they were entitled to direct patronage of the government.” In essence, he was saying that the original justifications for the tariff were no longer applicable and were only causing harm by giving unfair advantage to corporations.
What: established the highest protective tariff in US history. The tariff made unemployment worse in industries that could no longer export goods to Europe.
When we hear about social security we think of that number every adult and college teen should memorize as they venture on the real world. We don’t think any more of it and most people don’t know about the benefits of such a number and having one. Some migrants from other countries dream of being in America and having a social security so that they may reap the benefits of having such a number and becoming a US citizen, while most every day people just assume it’s a number. What social security is would be a program created back in 1935 and it was used to provide old age, disability, and survivors insurance and on top of that, a supplemental security income which is a income for the elderly and/or disabled people of these United States. Now lets say we privatize all that and therefore do what we did with healthcare, of course their will be good outcomes of doing such a move but where this is good, there will always be bad no matter how good something turns out to be. The stock market, pride, government, all of these are several factors that can be towards privatization of social security but also can be bad things about it as well. Without the government we lose order, with the government we have less freedom, with the stock market people could win, without the stock market (when it crashes) people lose, yin and yang, pro and con one cannot exist with out the other.
The introductory of Canada’s health care system in the mid-20th century, known as Medicare, led the country into the proud tradition of a public health care system, opposite to America’s privatized health care system in the south. Though Canada’s health care system still holds some aspects of a privatized system, it is still readily available for all citizens throughout the nation. After continuous research, it is clear to state that public health care and the association it has with welfare state liberalism is by far a more favourable option for Canada, than that of private health care and the association it has with neo-conservatism. To help understand why public health care is a better and more favourable option for Canada, it is fundamental
Q1) Health insurance, whether provided publically or privately, suffers from the problems of moral hazard and adverse selection? How can health insurers get around these problems?
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
Within the Asian/Pacific market, 900 different insurance companies operate in the twelve eastern pacific countries. The influence of the companies varied in each different country. This was also due to specific regulatory rules for each country. For example, Hong Kong was a country with few regulations thus providing an easier entry to the market where as other countries had certain regulations in the fields of licensing, product styles and prices. However, the World Trade Organization (WTO) lobbied for highly regulated markets to open up and become more accessible.
In this essay I will analyse the origins of Community Care and what benefits emerged when the NHS Community Care Act 1990 was established. Later on, I will explain and critically evaluate the effects of privatisation in social care and health.
For the contrary the loading change (fee to cover the incurred administrative expenses) can be expensive. Also, the insurance sometime fails to meet demand providing limited protection, this insurance shortage can lead to ineffective insurance regulations. As well as, for consumer with minimum loss experience, their premium will be high, because their probability of loss is high.
Privatisation means transferring the control of an enterprise from the government sector to the private sector. Generally, but not always, this also means transferring ownership of the Public sector enterprise as well as control.