...Privatisation of the Insurance Sector Printer-friendly version Worker's Opposition Gaining Momentum Lakhs of insurance employees have been waging struggle over the past two months against the introduction of the Insurance privatisation bill in parliament. On December 1, a country-wide strike was observed. Earlier on November 29, massive rallies and dharnas were staged in Delhi as well as all the state capitals. On October 30th, 2 lakh insurance sector employees staged a nation-wide strike to oppose opening up of the insurance sector to the plunder of private and foreign capital. Earlier a petition on behalf of the 1.5 crore insurance employees had been placed in Parliament. The ruling class is particularly desperate to get this Bill passed because, firstly it would open up a whole new lucrative sector to the Indian and foreign big finance capital. The present size of the Indian insurance and pension funds market is Rs. 40,000 crores, but research studies have predicted that it has a potential of Rs. 70,000 crores. Secondly, the Bill is supposed to signal to capitalists around the world that the Indian bourgeoisie has now installed a "stable" government at the centre and that it will be speeding up the reforms - a demand that was placed as a precondition for any party to be elected to power in the recent elections. The Bill, if passed, will open up the insurance sector to private capital investment with up to 26 percent ownership by foreign multinationals. It would further...
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...Journal of Advanced System and Social Engineering Research ISSN 2278-6031, Vol 3, Issue 1, 2013, pp18-22 http://www.bipublication.com ADVANTAGES AND DISADVANTAGES OF PRIVATISATION IN INDIA Anant Kousadikar and Trivender Kumar Singh* *Jatan Swaroop PostGraduate College, Kayasthwada,Sikandrabad(U.P.), Distt: Bulandshar [Received-05/12/2012, Published-17/01/2013] ABSTRACT Privatization in generic terms refers to the process of transfer of ownership, can be of both permanent or long term lease in nature, of a once upon a time state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization. In other words, it is a route from public or state ownership to private players or a group. From the other point of view, it is a strategy that provides advantages to a few at the price of many. However, this is always subjected to the circumstances involved. In this paper, the aim is to understand the major advantages and disadvantages of privatization in this country. Index Terms: Privatisation, advantages, Public administration. I. INTRODUCTION Privatization is a managerial approach that has attracted the interest of many categories of peopleacademicians, politicians, government employees, players of the private sector, and public on the whole. As per the opinion by the subject experts, privatization can be advantageous in terms of the higher flexibility and scope of innovation it offers...
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...Tree Common ash (Fraxinus excelsior), a broad-leaved tree European larch (Larix decidua), a coniferous tree Lepidodendron, an extinct lycophyte tree In botany, a tree is a plant with an elongated stem, or trunk, supporting leaves or branches. In some usages, the definition of a tree may be narrower, including only woody plants, only plants that are usable as lumber, only plants above a specified height or only perennial species. At its broadest, trees include the taller palms, the tree ferns, bananas and bamboo. A tree typically has many secondary branches supported clear of the ground by the trunk. This trunk typically contains woody tissue for strength, and vascular tissue to carry materials from one part of the tree to another. For most trees it is surrounded by a layer of bark which serves as a protective barrier. Below the ground, the roots branch and spread out widely; they serve to anchor the tree and extract moisture and nutrients from the soil. Above ground, the branches divide into smaller branches and shoots. The shoots typically bear leaves, which capture light energy and convert it into chemical energy by photosynthesis, providing the food needed by the tree for its growth and development. Flowers and fruit may also be present, but some trees such as conifers instead have pollen cones and seed cones, and others such as tree ferns produce spores instead. Trees tend to be long-lived,[1] some reaching several thousand years old. The tallest known specimen on Earth...
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...in the Indian insurance sector which in turn results in restructuring and revitalizing of public sector companies. Privatisation of the Insurance Sector Worker's Opposition Gaining Momentum Lakhs of insurance employees have been waging struggle over the past two months against the introduction of the Insurance privatisation bill in parliament. On December 1, a country-wide strike was observed. Earlier on November 29, massive rallies and dharnas were staged in Delhi as well as all the state capitals. On October 30th, 2 lakh insurance sector employees staged a nation-wide strike to oppose opening up of the insurance sector to the plunder of private and foreign capital. Earlier a petition on behalf of the 1.5 crore insurance employees had been placed in Parliament. The ruling class is particularly desperate to get this Bill passed because, firstly it would open up a whole new lucrative sector to the Indian and foreign big finance capital. The present size of the Indian insurance and pension funds market is Rs. 40,000 crores, but research studies have predicted that it has a potential of Rs. 70,000 crores. Secondly, the Bill is supposed to signal to capitalists around the world that the Indian bourgeoisie has now installed a "stable" government at the centre and that it will be speeding up the reforms - a demand that was placed as a precondition for any party to be elected to power in the recent elections. The Bill, if passed, will open up the insurance sector to private capital...
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...Introduction Privatisation involves selling state owned assets to the private sector. This is often achieved through listing the new private company on the stock market. The debate of privatisation is eminent in our society at present as the government has announced it’s plan to privatise Medibank. There are many valid arguments for and against privatisation and the governments decision to privatise Medibank along with other former Government Business Enterprises. This essay seeks to demonstrate this. What is privatisation? The transfer of ownership, property or business from the government to the private sector is termed privatisation. The privatisation of a public organisation will involve either the sale of government held assets or removal of restrictions that previously prevented private individuals and businesses from participating in a given industry. Public organisations, such as the Australian Broadcasting Commission (ABC), SBS and the Bureau of Meteorology are developed by the government to provide specific services to the public. These organisations are owned by taxpayers and there is not generally a focus on profit making. On the other hand, private companies are said to be more efficient than public companies because they must make a profit. Just like the public companies, private firms provide a range of valuable services to the public. There are both advantages and disadvantages to privatisation. Some people argue that it’s important to keep services...
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...a sizeable portion of the public sector (Reserve Bank of Australia 1997). The prospect of privatising Medibank has been a controversial matter since its proposal by the Howard government in 2006, although the former government failed to do so, the Abott government announced on March 26th, 2014 that the company will be sold off through an initial public offering (IPO) in the 2014-15 financial year (Mcllroy 2014). This essay will argue that Medibank Private should be privatised and sold publicly through an IPO for short and long term economic and social benefits. In order to determine the validity of this argument this essay will analyse articles and other academic evidences to first look into Australia’s history of privatisation and a brief history of Medibank Private. The essay will then analyse the conflict of interest the current system generates. Further, it will explore the advantage of privatising Medibank Private, including increasing competitiveness in the market and money generated for other social and economic projects. The Reserve Bank of Australia (1997:7) defines privatisation as the full or partial transfer of ownership of public assets to the private sector (Reserve Bank of Australia 1997). Privatisation gradually increased across the world in the 1980’s originating in Chile, the UK and New Zealand which was a ‘radical reversal’ of the ideology of state ownership (Heraclerous 1999). According to King (2003:2) privatisation began in Australia during the 1980’s...
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...…………… in the total output of good and service (GDP) in a nation over time a) Decrease b) Increase c) No change 2. Privatisation refers to: a) The transfer of asset or different forms of economic activity from the public sector the private sector b) The change in legal status of a firm of economic from a public to a private company c) The ownership of share in private company d) The movement of private capital from one country to another 3. Which of the following best describes fiscal policy: a) Setting interest rates b) Providing incentives for business to earn profits c) The use of government spending, taxation d) Allocating government spending to priorities 4. Which of the following supports deregulation of the industry: a) To chronological changes has made it possible for many industries to become more competitive b) As few real ‘natural monopolies’ exist, there is rarely a reason for government regulation c) Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial d) All of the above 5. Privatisation is the transfer of: a) Private-owned business sold to the public sector b) Sales of multinational corporation to the government c) Government business enterprises sold to the private sector d) Sales of public stock of good to private individual 6. Which of the following would be considered a supply side policy: ...
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...Journal of Advanced System and Social Engineering Research ISSN 2278-6031, Vol 3, Issue 1, 2013, pp18-22 http://www.bipublication.com ADVANTAGES AND DISADVANTAGES OF PRIVATISATION IN INDIA Anant Kousadikar and Trivender Kumar Singh* *Jatan Swaroop PostGraduate College, Kayasthwada,Sikandrabad(U.P.), Distt: Bulandshar [Received-05/12/2012, Published-17/01/2013] ABSTRACT Privatization in generic terms refers to the process of transfer of ownership, can be of both permanent or long term lease in nature, of a once upon a time state-owned or public owned property to individuals or groups that intend to utilize it for private benefits and run the entity with the aim of profit maximization. In other words, it is a route from public or state ownership to private players or a group. From the other point of view, it is a strategy that provides advantages to a few at the price of many. However, this is always subjected to the circumstances involved. In this paper, the aim is to understand the major advantages and disadvantages of privatization in this country. Index Terms: Privatisation, advantages, Public administration. I. INTRODUCTION Privatization is a managerial approach that has attracted the interest of many categories of peopleacademicians, politicians, government employees, players of the private sector, and public on the whole. As per the opinion by the subject experts, privatization can be advantageous in terms of the higher flexibility and scope of innovation it offers...
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...Privatisation On Life Insurance Corporation Of India Economics Essay With the advent of new players in the field of Life insurance sector, the degree of competition has increased multifold. The private insurance companies are launching new innovative insurance plans for their survival and growth. At the same time, Life Insurance Corporation of India has upgraded their quality of service to retain, maintain and attract new business. An attempt has been made to study the impact of privatization on LIC. The Development Officers were contacted to know their observations about the impact of privatization on their life insurance business and their views as how their life insurance business has been influenced by the opening of the sector. LIC has made a lot of changes in its operation and latest technology is being used to serve the customer. The customer grievances are properly attended and all maturity claims are settled to the entire satisfaction of the policyholders. The privatization of the sector has brought lot of opportunities for all the players. Under such situation, fittest of the fit will survive and the rest will vanish over a period of time. In the year 2000, when the insurance sector was privatized, many companies entered into the insurance sector and as a result competition has increased multifold. Initially, most of the private life insurance companies spent huge amount of money on advertisement. The purpose of the advertisement was to inform the public about their...
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...Privatisation On Life Insurance Corporation Of India Economics Essay With the advent of new players in the field of Life insurance sector, the degree of competition has increased multifold. The private insurance companies are launching new innovative insurance plans for their survival and growth. At the same time, Life Insurance Corporation of India has upgraded their quality of service to retain, maintain and attract new business. An attempt has been made to study the impact of privatization on LIC. The Development Officers were contacted to know their observations about the impact of privatization on their life insurance business and their views as how their life insurance business has been influenced by the opening of the sector. LIC has made a lot of changes in its operation and latest technology is being used to serve the customer. The customer grievances are properly attended and all maturity claims are settled to the entire satisfaction of the policyholders. The privatization of the sector has brought lot of opportunities for all the players. Under such situation, fittest of the fit will survive and the rest will vanish over a period of time. In the year 2000, when the insurance sector was privatized, many companies entered into the insurance sector and as a result competition has increased multifold. Initially, most of the private life insurance companies spent huge amount of money on advertisement. The purpose of the advertisement was to inform the public about their...
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...| Insurance a system of spreading the risk of one to the shoulders of many. It is a contract whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against.Insurance is not a new business in Bangladesh. Almost a century back, during British rule in India, some insurance companies started transacting business, both life and general, in Bengal. Insurance business gained momentum in East Pakistan during 1947-1971, when 49 insurance companies transacted both life and general insurance schemes. These companies were of various origins British, Australian, Indian, West Pakistani and local. Ten insurance companies had their head offices in East Pakistan, 27 in West Pakistan, and the rest elsewhere in the world. These were mostly limited liability companies. Some of these companies were specialised in dealing in a particular class of business, while others were composite companies that dealt in more than one class of business.The government of Bangladesh nationalised insurance industry in 1972 by the Bangladesh Insurance (Nationalisation) Order 1972. By virtue of this order, save and except postal life insurance and foreign life insurance companies, all 49 insurance companies and organisations transacting insurance business in the country were placed in the public sector under five corporations. These corporations were: the Jatiya Bima Corporation...
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...Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players and FDI up to 26% and recently Cabinet approved a proposal to increase it to 49%. Life Insurance in India was nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC. In 1993, the Government of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector. While the committee submitted its report in 1994, it took another six years before the enabling legislation was passed in the year 2000, legislation amending the Insurance Act of 1938 and legislating the Insurance Regulatory and Development Authority Act of 2000. The same year the newly appointed insurance regulator - Insurance Regulatory and Development Authority IRDA—started issuing licenses to private life insurers. Contents [hide] 1 Types of Life Insurance in India 1.1 Term Insurance Policies 1.2 Money-back Policies 1.3 Unit-linked Investment Policies (ULIP) 1.4 Pension Policies 2 List of Life Insurers (as of November 2011) 3 Foreign Direct Investment (FDI) Policy in Insurance Sector 3.1 Initial Public Offer (IPO) rules for Indian Life Insurance Companies 4 Indian life insurance industry overview 4.1 Commission / intermediation fees 5 External links Types of Life Insurance in India[edit] Life insurance products come in a variety of offerings catering to the investment...
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...Insurance System in India - An Overview History of Insurance Sector - The oldest existing insurance company in India is the National Insurance Company , which was founded in 1906, and is still in business. The largest life-insurance company in India, Life Insurance Corporation of India is still owned by the government and carries a sovereign guarantee for all insurance policies issued by it. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Government of India issued an Ordinance on 19 January 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on 1 January 1973. Insurance Repository On 16th September 2013, IRDA launched 'Insurance Repository' services in India. It is a unique concept and first to be introduced in India. This system enables policy holders to buy and keep insurance policies in dematerialized or electronic form. Policy holders can hold all his insurance policies in an electronic format in a single account called electronic insurance account (eIA). Insurance Regulatory and Development Authority has issued licenses to five entities to act as Insurance Repository: NSDL Database Management Limited, Central Insurance Repository Limited ( CIRL ), SHCIL Projects Limited, Karvy Insurance repository Limited...
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...elimination of deformed non-market economies, a restoration of market, and private ownership, paired with a laissez-faire free market system would automatically solve all major economic/social problems of the transforming countries. * The economic crisis within the Central and Eastern Europe area started much earlier – in the mid-late 1970s when growth slowed significantly and the terms of trade for the state socialist countries began to deteriorate (1973 first oil shock 20% decline, for some even 26-32%) Schumpeter’s theory of “structural crisis”: advancements in technology lead to decline of the old leading sectors and export branches based on old technology, generating wide-ranging slow-down and decline and causing an economic crisis even in rich, advanced countries. However, although rising new technology led to the emergence of new industries, new leading export sectors and an impressive new boom in the US and other advanced countries, the Central and Eastern Europe countries experienced a “peripheral structural crisis” – they suffered all the negative consequences of a the “structural crisis” but due to not having sufficient resources for R&D, know-how and financial sources, they were not...
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...public pushed for a greater state intervention to ensure the economic and social wellbeing of the citizens. One of the main policies of the post war consensus was the evolution of the new welfare state which was based on the principles of equal distribution of wealth, equality and the public responsibility for those unable to provide a decent standard of living for themselves. This new collectivist approach covered areas such as education, unemployment, health, housing and poverty that were thought important to overcome to enjoy a reasonable standard of living. The post-war consensus prevailed from 1945 until the election of the Conservative government led by Margaret Thatcher in 1979. Thatcher challenged the welfare state mainly through privatisation of UK services and abolishment of the Keynesian full employment practice. This essay will look at how and to what extent the post-war consensus on welfare was challenged during the Thatcher years. The war created a housing problem as many homes were bombed, leaving thousands of people homeless. Following this there was a...
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