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Initially
tariffs were introduced to protect the customer's
interest. But for insurance companies, tariff system
leaves very little scope for competition. Subjecting
everyone to tariff is not a desirable solution in
the long run and the technical norms are universally
ignored in the face of competition. This article throws
light on the challenges against detarriffing; detariffing
experience in 1994-Marine Insurance; and Industry
outlook towards detariffing.
Insurance is an international service industry and
follows trade and industry. About 42% of GDP in India
is derived and generated from the services sector
of which insurance is an important segment. The insurance
sector has been opened up for private operations during
the year 2000. Now, both public and private sector
insurance companies will continue to operate, function
and coexist simultaneously. In all, 28 insurance companies,
including six public sectors Life and General Insurance
companies, are operating in the country.
The
basic concept of insurance is it provides a pool to
which many contribute and out of which a few who suffer
losses are compensated. It is a creation of some security
towards any loss or damage. The loss can be to life
or property. Life |
