Irda Journal April 09

Volume VII, No.
April 2009
Rural and Social Sectors

- Huge Potential for Growth
’Ë◊Ê ÁflÁŸÿÊ◊∑§ •ı⁄U Áfl∑§Ê‚ ¬˝ÊÁœ∑§⁄UáÊ

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd1 4/8/2009, 5:38 PM
Editorial Board
J. Hari Narayan
C.R. Muralidharan
S.V. Mony
S.B. Mathur
S.L. Mohan
Vepa Kamesam
Ashvin Parekh
Editor
U. Jawaharlal
Hindi Correspondent
Sanjeev Kumar Jain
Printed by Alapati Bapanna and
published by J. Hari Narayan on behalf of
Insurance Regulatory and Development Authority.
Editor: U. Jawaharlal
Printed at Kala Jyothi Process Ltd.
(with design inputs from Wide Reach)
1-1-60/5, RTC Cross Roads
Musheerabad, Hyderabad - 500 020
and published from
Parisrama Bhavanam, III Floor
5-9-58/B, Basheer Bagh
Hyderabad - 500 004
Phone: +91-40-66820964, 66789768
Fax: +91-40-66823334
e-mail: irdajournal@irda.gov.in
© 2007 Insurance Regulatory and Development Authority.

Please reproduce with due permission.
Unless explicitly stated, the information and views published in this
Journal may not be construed as those of the Insurance Regulatory
and Development Authority.

From the Publisher
M
ost of the financial services in India in While these sectors are the ones that need the
general, and insurance in particular; have tenets of risk management to be implemented in
remained limited mostly to the urban toto, more often than not they remain excluded
centres historically. For one thing, financial owing to several reasons. Innovation in designing
education had its own limitations; and for another, products, in making them appeal to the masses and
even the service providers could not reach the far in making the masses realize the need for insurance
flung places owing to reasons of viability and limited is the need of the hour; although it is not as easy
resources. The high costs of distribution that as it sounds. For awareness creation, various
include traveling to remote corners of the country, stakeholders have to put into use several methods
building awareness among the rural masses, that may not be very conventional but effective.
motivating them to insure their lives and assets Importantly, effort should be made to convey the
etc. are all undoubtedly a great constraint that message in a language and in a form that the
need to be overcome. It has been said time and downtrodden understand easily. This is a daunting
again that there is need for innovation in impressing task that needs a total commitment from every
upon the masses in order that financial inclusion is stakeholder.
accomplished in its truest sense.
‘Rural and Social Commitment of Insurers’ is the
Insurers have been mandated to achieve preset focus of this issue of the Journal. Marketing in
targets from rural and social sector in their business financial services is in itself a huge challenge; and
figures in order to ensure that there is active when it comes to insurance in the Indian domain,
participation of all the players in this very important it is even more challenging. ‘Insurance Marketing’
domain. While these targets are only indicative, it will be the focus of the next issue of the Journal.
is desirable to have all the players over-reach their
targets and demonstrate that consolidating in these
areas is a genuine business opportunity. It would
also ensure that insurance penetration will take a
quantum jump only when these resources are
tapped.
J. Hari Narayan

I S S U E F O C U S
Going from Exclusion to Inclusion
- P.C. James 13
Rural and Social Sector Insurance

- K. Gopinath 17
Catalyst for Financial Inclusion

- Pranav Prashad 20
Partnering in Sustainable Livelihoods

for Rural Youth
- Avinash Kaur Lochan 22
FOLLOW THROUGH
Statistics - Life Insurance 4
26 Championing and Institutionalizing
In the Air 6 - Srinivasan Varadharajan and Shrinivas Susarla
Vantage Point
U. Jawaharlal 12
30 Customer Relationship
GúßÁzO˛Á u“o úÁz m - Rajesh Sud
EÁ{∫ GnúÁt EåÏN˛Ó ¬o
Eªm ET¿ƒÁ¬ 40
ÆÏu¬ú <<LN˛ E¬T twu…bN˛Ázm>>
Eu∫ãt™ 43
EÁuQ∫ Æz åÁ™ÁÊN˛å RESEARCH PAPER
LƒÊ Ã™åÏtΔ
z å “{ MÆÁ?
ÃÊ\Æ Nz˛ugÆÁ 44 33 Pilot Study on Morbidity Rates
Round up 46 - G. N. Bhaskar Rau
Statistics - Non-Life Insurance 48

from the editor
Steady Progress
– Need for More
F
or ages, India has had the history of living in its villages. A vast majority of the people still owe allegiance
to villages, despite the migration that is visible on an on-going basis, from rural areas to urban centres;
in search of employment and gainful work. Such of those individuals who have made the rural areas their
permanent abode depend mainly on agriculture or allied activities, village handicrafts and other professions
that historically have been handed down, based mostly on social divisions. Barring the rich landlords, the
people who have made agriculture as their prime occupation have had to face several hardships, owing to
faulty rainfalls, crop failures, droughts etc. The other occupations had been equally non-fetching and a look at
the average Indian village presents a none-too-pleasant picture.
Similarly, even on the urban front, one gets to see a huge number of people – like the carpenters, plumbers,
construction labour, just to name a few – depending on daily wages and not having a regular stream of income.
They are constrained to continue within the poverty spiral, although the official figures of people living below
poverty line may indicate otherwise. There have been attempts by the policy-makers to bring them all into the
main line of activity through financial inclusion/poverty alleviation etc. Although we have been witnessing
steady improvement in most areas, to claim that everything is hunky-dory would be ambitious.
Insurance has not remained a priority for any of these sectors for obvious reasons. Ironically, the loss of the
wage-earner or the loss of an asset for these sectors could be tremendous. As a part of encouraging financial
inclusion, the insurers have been mandated with targets to be achieved from these sectors. The performance of
most of the insurers tends to indicate whether they are looking at it as business potential, rather than as targets
to be fulfilled, which is a very positive sign. One should admit that there is need for more. If there is a
concerted effort on the part of all the stakeholders, it is not an impossible task; and one looks forward to great
improvement being achieved in this area.
‘Rural and Social Sector Commitments of Insurers’ is the focus of this issue of the Journal. We begin the debate
with an exhaustive detail of the account by Mr. P.C. James who delves into the need for commitment, in order
to keep the movement going. In the next article, Mr. K. Gopinath discusses the geographical disparities and the
high costs associated with spreading insurance in the rural side; apart from the need to identify new products
and procedures in tune with the needs of the villagers. We have an article from Mr. Pranav Prashad in which he
talks about the changes that need to be implemented to ensure that the rural poor are brought under the fold
of insurance. In the end, we have an article by Ms. Avinash Kaur Lochan in which she elucidates the need for
creating an environment that would be beneficial for most stakeholders, while spreading the safety net to the
downtrodden.
‘Treating Customers Fairly’ has been one topic that has attracted the attention of various interest groups.
In addition to the several viewpoints that we presented last month, we have a couple of articles more in this
issue – in the ‘follow through’ section. In the first article, Mr. Srinivasan Varadarajan and Mr. Srinivas Susarla
take into account the global scenario in the domain and suggest how it can be useful in adapting it to the Indian
conditions. In the next article, we have Mr. Rajesh Sud giving us precious inputs on how a proper implementation
of the principles of TCF can enhance the business figures as also market reputation. The second and concluding
part of the research paper by Prof. G.N. Bhaskar Rau is included in this issue, apart from the usual monthly
business statistics of life and non-life insurers.
In a domain where insurance awareness is not at a very high pedestal, marketing is a huge challenge. ‘Insurance
Marketing’ will be the focus of the next issue of the Journal.
U. Jawaharlal

Report Card:LIFE
First Year Premium of Life Insurers for the Period Ended February, 2009
Sl
Premium u/w (Rs. in Crores) No. of Policies / Schemes No. of lives covered under Group Schemes
No. Insurer
IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd6

February, 09 Up to February, 09 Up to February, 08 February, 09 Up to February, 09 Up to February, 08 February, 09 Up to February, 09 Up to February, 08
1 Bajaj Allianz
Individual Single Premium 44.64 369.46 566.38 8335 89142 79453
Individual Non-Single Premium 257.20 3177.56 4511.13 199178 2132077 3019546
Group Single Premium 0.84 4.77 8.32 2 7 0 259065 263607 6474
statistics - life insurance
Group Non-Single Premium 30.23 127.49 44.75 92 650 288 684869 6243397 1212485
2 ING Vysya
3 Reliance Life
irda journal
4 SBI Life
4
5 Tata AIG
Apr 2009
6 HDFC Standard
7 ICICI Prudential
4/8/2009, 5:38 PM
8 Birla Sunlife
9 Aviva
10 Kotak Mahindra Old Mutual
11 Max New York
12 Met Life
12 Met Life
13 Sahara Life
14 Shriram Life
Individual Non-Single Premium 8.37 150.40 103..32 7901 83519 63209
15 Bharti Axa Life
IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd7

16 Future Generali Life
statistics - life insurance

17 IDBI Fortis Life
Individual Single Premium 13.28 97.77 1849 15321
Individual Non-Single Premium 12.68 125.57 5025 44053
Group Single Premium 0.00 0.00 0 0 0 0
Group Non-Single Premium 0.00 0.02 0 1 3277 19585
18 Canara HSBC OBC Life
irda journal
19 Aegon Religare
5
20 DLF Pramerica#
Apr 2009
21 Star Union Dai-ichi @
Private Total
4/8/2009, 5:38 PM
Individual Single Premium 203.84 2145.73 2877.25 44632.00 548185.00 720072.00
Individual Non-Single Premium 2171.71 22338.68 21178.36 1271241.00 12056871.00 10172288.00
Group Single Premium 45.83 747.63 877.05 46.00 546.00 399.00 407455.00 2098579.00 1551813.00
Group Non-Single Premium 233.58 2901.84 1313.10 218.00 2531.00 1727.00 1254124.00 15166400.00 5030117.36
22 LIC
Grand Total
Note: 1.Cumulative premium / No.of policies upto the month is net of cancellations which may occur during the free look period.
2. Compiled on the basis of data submitted by the Insurance companies.
3.# Started operations in September, 2008.
4.@ Started operations in February, 2009.
in the air
CIRCULAR
February 11, 2009 Circular No:37/IRDA/GRM-Cir (L)/2009
To o Insurance claim that has been rejected or dispute of a claim on

legal construction of the policy
All Life Insurers,
o Delay in settlement of claim
It has come to the notice of the Authority that information on the
o Dispute with regard to premium
Insurance Company’s Grievance Redressal Mechanism as well as
the Insurance Ombudsman is not communicated properly to the o Non-receipt of your insurance document
policyholders. It is hence felt necessary to prescribe a common Address of the Insurance Ombudsman:
format on this aspect which would enable disclosure of specific
information to policyholders and beneficiaries. It is advised that _______________________________________________________
the following information at a minimum should be sent to all _______________________________________________________
policyholders with the policy document. _______________________________________________________
Contact No:______________________________________________
1. In case you have any query or complaint/grievance, you may Email ID: _______________________________________________
approach our office at the following address:
4. The complaint should be made in writing duly signed by the
_______________________________________________________
complainant or by his legal heirs with full details of the complaint
_______________________________________________________
and the contact information of complainant.
_______________________________________________________
Contact No:______________________________________________ 5. As per provision 13(3)of the Redressal of Public Grievances Rules
Email ID: _______________________________________________ 1998, the complaint to the Ombudsman can be made
2. In case you are not satisfied with the decision of the above • only if the grievance has been rejected by the Grievance
office, or have not received any response within 10 days, you may Redressal Machinery of the Insurer
contact the following official for resolution: • within a period of one year from the date of rejection by the
insurer
_______________________________________________________
_______________________________________________________ • if it is not simultaneously under any litigation.
_______________________________________________________ Please take necessary action in this regard and confirm the same
Contact No:______________________________________________ to the Authority.
Email ID: _______________________________________________
(G. Prabhakara)
3. In case you are not satisfied with the decision/resolution of Member (Life)
the Company, you may approach the Insurance Ombudsman at
the address given below if your grievance pertains to:
PRESS RELEASE
February 20, 2009
The Department of Industrial Policy and Promotion (FC Section), held by a foreign company is laid down in clause 11 of the IRDA
Ministry of Commerce & Industry, Government of India, vide Press (Registration of Indian Insurance Companies) Regulations, 2000,
Note No.2 (2009 Series) dated 13th February, 2009 has issued the Press Note under reference has excluded the insurance sector
Guidelines for calculation of total foreign investment, i.e., direct from the methodology as detailed there under. Thus, the insurance
and indirect foreign investment in Indian companies. These sector has been left out of the purview of the said methodology
guidelines are effective from the date of the issue of the and shall continue to be governed by the provisions of the relevant
Press note. Insurance Laws and Regulations.
While concerns have been expressed in some quarters, it is clarified (J. Hari Narayan)
that in case of Indian insurance companies, in view of the fact Chairman
that the manner of calculation of twenty six per cent equity capital
irda journal 6 Apr 2009

in the air
CIRCULAR
February 26, 2009 Circular No. 39/IRDA/AML/CIR/FEB-09
To 3.1.8 (ii) “For integrally related transactions, premium amount

greater than Rs. 50,000 in a calendar month should be examined
All the Insurers
more closely for possible angles of money laundering. This limit
Dear Sir/Madam, will apply at an aggregate level considering all the roles of a single
person – as a proposer or life assured or assignee”.
Sub: Cash Acceptance Threshold for Premium/Proposal Deposit
Remittances 2. The Authority is concerned on certain instances that have come
We invite your attention to the following instructions included in to its notice wherein it was observed that the aforementioned
the Anti Money Laundering (AML) guidelines detailing the ceiling clauses are being selectively interpreted by insurance companies
limits for cash deposits in insurance transactions. It may be for compliance on individual transaction basis and consequent
observed therefrom, that the instructions emphasize strict splitting of the insurance policies/issue of number of policies to
adherence to the ceiling, with the clear focus to check possible one or more entities has facilitated individuals to defeat the spirit
attempts of money laundering and consequently require of the AML guidelines.
compliance with both the letter and spirit of our guidelines: 3. All insurers are therefore advised that the cash acceptance
3.1.8 “With a view to ensuring that premiums are paid out of thresholds should be applied as indicated and where there is
clearly identifiable sources of funds, it has been decided that possibility of the transactions being integrated through a single
remittances of premium by cash should not exceed Rs.50,000. It remitter, the insurer should refuse to accede to the requests for
would be advisable for the companies to evolve even lower cash deposits. The Authority will be constrained to take serious
thresholds for cash transactions”. action against the insurers where the violations of AML framework
are permitted with their tacit approval.
3.1.8 (i) “Premium/proposal deposits beyond Rs.50,000 should
be remitted only through cheques, demand drafts, credit card or Yours faithfully,
any other banking channels”. (C.R. Muralidharan)
Member
CANCELLATION OF BROKER LICENSE

5th March, 2009 IRDA/DB-067/03
To WHEREAS, the Broker has given an undertaking to service the

The Principal Officer, existing clients whose policies are in force for a period of
M/s. Protect Insurance Services (India) Pvt. Ltd., six months from date of cancellation of license as required under
604, Vishvananak, ICT Link Road, Regulation 40 of the IRDA (Insurance Brokers) Regulations, 2002,
Chakala, Andheri (E), within which it has to make suitable arrangements with another
MUMBAI - 400 099. licensed broker to service the contracts already concluded.
Dear Sir, WHEREAS, the Broker vide its letter dated 26.12.2008 submitted
the original license No.138 for cancellation.
Sub : CANCELLATION OF BROKER LICENSE NO 138.
NOW THEREFORE, pursuant to the request made by the Broker for
WHEREAS, M/s. Protect Insurance Services (India) Pvt. Ltd.,
surrender of Broker License, the Authority hereby cancels the
(hereinafter referred to as the ‘Broker’) having its Registered
Direct Broker License No.138 granted to M/s. Protect Insurance
Office at Kachwala Building, 3rd Floor, Opp: old Passport Office,
Services (India) Pvt. Ltd with immediate effect.
266, Dr. Annie Besant Road, Prabhadevi, Mumbai 400 025 has been
granted license by the Authority to act as a Direct Broker in the The Broker is advised to remit annual fee payable for the
field of general insurance vide License No.138 on 1st April, 2003 year 2008-09 after finalization of accounts and as prescribed
and renewed till 31st March, 2009 pursuant to the provisions of under Schedule II of IRDA (Insurance Brokers) Regulations, 2002
the IRDA (Insurance Brokers) Regulations, 2002. and as amended vide IRDA (Insurance Brokers) (Amendment)
Regulations, 2007.
WHEREAS, the Broker vide letter dated 4th November, 2008
communicated to the Authority that it would like to discontinue (Prabodh Chander)
as Direct Insurance Broker with immediate effect. Executive Director

in the air
CIRCULAR
13th March 2009 Circular No. 42/IRDA/ACTL/EM/2008-09
To b.This table must also show all payments made to any other party,
related to the intermediaries mentioned above. This table should
All the Life Insurance Companies
also indicate the total amount of business procured through
Sub: Expense management of life insurance companies. them during the period of reference.
As indicated on a number of occasions, expenditure management c.The definition of related parties mentioned above should be
is very crucial for the life insurance industry especially at this in conformity with the Accounting standards of ICAI and
juncture, in order to procure durable business and position them Companies Act.
on a strong footing. In this context, payments made to the d.This certificate will be jointly signed by the CEO. CFO and
intermediaries, other than individual agents, occupy an important Compliance Officer.
position. Hence life insurers are required to submit the following,
The IRDA reserves the right to ask external auditors of the life
starting from the financial year ending March 31, 2009.
insurers to certify these statements.
a.The life insurer must give the details of all the payments made
by the company, during the year (April-March), to all sd/-
intermediaries, except individual agents in a separate table, as (R. Kannan)
given in the Pro forma enclosed. This table must be sent along Member
with the Appointed Actuaries Report.
Encl: Table
Name of the Life Insurer Date...................................
Intermediary-wise details of premium collected and expenses incurred, under each distribution channel, during the financial year 2008-09
(excluding individual agnets)
Premium Collected 1 Commission Paid 2 All other payments made
Distribution Channels Accounted
FYP RP SP Top-up FYP RP SP Top-up Amount
under 3
A Corporate Agent
Name 1
Related party 1
Related party 2
Name 2
Related party 1
Related party 2
B Brokers
Name 1
Related party 1
Related party 2
Name 2
Related party 1
Related party 2
C Referrals
Name 1
Related party 1
Related party 2
Name 2
Related party 1
Related party 2
D Others (specify)
Name 1
Related party 1
Related party 2
Name 2
Related party 1
Related party 2
E Direct Sales
Note
1. Premium as per Schedule 1 of financial statements 2. Commission paid as per Schedule 2 of financial statements
3. Name of particualr account as per Schedule III of financial statements
FYP - First Year Premium SP - Single Premium
RP - Renewal Premium Top-up - Top-up Premium
Signature of Compliance Officer Signature of Chief Financial Officer Signature of Chief Executive Officer

in the air
CIRCULAR
March 13, 2009 Circular No: 43/IRDA/ACTL/ASM/2008-09
To has been decided that all life insurers are required to submit the
statement of scrip-wise details of investments supporting various
CEOs of Life Insurance Companies
categories of assets mentioned therein. The proforma of the
Dear Madam/Sir statement to be submitted is given in the Annexure. The statement
Subject: Scrip-wise details of investments available for arriving should be submitted along with the actuarial valuation reports
at the “Available Solvency Margin” for the year ended March 31, 2009 onwards.
sd/-
This has reference to the submission of Form IR.DA-ASSETS-AA as
(R. Kannan)
per IRDA (Assets. Liabilities and Solvency Margin of Insurers)
Member
Regulations, 2000.
In addition to the submission of the above referred statement, it Encl: Annexure
Annexure:
Name of the Life Insurer:
Policyholders’ funds (in rupees lakhs)
Scrip-wise Investments Date No. of Units held Book Value Market Value
as at of as at as at as at
March 31, 2009 Purchase March 31, 2009 March 31, 2009 March 31, 2009
Category of Asset: Approved Securities

Name of scrip
................
Category of Asset: Approved Investments

Name of scrip
................
Category of Asset: Deposits

Name of scrip
................
Category of Asset: Non-Mandated Investments

Name of scrip
................
Category of Asset: Other Assets – Specify
Name of scrip
................

in the air
Shareholders’ funds (in rupees lakhs)

Scrip-wise Investments Date No. of Units held Book Value Market Value
as at of as at as at as at
March 31, 2009 Purchase March 31, 2009 March 31, 2009 March 31, 2009
Category of Asset: Approved Securities
Name of scrip
................
Category of Asset: Approved Investments
Name of scrip
................
Category of Asset: Deposits
Name of scrip
................
Category of Asset: Non-Mandated Investments
Name of scrip
................
Category of Asset: Other Assets – Specify
Name of scrip
................
Signature of Signature of Signature of

Appointed Actuary Chief Financial Officer Chief Executive Officer
Company seal
Date:
CIRCULAR
March 17, 2009 Circular No.043/IRDA/CIR/Compliance/Mar-2009
Sub: Issuance of ESOP/ Sweat Equity to CIO / Managing Director to Managing Director / Chief Executive Officer / Principal
/ Whole-time Director – Compliance with Section 34A of the Officer / Whole-time Director, then
Insurance Act, 1938. I. If the CEO / Managing Director / Whole-time Director/
In partial modification of the para (3) and (4) of Form C of Circular Principal Officer is one of the promoters or directly related
No.031/IRDA/C1R/CGMPLIANCE/AUG-20G7 dated 23.08.2007, it to the promoters, then the same will be governed by the
is now clarified that the issuance of ESOP/ Sweat Equity to Chief provisions of SEBI (Issue of Sweat Equity) Regulations, 2002
Executive Officer / Managing Director / Whole-time Director / except those relating to pricing of the shares.
Principal Officer would be governed by the following norms: II. In other cases, the same will be governed by the SEBI’s
1. In case of shares of a promoter/ group / associate companies ESOS guidelines as amended by the SEBI from time to time
(whether listed or otherwise) is issued to CEO / WTD/ Principal except the pricing of the shares.
Officer / Managing Director, then the same will be governed All other provisions / terms and conditions of the circular No.
by the provisions of the SEBI as may be applicable to that 031/IRDA/CIR/COMPLIANCE/AUG-2007 shall remain unchanged.
promoter / group company. Please Acknowledge receipt and ensure strict compliance of
2. In case shares of the insurance company are issued as Sweat the aforesaid.
Equity, then the same will be governed by the provisions of
sd/-
the Sweat Equity Regulation issued by SEBI except for the (CR Muralidharan)
guideline relating to pricing of shares. Member
3. In case of shares of insurance company are offered as ESOPs

in the air
ORDER
THE INSURANCE REGULATORY AND DEVELOPMINT AUTHORITY your request vide dt. 22.08.2008 & 04.12.2008. The
(IRDA) last hearing on 02.01.2009 was attended by your CEO
Shri G P Sureka.
AGAINST
9. That during the hearing on 02.01.2009 your CEO had admitted
M/s UNIVERSAL MEDIAID SERVICES LIMITED
that your company had indeed violated the directions of the
The Authority, after examining your application dt. 11.02.2008 Authority In respect of rescheduling of your loans and
for the renewal of your TPA licence No. 009, observes the following: advances. The admission is recorded in the minutes of the
proceedings held on 02.01.2009 signed by your CEO.
1. That your company was granted a licence by IRDA to act as
Third Party Administrator (TPA) in March, 2002. The licence 10. That, vide your dt. 04.12.2008 you had admitted that you had
was further renewed up to March 2008. violated the circular No. Q22/IRDA/MV/G5 dt. 25.08.2005 in
respect of change in shareholding of your company and have
2. That your company had made certain loans and advances
requested to condone the same.
during 2003-04 to companies not connected with the TPA
business, which in the blocking of the working capital required 11. Further that you had also that you were processing claims of
for the TPA business. some corporates (MMTC & RITES) directly and not through
any insurer, which is in violation of the TPA Regulations.
3. That your company was advised by the Authority vide letter
dated 16th June 2005 and subsequent letters dated 17th August 12. The Authority has the submissions made till date, about
2005 and 5 th October 2005 in this regard, to withdraw January, 2009 by you. Upon a consideration of the same as
the loans and advances and deposit the same in scheduled also the facts and circumstances of tie case and the material
banks, to be available for the working requirements of the on record, what stands out clearly, especially from the events
TPA business. that transpired and which have briefly above, is the blatant
disregard of your company, despite being a registered entity,
4. That you sought time limit and further extension thereof in
to adhere to the instructions issued by the regulator in the of
order to comply with the directions of the Authority.
the policy holders.
5. That you were advised to show cause, vide our letter
13. In view of the above, the Authority has come to the conclusion
dt. 19.08.2008 as to why your application for renewal of your
that your application for renewal of your TPA licence
TPA licence should not be declined. And that your reply
(No. 009) should be declined.
dt. 22.08.2008 to the show cause denied that you had violated
any provisions of the TPA Regulations or any directions issued 14. In exercise of the powers conferred by Regulations 13 & 14 of
by the Authority. the IRDA (Third Party Administrators – Health Regulations,
6. That your reply contained certain contradictory submissions 2001, therefore, the Authority hereby declines the application
about the status of loans and advances made by your TPA in for of TPA licence no 009 of M/s Universal Mecti-Aid Services
so far as that while the letter indicated that the Pvt Ltd.
money (advanced) could be called back as and when required, Subsequent to the non-renewal of the TPA licence,
it also said that the new date of renewal of the short term M/s Universal Medi-Aid Services Pvt. Ltd. is hereby directed
loans and advances fell on or before 31.03.2009, hence you to comply with the following:
may be granted extension of time up to that date.
a. Submit immediately, the data collected and the books,
7. That the Authority had also conducted an inspection of your records or documents, etc, relating to the business carried
company in Aug, 2008 and findings of the same were on by it in relation to different insurers, to the respective
communicated to you vide letter dt. 02.12.2008. Your company insurers.
had responded vide dt. 04.12.2008 providing explanations b. Support insurance company(ies) in making suitable
for the queries and also of having reinvested the amount alternative arrangements to service the policyhoiders in
recalled from Safal Constructions in to other companies, of whom the policies are still in force.
having made changes in the shareholding pattern without prior c. Reconcile and the accounts with the insurance companies
approval of the Authority, servicing corporate clients directly and service providers.
and not through any insurer and also for an opportunity for a
Date: 6th March, 2009
personal hearing.
(Prabodh Chander)
8. That you were given an opportunity for a personal hearing
Executive Director
on three occasions, the last being on 02.01.2009 pursuant to

vantage point
Marketing Insurance
in an Emerging Domain
CHALLENGES UNLIMITED
U. JAWAHARLAL EMPHASIZES THAT ALTHOUGH INSURANCE MARKETING IS A CHALLENGING PROPOSITION IN INDIA,

A PROFESSIONAL APPROACH WILL GO A LONG WAY; AND CAN CLINCH THE DEAL IN FAVOUR OF THE INSURERS.
M
arketing an intangible product has several families, although there has been but more importantly in sustaining it over
its set of complications, especially a major social transition to nuclear a longer term. Further, there should also
in a domain where the average families. In the case of health insurance, be emphasis on the client making an
mindset is to look for short term gains, and the problems are even more pronounced informed decision upfront. All this
in a tangible form, at that. The financial owing to the fact that the realization of presupposes that the marketing person is
services industry in India has been making the need for insurance strikes late, usually himself or herself highly conversant with
rapid strides of progress over the last after an episode of health-related the nuances of services that are being
several years. Within the financial services, catastrophe. While it is not very difficult offered; and ensures that a high level of
some areas like banking, capital markets to understand this phenomenon in the less- professionalism is what is targeted rather
and mutual funds have fared a great deal educated circles, it is ironical that even than a mere sale. Training the marketing
better as compared to insurance which still some highly literate individuals fail to personnel on an on-going basis should be
remains mostly to be sold. For ages, understand the importance of having in at the top of the agenda for all insurers in
insurance, particularly in the personal place a suitable health insurance policy. order to achieve consistent growth. Such
lines, has remained out of the choice of The role of insurance as a risk-management aspects as the amount of insurance, type
individuals – for inexplicable reasons. In tool is one thing that needs to be totally of the product etc. need to be properly
the liberalized environment, this trend has digested so that insurance marketing explained to the client so that heartburn
begun to be reversed, although we are far becomes a greatly less-complicated at a later stage is precluded.
from a position that can be called exercise.
‘Insurance Marketing’ will be the focus of
comfortable.
Looking at the other side of it, there is the next issue of the Journal. The
In the domain of life insurance, the need for appreciating that need complexities involved in dealing with this
comfort of a joint family system that took identification of the client, followed by a challenging task will be discussed
care of the financial fall-out of the need-based selling are of paramount threadbare by several practitioners.
breadwinner’s demise still looms large over importance not only in acquiring business
A Professional Approach
in Marketing Insurance
in the next issue...

issue focus
Going from
Exclusion to Inclusion
NEED FOR FACILITATING THE EXERCISE
P.C. JAMES AVERS THAT THE PERMISSION GIVEN TO NGOS, MFIS AND SHGS TO SELL AND SERVICE MICRO INSURANCE
PRODUCTS CAN SERVE AS A GREAT TURNING POINT IN THE UNIVERSALIZATION OF INSURANCE.
I
t is well recognised that the availability It is not the poor only who are excluded. that there is a natural tendency for people
and affordability of insurance There is a distinction between exclusion to shape their risks in their own informal
protection is a necessary requirement based on poverty and on social norms. and tentative manner. In the agrarian
for the sound functioning of a modern Poverty means non-access to economic economy, for instance, farmers adopt a
economy. Therefore there is an urgency goods due to lack of resources. Social number of strategies to cope with
for insuring everyone across their many exclusion points to inadequate or unequal agricultural risks. These include crop
unforeseen risks in order to ensure participation in social life, or exclusion and field diversification, non-farm
security and sustainability at multiple from a place in the normal consumer employment, strategic migration of family
levels, namely individual, family, ladder. These two dimensions of members etc. In cropping practices, risk
community, commercial (to ensure credit deprivation are visible in almost all hedging includes growing a diverse mix of
flow, to meet legal liability etc.), at society societies and communities. The economic crops, using more pesticides, and
and country level. and social gradient can reflect various undertaking simultaneously supplementary
In any analysis of financial exclusion, it degrees of exclusion from the instruments economic activities like keeping
may be seen that there is a general of economic development leading to milch animals. Higher forms of
tendency to exclude persons on two various deprivations. management included growing of less risky
parameters – one on the basis of social crops, growing of less risky varieties,
There can be many real or prejudicial
segmentation and the other on the basis improving the quality of seeds, increasing
reasons for such exclusion. In insurance,
of geography (rural) (Figure – I). the irrigation facility, pre-selling the crop
there can be a tendency to take refuge in
at fixed prices, undertaking contract
the conditions of insurability, of heightened
Figure - I farming etc.
perceptions of adverse selection and moral
hazard, as well as high cost of marketing In the area of health, individuals and
and administration, the lack of literacy households use informal risk sharing
PART FULL and poor infrastructure etc. so as to stay arrangements, postpone treatment,
INCLUSION
SOCIAL EXCLUSION
INCLUSION
away from certain segments of the approach quacks, draw down savings, sell
population and geographies. Traditionally, assets, borrow or go into debt to cover
world over there have been instances of treatments. These make it clear that rural
insurers practicing subtle forms of and the poor are aware of risks and wish
exclusion termed ‘redlining’; and in many to migrate to more effective risk
NO / POOR PART jurisdictions these practices are forbidden management practices.
INCLUSION INCLUSION
and insurers are expected to take
It can be seen that the traditional coping
necessary affirmative action.
mechanisms have considerable fragility
The policy of inclusion begins to make and informality. The values needed to join
GEOGRAPHICAL EXCLUSION sense if one were to take into consideration mainstream economic progress require

issue focus
more sophisticated tools to sustain affect the various informal sectors of the premium paying capacity. This has seen the
investments and increase prosperity. economy which are often lacking various use of diverse approaches in carrying
Bringing in the modern forms of credit, traditional insurability conditions including protection to these segments as shown in
savings and insurance have exponential availability of data as well as having the Figure - II:
effects on the welfare of the excluded.
Economists are agreed that uninsured risks Figure - II
have substantial welfare costs. The values
that insurance can bring to the lives of the PROTECTION PARADIGMS
excluded far exceed the tangible benefit
of indemnity. Modern insurance exposes Occupational Multitasking, diversification
the vulnerability of unmanaged and under
managed risks to help to draft proper Household Extended family units
management and insurability frameworks Community Local assistance
which can encourage people towards
managed risk taking in economic activity Other informal Cooperative approaches
and development. People are thus enabled
Disaster relief Ex-post by government
to jettison lower order approaches of
economic activity and obtain increasing
economic returns. EX ANTE RISK MANAGEMENT / INSURANCE
The organised industrial world had taken

to risk containment early in its history. Free insurance Government paid
Accident, disease and disability risks that Part free insurance Subsidised
dominated the early industrial landscape
had compelled the need for safety nets Full paid insurance Paid by beneficiary
to be created by employers or the state,
such as seen in the formation of sickness
funds and social insurances; as also Administered schemes Government schemes
the legislation of compulsory liability
insurances such as the workmen Quasi insurances Limited indemnities
compensation insurance and motor third Index insurance Parametric insurances
party insurance.
Area insurance Area rated indemnities
In informal sectors, such protection did not
exist and disaster relief was considered Group covers Community, ‘as if’ rates
normal when societal level disasters and
distress took place. Post disaster relief Full individual insurance Individually underwritten
however has been found to be not Input cost insurance Based on cost of cultivation
optimal as it has many shortcomings
including weakening of the fiscal balance Economic value insurance Full economic value
and creating a dependency by those
Reinstatement insurance Today’s replacement cost
affected to look for grants and aid than
create risk proofing robustness; and more
tragically, such benefits often may not
reach the actually distressed for whom the Compulsory insurance State notified
relief was intended.
Loan linked insurance Bank loan linked
Therefore there is a clear need for
Employment based Employer sponsored
inclusion of all in the financial service
sector loop to bring in a whole host of Solidarity based Group solidarity
modern inputs to promote a virtuous cycle
of economic and social development. Voluntary/optional Individual choice based
There are a range of unmanaged risks that

issue focus
Given the many favourable factors and awareness including prioritisation in geographic requirements. Thus one can
options available now owing to the many taking covers. Insurance is a complex observe that the personal accident policy
developmental initiatives taken, there is service product, difficult to understand for the organised factory worker needs
a clear need to move away from tried and and having a wide variety of facets and to be modified when being offered to a
traditional approaches of protection and is couched in difficult language. Thus farmer or fisherman. Between risks,
introduce insurance not only in new insurance literacy at various levels – permanent total disablement benefit
untapped areas but also to multiply insurers own retail staff, at intermediary, should be much higher than the death
product options where suboptimal products group/community, and individual level benefit. Similarly, in a policy for women
exist so that the unique needs of various becomes necessary to avoid an as seen in the Rajarajeshwari policy, it
communities and geographies are unnecessary backlash owing to misselling may be more advantageous to pay for
increasingly satisfied according to the and wrong selling. the accidental death of the spouse,
beneficiaries’ real need. There can be • Affordability of premium, value for rather than self in case of death; and in
many barriers to achieving this objective. money focus and payment schedules. case disablement, the cover pays for the
These may include literacy and awareness In informal sectors cash availability to disablement of the insured beneficiary.
barriers, distributional hurdles, pay varies considerably between • The service assurance. Insurance is all
organisational difficulties, product occupations. People are paid daily, about service. Protection of the
limitations and choice options, service weekly, monthly or on harvesting, and policyholder requires compliance with a
complexities, cost burdens, premium hence cash flows vary. Intermediary number of obligations. Competitive
paying and collection problems, issues in services in collection, savings, premium differentiation requires further
titles, documentation, inspection, financing, and timely payment of excellence in ensuring ease in obtaining
disclosures and so on. All these need to be premiums are required. More essentially the required services. Rent seeking
examined and dealt with at company and covers like crop insurance and health behaviour that can easily creep in where
industry level. insurance necessarily carry higher risk the uncomprehending are involved, has
A new grammar of inclusion needs to be and higher rates, and premium paying to be cut out ruthlessly. Thus the
developed that can holistically look at the capacity needs to be built up to obtain tendency to collect fictitious charges for
phenomenon of exclusion. Many inputs coverage, and need to be coupled with getting a claim form or in getting an
such as the following are needed. governmental and other donor initiatives estimate, or charges for inspection
to offer subsidies and assistance. services all mar the image of the service
• Marketing. New and appropriate
• Product design. A beginner in insurance provider and need to be monitored for
intermediaries need to be empowered
requires special considerations as not ensuring that they do not take place.
to cross the barriers of exclusion.
only are the livelihoods of the excluded Similarly the costs of delay easily defeat
Insurance regulation in India has
fragile but their initiation into such the trust and confidence of fragile
fortunately taken proactive steps to
complex service products are slow and customers.
permit the use of a wide variety of
intermediaries. Particularly heartening often uncomprehending. Thus removal • In this regard the use of IT brings in
for the rural and social sector is the rise of cumbersome procedures, forms, and expectation of lowering informational
of organised intermediaries such as individual rigorous underwriting barriers, makes access easy, and brings
bancassurance, cooperatives, procedures can be replaced with group in much greater speed, responsiveness
panchayats and other rural institutions or area approaches, community rating, and transparency. Online tracking of
and the possibility that they can carry the use of certificates and master service issues, uploading of relevant
out a multiplicity of intermediary policies, use of vernacular, and other information and being available 24x7
services including insurance in a cost innovations that simplify services, offer should compel insurers bring online
effective manner. More importantly the real benefits, increase contract certainty services even in the remotest areas
permission given to NGOs, MFIs and SHGs and speed up claim settlement. through hand held devices and common
to sell and service micro insurance • Adapting the product to special service centres.
products can serve as a great turning conditions. There are certain • Beyond insurers the general service
point in the universalization of universalities in insurance products. Thus infrastructure need to be upgraded to
insurance. Encouragement need to be everyone is aware of the broad features play a facilitating role and many
given to offer a bouquet of products of personal accident insurance. However initiatives are possible using relevant
across insurers possessing specialised the product will come alive into the real partners to provide them. Services such
domain expertise. needs of consumers only by tweaking the as having a bank account, having access
• Capacity building, creation of product to suit the segmental or to clear asset titles, identity proofs,

issue focus
access to telephones and internet, • Community or group rating reduces costs relationship to move up the value curve
facility to file FIRs, to talk to insurers on both sides and experience rating can for better developmental results.
and file claims through call centres or keep the group from making unnecessary
Finally, in moving to insurance solutions,
online etc. are all part of a facilitating claims and generally reduce claims cost.
a proper risk management paradigm with
environment to obtain proper benefits • Better service assurance on the strength the participation of all concerned can help
from services. of the group. MOUs can clarify most to improve understanding and reach better
Beneath such details, which are important issues such as whether claims will be in solutions. These include:
and need to be drilled down further, cash or kind, whether repair/
• An in-depth analysis of the risks that are
certain fundamentals need to guide them. reinstatement, or cashless or
faced, their causes and management
The first is that rural/social insurances reimbursement settlement etc.
possibilities to control and minimise
need to work on the solidarity and • Solidarity can be built up to ensure that them internally.
community platform for the various the value and sustainability of insurance
• Analysis of the frequency and severity
benefits that can be accrued there from. is enhanced over time.
of the risk and their financial
Luckily almost everyone is or can be
Similarly end to end insurance covers, if consequences on individuals and
connected on the basis of group/area/
offered, can achieve multiple objectives. the community.
social/ political unit basis, and can have a
Prices can be as low as possible, and • Preparedness to make such risks
group organiser, local centre, or self-help
choices as wide as possible, and offer insurable and to ensure that insurers
network. Solidarity approaches offer many
options and choices to beneficiaries. Thus find the risks clearly identifiable and
benefits such as:
a cover matrix need to be set up with measurable.
• Reduction of costs in marketing and multiple risk cover providers in conjunction
awareness creation by group selling. • To study the costs of the risk and the
with group approaches to provide cost and
affordability of the premium that is
• Avoidance or reduction in the need options benefits (see Figure - III):
estimated. The possibility that
for individual underwriting and related
Solidarity based approaches based on governments and other promotional
paperwork.
shared objectives involving beneficiaries, authorities can subsidise higher rated
• Reduction in adverse selection local partner institutions and insurers can risks can be factored in to make the
(hidden information) and moral hazard help to align demand for insurance with scheme a win-win for both parties.
(hidden action) as the community takes the supply requirements and ensure better • The benefit and service package
on certain disclosure and control sustainability and success, and help the need to be analysed, discussed and
responsibilities.
agreed upon.
• The beneficiaries must align with the
group organiser and the insurer to
Figure - III : COVER MATRIX
minimise losses, reduce adverse
selection/moral hazard and ensure
renewal so as to ensure the sustainability
and upgradation of the cover to suit the
BACK TO BACK HOLISTIC COVERS
HIGHER CHOICE HIGHER CHOICE beneficiaries even better.

OPTIONS LESS COSTS
The promise of inclusion is alluring and
makes business sense in the face of
increasing demand for financial products.
The facilitation factors and technologies
are gradually falling into place. The time
HIGHER COST has come therefore to make it an industry
LOWER COST level movement to universalise the
LOWER UTILITY
benefits of risk protection to all.
The author is General Manager, AIC of India

GROUP / CONNECTIVITY ARRANGEMENTS Ltd. The views expressed in the article are
his own.

issue focus
Rural and Social Sector Insurance

OPERATIONAL MANAGEMENT
K. GOPINATH WRITES THAT WHILE THERE ARE PROBLEMS OF ADVERSE SELECTION AND POSSIBLE INHERENT FRAUD
ASSOCIATED WITH SEVERAL CLASSES OF RURAL INSURANCE, THEY CAN BE OVERCOME WITH A LITTLE MORE APPLICATION
AND PERSUASION.
“Improving the lives of the billions costs, insurers have been chary of sector can be broadly classified into life-
of people at the bottom of the related and livelihood-related. Risks
venturing into this territory. Coupled with
pyramid is a noble endeavor. It can
also be a lucrative one” a tariff regime which assured them of good related to life would include Life
profits, they had been concentrating only insurance, Personal Accident insurance and
– C.K. Prahalad Illness/Health insurance. Risks related to
on the urban market.
livelihood would include Livestock,
The IRDA notifications regarding
Agriculture and Property insurances. It
7
0% of India live in rural areas but obligations of insurers to rural and social
would be advisable initially to offer
have no access; or have negligible sectors have forced the insurers to look at
products covering these risks.
access to insurance. Due to wide this hitherto unexplored market. With
geographical disparity and high distribution detariffing and recession affecting the One major road block insurers face in these
premium income and profitability of the types of insurances would be absence of
insurers, it has become extremely historical and empirical data or if the data
important to look for blue oceans and exists, unreliable data. This results in
develop new markets. higher premium for the customers which
would then result in failure of the product.
With increasing rural incomes and
The pricing should be done keeping in mind
improving infrastructure, rural and micro
the buying power of the community and
With detariffing insurance offers immense possibilities. But
should leverage on the law of large
and recession with opportunities, this sector throws numbers. It would make more sense
affecting the various operational challenges as well, for insuring a large group than a single
the insurers.
premium income individual. Further, the viability should be
looked on a long term basis of minimum
and profitability of We will be looking at some of these
challenges and some possible solutions. three years instead of making profit in the
the insurers, it has first year itself. The insurer should instead
Product Challenges – Currently there is
become extremely concentrate on building the data and gain
not much differentiation of products for
important to look urban and rural markets. The products
experience in administering such policies.
It is always advisable to start on a pilot
for blue oceans have been designed as “one size fits all”.
project basis and then replicate it on a
and develop new This needs to be relooked. The product
larger scale based on experience. This will
designers have to understand the needs of
markets. give them an advantage to tap the huge
the target population and design untapped rural and social sector market.
accordingly, and for that they need to The terms and conditions of the policy
understand the psyche of the people. should be simple to understand and with
Risks faced by the social sector and rural minimum exclusions. Insuring large

issue focus
insurance policies. The insurers can of insureds is very large, along with
leverage on their strengths and reach; and technology, various preventive measures
can also train them to sell their products. like health camps, training on good
They can also help in capacity building of hygiene, steps to prevent epidemics,
the rural and social sector target availability of doctors for consultation, etc.
population. Training of intermediaries and should be considered.
their representatives is critically important
Claim Challenges – Geographical outreach
as there is always scope for mis-selling.
poses a major problem for the claims team.
For eg: Critical illness policy may be sold
Because of the as normal health policy. Bundling of
The size of claims could be very small.
wide geographical insurance products with other products can
There is also a serious problem of
availability of Surveyors/Loss assessors. It
disparities and also be explored and will give critical mass
is always better to tie-up the claim process
distance from the and reach.
before issuance of the policy. The fact that
branches, there Underwriting Challenges – In the absence most of the insureds will not be able to
could be a time lag of historical/empirical data, the understand the terms/conditions and
underwriters find it very difficult to accept exclusions of the policy should be factored
between the actual or reject proposals. What loading to be in the claims process. It is important that
premium collection charged or what discounts to allow is a along with training of “what is covered and
and receipt of perennial problem facing them. The thumb what is not covered”, the claims process
premium at the rule would be to go for large groups to is also explained in simple terms. The
avoid anti selection. In the absence of past
back office. claims data, similar projects can be
infrastructure of the intermediary co-
operative/MFI/NGO should be leveraged
taken as reference for pricing. Past and their people can be trained to report
experience of insurance companies who losses and do the initial survey/
have already ventured into this territory assessment. For eg: In a community health
may also be considered. Hence a first hand programme, the representative of the
market experience would be advisable for intermediary can go and check whether the
the underwriters. person admitted is actually the insured.
The back office processes need to be Similarly, the tag of the dead cattle can
numbers would preclude the risk of also be checked by the intermediary’s
redrawn. Because of the wide geographical
anti selection and to include more risks representative. The insurer’s own staff also
disparities and distance from the branches,
like pre existing diseases in case of group can be trained to survey the losses up to a
there could be a time lag between the
health insurances. stipulated amount of say Rs. 20,000/-. This
actual premium collection and receipt of
Marketing and distribution challenges – premium at the back office. Also, since will reduce the TAT and increase the
India is a large country with wide most of the collection would be in cash, efficiency of claims management. Many of
geographical disparity. Reaching the target there is a danger of fraud. Further, cover the beneficiaries of micro policies may not
clients can be a major challenge. Further, notes need to be avoided as there is a have bank accounts. Therefore cashless
community based insurance schemes work danger of back dating after the claim has claim settlement should be preferred,
largely on trust. Similarly, the premium occurred. To decrease cost, cover note cum especially in community health policies.
being very small, the collection and policies can be issued at point of sale. The Where large numbers of claims are
distribution expenses end up being larger date of inception of the policy could be 15 triggered as in index-based weather
than the premium itself. This problem can to 30 days from the date of issue of cover insurance, it is advisable to have a
be mitigated to a large extent by tying up note cum policy, to preclude any possibility community gathering for claim cheque
with intermediaries who have considerable of fraud. In case of community health distribution. This will increase the trust
presence and influence in target areas. insurances, closed loop of network of amongst the community and also prevent
C o o p e r a t i v e s / N G O ’s / M i c r o f i n a n c e hospitals along with pre determined tariffs any one/group of persons manipulating
institutions can make good distributors of should be negotiated. Where the number the claims.

issue focus
Improving processes through technology In case of Rashtriya Swasthya Bima Yojana, humidity and temperature apart from rain,
– Cost effective technology has come to government has made it compulsory to which can avoid data inconsistency and
the help of rural insurers in a big way. issue bio metric cards. The cards contain errors. Further, “Basis risk” is a matter of
Currently there is considerable time lag insured’s data including their name, age, concern for the underwriter in weather
between the actual collection of premium identification number and thumb print. It insurance. Basis risk is the risk of the
and depositing it in the insurer’s office. works like a debit card where the sum experienced loss being different from
There can be a claim in the interim period. insured is credited to the account of the calculated loss. To reduce this risk, new
Mobile technology can provide a solution insured. In the event of a claim, the insured generation products envisage shifting from
to this problem. A receipt for the swipes the card in the card reader installed point based weather stations to grid based
transaction can be issued through a PDA in the hospital and matches his thumb print satellite observations. We can expect to
at the point of sale. The mobile SIM card with the data base. When he is discharged, see growth of satellite based Rainfall
installed in the device can then transfer the claim amount is debited to his account Estimation (RFE) and Normalized
the data to the main server of the insurer and the balance can be utilized in the next Difference Vegetative Index (NDVI)
instantly. Since there is a time and date hospitalization. insurance model in India in the next
stamp in all transactions, chances of fraud five years.
RFID tags for cattle insurance is another
too will decrease considerably.
significant development in livestock Finally, rural and social sector insurance
insurance. Currently, tagging is done on the should not be approached as a legal or
ear of the cattle. This has led to statutory requirement, but as a business
manipulations and frauds leading to a opportunity. With proper safeguards, this
bleeding portfolio. The RFID tags, which sector can contribute immensely to the top
are actually micro chips, are implanted line as well as bottom line. Doing well while
Cost effective near the ears of the animal and have a doing good is very much possible.
unique identification number. The number
technology has is recorded in the policy and can be read
come to the help of by a RFID reader. At the time of claim, the
rural insurers in a unique identification number of the chip
big way. Currently implanted in the animal can be
corroborated with the number recorded in
there is the policy. This reduces the chances of
considerable time claims being lodged on uninsured animal
lag between the and subsequent frauds. Currently, the cost
actual collection of of these tags forms about 20% of the
average premium and seems to be
premium and unviable. But with volumes, the cost is
depositing it in the definitely going to be cheaper and very
insurer’s office. much cost effective.
The author is Asst. Vice President (Rural and
In weather insurance, new automatic Co-operatives), IFFCO-Tokio General
weather stations calculate relative Insurance Co. Ltd.

issue focus
Catalyst for Financial Inclusion

INSURANCE IN THE RURAL & SOCIAL SECTOR
PRANAV PRASHAD ASSERTS THAT SEVERAL PRODUCTION SYSTEMS OF THE RURAL FOLK HAVE ASSOCIATED RISKS WHICH
MAY LEAD TO INCOME AND REVENUE LOSS; AND THESE CAN BE MITIGATED THROUGH INSURANCE LEADING TO
STABILIZATION OF INCOME AND REDUCED POVERTY.
I
t has often been said that the heart of The regulator as a part of its license penetration in this segment can be scaled
India beats in the villages. With 2/3rds conditions has stipulated a part of the up. Organizations need to develop an
of the population living there and the premia to be sourced from this sector. independent group focusing on this sector
agriculture sector contributing over 20% of Given the changing ecosystems and and use technology to manage the low
the GDP, this sector constitutes a vibrant improved infrastructure, the need is to ticket size high volume transactions.
mass that can effectively be targeted in look beyond this obligatory requirement In addition, a smaller bundle of innovative
terms of insurance requirement. and see the rural sector as a commercial, products in sync with rural needs and
for profit opportunity. perception and an efficient delivery
system, both for acquisition and servicing
If we look at the requirements of this
are the two aspects that have to be
community, the need for insurance can
looked at critically in order to penetrate
easily be established, both in terms of
the rural markets.
livelihood needs as well as household
needs. The production systems of This focus has led to the development of
agriculture, wage labour, micro-enterprise innovative products like Index based
Given the changing and animal husbandry all have associated weather insurance and OPD care in health
ecosystems and risks which may lead to income and schemes; technology being used to develop
revenue loss which can be mitigated online-offline solutions for giving over- the-
improved
through insurance leading to stabilization counter delivery of policies, use of smart
infrastructure, the of income and reduced poverty. Similarly, cards both for enrollment and servicing,
need is to look on the household side, the risks attached and in-house administration of claims; use
beyond this to individuals, families and personal assets of alternate means of distribution like e-
can be effectively reduced through enabled kiosks, MFIs & NGOs and effective
obligatory insurance products. Insurance in these collaboration with government machinery
requirement and sectors follows a basic economic logic – it to spread the message of insurance across
see the rural sector provides people at the lower end of the the hinterland.
as a commercial, economic pyramid with a coping
mechanism to deal with high stress events, Product development
for profit which enables borrowing for investment The attempt has been to develop focused
opportunity. purposes enabling job creation and wealth products and processes in line with the
in communities. identified rural risks of health risks, crop
failure, personal accident and livestock
While the challenge of reaching out to
related risks.
communities in the 640,000 villages of the
country is immense, there are certain Health insurance: The rural economy is
basics that need to be in place so that dependant on person’s ability for physical

issue focus
data, demographic profiling and of sales in the rural landscape. The opening
technology solutions like smart cards. Out- of e-enabled kiosks with instant
patient department centres to provide connectivity enables an insurance quote
neighbourhood service would be very to be generated and a policy provided on
helpful in accessing services easily and the spot to the customer which builds trust
avoiding hospitalization. This can be done and acceptance. The march of the “rural
with involvement of local doctors, nursing retail malls” with all products under one
The opening of e-
homes and pharmacists too. roof encouraging multi-product purchases
enabled kiosks with enables insurance products to be explained
Use of smart cards is increasing since they
instant connectivity help in the following:
and promoted, since the farmer spends an
enables an appreciable time at these stores.
Premium Collection / Claims
insurance quote to disbursement: Assist in reducing cash
Servicing and claims settlement: The crux
of the insurance programme lies in how
be generated and management issues / costs.
the claim is serviced and settled. Done
a policy provided Claims Processing: Authenticate patients well, it builds immense trust and goodwill
on the spot to the using biometrics, validate patient’s and leads to meaningful sale opportunities
insurance details, digitize claims manage-
customer which ment process and reduce costs.
in the future. This requires clearly defined
transparent servicing parameters and
builds trust and alliances with credible channels so that the
Overall, they can help the underwriter to
acceptance. design better policies and can be a tool existing community relations can be
for better diagnosis of patients’ records. leveraged and frauds can be prevented.
Support from banking infrastructure for
Weather insurance: In a country where
disbursing low ticket cash based payouts
60% of the agricultural cultivation is still
only enhances the local experience.
at the mercy of the rains, the development
of an index based objective basis for In conclusion, the mantra for success lies
labour wherein sickness impacts income weather insurance has helped in in sticking to the basics -
and indebtedness. The poorest 20% of the supplementing the efforts in this field. • Availability of relevant and fairly priced
population spends more than 12% of their Installation of additional 160 Automated product
income on healthcare. In these Weather Stations along with those of • Establishment of cost effective
circumstances, health insurance provides IMD (Indian Meteorological Dept.) has aided distribution
a bridge for inclusion of hitherto in providing coverage for 17 crops across
• Easy accessibility and quality service.
marginalized sections of society and be a 9 states.
driver in their economic well being. Hence, focused approach along with
Cattle Insurance: For ensuring meaningful
appropriate regulation is helping build
The challenges of offering product to a coverage in this segment, the focus is to
a model that is viable, sustainable and
semi literate customer- who is individually work closely with lending institutions for
scalable.
poor but collectively strong, and pricing risk assessment by alignment of the
based on limited actuarial data can be “lending” and “insurable” criteria. Use of
overcome by doing a “need analysis” to dairy associations and local veterinarians
understand the risks by working with the for tagging purposes is also critical along
target customers and NGOs/MFIs who are with building in a “cooling time” in risk
operational in the target areas. These assumption: for example -coverage starts
institutions can effectively be used in 15 days after tagging.
explaining the product as well as
Diverse Distribution: A robust distribution
subsequent servicing since they have
structure is the key to success in these
already invested in building up trust
markets. Direct contact with farmers and
amongst the local communities.
communities along with Van campaigns for
The author is Head- Rural & Agriculture
At this stage it becomes imperative to price product explanations are now being Business Group, ICICI Lombard General
on a burning cost basis with investment on complemented with the developing points Insurance Company Ltd.

issue focus
Partnering in Sustainable
Livelihoods for Rural Youth
THE WAY TO GO
AVINASH KAUR LOCHAN FEELS THAT ALTHOUGH A BEGINNING HAS BEEN MADE IN IDENTIFYING THE VILLAGES AS CENTRES
OF DEVELOPMENT, THE TEMPO HAS TO BE SUSTAINED TO ENSURE AN OVERALL PROGRESS.
The present rural environment taking roots in rural India. India’s villagers have aimed at economic uplift of the
M
any of us who have seen only the now account for the majority of consumer people as well as bringing about a greater
urban side of India, would have spending in the country, more than $100 social transformation. The various policies
perceived the rural villagers as billion a year. The wealth distribution is and programs like Rural Health Mission,
primitive, impoverished, and not a force not equitable but many villagers are Bharat Nirman initiatives, National Rural
to be reckoned with. However, this is far moving from spending on items of bare Employment Guarantee Schemes etc are
from true and there is slow but steady minimum necessity to a range so far all directed towards elimination of poverty,
awareness of the new prosperity that is perceived as luxurious – mobiles, ignorance, diseases and inequality of
motorcycles, cars, televisions, electronic opportunities and providing a better and
gadgets etc, to name a few. higher quality of life.
Rural India is undergoing rapid transform- The seeds sown by the various initiatives
ation and the various markets are of the government are sprouting, and even
awakening to the realisation of the if it is moving in trickles, the urban
The seeds sown by potential that exists in the rural and semi- prosperity is making a gradual shift to the
the various urban areas. The distinctions between villages. The government has invested
urban, semi-urban and rural areas are
initiatives of the billions in development, including road
getting blurred. It is no longer correct to building and rural electrification,
government are presume that whatever is not urban is expansion of irrigation areas, improved
sprouting, and even rural. However despite such an open water management, housing, telecom-
if it is moving in market, around 68% of the rural economy munication, research and diversification
still lies untapped due to lack of perceived
trickles, the urban of economic activities, rural health
opportunities by the investors. programs etc. The National Policy for
prosperity is
Farmers has been introduced for the
making a gradual India Shining – Rural Upliftment overall well being of farmers and rural
shift to the villages. initiatives development than just agricultural
• Bharat Nirman production.
• Rural Health Mission
Various schemes have been announced by
• National Rural Employment Guarantee
the government from time to time for
Scheme
making credit available to farmers as well
• National Policy for Farmers
as waiving overdue and unpaid debts in
Various measures of rural development difficult times. The banks are also being

issue focus
delivering various information and holdings, dependence on vagaries of

technology linked services to the rural weather and the “gamble of monsoons for
sector, providing enhanced access to good crops” continues. The rural youth
e-Governance, Education, Health, forced by adverse circumstances are
Insurance and local services. These centers compelled to look for alternate means of
are owned and operated by local villagers livelihood; and levels of unemployment
Even as India is and thus encourage wealth creation, continue to rise. Lack of facilities of basic
knowledge empowerment, and financial inclusion services like availability
shining, farmer instantaneous access to information by of banking, credit, insurance etc force
distress on account developing entrepreneurs within the many into the clutches of the money-
of shrinking land village community. lenders and a life-long doom of bonded
holdings, slavery. We are all aware that suicides in
Rural distress rural areas on account of distress have
dependence on
Given the fact that there are almost 119 been on the rise.
vagaries of million farmers, agriculture continues to
weather and the be a way of life for rural India and provides The Poverty Trap – Getting into
“gamble of livelihood to 60% of the country’s poverty is ‘easy’, getting out is
population while contributing about a ‘hard’.
monsoons for good
quarter to the country’s Gross Domestic Rural poor are much more vulnerable to
crops” continues. Product. Even as India is shining, farmer risks and calamities and when these occur,
distress on account of shrinking land it may result in poverty, either:
Transient poverty – Permanent poverty –
Eg cases of sickness/ happens when shocks result

accident in loss of assets
Depending on resources, the
motivated to extend the facility of rural-poor may or may not
“zero balance/ no frills account” to rural come out of it.
India in order to achieve the mission of
financial inclusion. It is very heartening to In case of farmers, for example, the provide the rural people with better
note that some of the leading Public Sector negative shocks can affect their ability to prospects for economic development,
Banks have come forward to adopt select repay financial obligations and lead to a increased participation of people in the
districts and have made them 100% loan default. Lending institutions may then rural development programs, decentral-
financially inclusive. be less inclined to extend loans to ization of planning, better enforcement of
this sector in general due to high land reforms, greater access to credit and
Connecting India village to village probability of loan default. The inability creating opportunities for sustainable
through the Common Service to easily access external financing over livelihoods for the rural youth is very
Centers (CSC) / E-kiosks times limits farmer’s abilities to expand, essential.
The CSC Concept comprises of setting up diversify, and modernize.
a rural network for delivering services and Lack of awareness and low levels of literacy The Insurance Sector and
related information to the village continue to be the major obstacle in the opportunities
community through an ICT Center called effective implementation of the major In the present environment where
an Information or E-Kiosk which is run by welfare schemes. An organized and well recession is fast becoming an issue of
entrepreneurs selected from the villages. drawn out sustainable strategy of poverty concern, there is no denying the
This model facilitates the creation of a alleviation has to be based on increasing contributions of the services sector
rural networking infrastructure through a the productive employment opportunities towards the country’s economic growth
tiered franchise and partnership model for in the process of growth itself. In order to which had a double digit growth rate of

issue focus
10.7% in 2007-08. As per IRDA Report for Current challenges before life or non-life insurance agent and in the
2007-08, the life insurance industry existing distribution channels for case of a composite agent who sells both
registered a growth rate of 23.88% and the rural distribution life insurance and general insurance
non-life industry had a growth rate of • High costs of rural distribution on products, he is required to undergo 75
11.72%. These have been further account of travelling, creating hours of training and then clear the exam
supplemented by government initiatives awareness/educating and motivating conducted by the Insurance Institute of
and endeavors by way of subsidised crop rural customers to buy insurance India for obtaining a valid license.
insurance products for the farmers of rural • Building faith about the company in the
India to help the farmers mitigate the risks mind of the rural public Post license Training
of dependence on weather, the personal This “Single-Window Financial Services
• For all rural oriented schemes it is very
accident insurance covers for the artisans, Representative” may be trained and
essential to ensure that the last mile
health insurance facilities for the BPL subsequently equipped to provide a basket
touch point is closer to the customer. At
families and several such similar measures. of services so that they are ensured a
present the customers are not very
knowledgeable about the different regular level of income the year round. The
At such a time, the recently discussed plans
products offered, and in some cases are training would require to focus on the
of the Ministry of Rural Development along
not even aware of the government following aspects:
with IL & FS (Infrastructure Leasing and
Finance Co Ltd) to explore and support support available by way of subsidy in Soft skills training would aim at making
employment opportunities in the insurance premium to protect their lives/health/ the rural youth aware of his own
sector for the rural BPL (Below Poverty crops from insurable risks. knowledge-gaps and empower him to take
Line) youth to address the issues of poverty self-improvement actions for the same like
within the rural areas of the country is a Creation of agency talent pool to communication, sales and marketing
very welcome initiative. provide sustainable livelihoods skills etc.
for rural youth and off-farm
Business process training to upgrade the
employments
rural youth’s existing level of knowledge
If all the 43 (22 life and 21 general)
or skill to match with the job profile and
insurance companies and the willing banks
this may be done through induction
can come together, pool in their resources
programs, on-the-job trainings etc. on the
and share their wisdom based on
following lines:
experience and market practices; a
workable model of a “Single-Window • May be provided assistance to set up and
For all rural Financial Services Representative” with manage E-kiosks to provide financial
services in terms of reduced costs and
oriented schemes it certain modified parameters, if so
permitted by IRDA can be successfully increased incomes and the benefit of
is very essential to implemented across the country. These can access to education, computer literacy
ensure that the last become the grassroots life lines of and information
mile touch point is insurance/financial inclusion services and • Assistance in opening zero-balance bank
closer to the serve as the link between insurance/ accounts for the rural public not having
banking companies seeking connectivity to access to financial services
customer. that last mile to rural India. • Marketing post-office schemes
• Selling life insurance policies
Complying with basic quali-
fication and training • Selling general insurance policies
The IRDA has stipulated a minimum • During season – selling the seasonal crop
education qualification for every insurance insurance policies and at other times
agent which may be 10th pass in a rural providing basic minimum education on
area and 12th pass if he has to do business good agricultural practices to the
in an urban area. The agent has to undergo farmers in their area. This suggestion is
at least 50 hours of training to become a based on experience and the confidence

issue focus
- Collection and remittance of premium would be a win-win situation for all stake
to insurers, policy administration holders:
services, policy document servicing to • Sustainable livelihoods for the rural BPL
customers youth so that they are no longer
- Assistance in claim settlement subjected to life long poverty
- Maintenance of required registers • Decrease in distribution costs coupled
and records with an educated and trained agency
force for the insurance sector to work
It was very - Learning the importance of economies
of scale through wholesale distribution at grassroots level as the most efficient
heartening to note delivery channel to reach out to the
by engaging with groups for cost
that in order to effective collaborative arrangements rural markets
create and sustain like with Banks, RRBs, contract • Comparatively lower levels of attrition
livelihoods for the farming groups, NGOs/MFI/SHG for of the agency force if the trained
rural distribution youth work in their own native areas
rural BPL Youth,
where they enjoy the confidence of the
several insurers It was very heartening to note that in order
local community
to create and sustain livelihoods for the
were willing to rural BPL Youth, several insurers were • Contributing towards financial inclusion
share their willing to share their resources by way at grassroots level
resources by way of of providing training material, or faculty • Assisting the insurance sector to achieve
providing training or even sharing training centers where its Rural and Social Sector obligations
possible. successfully
material, or faculty
• Being Socially Responsible Corporate
or even sharing Suggested remuneration entities providing employment
training centers • A fixed stipend in the range of Rs 500/- opportunities and contributing in nation-
where possible. per month in addition to wide poverty reduction
• Commission which may range from 15% • Reaching and serving the un-served areas
to 25% for various products and achieving quantum jump in
insurance penetration levels.
Conclusion
Creating a mutually beneficial situation
We are all aware of the obstructive
shortage of trained insurance agents and
the fact that even after 9 years of opening
that several seed/fertilizer/pesticide up of the insurance sector the insurance
companies would come forward in this penetration levels are as low as:
initiative without incurring much Life Insurance Sector 4%
additional cost.
Non-life Sector 0.6%
• Insurance policy servicing aspects like
Crop Insurance About 15%
- Filling up of proposal forms and The author is Manager, Agriculture Insurance
compliance with related documents Successful implementation of this model Company Ltd.

follow through
Championing and
Institutionalizing
INSURER’S TCF CHARTER
SRINIVASAN VARADHARAJAN AND SHRINIVAS SUSARLA OPINE THAT TCF, AS A CORPORATE STRATEGY SHOULD BE
FORMULATED BY THE TOP MANAGEMENT; AND SHOULD PERCOLATE TO THE LOWEST LEVELS OF WORK FORCE.
Introduction regulations which stipulated how as a whole has with the customers is much
T
reating Customers Fairly (TCF) is a organizations should interact with the more regulated than the former. In India,
culture of considering the customer customers. previously the MRTP commission and now
at every stage of running the Competition Commission of India are
However, it has come to be recognized that
business and ensuring that any action vested with the responsibility of monitoring
an innate desire within an organization to
within or on behalf of the company for any cartelization activity.
be fair to the customer achieves much
does not result in any unfairness for the
more than any rules imposed on the There are ombudsmen for various service
customer.
organization from outside. Hence a sectors that have been empowered to act
In recognition of the imbalance of principle based regulation regime whose on complaints from individual consumers.
knowledge and power between an orga- conditions and required outcomes when For insurance, IRDA lists the ombudsmen
nization and an individual, governments met, stoke a customer centric fervor that for the various regions. They are to handle
and regulators across the globe have is seen to be better than a rules based
any grievances against the insurer,
strived to ensure a fair deal for the regulation regime.
provided they have been raised with the
customers. Till the recent past, maybe a
insurer before and not settled to the
decade ago, such measures were Customer Centricity in India
satisfaction of the customer.
administered through laws, rules and In India, customer centricity has been
prevalent for a long time. Many of the TCF as a self-governance mechanism based
compliance requirements by the on agreed philosophy is not new. In fact,
Government even during the pre- the Government of India has mandated
A principle based liberalization era were there to ensure that citizen charters for long. The GOI through
the customer got a fair deal.
regulation regime Department of Administrative Reforms &
Public Grievances, Ministry of Personnel
whose conditions and In a business, there are two levels of
has stated the objective of such a charter
interaction with the customer. One is
required outcomes organization to customer (O2C) interaction and the road map for any government
when met, stoke a and the other is industry to customer (I2C) organization to establish such charters1.
interaction. By I2C, the authors refer to The Government of India has given utmost
customer centric the way an industry as a whole perceives importance for customer satisfaction
fervor that is seen to the market. This includes pricing the through such efforts. However the citizen
charters are not legally enforceable and
be better than a rules products, determining the production
levels and the manner in which a particular are self-affirmations towards better
based regulation product is sold. The interaction an industry service to the customer.
regime.
1. http://goicharters.nic.in/faq.htm

follow through
the Financial Services Agency (FSA) and the As it can be seen, these outcomes,
representatives of the financial services resultant of TCF, are a good reference
The FSA also industry agreed on the key principles to model.
be shared and respected when financial
conducts telephonic firms conduct their business or when the The need for TCF
enquiries as well as FSA take supervisory actions4. Nowadays, it is recognized that self-
seeks As a “better regulation’’ initiative, the FSA, governance is the best governance and
Japan presented the concept of “optimal hence principle based regulation (PBR) is
correspondence on more in vogue. Under a PBR regime the
combination of rules-based and principles-
TCF initiatives. As it based supervisory approaches,’’ and held governing philosophy is usually stated and
the market place entities have to commit
can be seen, these extensive discussions with representatives
to it. But the exact nature of
of relevant financial firms on key
outcomes, resultant “Principles”, which would become the implementation of the committed
of TCF, are a good cornerstones of principles-based principles is left to the individual business
supervision. A “principles-based’’ approach entity. Treating Customers Fairly (TCF) is
reference model. one such principle based approach. TCF is
is a supervisory framework that, in line
with the Principles, places greater about transparent governance. TCF is a
emphasis on encouraging voluntary efforts structured way of institutionalizing
Customer Centricity in Financial by financial firms aimed at ensuring better customer centricity in an organization.
Serv ices – International Ex- management. The principles enunciated by
perience In the past when information asymmetry
FSA, Japan are provided in the their came to be acknowledged as a hurdle
United States website. The FSA, Japan goes on to detail insurmountable by the customer,
In the United States, Insurance the effects the principles have on the
regulations came to be drawn up for
Marketplace Standards Association is a various stakeholders.
ensuring that the customer is not cheated
nonprofit, voluntary and independent United Kingdom in any transaction. Examples of such
organization created to strengthen In UK, the financial services regulator regulations are requiring that weight/
consumer trust and confidence in the Financial Services Authority (FSA), has quantity of commodity be printed on the
marketplace for individually sold life produced several discussion papers and package, maximum retail price be printed,
insurance, long-term care insurance and also monitors TCF initiative levels among letting the customer know that insurance
annuities. IMSA-qualified companies various financial services organizations. is the subject matter of solicitation etc.
commit to maintaining high ethical The FSA, UK is one of the pioneers in Such regulations are still there and do
standards and to being fair, honest, and opening the deliberations on TCF. As a part prevail. But it is possible to observe such
open in the way they advertise, sell and of the TCF movement, The FSA defines its regulations in letter and not in spirit. An
service their products2. expectations on TCF through outcomes. example of such a possibility is where
Also, the federal body National Association The FSA also has a large body of work on legally required verbiage is given in a small
of Insurance Commissioners (NAIC) has a TCF, its applicability to financial service print in an advertisement.
set of model laws on unfair trade practices organizations of various sizes, the way to
for state insurance agencies to adopt3. But go about implementing the TCF and Customer Centricity in Indian
these laws (when adopted) are rules based indicators to the presence or absence of Insurance Industry
and mandated rather than principles based TCF in an organization. By way of With regard to Indian insurance market,
and self-imposed. monitoring the TCF philosophy imple- the regulator IRDA already mandates
Japan mentation levels in organization, the FSA several activities which protect the
In Japan, the regulator “The Financial has regional assessment centers where customer interests. Insurance
Services Agency, Japan” has also come up individual firms are invited. The FSA also Advertisement and Disclosure regulations
with principles based regulation called, conducts onsite examinations at the and IRDA (Protection of Policyholders’
“The Principles in the Financial Services” organization’s locations. The FSA also Interests) Regulations, 2002 are two
which should govern all the activities of conducts telephonic enquiries as well as examples of such development oriented
financial services firms. On April 18, 2008, seeks correspondence on TCF initiatives. regulations.
2. http://www.imsaethics.org/
3. http://www.naic.org/documents/store_pub_legal_models_tblcont.pdf
4. http://www.fsa.go.jp/en/newsletter/2008/05a.html#ft01

follow through
The cooling-off period, where the • Senior management commitment on TCF all ascertained before a particular
customer, after purchase of a policy can should fully percolate down to the lower product is prescribed.
return it within 15 days for a refund of rungs of the organization hierarchy, • Customers must be advised of the ways
money paid is an example of a regulator particularly the customer interfacing to approach the insurance company and
mandated process. Another example is personnel. the method by which they can deal with
where the insurer must provide an • TCF metrics should be collected at their policies. Commitments on service
illustration of benefits. standards by the insurer for the various
regular intervals and reviewed by the
Thus even though such initiatives are not senior management. customer enquiries and service requests
clubbed under a single TCF umbrella, the • All the employees must undergo training should be communicated and publicized
government and the regulator have put in on TCF and should be made aware of the to the customer.
appropriate safe-guards in place to ensure need for their actions to be based on
no mis-selling happens for the customer. TCF philosophy. TCF Implementation Roadmap
Insurance providers selling an intangible We suggest the following roadmap be
product, have all the more reason to adopt Listed below are a few indicative actions considered for TCF implementation in an
TCF initiatives. that would follow. Some of them are organization. This roadmap is loosely based
already being practiced. However, TCF as on the roadmap recommended for Citizens’
‘C’ Model for Institutionalizing already mentioned is about integrating Charter implementation by the
TCF such efforts to deliver an organized Department of Administrative Reforms and
The principles central to TCF philosophy approach towards customer centricity. Public Grievances.
can be succinctly put down as below: • The insurance company must project a • Setting up of a Task Force in the
• Confidence – Creating an atmosphere customer friendly message to the Organization to formulate the company
of trust market. Any interaction with the specific TCF principles broadly aligned
• Clarity – Transparency in sales and service company that the customer has must be towards industry standards and adhering
• Communication – Effective and quick, friendly and reasonable. Even if to regulator recommendations.
proactive communication; Agreed the company cannot resolve every • Identification of all stakeholders in the
expectation demand of the customer to the Organization and major services
• Comfort – Simplicity in business customer’s satisfaction, it must strive to provided by Organization;
interactions address them, and all of them.
• Setting up of a core group in the
The TCF delivering mechanism for treating • All the advertising material must make organization consisting of represent-
potential and existing customers fairly by clear its target audience and the atives from all stakeholders which inter-
insurance companies are as follows: features must truly address the intended alia may include senior management,
segment. For example: a product middle management, customer facing
Co specified as a children’s plan must have
n fi roles, business area owners, strategic
den unique features that cater to the child
ce partners, customers/ clients etc. The
market segment. core group shall oversee the formulation
• Customers should be provided with of the TCF principles and approve it. It
detailed illustration of benefits. Post shall monitor its implementation
sale, the customer should be provided thereafter.
ort
mf with the proposal form, detailed
Co y
• Consultation with stakeholders and their
TCF it explanation of benefits purchased and
ar representative associations.
Cl the free look period available to them. • Preparation of Draft TCF principles.
Providing a statement giving the net • Issuing the Draft TCF principles for
return on premiums paid in a standard stakeholder suggestions.
Co format could also result in a lucid picture • Incorporating the feasible suggestions
mm to the customers.
un received into the draft.
ica
tio • When the agent helps the customer in • Submission of draft Principles to the
n
selecting a particular product, care must industry regulator.
be taken that the product is suitable to • Modification of TCF principles by the
• TCF should be imbibed into the the customer. For that it would be better core group on the basis of suggestions/
organization culture. if the agents followed a checklist observations by the regulators.
• TCF initiative should have senior ensuring that the customer’s personal • Submission to the organization board
management commitment. financial details and commitments are for approval.

follow through
• Formal issue/ release of TCF principles. • An annual report on TCF adherence TCF also involves pre-emptive measures to
• Communicating the formalized TCF should be communicated to the ensure that concern for customer is at the
principles to all the stakeholders customer and proactively shared with heart of all business activities.
including the customers. the regulator.
To execute the responsibilities that the
• Appointment of a CCO to ensure • A company board member could be a CCO role brings with it, a level of authority
effective implementation. CCO. This will be a visible display of is also required. The level of commitment
A transparent process which takes every company’s commitment in putting a company has towards TCF is a factor in
stakeholder into confidence is essential for customers to the fore in all decisions. the authority that is provided to the CCO.
the successful implementation of TCF in • Metrics on TCF should be defined by the Hence this is a company dependent
an organization. CCO. They can come out of customer strategic decision.
complaint statistics, distributor survey
The concepts of TCF and CCO should not
Championing TCF: Chief responses, persistency benchmarked
be limited to insurance companies. Their
Customer Officer against industry levels, Any ombudsman
applicability should be extended to the
The Insurance Company should establish a report, public perception measured
various organizations that enable the
corporate level Chief Customer Officer using public surveys, press coverage etc.
insurance products reach the customers.
(CCO) along the lines of Appointed Actuary. • The CCO should vet all the customer It would be apt to have a course on TCF
• The CCO should drive the imple- interfaces like Advisor web-site, principles in the training module for
mentation of TCF across all levels of the customer portal, customer communi- advisors.
organization. This will ensure uniform cations etc for adherence to the TCF
levels of implementation. principles. References
• Any material change in the company’s • The CCO will conduct random check on 1.Citizens Charters in Government of India,
processes should have the approval and policy purchases to ensure the sale has Department of Administrative Reforms
sign-off of the CCO. This will ensure that been conducted suitably. Similarly the and Public Grievances, Ministry of
CCO will also examine randomly service Personnel, Government of India. http:/
the company’s adherence to TCF stays
transactions to monitor TCF adherence /www.goicharters.nic.in/
firm through the various and inevitable
organizational changes. 2.Insurance Marketplace Standards
Summary
• The CCO’s performance should be Association. http://www.imsaethics.org/
We give below an indication of the role
measured against service standards set span for the proposed CCO. As it can be 3.Financial Services Agency, The Japanese
and achieved and also through an seen the role of the CCO extends much Government. http://www.fsa.go.jp/en/
external review say, by the regulator. beyond the current compliance and 4.Financial Services Authority, United
• The CCO should also periodically present grievance redressal offices. In fact they are Kingdom. http://www.fsa.gov.uk/
to the Board on the status and progress a sub-set of TCF activities. While any
of TCF initiatives. grievance redressal is a reactive measure,
Acknowledgements
The authors would like to thank Krishna
Sathyanarayanan, Principal Consultant,
Role span of CCO Insurance Domain Competency Group,
Wipro Technologies, Bangalore; Vikas
Chandak, Sr Manager, On Line Marketing,
PRE-SALES SALES POST-SALES ING Life Insurance, Bangalore; and,
N.V.Subramanyan, Manager, Business
Analysis, HSBC Global Technology Center,
Understanding Unambiguous Grievance Pune for their review inputs.
customer marketing Redressal
Product design for Product suitability Complaint Srinivasan Varadharajan is a Domain

customer needs metrics Consultant, Insurance Domain Group, Wipro
Technologies; and Shrinivas Sathya Susarla is
Deputy General Manager (IT), ING Life
Insurance. The opinions expressed and
Right marketing Transparent sale Smooth Service conclusions reached by the authors are their
segmentation process interactions own and do not represent any official
position or opinion of ING Life Insurance or
Wipro Technologies.

follow through
Customer Relationship
YOUR MOST IMPORTANT ASSET
RAJESH SUD EMPHASIZES THAT THE RELATIONSHIP THAT IS BUILT WITH CUSTOMERS AT ALL TIMES COMES IN HANDY,
ESPECIALLY WHEN THE GOING IS NOT SO GOOD.
A
ll too often, financial services shortsightedness is not evident as viewed as sceptically as it is today. The
companies view building customer customers are available in large numbers. questions being asked from the life
relationships as additional cost and In bad times, the limits of this myopic insurance advisors/ sellers about their
take long-term investment decisions about strategy become all too painfully evident. credentials and products are stronger than
people and processes of customer ever before. Hence, insurers need to build
A relationship needs nurturing and
management based on short-term returns their reputations by focussing on customer
consequently a genuine passion for a
alone. Such investments are clubbed as a care as a strategic asset.
fruitful interaction at all times. In the
part of either marketing cost or operations
current market downturn with a negative
cost and sometimes even as technology
consumer sentiment, service providers may Building a relationship
cost. In good times, the impact of such
find it a challenge to retain customers if The traditional view of customer
they have not invested in relationship relationship was that it began after the
building till now. Strong relationships drive sale – providing after-sales services. Then
loyalty and loyal customers are the best came the approach that customer relations
source for new customers in today’s time began at the point of sale, by ensuring that
both through referrals and word of mouth. care must be taken to ensure that a
Quality of Quality of customer relationship is often product or service is delivered to the
the differentiator, more true for life customer on time and on the terms
customer insurance because we are in the business promised and the after-sales service
relationship is of quality of life. was a given. The approach where all the
often the An organisation’s ability to expand business business decisions are taken keeping
differentiator, in normal times is helped by the overall customer as the focal point is at the
economic climate. But it depends more, nerve center of a truly customer focused
more true for life
at other times, on its ability to win organization.
insurance customers ahead of competition. And
Today we know that the relationship with
because we are winning customers clearly depends on the
the customer begins much before the sale
in the business of value proposition of the relationship it
itself. It starts from training the
promises, and the proposition that it
quality of life. actually delivers to its existing customers.
distributors and employees to focus on
customer’s needs. It starts with setting in
Insurance companies, along with others in place a structure that will ensure proper
the financial services business, face a sale and after-sale services. It starts with
greater challenge than their non-financial ensuring that prospective customers
counterparts in the current market receive all relevant information about
situation. The reputation of financial products and policies in a simple,
service providers has never before been transparent manner.

follow through
Life insurers have increasingly recognised derive business benefits out of this
that it is important to begin by a sensitive investment, a yearly employee
and a realistic understanding of a engagement study should be conducted
customer’s – or potential customer’s – across all functions and surveys should be
needs for protection or long-term wealth put in place to ensure that the highest
creation. I use the words ‘sensitive’ and benefits are derived.
‘realistic’ after some careful thought. The
We must remember that agent advisors and
agent advisor must be sensitive to the risk
Training is the distributors are as much the customers of
the potential customer may face, and
insurance companies as are the
key not only for assess the value that can be assigned to
policyholders. Strategic customer relations
that risk.
distributors; it is would involve training employees to be
probably more Then comes the difficult part – convincing accessible and responsive to agent advisors
the client of the risk, of the value that and distributors, setting up structures for
crucial for can realistically be attached to that risk; such openness and for this to be timely
employees. Trust and making a compelling case for the need and easy. At the same time, regular process
in a company is to pay for the mitigation of that risk. audits are required to ensure responsible
behaviour.
very often Clients may want more or be satisfied with
determined by less; a sensitive and informed advisor will
The value of feedback
know how to arrive at the appropriate
the conduct and balance. Thus, more than any other
Accessibility is a key component of the
reputation of its relationship, whether with the
activity, the relationship with the customer
policyholder or the distributor. It is not just
employees. is focused on ensuring that he or she gets
about physical availability but about
the appropriate insurance policy and at the
openness to the opinions and comments
right cost.
of customers and agent advisors and by the
The strategic investment from the life establishment of listening post for such
insurer in this exercise is the quality of stakeholders.
training imparted to the agent advisor.
What is also important here is that a
In the life insurance sector, though this may Insurers should realize that it is not enough
favourable early customer experience is
be well understood, it is seldom practised. to provide initial training. Ongoing training
critical for building a strong relationship,
Proper need analysis prior to product and evaluations of agent advisors should
quickly. At the initial stage, the customer
proposition needs to be done to inculcate be a priority and insurers should
is more evaluative about the relationship
a “solution selling” culture within the field consistently invest in building a strong in
and a positive experience goes a long way
force rather than a “product selling” house training capability.
in paving the way to build a sustainable
culture. The former will ensure that there Training is the key not only for agent long-term positive relationship. Employees
is a relationship dialogue with the advisors; it is perhaps more crucial for must be sensitised to the value of
customers that starts well before a sales employees. Employees exercise a critical feedback. Even complaints must be viewed
is actually made. It is a well-known fact influence on distributors and customers; positively as feedback and then converted
that winning over a new customer is much their behaviours send powerful signals to to opportunities, rather than looked upon
more expensive than going further with an the outside world. Trust in a company is merely as grievances! A customer-focused
existing customer, either in terms of very often determined by the conduct of culture encourages employees to facilitate
renewals or selling new series of products. its employees. With insurers, employee the expression of complaints! To encourage
A survey in the USA actually put the cost behaviour could particularly influence employees to do so, the company needs
of getting a new customer at five times agent advisors, who, in turn, would guide to have a sensitive human resource
the expense of following up with an customers. management programme in place, which
existing customer! goes beyond training programmes to
Life insurers should consistently engage in
Customer relationship begins with continuous employee training and should insightful management of all interpersonal
training agents and building the aim at being widely known in the industry relationships within an organisation.
appropriate customer expectations for imparting life insurance knowledge. To Accessibility and openness also determine

follow through
effective product design as the feedback Customer management expertise results in

in the listening posts can be used to design improved ways of conducting business. For
products that meet customer needs even a start, it allows more precise listing of
more effectively. The critical exercise of the likely questions from prospective
developing a range of suitable products is customers as well as explicit detailing of
about being aware of customer needs. The the possible responses. It makes for
insurer’s range of products must meet the Understanding efficient response systems to customer
varied needs of the vast variety of people’s and knowledge claims, queries and complaints. Equally,
circumstances and life stage needs. And gathered through it responds with efficiency and
without listening to its customers, studying transparency to questions from the agent
research not only
their needs, such a range of products advisor and distributor.
meeting the spectrum of client needs
helps design
cannot be designed. products and
Conclusion
various support Customer relationship is centred in
Research prepares for a systems, it also partnership
relationship with the customer
Financial services companies must have
helps improve Ultimately, effective customer relationship
appropriate investments to understand the quality of is centred in partnership, focused on the
their customers better as they develop advice to clients. fact that all players – whether customer
deeper and beneficial customer as policyholder or distributor, employee or
relationships. This is not just about buying management, shareholders or promoters
a CRM solution or sending mailers to them ¾ are partners in the success of the service
on birthdays. A genuine effort must be that the company provides. The
made to understand, segment and reach understanding that a life insurance
out to customers in the way that they want not only for the long term — but also for business is essentially one of partnership
to be communicated. Efforts should be in the various milestones and possible in helping customers meet their life’s
place to conduct periodic research to eventualities through their lives. opportunities and adversities will go a long
understand the expressed and latent needs way in aligning the functional arms in a
of potential and existing customers; and Customer relationship is about a life insurance business. If proper attention
build a data warehouse where key mindset and a way of conducting to this is not given at all times, the
customer data is stored and updated at business customer may start distrusting the
regular intervals. Academic research and Customer service is not just providing principal in a downturn since relationships
periodic market surveys also enhance superior customer service in terms of were never strong to start with. And when
customer segment understanding. complaint resolution; customer service the upturn comes, the company may find
starts with the mindset that the client itself without much of a ‘partnership’ and
Research helps both in understanding
should not have a problem at all. not be able to enjoy the consequent upside
customer needs as well as in identifying
that the ones who are successful in their
the effective distribution channels by Such an approach inspired Toyota, to
customer management practices may do.
establishing what information the potential pioneer the hybrid car, using battery
client seeks, the services required after charges to balance over-dependence on
the sale and the ambiguities and fears the ever dearer and increasingly scarce
about brands and products. Such fossil fuels. It influenced telecom service
understanding and knowledge helps in providers to opt for sharing tower
designing products, information packs, the infrastructures to reduce costs and lower
agreement documentation, the training user charges. And it persuaded shampoo
modules for agent advisors and various manufacturers into introducing the sachets
other support processes. It helps to to meet the needs of customers with The author is CEO and Managing Director,
improve the quality of advice to clients – limited means. Max NewYork Life Insurance Co. Ltd.

research paper
Pilot Study on Morbidity Rates

INTERESTING OBSERVATIONS TO THE FORE
G. N. BHASKAR RAU OBSERVES THAT HOSPITAL ADMISSIONS ARE NOT GENDER-BASED; AND FURTHER THAT THERE IS A
TENDENCY IN THE LOWER STRATA OF THE POPULATION NOT TO SEEK HOSPITAL ADMISSION AT HIGHER AGES.
(Continued from Feb.09 issue)
‘Deaths’ seem to follow the natural trend ‘renal’ complaints, ‘digestive’ disorders under three heads, as ‘Relieved (Cured)’,
of lower percentages of ‘deaths’ in the etc. ‘Died’ and ‘Left Against Medical Advice
lower ages, on treatment on (LAMA)’. These ‘outcomes’ are the status
hospitalization, and gradually increases as Gender Divide in ‘Outcomes’ of the morbid persons, who were admitted
age increases. Even here the ‘child One of the aims of the study is to trace into the hospitals for treatment, at the
mortality’ for the age group 0 - 4 is as high the ‘Outcomes’ of hospital admissions time of their ‘discharge’ from the
as at the age group of 50 – 54. gender-wise and to find whether gender hospitals. Some were discharged with
It is again interesting to note that the two has any effect on the outcomes. positive outcomes as ‘relieved’ of their
urban hospitals (the Gandhi Hospital at morbid state or cured, while some were
This study has categorized the outcomes
Secunderabad and the Osmania Hospital discharged with negative outcomes as
at Hyderabad) behaved almost similarly in ‘died’ and some leave the hospital against
medical advice or abscond without
their “Outcome” outputs. Even the There seems to be
suburban hospitals at Warangal, information. Naturally, the actual
Visakhapatnam and Kurnool were
certain regional outcomes of the last category of morbid
producing ‘patterns’ similar within the patterns emerging in persons will not be known for medical
purposes.
groups of each year and also for the two the ‘outcome’
combined years. And, it is also observed
that urban locations experience higher
distributions peculiar This study treated the entire data vis-à-
vis the first two categories of outcomes,
ratios. to the regions. This namely, relieved and died, across the
This indicates that there seems to be aspect needs some gender differences of morbidity rates. This
certain regional patterns emerging in the more analysis study used these two parameters to
‘outcome’ distributions peculiar to the measure the gender divide in the outcomes
regions. This aspect needs some more
especially in relation of the sample morbidity rates, namely,
analysis especially in relation to either to either ‘duration’ of ‘duration’ of hospitalization before the
‘duration’ of morbidity and / or ‘specialty’ morbidity and / or occurrence of the said two outcomes of
distributions, before making any final relief and death; and the ‘percentage’ of
comments. It may be possibly expected for
‘specialty’ hospital admissions which underwent the
the ‘locations’ to also have certain distributions, before said two outcomes of relief and death,
different patters, on the divide of urban making any final across males and females.
and non-urban factors, in that the
morbidity may differ in the ‘specialty’
comments. Outcome Durations
groupings, like, cardio-vascular’ diseases, Duration of hospitalization was calculated,

researcj paper
in days. It may be noted that the morbidity results of average durations (the average in females like vulnerable infant age,
condition in the person might have been durations above are higher or almost equal puberty, child bearing and menopause
in existence even before the Date of average durations): ages involved, requiring females to
Admission of the person into the hospital, • Females seem to take same or slightly ‘resist’ morbidity in longer durations.
while this study reckons the morbidity in longer average durations to get • Whereas there are no such marked age
the person only from the Date of Admission ‘relieved’ than males brackets in which females experience
to the Date of Discharge. In many cases average duration differences, though the
• Females seem to take same or slightly
the previous history of the disease or the same age groupings of their physiological
longer average durations to ‘die’ as men
onset of the morbidity condition in the manifestations (0 – 5; 15 – 19; 25 – 29;
take during hospitalization and
person was not available, for certain, and 35 – 39; 45 – 49) take place females
treatment
hence only the recorded dates were experience higher average durations (for
considered here in this study, to arrive at • At greater part of the age groups (from
‘death’) than males.
the duration static. The limitation on which age 0 to age 49) females take longer
this study is based is described at length, average durations to get ‘relieved’ than These average durations of the male –
elsewhere, under the caption of men, which also seems to be the female divide were further analysed to
‘Definition’ and ‘Limitation by Definition’. normally and universally observed compare the ‘average of the average
(vide page 4: relevant comments feature. This may be because of the durations’, ‘Standard Deviation’,
reproduced in the footnote under) 7 physiologically developing age bracket ‘Minimum Average Duration’, and
Duration-wise Analysis
The duration for each individual morbid YEAR 2005: COMBINED DATA : AVERAGE DURATIONS
person in the entire morbidity sample was
calculated, for each selected regional Age All All AV. All All AV.
Males Males Dur Females Females Dur
hospital (namely Gandhi Hospital, Number Relieved Died Number Relieved Died
Secunderabad;
0-4 317 6.32 2.87 265 10.71 5.52
Osmania Hospital, Hyderabad; MGM (5 - 9) 198 9.80 4.55 156 14.12 1.68
Hospital, Warangal; KG Hospital, (10 - 14) 234 11.19 6.37 182 8.63 2.09
Visakhapatnam and Government Hospital, 15 - 19 308 9.64 3.42 278 10.23 5.05
Kurnool) separately, and then the average 20 - 24 469 10.00 5.46 284 9.90 5.01
duration for each quinquennial age group 25 - 29 434 12.04 5.12 270 11.85 9.82
was arrived at, for each regional hospital. 30 - 34 377 13.45 3.95 221 10.47 3.41
35 - 39 403 10.89 4.57 213 13.81 8.58
These average durations were then
40 - 44 401 9.13 8.31 195 9.90 4.93
tabulated across male-female divide and
45 - 49 363 10.41 5.03 194 13.65 8.37
also for each category of outcome, mainly
50 - 54 412 10.94 8.87 213 9.91 4.77
for the two definite outcomes of ‘Relieved’
55 - 59 271 9.18 3.85 110 11.85 5.02
and ‘Died’. The third category of outcome 60 - 64 363 9.67 6.81 169 11.03 7.62
– LAMA – is omitted, from the study, for 65 - 69 200 7.92 3.13 87 9.58 2.34
obvious reasons, that it is not a definitive 70 - 74 186 8.89 3.59 81 5.14 6.96
outcome and its final and factual outcome 75 - 79 71 8.44 5.01 40 5.65 5.67
being not known and may result as a 80 - 84 35 5.21 5.70 24 5.52 5.65
distant event which is not relevant to the 85 - 89 14 8.33 3.10 9 6.00 3.30
present study.
AVG: 9.53 4.98 9.89 5.32
The entire combined data of all hospitals STDEV: 2.25 1.79 2.73 2.23
was also treated similarly and the results MIN: 3.12 2.87 5.14 1.68
are given in the table that follows. The MAX: 13.45 8.87 14.12 9.82
analysis below shows some important
TABLE 1
7. “This is the background against which this study is set with ‘morbidity’ defined as a condition of morbidity which is (medically) ‘treated’.” The above limitation of the study may
be acceptably ignored in view of the fact that most of the studies world over is based on similar data-base.

research paper
‘Maximum Average Duration’. These YEAR 2005: COMBINED DATA : AVERAGE DURATIONS
statistics are studied for both the outcomes
ALL MALES AV. DUR ALL FEMALES AV. DUR
of ‘Relieved’ and ‘Died’, and tabulated RELIEVED DIED RELIEVED DIED
(Table 2):
AVG: 9.53 4.98 9.89 5.32
Interestingly, all the statistics, namely, the
averages of average duration, the STDEV: 2.25 1.79 2.73 2.33
Minimum Durations and the Maximum MIN: 3.12 2.87 5.14 1.68
Durations, also confirm that females take
MAX: 13.45 8.87 14.12 9.82
longer durations to undergo both the
outcomes ‘Relieved’ and ‘Died’ , except
in the case of Minimum Duration, where TABLE 2
the duration is more (for Females than
Males) in case of ‘Relief’ than in the case ALL MALES / FEMALES: AVG. DUR:
of ‘Death’.
RELIEVED
Therefore, the general inference that may MALES FEMALES
be drawn from the above analysis seems
MODAL AGE OF SAMPLE DATA 20 - 24 10.00 9.90
to be that females tend to have equal or MEAN AGE OF SAMPLE DATA 35 - 39 10.89 13.81
higher probability than males in MEDIAN AGE OF SAMPLE DATA 30 - 34 13.45 10.47
‘maneuvering’ morbidity. ALL AGES AVG OF SAMPLE DATA AVG: 9.53 10.26
The probability of males getting discharged
premature, to get back to work and earn ALL MALES / FEMALES: AVG. DUR:
early, is not indicated in this study, because
DIED
all such early voluntary discharges are
MALES FEMALES
labeled under LAMA (Left Against
Medical Advice). MODAL AGE OF SAMPLE DATA 20 - 24 5.46 5.01
MEAN AGE OF SAMPLE DATA 35 - 39 4.57 8.58
Modal Age, Mean Age and Median MEDIAN AGE OF SAMPLE DATA 30 - 34 3.95 3.41
ALL AGES AVG OF SAMPLE DATA AVG: 5.09 5.32
Age: Average Durations
The Table 3 shows the average durations TABLE 3
of the two outcomes of “Relief” and
“Death” observed at the modal, mean and
median ages of the sample morbidity data.
The same results are plotted on a graph
(Graph 1) to get a clearer meaning of the
results:
It is interesting to note that the analysis

shows that the average durations for both
‘males’ and ‘females’ at the modal age
(20 – 24) are more or less the same for
both the outcomes of ‘Relief’ (10.00 & 9.90
respectively) and ‘Death’ (5.46 &
5.01respectively).
Similarly, even the “average of the average

durations for all the age groups” in respect
of the two outcomes of ‘Relief’ and ‘Death’
for both ‘males’ and ‘females’ seem to be
more or less the same (9.53 & 10.26 and
5.09 & 5.32 respectively). GRAPH 1
irda journal 19 Jan 2009 irda journal 35 Apr 2009

researcj paper
Another notable feature that emerged out persons who got admitted into different preliminary report proposes to present the
of the analysis is that the average durations area hospitals; however such numbers CMoRs and the graphs only for the entire
of both the outcomes of ‘Relief’ and were very few and negligible. data and not location-wise. The analysis
‘Death’ for both ‘males’ and ‘females’ at of the regional variations will be done as a
Hence, for this pilot study, we may take
the modal age and as average of average second stage to this Study.
that “E” belongs and corresponds to the
durations for the entire age groups are
same population of “P”. The Table given below shows the CMoRs
also in more or less close range of values,
namely, 10.00 & 9.90, 9.53 & 10.26, and CMoRs are calculated for each age group, for the entire data of 21437 of all the five
5.46 & 5.01, 5.09 & 5.32 respectively. for each gender, and also for each year for locations and for the two years. The
each location. This would bring out the graphical representation of the above
Modal age being the age bracket where
regional variations. However, this CMoRs is also given there under (Table 4):
the maximum number of the data lies and
the average duration of the average CRUDE MORBIDITY RATES (CMoR)
durations being in relation with the entire Based on Census Population of all Five Locations
data over all age groups (0 to 89), we may
TOT.POP. CMoR per TOT.POP. CMoR per TOT.POP. CMoR per
conclude that the average duration taken
LAC
by both ‘males’ and ‘females’ for getting LAC POP. LAC POP. POP.
‘Relieved’ from morbid state after AGE MALES MALES FEMALES FEMALES TOTAL TOTAL
hospitalization is around 10 days and the 0-4 650483 145.02 625668 113.47 1276151 129.54
average duration for the negative outcome 5-9 889346 45.89 851608 35.65 1740954 40.88
10 - 14 877268 58.17 810383 45.43 1687651 52.04
– ‘Death’ – to result during hospitalization 15 - 19 765874 75.55 709801 76.32 1475675 75.92
is around 5 days. 20 - 24 691794 127.64 682431 101.90 1374225 114.89
25 - 29 636849 140.71 683947 93.78 1320796 116.50
This inference may be useful for insurance 30 - 34 550581 137.86 517351 89.55 1067932 114.58
purposes subject of course to some more 35 - 39 528771 161.99 525796 86.50 1054567 124.54
40 - 44 437429 175.05 368058 108.34 805487 144.69
deeper analysis of certain other relevant
45 - 49 366794 211.39 334667 116.92 701461 166.53
data. 50 - 54 296738 288.79 263319 159.38 560057 228.33
55 - 59 176448 338.09 191011 117.31 367459 224.28
Crude Morbidity Rates and Curves 60 - 64 192169 390.95 206253 195.00 398422 289.86
65 - 69 104690 412.19 123767 157.61 228457 274.93
One of the major objectives of this study 70 - 74 92749 447.97 93462 214.83 186211 330.93
is to draw ‘Crude Morbidity Rates’ (CMoR) 75 - 79 34490 437.79 34569 191.46 69059 314.37
out of the data and its analysis and jot 80 - 84 27112 166.28 33496 197.92 60608 134.11
them as ‘Crude Morbidity Curves’. TABLE 4
The number of events (E) of morbidity
incidences for each age group of a
particular location is expressed as a ratio
to the one-lac population of the total
census population (P) of the respective
location.
CMoR = (E / P) × 100000
It is generally believed and observed that

people belonging to one particular area of
population will get admitted to the nearest
hospital only and hence it can be construed
that “E” and “P” above belong to the same
population. Here, in this study respective
“P” is the census population of the
respective districts of the locations
(namely, Secunderabad, Hyderabad,
Warangal, Visakhapatnam and Kurnool).
Indeed there were a few ‘admissions’
observed from places of residence of the GRAPH 2

research paper
The above graph (Graph 2) suggests that in females like vulnerable infant age,
there seems to be certain ‘synchronicity’ puberty, child bearing and menopause
in the Crude Morbidity Rates for ages 0 to ages involved, requiring females to
24 among the male, female and also for ‘resist’ morbidity in longer durations.
the total combined events of morbidity There are • Whereas there are no such marked age
incidence. Interestingly, the same trend of brackets in which females experience
synchronicity was observed across all the
regional
average duration differences, though the
five locations, which will be discussed at variations same age groupings of their physiological
the second stage report to this study. The observed, urban manifestations (0 – 5; 15 – 19; 25 – 29;
above curves were fitted to standard 35 – 39; 45 – 49) take place females
curves, statistically and the picture that populations
experience higher average durations (for
emerged is given later. The functions for having higher ‘death’) than males.
these curves are given below: morbidity • The population based crude morbidity
y (males) = – 7 E.– 06 x5 + 0.001 x4 – 0.094 incidence than rates calculated by this pilot study seem
x3 + 2.919 x2 – 35.57 x + 197.7 to have set patterns – even gender wise
the rural - as can be seen from the curves fitted
R2 = 0.981
populations. to these CMoRs, and hence may be useful
y (females) = – 2 E.– 06 x5 + 0.000 x4 – 0.034 perhaps to possibly predict morbidity
x3 + 1.183 x2 – 16.01 x + 126.6 incidences for ages in any given
R2 = 0.864 population. This comment also needs
high caution before conducting further
y (total) = – 5 E. – 06 x5 + 0.001 x4 – 0.073 x3 investigation.
+ 2.316 x2 – 28.69 x + 169.6
• The crude morbidity curves and the
• However, among and between the rural
2
R = 0.960 functions of these curves need more
regions there seems to be variations of
corroboration, though the respective R-
incidence of morbidity.
Conclusions Coefficients are high.
• Outcomes of the events of the morbidity
• The Mean Ages, Median Ages and the incidence seem to be following certain Thus, these preliminary results of the
Modal Ages across the census populations patterns, again among and in between present pilot study show that all the null
of several locations are all less than the several populations. hypotheses of the study are not proved,
middle age 40. and therefore:
• The most striking result of this study is
• The Morbidity events seem to have • There is a set pattern in the morbidity
the negative outcome of the events,
Bimodal Ages across the various rates, jointly and severally, with
namely the ‘deaths’.
populations, one around age 2 reference to age, gender and / or
(pediatric) and the other prime youth of • The percentage of deaths of the events
location of the population;
around 22 years. under study is strikingly 12.5% for all the
populations and all the locations. • Gender variations do affect the
• There are gender variations of morbidity incidence of the morbidity rates across
incidence for males and females, the • Females seem to take same or slightly
the population;
former being higher than the later. longer average durations to get
‘relieved’ than males • Geographical variations do affect the
• The lesser female morbidity variation is incidence of the morbidity rates of a
suggestive of and echoes the normally • Females seem to take same or slightly
given population;
observed lesser mortality rates of longer average durations to ‘die’ as men
take during hospitalization and • There is a set pattern in the outcome
females.
treatment distribution across male / female gender
• There are regional variations observed, divide.
urban populations having higher • At greater part of the age groups from
morbidity incidence than the rural (age 0 to age 49) females take longer
populations. This comment needs average durations to get ‘relieved’ than
caution because of the variations among men, which also seems to be the
these cited populations in their literacy, normally and universally observed
awareness and availability levels of the feature. This may be because of the The author is Senior Faculty, Institute of
health conscience. physiologically developing age bracket Insurance and Risk Management, Hyderabad.

¬˝∑§Ê‡Ê∑ ∑§Ê§‚¥Œ‡Ê
Lz uo“ÁuÃN˛ øú Ãz ßÁ∫o ™ı EuáN˛ÁÊΔ uƒuÆ ÃzƒÁLÊ
ÃÁáÁ∫m øú Ãz, osÁ uƒΔz øú Ãz §y™Á Nz˛ƒ¬
Δ“∫y qzfiÁı oN˛ Ãyu™o ∫“y “{@ LN˛ üN˛Á∫ Ãz uƒuÆ
Æ“ LzÃz qzfi “{ \“ÁÊ \ÁzuQ™ ü§ãá Nz˛ uƒYÁ∫ N˛Áz úÓm| øú
Ãz ¬ÁTÏ uN˛ÆÁ \ÁL@ EuáN˛ÁÊΔo: uƒußëÁ N˛Á∫mÁı Ãz Æ“
§Á“∫ “y ∫“oz “¯@ GnúÁt ™ı åƒyå EåÏÃÊáÁå u\ÃÃz ƒ“
uΔqÁ N˛y Eúåy Ãy™ÁL “¯@ Ãyu™o ÀfiÁzo osÁ Es|√ÆƒÀsÁ §‰gz ú{™Áåz ú∫ ¬ÁzTÁı ú∫ üßÁƒ ‰gÁ¬ ÃNı˛ osÁ ¬ÁzT §y™Á
Nz˛ Y¬oz ÃzƒÁ ütÁå N˛∫åz ƒÁ¬z ßy tÓ∫ t∫Á\ Nz˛ qzfiÁı ™ı N˛y EÁƒ≈ÆN˛oÁ \ÁåÁ ÃNz˛ Æ“y Ã™Æ N˛y ™Á}T “{@ Æ“
å“Î ú“ÓÊY ÃNz˛ “¯@ tzΔ Nz˛ tÓ∫ t∫Á\ F¬ÁN˛Áı ™ı ÆÁfiÁ FoåÁ EÁÃÁå å“Î “{ u\oåÁ utQÁF| tzoÁ “{@ \ÁTøN˛oÁ
N˛∫åz Nz˛ QY|, T¿Á™ym ¬ÁzTÁı ™ı \ÁTøN˛oÁ ú{tÁ N˛∫åÁ ú{tÁ N˛∫åz Nz˛ u¬L uƒußëÁ u“oáÁ∫N˛Áı N˛Áz N˛F| üuN¿˛ÆÁ
Gã“z Eúåy Ã©úunoÆÁı osÁ \yƒå N˛Áz §yu™o N˛∫ƒÁåz Nz˛ ¬Áåz “ÁzTy \Áz \ø∫y å“Î üsÁ Nz˛ EåÏÃÁ∫ “y “Áz ¬zuN˛å
u¬L üÁznÃÁu“o N˛∫åÁ uåÃÊtz“ LN˛ §‰gÁ N˛ÁÆ| “{ u\Ãz üßÁƒΔÁ¬y “Ázåy YÁu“Æz@ Ã§Ãz ™“nƒúÓm| “{ uN˛ LzÃz, üÆÁÃ
ÃÁ™åz EÁåÁ YÁu“Æz@ §Á∫-§Á∫ Æ“ N˛“Á \ÁoÁ “{ uN˛ ¬ÁzTÁı uN˛Æz \ÁL uN˛ FÃ ßÁ Á osÁ üN˛Á∫ Ãz ÃÊtzΔ ßz\Á \ÁL@
N˛Áz üßÁuƒo N˛∫åz Nz˛ u¬L åƒyå EÁuƒ…N˛Á∫Áı N˛y \ø∫o u\ÃÃz Ã§Ãz uúZ‰gÁ √ÆuO˛ ßy FÃz Ã™^ ÃNz˛@ Æ“ LN˛
“{ u\ÃÃz uƒuÆ Ã™Áu“ooÁ N˛Áz uƒæÁÁÃ Nz˛ øú ™ı ΔÁu™¬ §‰gÁ N˛ÁÆ| “{ osÁ Ãßy u“oáÁ∫N˛Áı Ãz FÃNz˛ üuo uå…eoÁ
uN˛ÆÁ \Á ÃNz˛@ N˛y EÁƒ≈ÆO˛Á “{@
T¿Á™ym osÁ ÃÁ™Áu\N˛ qzfi ™ı §y™ÁN˛oÁ|EÁzÊ N˛Áz Eúåy \å|¬ Nz˛ FÃ EÊN˛ Nz˛ Nz˛ã¸ u§ãtÏ ™ı >§y™ÁN˛oÁ| Nz˛ ÃÁ™Áu\N˛
√ÆƒÃÁuÆN˛ EÁN˛‰gÁı ™ı úÓm| uåáÁ|u∫o ¬flÆ üÁõo N˛∫åz N˛y osÁ T¿Á™ym tÁuÆnƒ< “{@ uƒuÆ ÃzƒÁEÁzÊ ™ı uƒõúm Eúåz
™ÁãÆoÁ üÁõo “{@ u\ÃÃz Æ“ ÃÏuåu≥Áo uN˛ÆÁ \Á ÃNz˛ N˛y EÁú ™ı §‰gy YÏåÁ{oy “{ EÁ{∫ \§ Æ“ ßÁ∫o ™ı §y™Á qzfi ™ı
FÃ ™“nƒúÓm| qzfi ™ı LzÃz √ÆƒÃÁuÆÆÁı N˛Á TuoΔy¬ EÁoÁ “{ FÃN˛y YÏåÁ{oy EÁ{∫ ßy §‰j \Áoy “{@ >>§y™Á
üuoßÁuToÁ üÁõo “Áz@ \§Nz˛ Æ“ ¬flÆ Nz˛ƒ¬ ÃÓYåÁúÓ∫N˛ “{ uƒõúmå>> \å|¬ Nz˛ ET¬z EÊN˛ Nz˛ Nz˛ã¸ u§ãtÏ ™ı “ÁzTÁ@
Æ“ Eúzuqo “{ uN˛ LzÃy √ÆƒÃÁÆy Eúåz ¬flÆÁı N˛Áz úÓ∫Á
N˛∫ıTz osÁ FÃN˛Á ütΔ|å N˛∫ıTz N˛y FÃ qzfi ™ı ÃÏtj‰w yN˛∫m
ƒÁÀouƒN˛ √ÆƒÃÁÆ EƒÃ∫ “{@ Æ“ ßy ÃÏuåu≥Áo “ÁzTÁ §y™Á
N˛Á oyƒ¿oÁ Ãz oßy ¢{˛¬Áƒ “ÁzTÁ \§ Få ÀfiÁzo N˛Áz úN˛gÁ
\ÁÆzTÁ@ \z. “u∫ åÁ∫ÁÆm
•äÿˇÊ

“ ŒÎÁc≈U ∑§ÙáÊ
ÃÓYåÁ üÃÁ∫ ™ı oz\y Nz˛ tÁ{∫ Ãz åF| Euåu≥ÁoÁLÊ ßy ú{tÁ “ÏF| “¯@ MÆÁıuN˛ ßÁƒåÁEÁzÊ N˛Á GtΩƒzT
uƒæÁÁÃ §åÁL ∫Qåz ™ı §ÁáN˛ ÃÁu§o “ÁzoÁ “{@
»y “zT Àƒy N˛yb
™zåzu\ÊT gÁÆ∫zMb∫, ™Á}åzb∫y EsÁ}u∫by EÁ}¢˛ uÃÊTÁúÏ∫
FÊ≈ÆÁz∫ıÃ ÃÏú∫ƒÁF\∫Áı N˛y EÊo∫∫Á…b~yÆ ÃÊÀsÁ (EÁF|LEÁF|LÃ) ƒ{uæÁN˛ ™Êty Nz˛ N˛Á∫m FÊ≈ÆÁz∫ıÃ
ÃzMb∫ ú∫ üßÁƒ N˛Á T“åoÁ Ãz EÜÆÆå N˛∫ ∫“Á “{@
»y úyb∫ §¿ÁG™Ó¬∫
EÜÆq EÁF|LEÁF|LÃ LM\yMÆÓubƒ N˛™zby
ƒo|™Áå tÁ{∫ ƒÁN˛F| ™ı §z“t N˛ueå “{, ¬zuN˛å FÊ≈ÆÁz∫ıÃ NÊ˛úuåÆÁÊ FÃN˛Á ™ÏN˛Á§¬Á N˛∫åz Nz˛ u¬L
N˛ÁÆ|NÏ˛Δ¬oÁ ™ı F\Á¢˛Á EÁ{∫ åF| uƒúmå ∫måyuo §åÁåz ™ı N˛∫ ÃN˛oy “{@ FÊ≈ÆÁz∫ıÃ NÊ˛úuåÆÁı
N˛Áz FÃ N˛ueå Ã™Æ N˛Á ÃtÏúÆÁzT N˛∫åÁ YÁu“L@
»y \z “u∫ åÁ∫ÁÆm
Fã≈ÆÁz∫ıÃ ∫zTÏ¬zb∫y LÊg gzƒ¬ú™ıb EsÁ}u∫by, ßÁ∫o
ƒo|™Áå ™ı “™ 1930 Nz˛ §Át N˛y Ã§Ãz §‰gy ƒ{uæÁN˛ ™Êty N˛y ™Á∫ ^z¬ ∫“z “¯@
»y u\™ ¢z˛¬{“Áby|
uƒ™Êfiy, N˛åÁgÁ Ã∫N˛Á∫
GúßÁzO˛Á u“oÁı Nz˛ ÃÊ∫qm, úu∫mÁ™Áıã™ÏQy twu…bN˛Ázm EÁ{∫ ™\§Ïo §Á\Á∫ “™Á∫y uƒ∫ÁÃo “{@
Es|√ÆƒÀsÁ N˛y ÃÏtwjoÁ Nz˛ u¬L FÃ N˛Á∫N˛Áı N˛Á “ÁzåÁ EnÆÊo EÁƒ≈ÆN˛ “{@
ÃÏ»y sz∫zÃz L™ ƒÁ}T
ÃyF|EÁz, LåLEÁF|Ãy
FÃ tΔN˛ Nz˛ tÁ{∫Áå \ÁzuQ™ ¬zåz N˛y üƒwu \Áz∫tÁ∫ oz\y, N˛™ £ÆÁ\ t∫ ú∫ ¬zåtÁ∫y \{Ãy
üƒwu ÃÁ™åz EÁF| “{, E§ uƒyÆ ÃÊÀsÁEÁzÊ N˛Á úÏ∫ÁoåƒÁty ∫ƒ{ÆÁ §yoz \™Áåz N˛y §Áo “Áz
YÏN˛y “{@
»y \Á}å L¢˛ ¬zN˛∫
EÜÆq, EÁ}Àb~zu¬Æå üÓgzuãΔÆ¬ ∫zTÏ¬zΔå EsÁ}u∫by (LúyEÁ∫L)

”
GúßÁzO˛Á
GúßÁzO˛Á u“o úÁz m EÁ{∫ GnúÁt EåÏNÓ˛¬o

Eªm ET¿ƒÁ¬ N˛Á ™o “{ uN˛ ™ÏO˛ §Á\Á∫ Ãz \“ÁÊ üuoÀúáÁ| N˛y™oÁı N˛Á ™ÏtΩtÁ ÃÁ™åz EÁÆÁ ƒ“Î FÃNz˛ \u∫L
G˘™Δy¬ \ÁzuQ™ N˛Áz uåÆÊufio N˛∫åz N˛y ßÁƒåÁ ßy uƒN˛uÃo “ÏF|@
u\ Ã Δ£t FÊ≈ÆÁz∫ıÃ N˛Á EÁ\ “™ FÀoz™Á¬

N˛∫oz “¯, ƒ“ ™Ó¬o: 1666 ™ı ¬Êtå Nz˛
FÃNz˛ EÊoT|o LN˛ Ã™Ó“ Nz˛ã¸yÆ ¢Ê˛g N˛y tzQ∫zQ
N˛∫oÁ “{@ Æz ¢Ê˛g ÃtÀÆÁı Nz˛ uƒyÆ EÊΔtÁå Ãz
FÊ≈ÆÁz∫ıÃ ÃzMb∫ N˛Á uƒN˛ÁÃ “{@ uúZ¬z NÏ˛t ÃÁ¬
Nz˛ tÁ{∫Áå t{Δ ™ı Ã∫N˛Á∫y FÊ≈ÆÁz∫ıÃ NÊ˛úuåÆÁı Nz˛
ßÆÁƒ“ EuT¿N˛ÁÊg Nz˛ §Át Y¬å ™ı EÁÆÁ@ EÁT o{ÆÁ∫ “ÁzoÁ “{@ uN˛Ãy N˛Áz ßy åÏN˛ÃÁå N˛y uÀsuo ÃÁs-ÃÁs üÁFƒzb FÊ≈ÆÁz∫ıÃ NÊ˛úuåÆÁı Nz˛ GtÆ Ãz
åz ¬TßT ÃƒÁ oz∫“ “\Á∫ V∫Áı N˛Áz ∫ÁQ N˛∫ ™ı Ãßy ÃtÀÆ GÃN˛y ß∫úÁF| N˛∫oz “¯@ FÃ GnúëÁ üuoÀúáÁ| Nz˛ ¢˛¬Àƒøú FÊ≈ÆÁz∫ıÃ ÃzMb∫
utÆÁ@ N˛∫Áz‰gÁı N˛y N˛y™o ƒÁ¬y Y¬-EY¬ ÃÊúu EƒáÁ∫mÁ ™ı Ãßy ÃtÀÆ uƒyÆ åÏN˛ÃÁå N˛y N˛Á uƒN˛ÁÃ “ÏEÁ@ uå™í N˛Á∫m ßy FÃNz˛ uƒN˛ÁÃ
ßy ÀƒÁ“ “Áz TF|@ FÃ ÀƒÁ“ EuT¿N˛ÁÊg N˛Á LN˛ uÀsuo ™ı ™tt Nz˛ “N˛tÁ∫ “Ázoz “¯@ ünÆÁzN˛ ÃtÀÆ ™ı ™ttTÁ∫ §åı@
G\¬Á úq “{ FÊ≈ÆÁz∫ıÃ ÆÁåy åÏN˛ÃÁå N˛Áz Ã™Ó“ Eúåz \ÁzuQ™ N˛Áz Ã™Ó“ Nz˛ EãÆ ÃtÀÆÁı • ÀƒÁÀ·Æ, ÆÁfiÁ EÁ{∫ ¬ÁFu§u¬by FÊ≈ÆÁz∫ıÃ
EsƒÁ ƒT| ™ı uƒßÁu\o N˛∫ uƒyÆ “ÁÃ N˛Á N˛Áz §ÁÊboÁ “{@ ÆÁåy ƒå ¢˛Á}∫ EÁ}¬ LÊg EÁ}¬
üÁzgMbΩÃ Nz˛ uƒÀoÁ∫ Ãz GúßÁzO˛ÁEÁzÊ N˛y
§ÊbƒÁ∫Á@ tÓÃ∫z Δ£tÁı ™ı FÊ≈ÆÁz∫ıÃ N˛Á Es| \ÁzuQ™ ¢˛Á}∫ ƒå@
EÁƒ≈ÆN˛oÁEÁ{Ê N˛y úÓuo| “ÏF|@
™ı u“ÀÃztÁ∫y “{@ FÊ≈ÆÁz∫ıÃ Nz˛ ƒ{uæÁN˛ úu∫tw≈Æ ™ı üÁzgMb uƒN˛ÁÃ ™ı
• üYÁ∫ Nz˛ åL ™ÁÜÆ™ F|-Y{å¬ EÁut Ãz
Æ“ Ã“ÁÆN˛ ∫“Á “{@ GtÁ“∫m Nz˛ øú ™ı FÊ\yuåÆu∫ÊT
GúßÁzO˛ÁEÁzÊ oN˛ ú“ÏÊY §åy@
FÊ≈ÆÁz∫ıÃ üÁ∫©ß ™ı ÃÁ™ÁãÆ üN˛Á∫ Nz˛ EuT¿ “ÁtÃÁı
N˛y uƒyÆ ß∫úÁF| “Áz N˛∫oy sy@ ¬zuN˛å Ã™Æ Nz˛ • GúßÁzO˛Á ÃzƒÁEÁzÊ ™ı TÏmƒÁ EÁ{∫ oN˛åyN˛y
ÃÁs-ÃÁs FÃN˛y √ÆÁPÆÁ EÁ{∫ N˛ƒ∫z\ ™ı uƒÀoÁ∫ EÁtÁå uƒN˛ÁÃ N˛Á∫N˛Áı EÁ{∫ ÃuN¿˛Æ uåÆÁ™N˛Áı
FÊ≈ÆÁz∫Ã
ı Nz˛ ƒ{uæÁN˛ “ÁzoÁ TÆÁ@ EÁ\ FÊ≈ÆÁz∫ıÃ ™ı EuT¿ “ÁtÃÁı Nz˛ Nz˛ ÃÁs-ÃÁs FÊ≈ÆÁz∫ıÃ ÃzMb∫ ™ı åF| NÊ˛úuåÆÁı
úu∫tw≈Æ ™ı üÁzgMb uƒußëÁ øú uYuã“o uN˛L \Á YÏNz˛ “¯@ Nz˛ EÁT™å Ãz tzΔ N˛Á T¿Áú Ãz¬Ã| Ãz §ÁÆÃ|
™ÁNz˛|b N˛Áz HÊYÁF|ÆÁÊ åÁúåz ¬TÁ “{@
uƒN˛ÁÃ ™ı Æ“ FÊ≈ÆÁz∫ıÃ N˛y EƒáÁ∫m EÁ{∫ FÃNz˛ EÁN˛Á∫ N˛Á
Δå{:-Δå{: uƒÀoÁ∫ “™ı \¬ úu∫ƒ“å, ™{∫yå uΔuúÊT • ßÁ∫o ™ı FÊÊ≈ÆÁz∫ıÃ ÃzMb∫ Nz˛ ßuƒ…Æ ™ı EÁ{∫
Ã“ÁÆN˛ ∫“Á “{@ ƒT{∫“ ™ı tzQåz N˛Áz u™¬oÁ “{@ Æ“ EƒáÁ∫m ÃÁzúÁå
GtÁ“∫m Nz˛ øú ™ı tÏuåÆÁ ß∫ ™ı tzQåz N˛Áz u™¬oy “{@ • EÁÆ ugÀúÁz\z§¬
FÊ\yuåÆu∫ÊT FÊ≈ÆÁz∫Ã ı ßÁ∫o ™ı 1850 ™ı ub~bÁ}å FÊ≈ÆÁz∫ıÃ åÁ™N˛ NÊ˛úåy • §Yo EÁ{∫ GúßÁzT
N˛y ÀsÁúåÁ Nz˛ ÃÁs FÊ≈ÆÁz∫ıÃ ÃzMb∫ N˛y \‰gı
üÁ∫©ß ™ı ÃÁ™ÁãÆ • \åÃÊPÆÁ EÁáÁu∫o úu∫ƒo|å
úåúåz ¬TÎ@ 1970 oN˛ Æ“ 170 \å∫¬ FÊ≈ÆÁz∫Ãı
NÊ˛úuåÆÁı Nz˛ øú ™ı uƒÀoÁu∫o “Áz \ÏN˛y sÎ@ ÃåΩ • GÄÁo∫ §Yo
üN˛Á∫ Nz˛ EuT¿ “ÁtÃÁı
1999 ™ı F∫gÁ ÆÁåy FÊ≈ÆÁz∫ıÃ ∫zTÏ¬zΔå LÊg • EÁÆÏ §‰jÁzo∫y, uΔqÁ EÁ{∫ Tw“Àsy N˛Á ‰jÁÊYÁ
N˛y uƒyÆ ß∫úÁF| “Áz gzƒ¬õ™ıb EsÁ}u∫by u§¬ Nz˛ EÁT™å Nz˛ ÃÁs
• ÀƒÁÀ·Æ EÁ{∫ tÏV|båÁ N˛y uÀsuo ™ı §yúyL¬
N˛∫oy sy@ ßÁ∫o ™ı F≈ÆÁz∫ıÃ Nz˛ åL ÆÏT N˛Á ÃÓfiúÁo “ÏEÁ@
F∫gÁ N˛Á ™ÏMÆ GÒz≈Æ úÁ}u¬Ãy áÁ∫N˛Áı Nz˛ u“oÁı úu∫ƒÁ∫Áı Nz˛ ü»Æ N˛y Ã∫N˛Á∫y åyuo
N˛Á ÃÊ∫qm, uåÆÁ™å, üÃ™ÁzΔå EÁ{∫ tzΔ ™ı tzΔ ™ı FÊ≈ÆÁz∫ıÃ ÃzMb∫ Nz˛ uƒN˛ÁÃ N˛Áz Eßy N˛F|

GúßÁzO˛Á
EÁáÁ∫ ú∫ ÃzYÁu¬o “ÁzoÁ “{@ ¬§uN˛ FÊ≈ÆÁz∫ıÃ N˛Áz E§ ßÁ∫o ™ı \Á∫y úÁ}u¬Ãy ™ı (Incorporate)
Ãz M b∫ ™ı EÁF| [ÆÁtÁo∫ NÊ ˛ úuåÆÁÊ EÁT, N˛∫ N˛ƒ∫z\ Nz˛ tÁÆ∫z N˛Áz EÁ{∫ §‰jÁÆÁ TÆÁ “{@
FÊ\yuåÆu∫ÊT EÁ{∫ ™Ázb∫ÆÁå ÃÊ§Êáy u§\åÃ ™ı E§ ugb{u∫u¢Ê˛T ™ÁNz˛|b ™ı Æz ÃÏuƒáÁ Add-on-
ÃÊßÁƒÁåÁLÊ o¬ÁΔ ∫“y “¯@ \§uN˛ åÁ}å b{u∫¢˛ cover Nz˛ øú ™ı u™¬ ÃNz˛Ty ugb{u∫¢˛ÁFg ™ÁNz˛|b
u§\åÃ ¬ÁFå GnúÁt EÁ{∫ ÃzƒÁEÁzÊ Nz˛ N˛F| qzfiÁı GúßÁzO˛ÁEÁzÊ Nz˛ u¬L ™ttTÁ∫ N{˛Ãz?
™ı EÁTz EÁF|@ F∫gÁ åz 2007 ™ı üÁF\ EÁzúuåÊT
ßÁ∫oyÆ FÊ≈ÆÁz∫Ã Êz N˛y EåÏ™uo ütÁå N˛∫ ty@ E§ t{Δ N˛y FÊ≈ÆÁz∫ıÃ üÁzgMb, üÁFuÃÊT EÁ{∫ ÃzƒÁEÁzÊ ƒ{uæÁN˛
ÃzMb∫ b{u∫¢˛ Nz˛ NÊ˛úuåÆÁÊ ƒ{uæÁN˛ §Á\Á∫ Nz˛ EåÏÃÁ∫ Eúåz GnúÁtÁı ™Áå
N˛Áz GúßÁzO˛ÁEÁzÊ N˛y \ø∫oÁı Nz˛ ™Òzå\∫ o{ÆÁ∫ \ÁzuQ™ ƒ∫yÆoÁ
EÁáÁ∫ ú∫ ÃzYÁu¬o N˛∫ ∫“y “¯@
FÊ≈ÆÁz∫ıÃ üÁzT¿Á™ ÀsÁuÆnƒ N˛Á}∫úÁz∫zb ÃÊYÁ¬å EÁ{∫
“ÁzoÁ “{@ ¬§uN˛ “Á¬ “y ™ı ugt{∫zu¢Ê˛T Ãz §y™Á NÊ˛úuåÆÁı N˛Áz \ÁzuQ™ ü§Êáå Ãz “Áz ÃN˛oÁ “{@ Ã™T¿ øú tzQı
FÊ≈ÆÁz∫Ã
ı ÃzMb∫ ™ı GúßÁzO˛EÁzÊ N˛y \ø∫o Nz˛ EåÏÃÁ∫ GnúÁtÁı oÁz N˛Á}∫úÁz∫zb ü§Êáå Ãz EuáN˛o™ ÃÊoÏu…b úÁF|
úu∫ƒuo|o N˛∫åz ™ı Ã“ÁÆoÁ üÁõo “ÏF| “{@ Own \Á ∫N˛oy “{@
EÁF| [ÆÁtÁo∫ damage åz ZÏb N˛y EåÏ™uo, Nz˛ ÃÁs-ÃÁs
N˛Á}∫úÁz∫zb ÃÊYÁ¬å N˛Á ü™ÏQ GÒz≈Æ Ãßy Stake
NÊ˛úuåÆÁÊ EÁT, Ã™Ào EÁ{˘ÁzuTN˛ \ÁzuQ™, ™Ázb∫ N˛y ΔoÁz˙ EÁ{∫
holder's Nz˛ üÁuõo Nz˛ƒ¬ N˛ÁåÓåy N˛y Ã“ÁÆoÁ
N˛ƒ∫z\ ™ı ßy EåÏN˛Ó ¬ §t¬Áƒ uN˛ÆÁ@ FÃ™ı Motor
FÊ\yuåÆu∫ÊT EÁ{∫ own damage (OD) Baseline wordings
Ãz Directorial u\©™ztÁu∫ÆÁı N˛Á uƒN˛ÁÃ N˛∫åÁ
“{@ EÁtΔ| FÊÀÆÁz∫ÃÊz √ƒƒÀsÁ EÊoT|o \ÁzuQ™ ü§Êáå
™Ázb∫ÆÁå ÃÊ§á Ê y covers LN˛ \åƒ∫y 2009 Ãz “y üßÁƒ “ÏEÁ
FÊ≈ÆÁz∫ıÃ ü§Êáå EÁ{∫ N˛Á}∫úÁz∫zb ÃÊYÁ¬ Nz˛ §yY
“{@ §y™ÁN˛oÁ|EÁzÊ N˛Áz E§ úÓƒ| Nz˛ Ãyu™o §y™Á
u§\åÃ ™ı ÃÊßÁƒÁåÁLÊ ¬Áß N˛y §\ÁL [ÆÁtÁ \ÁzuQ™ N˛ƒ∫ Nz˛ EuáN˛Á∫
™ÜÆÀs Ã∫yQÁ “{@ FÃN˛Á GtΩtz≈Æ üÁzbzMΔå N˛Áz
EuáN˛Á∫Áı EuáN˛ N˛∫åÁ, \ÁzuQ™ N˛y™o ™ı N˛ßy
o¬ÁΔ ∫“y “¯@ utL TL EÁT, FÊ\ÁzuåÆu∫ÊT, EÁF|LEÁ∫, Motor
EÁ{∫ ƒÁumu[ÆN˛ øú Ãz GúÁtzÆoÁ N˛Áz §∫N˛Á∫Á∫
OD ™ı Euou∫O˛ üyu™Æ™ \™Á N˛∫åz ú∫ §y™ÁN˛oÁ|
∫QåÁ “¯ ugb{u∫u¢Ê˛T N˛Á EuüüÁÆ: §y™ÁN˛oÁ| N˛Á
N˛Áz Add-on-cover FÊ\yzuåu∫ÊT ™ı Y¬ ÃÊúu GÒz≈Æ \ÁzuQ™ ü§Êáå “{@
ßy ΔÁu™¬@
EXZÁ \ÁzuQ™ üÁzT¿Á™ \ÁzuQ™ ∫zubÊT üuN¿˛ÆÁ ™ı
úzb~Áz Nz˛u™N˛¬ G˘ÁzT Ã™zo Ãßy G˘ÁzTÁı N˛Áz IAR ÃÏáÁ∫ ¬ÁoÁ “{@ ™\§Óo N˛Á}∫úÁz∫zb ÃÊYÁ¬å ‰jÁÊYz
Product N˛y EåÏ™uo ÃÁs “y úÓm| ƒoy| 200
™Êu\¬ı oÆ N˛∫åy “¯@ üyu™Æ™ Nz˛ EÁáÁ∫ ú∫ uå™í Ãz §z“o∫ ü§Êáå Zuƒ Ãz EÊonƒÁzToƒÁ §Á\Á∫ ™ı
FÊ≈ÆÁz∫ıÃ üÃÁ∫ üyu™Æ™ Nz˛ EÁáÁ∫ ú∫ \ygyúy N˛∫Áz‰g øúL N˛y ãÆÓåo™ TSI Limit ßy Qn™ N˛y ÃÁQ §åÁoy “{ EXZz \ÁzuQ™ uåÆÊfim üÆÁÃÁı Ãz
N˛Á üuoΔo@ TF|@ GO˛ Ãz 4 u§ãtÏEÁzÊ N˛Áz ZÁz‰g §y™ÁN˛oÁ| Àb{ãgg| §y™ÁN˛oÁ|EÁzÊ ™ı \ÁzuQ™ ™ı ÃÁ^ztÁ∫y N˛Á uƒN˛¡ú
N˛ƒ∫ ™ı §t¬Áƒ N˛“Î N˛∫ úÁLTÁ@ GtÁ“∫m Nz˛ “ÁzoÁ “{@
oz\y Ãz uƒN˛uÃo “Ázoz §Á\Á∫ úu∫tw≈Æ ™ı §y™Á u¬L ™Ázb∫ F≈ÆÁz∫ıÃ GúßÁzO˛Á E§ N˛ƒ∫ ¢˛ÁÆtz
NÊ˛úuåÆÁÊ Eúåy-Eúåy EÁz∫ GúßÁzO˛ÁEÁzÊ N˛Áz \{ Ã z Loss of use EÁ{ ∫ Waiver of
EÁN˛u |o N˛∫åz ™ı \ÏbÎ “¯@ FÃNz˛ u¬L NÊ˛úuåÆÁı §y™ÁN˛oÁ| Nz˛ å\u∫L Ãz \ÁzuQ™ ü§Êáå
depreciation N˛Áz ßy ¬z ÃNz˛TÁ@ u∫bz¬ FÊ≈ÆÁz∫ıÃ
Nz˛ GnútÁı ™ı åƒÁYÁ∫ EÁ{∫ ÃzƒÁ Ào∫ ™ı ƒwuÚ §z“o∫ ƒÁumu[ÆN˛ EÁ{∫ úÓÊ\y ü§Êáå Ãz NÊ˛úåy
ÃzMb∫ ™ı FÃ §t¬ÁƒÁı Ãz ÃN˛Á∫Án™N˛ ∫ƒ{ÆÁ üÁõo
ΔÁu™¬ “{@ N˛Áz ∫zubÊT ™ı F\Á¢˛Á@
“ÁzTÁ@ uƒußëÁ FÊ≈ÆÁz∫ıÃ üÁzgMb N˛y Coupling Ãz
F∫gÁ Eúåz Teå Nz˛ GÒz≈ÆÁı Nz˛ EåÏÃÁ∫ FÊ≈ÆÁz∫ıÃ N˛ƒ∫z\ u™¬ \ÁLTÁ@ FÃÃz N˛F| úÁu¬Ãy \Á∫y §z “ o∫ underwriting ü§Ê á å Ãz \Áz u Q™
GnútÁı Nz˛ uƒN˛ÁÃ EÁ{∫ N˛ƒ∫z\ ™ı uƒN˛ÁÃ Nz˛ u¬L N˛∫åz ™ı “Ázåz ƒÁ¬Á üΔÁÃuåN˛ QY| ßy §YzTÁ@ improves diverse risk writing appetite
üÆÁÃ∫o “{@ ßÁ∫oyÆ FÊ≈ÆÁz∫zÊÃ ÃzMb∫ b{u∫¢˛ Nz˛ EÊo∫∫Á…b~yÆ FÊ≈ÆÁz∫ıÃ ™ÁNz˛|b ™ı Gú¬£á N˛ƒ∫ variegated products.

GúßÁzMoÁ
§z“o∫ ÃzƒÁ EÁ{∫ ü§Êáå ˚Á∫Á üy EÁ{∫ úÁzÀb \Á ÃN˛oÁ “{@ §zÃ¬ÁFå üÁzgMbΩÃ Nz˛ §Á∫z ™ı o·Æ EƒÃ∫ ™ÁÊT EÁ{∫ §{˘ÁuåN˛ N˛Á∫N˛ ßy ΔÁu™¬ “{@
Ãz¡¢˛ Ãuƒ|Ãz\ ÃÏuåu≥Áo N˛∫åÁ@ ú∫Q å\u∫L EÁ{∫ úÓ∫y \ÁåN˛Á∫y \ø∫y “{@ FÃÃz ugbzu∫u¢Ê˛T Nz˛ tÁ{∫ ™ı §y™ÁN˛oÁ|EÁzÊ N˛Áz ünÆq
ü§Êáå N˛y N˛‰gy ™ı N˛y™o EÁuQ∫y N˛‰gy “{@ Eo: Lg ÆÁ N˛ƒ∫ Nz˛ N˛ÁåÓåy ú“¬ÏEÁzÊ N˛Á rÁå ßy uƒúmå N˛Á ÃÁ™åÁ N˛∫åÁ ßy ú‰gzTÁ@
ugb{u∫¢˛ÁFg úu∫tw≈Æ ™ı Ãßy Nz˛ u¬L EƒÃ∫ “{@ ΔÁu™¬ “z@ ßÁ∫o ™ı EÁåz ƒÁ¬z Ã™Æ ™ı F|-FÊ≈ÆÁz∫ıÃ ßy
GúßÁzO˛Á N˛y úÃÊt Nz˛ƒ¬ \ÁTøN˛oÁ ÆÁ Gú¬£á √ÆuO˛To \ÁzuQ™ ™ı §y™ÁN˛oÁ| ˚Á∫Á T“å \ÁÊY- ™“nƒúÓm| ßÓu™N˛Á EtÁ N˛∫zTÁ@ FÃÃz uƒußëÁ ƒT|
“Áz §z “ o∫ EÁáÁu∫o å“Î “Áz N ˛∫ EåÏ N Ó ˛ ¬ ú‰goÁ¬ ÃÁ™ÁãÆ “z@ Eo: M¬z™ üÁuõo N˛Á §z“o∫ Nz˛ GúßÁzO˛ÁEÁzÊ Nz˛ u¬L EåÏNÓ˛¬ åyuo uå™Á|m “Áz
úu∫uÀsuoÆÁı ƒÁ¬z uƒN˛¡ú N˛Áz üÁõo N˛∫åÁ “{@ üuoΔo úÁ}u¬Ãy áÁ∫N˛Áı Nz˛ EÁÊN˛‰gÁı ú∫ EÁáÁu∫o ÃNz˛TÁ@
§zÃ¬ÁFå üÁzgMb Nz˛ qzfi ™ı E§ ßy NÏ˛Z YÏåÁ{uoÆÁÊ oN˛åyN˛ Få üuN¿˛ÆÁ ™ı Ã“ÁÆN˛ “Ázoy “{@ úÁ}u¬Ãy
Δz “{@ FåN˛Á uå∫ÁN˛∫m N˛∫ FÊ≈ÆÁz∫ıÃ ÃzMb∫ áÁ∫N˛Áı Nz˛ §Á∫z ™ı uƒÀowo \ÁåN˛Á∫y EÁ{∫ §Á“Á GnúÁt åƒÁYÁ∫ EÁ{∫ ÃzƒÁ ü§Êá
œÁÁzoÁı Ãz ÃÓYåÁ u™¬åz ú∫ \ÁzuQ™ ÃÊƒT| ™ı åL • GúßÁzO˛Á N˛y \ø∫oÁı N˛Áz ú“¬z Ãz EuáN˛
EÁ{∫ EuáN˛ N˛ÁÆ| Ã^™ EÁ{∫ úu∫mÁ™Ázã™ÏQ §åÁÆÁ
o·Æ “ÁuÃ¬ “Áz ÃN˛oz “¯@ uåúbÁ∫Á@
ugb{u∫¢˛ÁFg úu∫tw≈Æ ™ı FÊ≈ÆÁz∫ıÃ ™ÜÆƒuo|ÆÁı Nz˛ • Ã™ÁáÁå Nz˛ u¬L oN˛åyN˛y øú Ãz üÆÁÃ∫o
u¬L ßy §z“o∫ EƒÃ∫ “{@ LãbÃüÁF\ \ÁzuQ™ ∫“åz N˛y ™åÁztzΔÁ N˛Á uƒN˛ÁÃ@
ü§Êáå Nz˛ “¬ ™ı ™ÏO˛ §Á\Á∫ ßy ÆÁzTtÁå tzoÁ • E§ GnúÁt Nz˛ƒ¬ Eúåz §Óoz §Á\Á∫ ™ı ú{e
“{@ GúßÁzO˛Á N˛y N˛ÁzF| ßy ÃÊΔÁzuáo N˛ƒ∫ ütÁå å“Î §åÁ ÃN˛oz@ FÃ™ı §{N˛Eú ÃzƒÁ ßy
N˛∫åz Ãz ú“¬z \ÁzuQ™ E“o|EÁzÊ N˛Áz ú∫Q ¬zåÁ ™“núƒúÓm| “{@
ugb{u∫¢˛ÁFg \ø∫y “{@
• GúßÁzO˛Á Ãz §z“o∫ ÃÊ§Êá ÀsÁuúo N˛∫åz Nz˛
úu∫tw≈Æ ™ı FÊ≈ÆÁz∫Ãı NÊ˛úuåÆÁı N˛Á N˛Á™ Nz˛ƒ¬ ú∫©ú∫ÁTo T¿Á“N˛Áı u¬L åƒÁYÁ∫ EÁ{∫ uƒN˛ÁÃ Nz˛ u¬L onú∫oÁ
N˛y ÃzƒÁ ÃÊoÏu…b “y å“Î, §u¡N˛ uƒußëÁ ÃÊƒTÁz˙ Nz˛ \ø∫y “{@ FÃÃz EÁÃúÁÃ N˛Á “y å“Î ƒ∫å
FÊ≈ÆÁz∫Ã
ı u¬L §z“o∫ GúÁÆÁı N˛Áz QÁz\åz ™ı §Á\Á∫ N˛y Ã™ÓYz §Á\Á∫ N˛Á N¿˛ÁÊuoN˛Á∫y uƒN˛ÁÃ “ÁzoÁ “{@
™ÜÆƒuo|ÆÁı Nz˛ u¬L Ã“ÁÆoÁ N˛∫åÁ ßy “{@
F∫gÁ \§ “Àou¬uQo EÁ{∫ Bespoke Cover
ßy §z“o∫ EƒÃ∫ GúßÁzO˛Á N˛y \ÁTøN˛oÁ Ãz FÃ utQÁ ™ı EXZy N˛y EåÏ™uo ütÁå N˛∫zTÁ oÁz uå≥ÁÆ “Áz ßÁ∫oyÆ
ú“¬ “Áz ÃN˛oy “{@ FÊ≈ÆÁz∫ıÃ ÃzMb∫ FÃNz˛ u¬L §Á\Á∫ ™ı üÁzgMb uƒN˛ÁÃ Eúåz Y∫™ N˛Áz üÁõo
“{@ LãbÃüÁF\ ™yugÆÁ N˛Á Ã“ÆÁzT ßy ¬z ÃN˛oÁ “{@ N˛∫zTÁ@
\ÁzuQ™ ü§Êáå Nz˛
™yugÆÁ N{˛©úzå ™{å\
z ™ıb
“¬ ™ı ™ÏO˛ §Á\Á∫ • LN˛ ƒT| uƒΔz N˛Áz ÜÆÁå ™ı ∫QN˛∫ N{˛©úzå
ßy ÆÁzTtÁå tzoÁ o{ÆÁ∫ uN˛ÆÁ \ÁL, MÆÁıuN˛ ™ÁNz˛|ubÊT N{˛©úzå §“Ïo
\ub¬ EÁ{∫ ™“ÊTz “Ázoz “{@
“{@
• LN˛ ƒT| uƒΔz Nz˛ GúßÁzO˛ÁEÁzÊ N˛Áz N{˛©úzå Ãz
™Ó¡Æ ƒwuÚ N˛y Ã™^ÁFΔ@
• N{˛©úzå N˛Á §z“o∫ ü§Êáå N˛∫ FÃÃz u™¬åz
ƒÁ¬z ¢˛yg§{N˛ Ãz ÃÏáÁ∫ N˛∫ı@
§y™ÁN˛oÁ| üÁzgMb uƒN˛ÁÃ EÁ{∫ §¿ıg u§¡bEú Nz˛ ¬zQN˛ EÁF|ÃyEÁF|ÃyEÁF| ¬Á}©§Ág| \å∫¬
u¬L uå∫Êo∫ ΔÁzá N˛∫ ∫“z “¯@ FÃ™ı §Á\Á∫ ™ı FÊ≈ÆÁz∫Ã
ı ™ı Yy¢˛ EÊg∫∫ÁFb∫ EÁ}¢˛yÃ∫ “¯@

uåƒzΔ
ÆÏu¬ú <<LN˛ E¬T twu…bN˛Ázm>>

Eu∫ãt™ tÁÃ N˛Á ™o “{ uN˛ uÀƒuYÊT Nz˛ \u∫L LN˛ N˛Àb™∫ Eúåz uåƒzΔ N˛Áz uN˛Ãy ßy LN˛ ¢Ê˛g Ãz tÓÃ∫z ¢Ê˛g
™ı ¬z \Á ÃN˛oÁ “{
EÁ \ \§ EÁ™ EÁt™y ßy ÆÏuåb u¬ÊMg

FÊ≈ÆÁz∫ıÃ õ¬Áå sÁzgÁ §“Ïo Ã™^Áåz ¬TÁ
“{, FÃNz˛ NÏ˛Z EÁ{∫ ú“¬ÏEÁzÊ N˛Áz bbÁz¬åz N˛y ßy
Ã∫ıg∫ - EÁ™oÁ{∫ Nz˛ƒ¬ oyå ƒ | oN˛ uüu™Æ™
tzåz Nz˛ §Át úÁu¬Ãy å Y¬Á úÁåz uN˛ uÀsuo ™ı
úÁu¬Ãy Ã∫ıg∫ uN˛ \Á ÃN˛oy “{@
N{˛Δ / ™åy ™ÁNz˛|b uåƒzΔ EnÆão ÃÏ∫uqo uåƒzΔ
“{@ ú∫ãoÏ ƒwuÚ t∫ 3% - 5% “Ázoy “{@
NÏ˛Z ¢Ê˛g ΔzÆ∫ §Á\Á∫ osÁ JÏ m §Á\Á∫ N˛Á u™¬Á
EÁƒ≈ÆN˛oÁ “{@ Få ÃÏuƒáÁEÁzÊ Nz˛ E¬ÁƒÁ Æz ßy \Áå¬zåÁ GuYo \Ï¬Á Àƒøú ßy “Ázoz “{, Fã“z §{¬zãÃ ¢Ê˛g NÏ˛Z
\{Ãy N˛y EÁ™ EƒáÁ∫m “{ - ÆÏu¬ú N˛Á ™o¬§ “{, uN˛ E¬T-E¬T G™¿, u\©™ztÁu∫ÆÁ}, uåƒzΔ Nz˛ \ÁoÁ “{, Æz 8% - 15% oN˛ uåƒzΔ ƒwuÚ
Nz˛ƒ¬ \yƒå §y™Á LƒÊ uåƒzΔ “{, ÆÏu¬ú N˛y Qo∫Áı LƒÊ §Áu∫uN˛ÆÁı uN˛ Ã™Æ osÁ Eƒuá Nz˛ N˛∫ ÃN˛oz “{ EúzqÁNw˛o uåƒzΔ Qo∫Á ßy N˛™
N˛“Áåy Æ“Î Ã™Áõo “Áz \Áoy “{, ¬zuN˛å N˛“Áåy u“ÃÁ§ Ãz “y ¢Ê˛g N˛Á YÆå N˛∫åÁ YÁu“Æz@ “∫ “ÁzoÁ “{@
FÃNz˛ EÁTz ßy §“Ïo “{@ §y™Á N˛©úåy Nz˛ úÁÃ N˛F| ¢Ê˛g “{, u\å™ı E¬T- TÁ∫ãbyg Lå.L.ƒy Nz˛ ÃÁs ßy ¢Ê˛g Gú¬£á “{,
ÆÏu¬ú ™z §“Ïo ÃÁ∫y ÃÏuƒáÁLÂ “{, u\ÃN˛y \ÁåN˛Á∫y E¬T uåƒzΔ §Á\Á∫ N˛Á úÁzb|¢˛Ázu¬ÆÁz Gú¬£á u\Ã ú∫ §Á\Á∫ N˛Á Qo∫Á u§¡NÏ˛¬ ßy å“Î
EÁ™ EÁt™y oN˛ å“Î “{, ÆÁ u¢˛∫ §“Ïo N˛™ “{@ “ÁzoÁ “{@ “ÁzoÁ “{@
Fã“y ™ı NÏ˛Z “{@ ™ÏPÆoÆÁ oyå úÏÂ\y uåƒzΔ §Á\Á∫ “y §y™Á LN˛ ÆÏu¬ú ™ı uåƒzΔ Ãz ú“¬z uå™íu¬uQo §ÁoÁzÊ
úÁuΔ|¬ uƒtg~Á¬ } - FÃ ÃÏuƒáÁ Nz˛ o“o N˛Àb™∫, N˛©úuåÆÁı ˚Á∫Á uåƒzΔ uN˛ÆÁ \ÁoÁ “{@ N˛Á ÜÆÁå ∫QåÁ YÁu“L@
oyå ÃÁ¬ oN˛ üyu™Æ™ tzåz Nz˛ §Át ET∫ YÁ“z • ΔzÆ∫ / FuÅ˛by §Á\Á∫ - a) §y.LÃ.F|. • ãÆÓåo™ L¬ÁzNz˛Δå YÁ\|
oÁz Eúåz ¢Ê˛g Ãz ú{Ãz uN˛ uåN˛ÁÃy N˛∫ ÃN˛oÁ “{, b) Lå.LÃ.F| • ãÆÓåo™ ¢Ê˛g ™{åz\™ıb YÁ\|
u\Ã ú∫ N˛ÁzF| £ÆÁ\ t∫ ¬ÁTÏ å“Î “ÁzoÁ “{, åÁ “y • gz£b ÆÁ JÏm §Á\Á∫ - Tƒå|™zãb ÃzMÆÏu∫by, • Ã“y ¢Ê˛g N˛Á YÏåÁƒ
ú{Ãz tÏ§Á∫Á \™Á N˛∫åz uN˛ u\©™ztÁ∫y “Ázoy “{@ §Áãg, §¯N˛ ÃÁƒuá \™Á FnÆÁty • ÃÏuƒáÁ ¬Áß YÁ\| ∫u“o / ãÆÓåo™ YÁ\|
Nz˛ƒ¬ 1 ƒ | uN˛ üyu™Æ™ Nz˛ §∫Á§∫ ú{Ãz ¢Ê˛g ™ı • N{˛Δ / ™åy ™ÁNz˛|b - b~z„\∫y u§¬, N˛Áz¬ ™åy • Ã∫zãg∫ YÁ\| üs™ ƒ | uüu™Æ™ EÁáÁu∫o å
ZÁzgåz “Ázoz “{@ FnÆÁty N˛y úÓm| ¢Ê˛g EÁáÁu∫o
bÁú Eú - FÃ ÃÏuƒáÁ Nz˛ EãoT|o N˛Àb™∫ uƒußëÁ ¢Ê˛g N˛Á uå™Á|m Fã“y §Á\Á∫ Nz˛ uƒußëÁ Eãoo: ÆÓu¬ú uN˛ \yƒå §y™Á úq N˛Áz N˛ßy
uüu™Æ™ Nz˛ E¬ÁƒÁ ßy Euou∫O˛ úÓÂ\y (LN˛ G˘ÁzTÁı Nz˛ E¬T-E¬T N˛©úuåÆÁı ™ı LN˛ uåu≥Áo ßÏ¬åÁ å“Î YÁu“L, Ã™Æ Nz˛ ÃÁs \yƒå Nz˛
uåu≥Áo) ∫ÁΔy uåƒzΔ N˛∫ ÃN˛oÁ “{, GÃ ∫ÁΔy ú∫ üuoΔo Nz˛ EÁáÁ∫ ú∫ uN˛ \Áoy “{@ FÃ o∫yNz˛ Ãz uƒußëÁ ú‰gÁƒ-ÆsÁ §ÄÁÁı uN˛ ú‰jÁF|, §ÄÁÁı uN˛ ΔÁty
ßy 80C N˛Á N˛∫ ZÏb ¬Áß u™¬ ÃN˛oÁ “{@ uåƒzΔ N˛Áz E¬T-E¬T N˛©úuåÆÁı ™ı uƒo∫yo N˛∫ ÆÁ EúåÁ u∫bÁÆ∫™ıb osÁ ET∫ N˛ÁzF| Tw“ Jm
uÀƒY - uÀƒuYÊT Nz˛ \u∫L LN˛ N˛Àb™∫ Eúåz uåƒzΔ Nz˛ Qo∫z N˛Áz N˛∫ uåƒzΔ ƒwuÚ t∫ N˛Áz EsƒÁ ƒÁ“å Jm “Áz oÁz Få Ãßy u\©™ztÁu∫ÆÁı
uåƒzΔ N˛Áz uN˛Ãy ßy LN˛ ¢Ê˛g Ãz tÓÃ∫z ¢Ê˛g ™ı ¬z EuáN˛o™ uN˛ÆÁ \ÁoÁ “{@ N˛Áz úÓm|oÁ tzåz ™ı ÆÏu¬ú N˛Á¢˛y ™ttTÁ∫ ÃÁu§o
\Á ÃN˛oÁ “{, uT∫oz “ÏL ÆÁ EnÆão EuÀs∫ uåƒzΔ “Áz ÃN˛oz “¯, ÆÏu¬ú T¿Á“N˛ Nz˛ u\©™ztÁu∫ÆÁı N˛Áz
ΔzÆ∫ §Á\Á∫ ƒÁ¬z ¢Ê˛g ™ı E¡úÁƒuá uåƒzΔ ™ı
§Á\Á∫ ™ı Æz ÃÏuƒáÁ uåu≥Áo oÁ{∫ ú∫ uåƒzΔ N˛Áz úÓ∫Á N˛∫ ÃN˛oÁ “z, \ø∫o “{ oÁz Nz˛ƒ¬ Eúåz
Qo∫Á [ÆÁtÁ “ÁzoÁ “{, ú∫ãoÏ tyVÁ|ƒuá uåƒzΔ 15 ÆÏu¬ú N˛Áz Ã™Æ tzåz N˛y@
ÃÏ∫uqo N˛∫oÁ “{@ ƒ | ÆÁ GÃÃz EuáN˛ Ã™Æ Nz˛ uåƒzΔ ™ı ƒÁÀouƒN˛
Ãzb¬™zãb EÁõΔÁãÃ - ™{\Ázu∫by Nz˛ ƒO˛ ET∫ øú Ãz N˛ÁzF| Qo∫Á å“Î “ÁzoÁ “{@ Æ“Á} Æ“ ÆÁt
N˛Àb™∫ YÁ“z oÁz Eúåz uåƒzΔ §åz ∫“ ÃN˛oÁ “{, FÃ ∫QåÁ EÁƒ≈ÆN˛ “{, FÃ §Á\Á∫ N˛Á uåƒzΔ ÃƒÁ|uáN˛
tÁ{∫Áå \yƒå §y™Á Gú¬£á å“Î “Ázoy “{@ ET∫ ƒwuÚ t∫ tzåz uN˛ q™oÁ ∫QoÁ “{@
§Á\Á∫ ßÁƒ uT∫Á “ÏEÁ “Áz ÆÁ oz\y Ãz §‰j ∫“Á “Áz, oÁz Jm §Á\Á∫ EúzqÁNw˛o N˛Á¢˛y ÃÏ∫uqo §Á\Á∫ “{
ET¬z N˛™ Ãz N˛™ 1 ƒ | Ãz EuáN˛o™ 5 ƒ | oN˛ ÃÁ¬ÁåÁ ƒwuÚ t∫ 6% - 12% oN˛ “Áz ÃN˛oy “{, ¬zQN˛ EÁF|.gy.§y.EÁF| ¢˛Ázub|Ã, úbåÁ ™ı
FÃ ÃÏuƒáÁ N˛Á ¬Áß u¬ÆÁ \Á ÃN˛oÁ “{@ E¡úÁƒuá uåƒzΔ FÃ §Á\Á∫ Nz˛ ¢Ê˛g ÃÏ∫uqo “{@ N˛ÁÆ|∫o “¯@

åÁ™ÁÊN˛å
EÁuQ∫ Æz åÁ™ÁÊN˛å
LƒÊ Ã™åÏtzΔå “{ MÆÁ?
EÁ∫ Lå EÁF| LÃ ˚Á∫Á Gú¬£á ÃÁ™T¿y ™ı åÁ™ÁÊN˛å EƒáÁ∫mÁ N˛Áz ÃÁ™åz ¬ÁÆÁ \Á ∫“Á “{@
\y ƒå §y™Á Q∫ytåz N˛Á ¬Áß oßy ÃÁ™åz

EÁoÁ “{ \§ úÁ}u¬Ãy Nz˛ EãoT|o tÁƒÁ
N˛∫åz N˛y uÀsuo GnúëÁ “Ázoy “{@ EÁ{∫ Æut tÁƒÁ
ÜÆÁå ∫Qz uN˛ u\å uüÆ\åÁı N˛Áz EÁus|N˛ Ã∫qÁ
tzåz “zoÏ §y™Á N˛∫ÁÆÁ sÁ Gã“z §y™Á ∫ÁuΔ üÁõo
N˛∫åz Nz˛ u¬L G∫ÁuáN˛Á∫ ü™Ám LN˛fi N˛∫åz ™ı
§y™Á EuáuåÆ™ 1938 Nz˛ EãoT|o åÁ™ÁÊN˛å LƒÊ
Ã™åÏtzΔå N˛Á N˛™Δ: áÁ∫Á 39 LƒÊ áÁ∫Á 38 ™ı
uƒÀowo üÁƒáÁå “{@ EÁFÆz, ünÆzN˛ LƒÊ Ã§ N˛y
§yu™o √ÆuO˛ N˛y ™wnÆÏ Nz˛ N˛Á∫m “Áz oÁz §y™z N˛y N˛ueåÁFÆÁı ß∫y üuN¿˛ÆÁ Ãz åÁ TÏ\∫åÁ ú‰gz@ ß¬ÁF| Nz˛ u¬L Få üÁƒáÁåÁzz Nz˛ Y¬oz “™ Eúåz
ƒÁÀouƒN˛ ú∫Q FÃ §Áo ™ı uåu“o “{ uN˛ §y™Á EÁ{∫ FÃN˛Á Ã™ÁáÁå Æ“y “{ uN˛ \yƒå§y™Á úÁ}u¬Ãy u¬L úÓm|øúzm \ÁåN˛Á∫y üÁõo N˛∫z oÁuN˛ Ã™ÏuYo
N˛©úåy uN˛oåÁ ΔyV¿ LƒÊ E‰gYå ∫u“o ßÏToÁå Nz˛ EãoT|o Ã™ÏuYo åÁ™ÁÊN˛å EsƒÁ Ã™ÏuåtzΔå åÁ™ÁÊN˛å EsƒÁ Ã™åÏtzΔå Nz˛ EßÁƒ ™ı tÁƒztÁ∫
N˛∫oy “{@ §y™Á N˛©úåy N˛y úy‰gÁ tÁÆy ™ÁÊTı úÓ∫y Ã™Æ ∫“oz N˛∫ utÆÁ \ÁÆÁ@ N˛Áz ÀƒnƒuáN˛Á∫-ü™Ám Nz˛ u¬L tÁƒÁ uåúbÁ∫z ™ı
N˛∫åz N˛y §Áo oÁz “{ “y, ú∫ Æut ƒ“ tÁƒztÁ∫ N˛y EåÁƒ≈ÆN˛ uƒ¬©§ LƒÊ N˛ueåÁFÆÁı N˛Á ÃÁ™åÁ
útƒy N˛Á ßy ü™Ám ™ÁÊTz oÁz Æ“ VÁƒÁı ú∫ å™N˛ åÁ N˛∫åÁ ú‰gz@
uZ‰gN˛åz Nz˛ Ã™Áå ¬ToÁ “{@ §y™Á N˛©úåy GÃ
uÀsuo ™ı Eúåy \T“ uƒƒΔ “Ázoy “{ \“ÁÊ úÁ}u¬Ãy åÁ™ÁÊN˛å
u§åÁ åÁ™ÁÊN˛å EsƒÁ Ã™åÏtzΔå Nz˛ ∫“ TÆy “Áz@ Eúåz ÀƒÆÊ Nz˛ åÁ™ÁÊN˛å “{ MÆÁ?
§Ã, oÁz u¢˛∫ tÁƒÁ ßÏToÁå ™ı tz∫y uåu≥Áo Ã™u^Æz@
N˛¡úåÁ uN˛u\L uN˛ §yu™o √ÆuO˛ Eúåy úÁ}u¬Ãy
\yƒå ú∫ ¬y TF| úÁ}u¬Ãy úu∫úÅ˛ “Ázåz Ãz ú“¬z §yu™o √ÆuO˛ N˛y
™wnÆÏ “Áz \Áåz ú∫ §y™Á ∫ÁuΔ uN˛ÃN˛Áz u™¬z LzÃz
™ı åÁ™ÁÊN˛å (Nomination) EsƒÁ Ã™åÏtzÃå úÁ}u¬Ãy úu∫úÅ˛ √ÆuO˛ N˛Á åÁ™ §oÁåz N˛y üuN¿˛ÆÁ N˛Áz åÁ™ÁÊN˛å
(Assignment) uN˛Æz u§åÁ “y ™wnÆÏ N˛Áz üÁõo “Áz N˛“oz “¯@
TÆÁ@ E§ GÃNz˛ G∫ÁuáN˛Áu∫ÆÁı N˛Áz §y™Á ∫ÁuΔ “Ázåz Ãz úÓƒ| Eúåy
åÁ™ÁÊN˛å N˛Á{å N˛∫ ÃN˛oÁ “{?
úÁåz Nz˛ u¬L ãÆÁÆÁ¬Æ Ãz G∫ÁuáN˛∫m EÁtzΔ ™wnÆÏ “Ázåz N˛y Eúåz ÀƒÆÊ Nz˛ \yƒå ú∫ ¬y TF| úÁ}u¬Ãy N˛Á
üÁõo N˛∫åÁ “{@ FÃNz˛ u¬Æz Ã™Æ å…b N˛∫åz osÁ
sN˛Á tzåz ƒÁ¬y ¬©§y üuN¿˛ÆÁ Ãz TÏ\∫åÁ “ÁzTÁ uÀsuo ™ı §y™Á áÁ∫N˛ úÁ}u¬Ãy úu∫úÅ˛ “Ázåz Ãz úÓƒ| Eúåy ™wnÆÏ
u\Ã™ı ƒ Áz˙ ¬T ÃN˛oz “{@ G∫ÁuáN˛∫m EÁtzΔ “Ázåz N˛y uÀsuo ™ı §y™Á ∫ÁuΔ üÁõo N˛∫åz Nz˛ u¬L
∫ÁuΔ üÁõo N˛∫åz Nz˛ uN˛Ãy N˛Áz ßy åÁ}u™o N˛∫ ÃN˛oÁ “{@ LzÃz √ÆuO˛
Nz˛ u§åÁ §y™Á N˛©úåy ßÏToÁå N˛∫zTy å“Î@ ™woN˛
Eúåz úyZz ƒÃyÆo ßy ZÁz‰g TÆÁ “Áz oÁz ßy u¬L uN˛Ãy N˛Áz ßy N˛Áz <åÁ}u™oy> N˛“oz “{@ oÁnúÆ| Æ“ uN˛ uN˛Ãy
uÀsuo NÏ˛Z EuáN˛ ÃÏT™ å“Î “ÁzTy@ Æut ƒÃyÆo EãÆ √ÆuO˛ Nz˛ \yƒå ú∫ ¬y TF| úÁ}u¬Ãy N˛Á
u§åÁ úÊ\yNw˛o “{ oÁz GÃ ú∫ uƒƒÁt Q‰gÁ “Áz
åÁ}u™o N˛∫ ÃN˛oÁ áÁ∫N˛ - \{ÃÁ uN˛ Ã™åÏtzuΔoy EsƒÁ EƒÆÀN˛
ÃN˛oÁ “{, EÁ{∫ Æut úÊ\yNw˛o “{ ßy oÁz ãÆÁÆÁ¬Æ “{@ LzÃz √ÆuO˛ N˛Áz Nz˛ §y™Á N˛Á üÀoÁƒN˛ - åÁ™ÁÊN˛å å“Î N˛∫ ÃN˛oÁ@
Ãz ƒÃyÆo ¬ÁTÓN˛∫m N˛Á EÁtzΔ ¬ÁåÁ “ÁzTÁ@ ÃÊÆÏO˛ \yƒå§y™Á úÁ}u¬Ãy Nz˛ EãoT|o üÁÆ:
N{˛Ãy ßy EƒÀsÁ ™ı FÃ Ã§ ™ı NÏ˛Z ƒ | oÁz ¬T <åÁ}u™oy> N˛“oz “{@ åÁ™ÁÊN˛å N˛y EÁƒ≈ÆN˛oÁ å“y Ã™^y \Áoy@ u¢˛∫
“y \ÁÆıTz@ ßy LzÃz ™Á™¬Áı ™ı ßy uN˛Ãy tÏV|båÁ ™ı tÁzåÁı
Eo: \yƒå §y™Á úÁ}u¬Ãy áÁ∫N˛ LƒÊ §yu™o §yu™o √ÆuO˛ÆÁı N˛y FN˛bΩez ™wnÆÏ “Áz \Áåz uN˛
√ÆuO˛ N˛Á ß¬Á FÃy ™ı “{ uN˛ ƒ“ FÃ §Áo N˛Á Ã©ßÁƒåÁ N˛Áz ÜÆÁå ™ı ∫Qoz “ÏL åÁ™ÁÊN˛å N˛∫

åÁ™ÁÊN˛å
tzåÁ Ã©ÆN˛ “ÁzTÁ@ LzÃy úÁ}u¬Ãy ™ı §yu™o √ÆuO˛ÆÁı \yƒå §y™Á uåT™>> ™Á™¬z ™ı ty TF| Eúåy
N˛Áz ÃÊÆÏO˛ åÁ™ÁÊN˛å N˛∫åÁ “ÁzoÁ “{@ øu¬ÊT Ãz Æz ÀsÁuúo N˛∫ utÆÁ “{ uN˛ åÁu™oy
<åÁu™oy> N˛Á{å “Áz ÃN˛oÁ “{? (§y™Á ∫ÁuΔ N˛Á) ÀƒÁ™y å“Î §å \ÁoÁ ƒu¡N˛ ƒ“
uN˛Ãy LN˛ EsƒÁ EåzN˛ √ÆuO˛ÆÁı Nz˛ úq ™ı N˛ÁåÓåy GÁuáN˛u∫ÆÁı N˛Áz ßÓN˛oÁå N˛∫åz Nz˛ u¬L
åÁ™ÁÊN˛å uN˛ÆÁ \Á ÃN˛oÁ “{@ LN˛ Ãz EuáN˛ G∫tÁÆy “{@ GÃN˛y (åÁu™oy N˛y) útƒy oÁz Áz§y™Á
åÁu™oyÆÁı N˛y uÀsuo ™ı uN˛Ãy Nz˛ ßy u“ÀÃz N˛Á ƒÁÀoƒ ™ı åÁ™ÁÊN˛å N˛©úåy N˛Áz Nz˛ƒ¬ §y™Á ∫ÁuΔ üÁõo N˛∫åz Nz˛ u¬L
uåáÁ|∫m å“Î uN˛ÆÁ \Á ÃN˛oÁ@ §y™Á ∫ÁuΔ Gã“z ∫Ãyt tzåÁ ™Áfi “{@
§y™Á N˛©úåy ˚Á∫Á
EsƒÁ Gå™ı Ãz \yuƒo §Yz ¬ÁzTÁı N˛Áz ÃÊÆÏO˛ øú Æut §yu™o √ÆuO˛ §y™Á úÁ}u¬ÃyÆÁı Ãz Ã©§ãá
™ı tzÆ “Ázoy “{@ úÊ\yNw˛o N˛∫ ¬zåz ƒÃyÆo N˛∫ \ÁÆz oÁz MÆÁ “ÁzTÁ?
MÆÁ EƒÆÀN˛ åÁu™oy “Áz ÃN˛oÁ “{? Nz˛ ú≥ÁÁo “y LzÃy úu∫uÀsuo ™ı ƒÃyÆo åÁ™ÁÊN˛å N˛Áz uƒÀsÁuúo
“ÁÊ, uN˛Ãy EƒÆÀN˛ Nz˛ úq ™ı ßy åÁ™ÁÊN˛å uN˛ÆÁ N˛∫ tzoy “{@ EsÁ|o åÁ™ÁÊN˛å Àƒo: uå∫Ào “Áz
\Á ÃN˛oÁ “{@ ú∫ãoÏ ƒ{Ãy uÀsuo ™ı Æ“ EÁƒ≈ÆN˛ üßÁƒy “ÁzoÁ “{@ \ÁÆzTÁ@
“{ uN˛ åÁ™ÁÊN˛å N˛∫åz ƒÁ¬Á úÁ}u¬Ãy áÁ∫N˛ LN˛ Æut åÁu™oy §yu™o √ÆuO˛ N˛y ™wnÆÏ Nz˛ §Át
<uåÆÏO˛ √ÆuO˛> N˛y uåÆÏuO˛ ßy N˛∫z@ LzÃz <uåÆÏO˛ tÁƒÁ ßÓToÁå Ãz ú“¬z ™wnÆÏ N˛Áz üÁõo “Áz \ÁÆz
√ÆuO˛> N˛y ÀƒyNw˛uo ßy “Ázåy YÁu“L@ úÁ}u¬Ãy oÁz §y™Á ∫ÁuΔ uN˛Ã N˛Áz u™¬zTy?
áÁ∫N˛ ˚Á∫Á uåÆÏO˛ √ÆuO˛ N˛Áz N˛ßy ßy §t¬Á \Á §y™Á ∫ÁuΔ §yu™o √ÆuO˛ Nz˛ N˛ÁåÓåy G∫ÁuáN˛Áu∫ÆÁı
ÃN˛oÁ “{@ <åÁu™oy> Nz˛ ƒÆÀN˛ “Ázoz “y <uåÆÏO˛ N˛Áz u™¬zTy@
√ÆuO˛> Nz˛ EuáN˛Á∫ Àƒo: Ã™Áõo “Áz \Áoz “¯@ Æut åÁ™ÁÊN˛å Nz˛ ú≥ÁÁo úÁ}u¬Ãy uN˛Ãy EãÆ
“{@ §y™Á EuáuåÆ™ 1938 N˛y áÁ∫Á 39(3) Nz˛
™wnÆÏ tÁƒÁ N˛y uÀsuo ™ı EƒÆÀN˛ <åÁu™oy> Nz˛ EåÏÃÁ∫ §y™Á N˛©úåy åÁ™ÁÊN˛å Nz˛ EsƒÁ GÃ™ı N˛Áz Ã™åÏtuz Δo N˛∫ ty \ÁÆz oÁz MÆÁ åÁ™ÁÊN˛å
Y¬oz Æuo <uåÆÏO˛ √ÆuO˛> å“Î “{ oÁz §y™Á ∫ÁuΔ úu∫ƒo|å Nz˛ úÊ\yNw˛o N˛∫ ¬zåz N˛y u¬uQo ÃÓYåÁ ú∫ N˛ÁzF| üßÁƒ ú‰gTz Á?
™woN˛ §yu™o Nz˛ N˛ÁåÓåy G∫ÁuáN˛Áu∫ÆÁı N˛Áz ty tzåz Nz˛ u¬L §ÁÜÆ “{@ §y™Á N˛©úåy FÃNz˛ u¬L uåÀÃÊtz“ ú‰gzTÁ! §y™Á EuáuåÆ™ N˛y áÁ∫Á 39(4)
\ÁLTy@ N˛ÁzF| ΔÏ¡N˛ ßy ¬z ÃN˛oy “{@ Nz˛ EåÏÃÁ∫ §y™Á úÁ}u¬Ãy N˛Á üÁƒ|oå EsƒÁ
åÁ™ÁÊN˛å N˛§ EÁ{∫ N{˛Ãz uN˛ÆÁ \ÁL? Ã™åÏtzΔå, úÓƒ| uN˛Æz TÆz åÁ™ÁÊN˛å N˛Áz Àƒo:
MÆÁ åÁ™ÁÊN˛å N˛∫åÁ EÁƒ≈ÆN˛ “{?
\yƒå §y™Á úÁ}u¬Ãy ¬zåz Nz˛ u¬L üÀoÁƒ úfi uå∫Ào N˛∫ tzTÁ@
Æ˘uú Æ“ N˛ÁzF| ƒ{áuåN˛ §ãáå å“Î “{, ú∫ãoÏ
ß∫oz Ã™Æ åÁ™ÁÊN˛å uN˛ÆÁ \Á ÃN˛oÁ “{@ Æut úÁ}u¬Ãy N˛y úu∫úÅ˛oÁ Ãz úÓƒ| §yu™o √ÆuO˛ N˛y osÁuú Gú∫ÁzO˛ Àƒo: uå∫uÀoN˛∫m ™ı LN˛ EúƒÁt
LzÃÁ “Áz, oÁz <åÁu™oy> N˛Á uƒƒ∫m úÁ}u¬Ãy Nz˛ ™wnÆÏ “Áz \Áåz N˛y uÀsuo ™ı ΔyV¿ LƒÊ uå…NÊ˛bN˛ ßy “{@ ƒ“ Æz uN˛ úÁ}u¬Ãy ú∫ §y™Á N˛©úåy Ãz
≈gΩÆÓ¬ ™ı “y GtΩáwo ∫“oÁ “{@ tÁƒÁ ßÓToÁåÁ úÁåz Nz˛ u¬L åÁ™ÁÊN˛å N˛∫ ¬zåÁ u¬Æz TÆz J m Nz˛ N˛Á∫m GÃNz˛ úq ™ı uN˛ÆÁ TÆÁ
úÁ}u¬Ãy ¬z ¬zåz Nz˛ ú≈YÁo ßy åÁ™ÁÊN˛å uN˛ÆÁ \Á u“oN˛∫ “ÁzoÁ “{@ Ã™åÏtzΔå úÓƒ| uN˛Æz åÁ™ÁzN˛å N˛Áz uå∫Ào å“Î
ÃN˛oÁ “{ @ Lz Ã y uÀsuo ™ı Æ“ úw … eÁÊ N ˛å N˛∫oÁ@
åÁ™ÁÊN˛å N˛∫ tzåz ú∫ MÆÁ úÁ}u¬Ãy áÁ∫N˛ N˛Á
(Endorsement) Nz˛ ™ÁÜÆ™ Ãz uN˛ÆÁ \ÁoÁ “{@ ÀƒÁu™nƒ LƒÊ GÃNz˛ EuáN˛Á∫ ßy åÁu™oy N˛Áz MÆÁ Ã™åÏtzΔå Nz˛ ¢˛¬Àƒøú uå∫Ào “ÏEÁ åÁ™ÁÊå
úÁ}u¬Ãy áÁ∫N˛ §yu™o √ÆuO˛ N˛ßy ßy åÁ™ÁÊN˛å “ÀoÁÊou∫o “Áz \Áoz “¯? ú¬b Ã™åÏtzΔå uN˛ uÀsuo ™ı Àƒo: úÏåü|ßÁƒy
uå∫Ào EsƒÁ GÃ ™ı úu∫ƒo|å N˛∫ ÃN˛oÁ “{@ “Áz \ÁÆzTÁ?
å“Î! LzÃÁ NÏ˛Z å“Î “ÁzoÁ@ åÁ™ÁÊN˛å N˛∫ tzåz Ãz
Æut åÁ™ÁÊN˛å úÁ}u¬Ãy \Á∫y “Ázåz Nz˛ ú≥ÁÁo uN˛ÆÁ úÁ}u¬Ãy áÁ∫N˛ úÁ}u¬Ãy ™ı uåu“o Eúåz EuáN˛Á∫Áı å“y! úÓƒ| åÁ™ÁÊN˛å Àƒo: “y úÓå\y|ƒy å“Î “ÁzTÁ@
\ÁÆz EsƒÁ ú“¬z uN˛Æz TÆz åÁ™ÁÊN˛å ™ı úu∫ƒo|å Ãz ƒÊuYo å“Î “Áz \ÁoÁ@ úÁ}u¬Ãy ™ı ú¬b Ã™åÏtzΔå “Ázåz Nz˛ §Át u¢˛∫ Ãz
Eßy…b “Áz oÁz §yu™o √ÆuO˛ EsƒÁ GÃNz˛ uN˛Ãy åÁ™ÁzN˛å N˛∫åÁ “ÁzTÁ@
EuáNw˛o üuouåuá Nz˛ ˚∫Á FÃ Ã©§ãá ™ı ÃÓYåÁ MÆÁ tÁƒÁ ßÓToÁå Nz˛ §Át åÁu™oy §y™Á
tzåÁ EÁƒ≈ÆN˛ “{@ ƒÁÀoƒ ™ı åÁ™ÁÊN˛å §y™Á N˛©úåy ∫ÁuΔ N˛Á ÀƒÁ™y §å \ÁoÁ “{?
˚Á∫Á úÊ\yNw˛o N˛∫ ¬zåz Nz˛ ú≥ÁÁo “y üßÁƒy “ÁzoÁ å“Î! GÄÁo™ ãÆÁÆÁ¬Æ åz <<Δ∫§oy tzƒy §åÁ™ (∆z ßÁT ET¬z EÊN˛ ™ı)

ruΔ
ound
qmup
The 11th Global Conference of Actuaries (GCA) was held jointly by the Institute
of Actuaries of India (IAI) and International Actuarial Association (IAA) on
12th and 13th February, 2009 at Mumbai. The focus of the conference was
“Global Frontiers in Risk Management”.
Mr. J. Hari Narayan,

Chairman, IRDA speaking
during the inaugural session.
Seen in the photograph at one of the

parallel sessions are (L to R):
Mr. J.S. Salunkhe, ex-Chairman,
LIC of India; Mr. Kouichi Kojima, President,
Life Insurance Association of Japan (LIAJ);
and Mr. DNKLNK Chakravarthi,
Asst. Director (Actuary), IRDA.
Mr. Prabhat Kumar Maiti,

Deputy Director (Actuary),
IRDA presenting a paper at
the conference.

round up
The Associated Chambers of Commerce and Industry of India (ASSOCHAM)

organized a one-day conference on Pension and Retirement Planning on 19th
February, 2009 at New Delhi.
Dr. R. Kannan, Member (Actuary), IRDA

delivering a speech at the conference.
IRDA conducted a day-long workshop on Consumer Grievance Management in

Indian Insurance Industry on 27th February, 2009 at Hyderabad.
Mr. K. Rangabhashyam, Insurance

Ombudsman, Kolkata lighting the lamp to
mark the inauguration of the conference.
Also seen in the picture are (from L to R):
Mr. Rakesh Kacker, Additional Secretary,
Ministry of Consumer Affairs, Food & Public
Distribution; Mr. J. Hari Narayan, Chairman,
IRDA; and Mr. G. Prabhakara, Member (Life),
IRDA.

statistics - non-life insurance
Report Card: General

GROSS PREMIUM UNDERWRITTEN FOR AND UP TO THE MONTH OF FEBRUARY, 2009
(Rs.in Crores)
JANUARY APRIL - FEBRUARY GROWTH OVER THE
INSURER CORRESPONDING PERIOD
2008-09 2007-08 2008-09 2007-08 * OF PREVIOUS YEAR
Royal Sundaram 65.07 61.54 728.10 627.74 15.99
Tata-AIG 63.47 67.99 813.19 740.27 9.85
Reliance General 140.74 136.10 1776.64 1809.74 -1.83
IFFCO-Tokio 96.18 100.82 1257.71 1028.29 22.31
ICICI-lombard 215.89 239.78 3255.56 3142.89 3.59
Bajaj Allianz 193.08 225.06 2407.50 2150.52 11.95
HDFC ERGO General 30.46 15.87 298.43 201.85 47.85
Cholamandalam 56.00 43.86 643.97 479.38 34.33
Future Generali $ 20.31 2.93 170.45 8.37 1937.09
Universal Sompo # 7.29 0.00 19.35 0.00
Shriram General @ 25.44 0.00 107.38 0.00
Bharti AXA General @ 6.44 0.00 20.74 0.00
New India 415.95 403.46 4982.24 4759.37 4.68
National 308.95 344.93 3867.90 3640.99 6.23
United India 317.01 287.89 3808.08 3368.97 13.03
Oriental 302.73 283.16 3564.55 3506.74 1.65
PRIVATE TOTAL 920.37 893.96 11499.02 10189.04 12.86
PUBLIC TOTAL 1344.64 1319.44 16222.77 15276.07 6.20
GRAND TOTAL 2265.02 2213.39 27721.79 25465.10 8.86
SPECIALISED INSTITUTIONS:
1.Credit Insurance
ECGC 65.99 59.46 665.53 590.41 12.72
2.Health Insurance
Star Health & Allied Insurance 10.11 4.99 494.49 162.77 203.79
Apollo DKV 4.72 0.33 42.73 0.94 4451.79
Health Total 14.83 5.32 537.22 163.71 228.15
3.Agriculture Insurance
AIC 80.41 66.67 733.53 766.83 -4.34
Note: $ Commenced operations in November, 2007. @ Commenced operations in July, 2008.
# Commenced operations in February, 2008. * Figures revised by insurance companies
irda
irda journal
journal 48
48 Jan
Apr 2009

events
14 – 15 Apr 2009 World Takaful Conference

Venue: Dubai By Dubai International Financial Centre
15 Apr 2009 APLIC

Venue: Macau By Asia Pacific Financial Services Association
19 – 23 Apr 2009 RIMS Conference

Venue: Orlando, USA By Risk & Insurance Management Society
20 – 25 Apr 2009 Techno Marketing in General Insurance

Venue: NIA, Pune By National Insurance Academy
23 – 25 Apr 2009 Actuarial Practices in Life Insurance

28 – 30 Apr 2009 3rd MENA CEO Insurance Summit

Venue: Tunis, Tunisia By Asia Insurance Review, Singapore
04 – 09 May 2009 Effective Underwriting in General Insurance

14 – 15 May 2009 10th Asian Conference on Bancassurance &

Venue: Singapore Alternative Distribution Channels
By Asia Insurance Review, Singapore
18 – 20 May 2009 Management of Change

25 – 27 May 2009 3rd Asian Insurance CFO Summit

Venue: Hong Kong By Asia Insurance Review, Singapore

RNI No: APBIL/2002/9589
“ view point
The hyper-efficiency of information flows has in itself introduced new uncertainties
as sentiment shifts rapidly and abrupt loss of confidence becomes self-reinforcing.
Mr Heng Swee Keat
Managing Director, Monetary Authority of Singapore
The International Association of Insurance Supervisors (IAIS) is taking an active role

to closely monitor financial crisis developments and its particular impact on the
global insurance sector.
Mr Peter Braumuller
Chair of the IAIS Executive Committee
These are difficult times, but I see this as an opportunity for all insurance companies
to take stock, build on respective efficiencies, devise new marketing strategies, do
some housekeeping and become lean and fit.
Mr J Hari Narayan
Chairman, Insurance Regulatory and Development Authority (India)
Today we are in the midst of a synchronized global recession. And we are also in the
midst of the worst financial market crisis since the 1930s.
Mr Jim Flaherty
Minister of Finance, Government of Canada
We have a long history of consumer protection, conservative solvency oversight

and market stability. Any system of financial stability regulation can, and must,
build on this proven regime.
Ms Therese M (Terri) Vaughan
NAIC Chief Executive Officer
The heady days over much of this decade which saw an unprecedented build-up in
risk appetites and borrowings by low interest rates; and an explosion in complex
and opaque financial instruments, are gone.
Mr John F Laker
Chairman, Australian Prudential Regulation Authority (APRA)

”

Irda Journal April 09

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Irda Journal April 09

Uploaded by

Copyright:

Available Formats

Volume VII, No.

Rural and Social Sectors

’Ë◊Ê ÁﬂÁŸÿÊ◊∑§ •ı⁄U Áﬂ∑§Ê‚ ¬˝ÊÁœ∑§⁄UáÊ

© 2007 Insurance Regulatory and Development Authority.

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd2 4/8/2009, 5:38 PM

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd3 4/8/2009, 5:38 PM

Rural and Social Sector Insurance

Catalyst for Financial Inclusion

Partnering in Sustainable Livelihoods

Statistics - Non-Life Insurance 48

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd4 4/8/2009, 5:38 PM

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd5 4/8/2009, 5:38 PM

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd6

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd7

Group Single Premium 0.03 0.10 0.00 0 1 0 143 563 0

To o Insurance claim that has been rejected or dispute of a claim on

irda journal 6 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd8 4/8/2009, 5:38 PM

To 3.1.8 (ii) “For integrally related transactions, premium amount

CANCELLATION OF BROKER LICENSE

To WHEREAS, the Broker has given an undertaking to service the

irda journal 7 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd9 4/8/2009, 5:38 PM

Name of the Life Insurer Date...................................

irda journal 8 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd10 4/8/2009, 5:38 PM

In addition to the submission of the above referred statement, it Encl: Annexure

Name of the Life Insurer:

Policyholders’ funds (in rupees lakhs)

Category of Asset: Approved Securities

Category of Asset: Approved Investments

Category of Asset: Deposits

Category of Asset: Non-Mandated Investments

Category of Asset: Other Assets – Specify

irda journal 9 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd11 4/8/2009, 5:38 PM

Shareholders’ funds (in rupees lakhs)

Signature of Signature of Signature of

irda journal 10 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd12 4/8/2009, 5:38 PM

irda journal 11 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd13 4/8/2009, 5:38 PM

U. JAWAHARLAL EMPHASIZES THAT ALTHOUGH INSURANCE MARKETING IS A CHALLENGING PROPOSITION IN INDIA,

irda journal 12 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd14 4/8/2009, 5:38 PM

irda journal 13 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd15 4/8/2009, 5:38 PM

The organised industrial world had taken

irda journal 14 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd16 4/8/2009, 5:38 PM

irda journal 15 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd17 4/8/2009, 5:38 PM

HIGHER CHOICE HIGHER CHOICE beneficiaries even better.

The author is General Manager, AIC of India

irda journal 16 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd18 4/8/2009, 5:38 PM

Rural and Social Sector Insurance

irda journal 17 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd19 4/8/2009, 5:38 PM

irda journal 18 Apr 2009

IRDA Journal (Vol 7 Iss 4) FINAL web copy.pmd20 4/8/2009, 5:38 PM

irda journal 19 Apr 2009