RESPONSIBILITIES OF THE GOVERNMENT
It was not enough for the government merely to make policy announcements about the need for change in the insurance sector,and then expect it to take place automatically or on its own volition and in due course of time.
In the prevailing situation in the country at that time,which had been accustomed for too long to only the government taking initiatives in such important matters,change could have come about if it was driven by the government.Therfore,the responsibility for correcting the situation by introduction and carrying out the reforms rested squarely with the government.
Primarily,deregulation in any sector requires the government to withdraw from active economic participation.Despite some initiatives and a certain success in the industrial sector and trade and commerce.no government at the centre was really able to effectively force the pace of the change in the insurance industry.
Change was finally introduced from 1999.Such a transition casts certain responsibilities on the government,some as a precursor to opening up,and the others after the sector is actually opened.
In the case of insurance.because of the heavy opposition from vested interest ,the government had to be almost aggressive in pushing ahead with change,which required it t take an active lead in:
- overcoming resistance from various quarters;
- laying down clear and transparent policies;
- safeguarding various interests;
- ensuring the adequate spread of insurance cover;
- improved service;
- mobilizing large resources;
- ensuring capital adequacy;
- taxation policies.
It was not enough for the government merely to make policy announcements about the need for change in the insurance sector,and then expect it to take place automatically or on its own volition and in due course of time.
In the prevailing situation in the country at that time,which had been accustomed for too long to only the government taking initiatives in such important matters,change could have come about if it was driven by the government.Therfore,the responsibility for correcting the situation by introduction and carrying out the reforms rested squarely with the government.
Primarily,deregulation in any sector requires the government to withdraw from active economic participation.Despite some initiatives and a certain success in the industrial sector and trade and commerce.no government at the centre was really able to effectively force the pace of the change in the insurance industry.
Change was finally introduced from 1999.Such a transition casts certain responsibilities on the government,some as a precursor to opening up,and the others after the sector is actually opened.
In the case of insurance.because of the heavy opposition from vested interest ,the government had to be almost aggressive in pushing ahead with change,which required it t take an active lead in:
- overcoming resistance from various quarters;
- laying down clear and transparent policies;
- safeguarding various interests;
- ensuring the adequate spread of insurance cover;
- improved service;
- mobilizing large resources;
- ensuring capital adequacy;
- taxation policies.