THE COMMITTEE ON REFORMS IN THE INSURANCE SECTOR
THE GOVERNMENT appointed the committee on reforms in the insurance sector (1994) in april 1993 headed R.N.MALHOTRA,the former Governor of the Reserve Bank of India.The terms of reference of the said Committee were:
(1) to examine the structure of the insurance industry as it has evolved within the existing framework and to assess its strength and weaknesses in terms of the objective of creative an efficient and viable insurance industry providing a wide reach of insurance services and a variety of insurance products wit a high quality of service to the public and serving as an effective instrument for mobilization of financial resources for development.
(2) to make recommendations for changes in the structure of the insurance industry, as well as the general framework of policy, as may be appropriate for the pursuit of the above objectives keeping in mind the structural changes currently underway in other parts of the financial system and in the economy.
(3) to make specific suggestions regarding the LIC and the GIC, which would help to improve the functioning of these organizations in the changing economic environment
(4) to review the present structure of regulation and supervision of the insurance sector and to make recommendations for strengthening and modernizing the regulatory system in the tune with changing requirements.
(5) to review and make recommendations on the role and functioning of the surveyors, intermediaries and other ancillaries of the insurance sector.
(6) to make recommendations o such other matters as the Committee considers relevant for the health and long-term development of the insurance sector.
In under a year. the Committee submitted its Report, which was approved in principle by the government. The major thrust of the recommendations was towards the opening up of the insurance sector,for which initiative had to come from the government.
THE GOVERNMENT appointed the committee on reforms in the insurance sector (1994) in april 1993 headed R.N.MALHOTRA,the former Governor of the Reserve Bank of India.The terms of reference of the said Committee were:
(1) to examine the structure of the insurance industry as it has evolved within the existing framework and to assess its strength and weaknesses in terms of the objective of creative an efficient and viable insurance industry providing a wide reach of insurance services and a variety of insurance products wit a high quality of service to the public and serving as an effective instrument for mobilization of financial resources for development.
(2) to make recommendations for changes in the structure of the insurance industry, as well as the general framework of policy, as may be appropriate for the pursuit of the above objectives keeping in mind the structural changes currently underway in other parts of the financial system and in the economy.
(3) to make specific suggestions regarding the LIC and the GIC, which would help to improve the functioning of these organizations in the changing economic environment
(4) to review the present structure of regulation and supervision of the insurance sector and to make recommendations for strengthening and modernizing the regulatory system in the tune with changing requirements.
(5) to review and make recommendations on the role and functioning of the surveyors, intermediaries and other ancillaries of the insurance sector.
(6) to make recommendations o such other matters as the Committee considers relevant for the health and long-term development of the insurance sector.
In under a year. the Committee submitted its Report, which was approved in principle by the government. The major thrust of the recommendations was towards the opening up of the insurance sector,for which initiative had to come from the government.