Académique Documents
Professionnel Documents
Culture Documents
1 Dreze, Jean and Amartya Sen (eds.) (1990), The Poitical Economy of Hunger, Oxford, Clarendon Press.
2 Sinha, Tapen and Sinha, Dipendra. "A Comparison of Development Prospects in India, 2003, page no. 124
163
Among other things, this strategy involved canalization of
out both by the government and the private sector, with the
businesses could produce, what they could sell, and what prices they
could charge.
standards (such as crude oil and food items). It was further decided
164
that exports should play a limited role in economic development,
amount of foreign aid that was both sought and available. Further,
Higher levels of income and wealth were taxed at much higher rates
relative to lower income and wealth. Further, as Rao (2000) notes, the
marginal rate of taxation including a tax surcharge was 93.5 per cent
in early 1970s.4
retailing, and regulation of the private sector. For example, in the late
3 Bardhan, Pranab, 1997. “Corruption and development: a review of issues,” Journal of Economic
Literature, vol. 35, September, pp. 1320-1346.
4 Bhalla, G.S., 2000. “Political economy of Indian development in the 20th century: India’s road to freedom
and growth,” Presidential Address at the 83rd Annual Conference of the Indian Economic Association,
University of Jammu, Jammu and Kashmir, 30 December, pp. - 263.
165
1950s and 1960s, the government established public sector enterprises
late 1970s through the mid-1980s, India liberalized imports such that
5 Balachandran, G. (1998), The Reserve Bank of India: 1951-1967, Oxford University Press, Delhi.
166
with this government domination of the economy, India soon faced
Finally, like any other growing economy, the Indian economy faced a
self-interests.
6 Dreze Jean and Amartya Sen (eds.) (1995), India: Economic Development and Social Opportunity, Oxford
University Press.
167
supply side options first, the government had the following choices:
existing suppliers so they will produce and sell more; (3) encourage
unless the shortage reached a stage of crisis. The overall result was
the market.
beyond its means. The result was a severe payments crisis in which,
168
for the first time, the government physically transported gold
package of economic reforms between 1991 and 1993, with the intent
objectives (and still avoided the crises faced by the East Asian
7 Jalan, B (2000), ‘Finance and Development-Which Way Now?’ RBI Bulletin, January, 29-45.
8 Jalan, B (2001), ‘Banking and Finance in the New Millennium’, RBI Bulletin, February, 215.232.
9 Rangarajan, C. (1998): “Indian Economy – Essays on Money and Finance”, UBS Publishers’ Distributors
Ltd.
169
countries). Gupta (1999)10 highlights the important role played by
Further, as Bhalla (2000)12 indicates, the rate of inflation and the fiscal
reserves.13
170
wealth. Further, the nature of this response depends on the economic
country. The economic reforms of the early 1990s set the stage for
earlier, India’s economy grew at an average of 6.3 per cent from 1992-
GDP and per capita income both increased substantially from 1990-
1991 to 1998-1999.
14 Reddy, Y.V. (November 2001), Autonomy of the Central Bank: Changing Contours in India, RBI Bulletin,
pp.1197-1211
15 Reddy, Y.V. (2001 b.), “Developments in Monetary Policy and Financial Markets in India”, RBI Bulletin,
pp.595-615. 32
16 Reserve Bank of India (1991) Report of the Committee on the Financial System (Chairman Shri
M.Narasimham)
171
explains in considerable depth how entrepreneurial activities have
succeeded in several countries and how it can now be used to further
India’s economic development.17
17 Joshi, Vijay, 2001. “Capital controls and the national advantage: India in the 1990s and beyond,” Oxford
Development Studies, vol. 29, 3, pp. 305-320.
172
programme (Solomon, 2003)18. Further, several thousand “new
economy” businesses – the types of businesses especially suited for
entrepreneurship efforts-were started in 2000 alone.19
those new citizens seeking jobs that do not currently exist (Gupta,
2001).
ECONOMY
18 Reserve Bank of India, (April 1993) Report of High Level Committee on Balance of Payments, (April
1993) (Chairman Dr.C.Rangarajan).
19 Karunaratne, Neil Dias, 2001. “Revisiting capital account convertibility in the aftermath of the Currency
Crisis,” Intereconomics, vol. 36, 5 September/October, pp. 264-271.
173
Insurance Companies receive, without much default, a steady
they offer more than the return on savings in the shape of life-cover
term nature.
174
years. The insurance industry also provides crucial financial
development.20
matching for life insurance companies given their long term liability
was 14.2 per cent in 2005-06, viz., 2.4 per cent of the GDP at current
cent in the first year premium in the life segment and 15.72 per cent
20 Kayne, Jay, 1999. State Entrepreneurship Policies and Programs (Kansas City, Kauffman Center for
Entrepreneurial Leadership), page no. 165-168.
21 Krueger, Anne O., 1993. Political Economy of Policy Reform in Developing Countries (Cambridge, MIT
Press), page no. 35-36.
175
than 1 per cent till 1990-91. During the 1990s, it was between 1 and 2
per cent and from 2001 it was over 2 per cent. In 2005 it had increased
Table 5.1
176
policies - 55 lakhs, Sum assured 46,000 crores, (2005-06) - No. of
policies - 158 lakhs, Sum assured 2,14,000 crores, Social security No.
23 Ibid
177
Life insurance includes mortality protection-only life insurance
such as auto liability and collision, fire, hail, flood, aviation and
178
5.1.2 LINKS BETWEEN INSURANCE DEVELOPMENT AND
ECONOMIC GROWTH
The three key findings that arise from this analysis are: 1) countries
179
• Because of their success in marketing contractual savings
exposures.
equity markets.
insurance industry and growth.. The case for technical assistance is,
180
however, quite compelling: both the role that insurance plays in
4) mature. 25
24 Roy, Samit. "Insurance Sector: India." Industry Sector Analysis, National Trade and Development Board,
US Department of State, Washington, DC, December 1999, page no. 165-168.
25 Sigma. "World Insurance in 1999." No. 9/2000. Published by SwissRe. Available at www.swissre.com.
181
5.1.5 STRATEGIES FOR TECHNICAL ASSISTANCE
182
Management Association, and Standard and Poor’s,
among others.
experiential learning.
marketing.
183
• Connecting regulators with the private sector by
DEVELOPMENT
26 Reserve Bank of India, The Report on Currency and Finance (1998-99, 1999-00 and 2000-01)
184
contributed to the productivity and economic growth of the United
States over a 30-year period. His study concluded that much of life
insurance’s impact on growth was likely due to the huge contribution
that life insurance made to U.S. financial intermediation and
investment over this period. A follow-up study by Kugler and Ofoghi
(2005)27, using Granger causality tests with disaggregated measures
of specific classes of life and non-life insurance in the United
Kingdom, found that eight out of nine classes of insurance showed
evidence of causing economic growth in the UK. The results implied
that stronger causal relationships between insurance and growth
could be found across countries if the bias introduced by using
aggregated measures of insurance were avoided.
27 Reserve Bank of India, Annual Statements on Monetary and Credit Policy and Mid-term Reviews of
Monetary and Credit Policy for the years 1997-2001.
28 Tarapore S.S. (2000), Issues in Financial Sector Reforms, UBS Publishers.
29 Reserve Bank of India, Annual Report for the years 1997-2001.
185
activity and capacity merely follow economic growth because there is
a greater demand for it as the economy grows.
allocation.30
following ways:
30 Pursell, Gary, 1992. “Trade Policies in India,” in Dominick Salvatore, ed National Trade
Policies:Handbook of Comparative Economic Policies, vol. 2 (New York, Greenwood Press).
186
Insurers measure and manage non-diversifiable risk faced by
over time is the ratio of currency to narrow money (M1) or the ratio
savers and how well it serves borrowers who want to raise capital for
products and the nature of their liabilities, life insurers (and to some
finance.
187
By mobilizing substantial funds through contractual savings
transparency.
188
signaling the nature of these underlying risks to potential investors.
investments.31
the fact that the growth in life insurance assets provides a scarce, but
31 Rao, M. Govinda, 2000. “Tax reform in India: achievements and challenges,” Asia-Pacific Development
Journal, vol. 7, No. 2, December 2000, pp. 59-74.
189
to making long-term investments. These institutions levy fixed
premiums, have steady and predictable cash inflows, and incur long-
infrastructure projects.”
financial sector.
190
strong stimulus to the development of securities markets. This
financial sector.32
Vittas (1998) describes the important role that life insurers have
32 Reynolds, Paul D., Michael Hay, William D. Bygrave, S. Michael Camp and Erkko Autio, 2000, page no.
107-108.
191
5.2.4.2 Insurance And Financial Sector Development Are Mutually
Supportive
Using 16 years of data from 55 countries, this study finds that when
these markets.
business growing at the rate of 15-20 per cent annually and presently
192
is of the order of Rs 450 billion. Together with banking services, it
collection is nearly 2 per cent of GDP and funds available with LIC
systems with hardly any old age income security. This itself is an
taking ability. It is estimated that over the next ten years India would
legislations that govern the sector- The Insurance Act- 1938 and the
IRDA Act- 1999. The insurance sector in India has come a full circle
193
from being an open competitive market to nationalisation and back to
insurance sector reveals the 360 degree turn witnessed over a period
intensified significantly.
It is a good augury that the MPs have consciously tried to soften the
35 Sinha, Tapen. Pension Reform in Latin America and Its Implications for International Policymakers. Boston,
USA, Huebner Series Volume No. 23, Kluwer Academic Publishers, 2000.
194
would depend on the general level of economic development and
32nd rank; life: over $5 billions, 20th rank). The spread and reach of
premium $ per capita of only 7.6 (non-life: 2.2; life: 5.6), and ranks
of GDP (per cent), in India is a measly 1.95 (non-Life: 0.56; life: 1.39),
Life sector is more sluggish than life in terms of the spread and reach.
Its slender progression has to be further qualified by the facts that: (a)
36 Ajay Chhibber is the UN Assistant Secretary General and Assistant Administrator & Regional Director of
the Bureau for Asia and the Pacific, UNDP. Thangavel Palanivel is the Senior Advisor and Programme
Coordinator at the UNDP’s Asia-Pacific Regional Centre in Colombo. The usual disclaimer applies.
195
sector has had a free run, as the Government kept the real
The IRDA has the daunting task _ to establish and promote fair
national insurance market, and, in the final analysis, sup port the
occupations.
set clear definitions and mandate for public and private insurance,
products.
All over the world, regulation of the insurance sector has been
197
globalisation process. Developed countries have had a long tradition
198
- In 2006-07, pension premium contributed about 22.11% to
total premium income of insurers. Interestingly, the
figure in the first nine months to December 2005 was
25.22%.
against any unforeseen situation, and protect himself. This has been
this need to feel safe is so very innate to the human mind then there
199
This is exactly what the insurance sector does. It feeds on the basic
rate and dismal public healthcare system has only added to it being
industry in India has seen a high CAGR of 12% ever since the
the market size is expected to double in the next 5-6 years. A look at
the case.38
16% of the world population, but only 1.68% of the world life
per Indian consumer is just 1.33 as against 5.2 policies per consumer
in mature markets.
38 Solomon, Jay, 2003. “India”s elephantine economy may be poised to run,” The Wall Street Journal, 25
September, p. A17.
200
As we can see from the numbers, the potential for expansion of
the market is huge especially with rising per capita income and a
which would translate to a CAGR of 13% for the industry in the next
five years.
have just another factor that holds promise of leading the growth in
with its partner, New York Life Insurance to chalk out a plan to
distilled through years of rich experience that they have had in this
industry. This augurs well for the insurance sector because the deep
201
pockets and ‘best practices’ of foreign partners can be dovetailed
make sure that they put their efforts in the right places like retaining
but most have not leveraged the full potential of this data in customer
decision making.
39 Wade, Robert, 1985. “The market for public office: Why the Indian State is not better at development,”
World Development, vol. 13, 4, April, pp. 467-497.
202
The insurance business though rich in data, but is mired in data
complexity. Even new companies less than 5 years old have a million
clients. Older and large companies e.g. LIC have over 130 million
policies. Insurance policies have a large amount of data, and they are
complex in structure, with variations such as benefits, face amounts,
schemes, pricing, claims, multiple client relationships, medical
history and family history and underwriting.40
Cross-selling
203
effectiveness of the campaigns. Let’s take the example, where the
Insurance Company knows which one thousand customers out of
their one lakh customers have teenaged children; they can target
these thousand customers with products tailored to teenaged
children. This was just one out of myriad such possibilities waiting
to be exploited by the sector.
four years ago. For years now, the private players are active in the
insurers both life and non-life segment. Most of the private insurance
market – 14 private life insurers, nine private non-life insurers and six
a detariffed scenario.
42 Dasgupta, Samik. "RSA, Iffco-Tokio yet to appoint actuaries," Economic Times, January 23, 2001.
204
There is pressure from both within the country and outside on
from the current 26% to 49%, which would help JV partners to bring
the age of 60 receive pensions. The IRDA has issued the first licence
health database over time will also allow players to develop and
population of over one billion. But the reality is that the intense
competition in the last five years has made it difficult for new
entrants to keep pace with the leaders and thereby failing to make
insurance market and over 26.53% of the non-life market, the public
205
The country’s largest life insurer, Life Insurance Corporation of
India (LIC), had a share of 74.82% in new business premium income
in November 2005. Similarly, the four public-sector non-life insurers
– New India Assurance, National Insurance, Oriental Insurance and
United India Insurance – had a combined market share of 73.47% as
of October 2005. ICICI Prudential Life Insurance Company continues
to lead the private sector with a 7.26% market share in terms of fresh
premium, whereas ICICI Lombard General Insurance Company is
the leader among the private non-life players with a 8.11% market
share. ICICI Lombard has focused on growing the market for general
insurance products and increasing penetration within existing
customers through product innovation and distribution. 43
43 Ibid
44 Kumari, Vaswati, "India Insurers Seek Perfect Partners." National Underwriters, March 5, 2001, 38-39.
206
Intense Competition In a de-tariffed environment, competition
will vie with each other to capture market share through better
class. Take the case of LIC, which has set its sight on becoming a
UK, Sri Lanka, Nepal and will soon start operations in Saudi Arabia.
2006. The year 2005 was a testing phase for the general insurance
continent.45
in the Indian market place is immense. The next five years will be
45 Mitra, Sumit and Nayak, Shilpa. "Coming to Life." India Today, May 7, 2001.
207
challenging but those that can build scale and market share will
much higher than most other countries with the same level of
What is even more striking is that 4.5% are out of pocket expenditure
(Berman, 1996). There has been an almost total failure of the public
health care system in India. This creates an opportunity for the new
5.4.4 PENSION
46 Dreze Jean and Amartya Sen (eds.) (1995), India: Economic Development and Social Opportunity,
Oxford University Press, page no. 22.
47 Patel, Freny. "Centre wants GIC to merge unviable outfits before recast." Business Standard, April 13,
2001.
208
workers do not have any retirement benefits to fall back on after
value to the industry. The initiatives taken by the private players are
monopoly of the market LIC. Since the advent of the private players
in the market the industry has seen new and innovative steps taken
by the players in this sector. The new players have improved the
service quality of the insurance. As a result LIC down the years have
seen the declining phase in its career. The market share was
distributed among the private players. Though LIC still holds the
75% of the insurance sector but the upcoming natures of these private
the insurance industry. Table 5.4 shows the mane of the player in the
market.48
48 Roy, Abhijit. "Pension fund business in India." The Hindu, July 16, 1997, p. 25.
209
TABLE : 5.2
NAME OF THE INSURANCE COMPANY AND THE SHARE
HOLDING PATTEN
210
There are a total of 13 life insurance companies operating in
TABLE : 5.3
NAME OF THE LIFE INSURANCE COMPANY AND THE SHARE
HOLDING PATTEN
211
TABLE 5.4
NAME OF THE PLAYER MARKET SHARE (%)
AVIVA 0.79
Source : www.rbi.org.in
their choice.
213
Customers have tremendous choice from a large variety
214
also pointed out the private companies have huge task to
215
TABLE : 5.5 Financial Results For 2009/2010 of General Insurance Companies
INR Millions
Fire Portfolio
National New Oriental United Bajaj Chola HDFC ICICI IFFCO Reliance Royal TATA Total
India India Allianz Mandalam CHUBB Lombard Tokio General Sundaram AIG
Gross Premium 5,195.30 10,676.90 5,355.80 6,313.20 1,202.90 254.50 3.60 2,639.00 1,428.90 463.60 505.30 784.50 34,823.50
Net Earned 3,482.80 7,941.93 3,291.37 4,211.69 264.07 33.75 0.20 238.78 243.21 90.02 134.04 82.27 20,013.73
Premium
Net Incurred 900.88 2,613.37 1,061.65 1,108.19 60.57 18.26 40.43 93.56 118.32 67.21 40.43 27.12 6,149.99
Claims
Operating 1,974.26 2,947.70 1,616.30 2,334.59 225.19 4.02 5.42 383.13 156.64 59.95 92.28 196.26 9,984.90
Profit/Loss
Source : www.rbi.org.in
216
TABLE : 5.6 Financial Results for 2009/2010 of Marine Insurance Companies
Marine Portfolio
National New Oriental United Bajaj Chola HDFC ICICI IFFCO Reliance Royal TATA Total
India India Allianz Mandalam CHUBB Lombard Tokio General Sundaram AIG
Gross 1,888.79 3,056.50 2,286.40 3,001.40 207.30 58.30 0.20 471.00 244.90 132.00 133.80 309.00 11,789.59
Premium
Net Earned 1,981.63 2,004.32 1,287.93 1,316.96 69.55 15.01 -0.01 64.86 101.86 18.05 69.15 151.92 7,081.23
Premium
Net 914.51 819.38 674.94 717.04 92.19 13.83 44.04 127.45 117.45 13.32 44.04 119.41 3,697.60
Incurred
Claims
Operating 1,121.28 1,096.89 596.44 460.13 -33.57 -8.17 -0.25 -70.24 -43.80 3.65 5.87 -20.58 3,107.65
Profit/Loss
Source : www.rbi.org.in
217
TABLE : 5.7 Financial Results for 2009/2010 of Insurance Companies
Miscellaneous Portfolio
National New Oriental United Bajaj Chola HDFC ICICI IFFCO Reliance Royal TATA Total
India India Allianz Mandalam CHUBB Lombard Tokio General Sundaram AIG
Gross Premium 26,915.60 35,481.30 21,355.20 21,320.10 3,355.10 657.70 1,125.70 2,209.90 1,548.60 1,015.00 1,938.50 2,341.70 119,264.40
Net Earned Premium 18,413.69 25,948.30 15,145.27 15,837.66 1972.75 189.52 398.00 487.17 657.21 155.14 1119 1201.96 81,525.67
Net Incurred Claims 19,283.60 23,703.04 14,139.88 16,596.45 1,353.30 176.8 811.58 479.53 492.75 156.88 811.58 699.31 78,704.70
Operating Profit/Loss -3,327.23 -2,959.21 762.88 -1,141.40 31.26 -168.01 -295.75 -43.01 -55.98 -60.50 -99.58 -161.47 7,518.00
Source : www.rbi.org.in
218
TABLE : 5.8 Financial Results for 2009/2010 of Total portfolio
Total
National New Oriental United Bajaj Chola HDFC ICICI IFFCO Reliance Royal TATA Total
India India Allianz Mandalam CHUBB Lombard Tokio General Sundaram AIG
Gross Premium 33,999.69 49,214.70 28,997.40 30,634.70 4,765.30 970.50 1,129.50 5,319.90 3,222.40 1,610.60 2,577.60 3,435.20 165,877.49
Net Earned Premium 23,878.12 35,894.55 19,724.57 21,366.31 2,306.37 238.28 397.79 790.81 1,002.28 263.21 1,322.19 1,436.15 108,620.63
Net Incurred Claims 21,098.99 27,135.79 15,876.47 18,421.68 1,506.06 208.89 896.05 700.54 728.52 237.41 896.05 845.84 88,552.29
Operating Profit/Loss -231.69 1,085.38 2,975.62 1,653.32 222.88 -172.16 -301.42 269.88 56.86 3.10 -1.43 14.21 5,574.55
Source : www.rbi.org.in
219
CHART: 5.1
It has been observed from the above diagram that as soon as economic reforms has been introduced Gross
Direct Premium is increasing rapidly compare to Net Premium, which reflects private sector insurance is being
220
TABLE : 5.9 Net Worth Movement for the Past Three Years
INR Millions
National New Oriental United Bajaj Chola HDFC ICICI IFFCO Reliance Royal TATA
India India Allianz Mandalam CHUBB Lombard Tokio General Sundaram AIG
2001-02 9,639.20 31,893.90 6,728.00 13,018.80 1,010.00 1,094.00 1,000.00 1,020.00 1,300.00 1,093.00
2002-03 10,721.70 34,040.00 8,336.50 14,446.70 1,313.43 1,050.00 1,002.20 1,095.98 1,068.93 1,235.83 1,297.93 1,234.97
2003-04 8,851.90 39,434.40 11,219.00 13,018.80 1,094.75 1,419.60 1,193.95 2,259.32 1,104.82 1,325.73 1,298.96 1,234.97
Source : www.rbi.org.in
221
5.7 APPLICATION OF INFORMATION TECHNOLOGY IN
INSURANCE SECTOR
industry, and thus, there is a need to use the data for trend analysis and
look for more and more features and add ones and better service The
insurance companies today must meet the need of the hour for more and
the customer intelligently is very critical for the insurer especially in the
new revenue through cross selling and up selling activities. To ensure that
222
the customers are receiving personalized information, many organizations
include a search engine and lets the customers locate the all document and
service inquiry. These products also may be able to learn from the
223
TABLE 5.10 : INVESTMENTS BY LIC
(` crore)
Instrument-wise
Sector-wise
of which Total (2
Year (end-March)
Stock Exchange to 5)
Public Private Joint Co-operative Loans
Securities
1 2 3 4 5 6 7 8
224
1994 36246.5 5894.4 304.6 1716.1 29536.3 12876.3 44161.6
225
TABLE 5.11 : DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION - INSURED DEPOSITS
1 2 3 4 5
226
1984 200 203 46340 61880
227
2000-01 432 446 572434 806260
Note : As on the last Friday of September 1972 through September 1979; as on the last Friday of
June 1980 through June 2003; as on the last working day of September 2004 through September
2010.
@ : Data as per new reporting format.
Also see Notes on Tables.
Source : Deposit Insurance and Credit Guarantee Corporation., year 2009, page no. 64
228
Table 5.12 : Deposit Insurance and Credit Guarantee Corporation - Liabilities and Assets ( Deposit Insurance Fund )
(` crore)
Year Fund Surplus Inve- Claims Estimated Insured Other Total Bala Deficit Invest Inte Other
Balance stment Intimated and Liability Depo Liabili- Liabili nces Bala ments in rest Assets
Reser- Claims in Respect sits ties ties/ with nce Central Accr
ves Admitted but of Claims Remai Assets RBI Govern ued on
not Paid Intimated ning ment Invest-
But not Unclai Secu ment
Admitted med rities
(at cost)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1999-00 434 2876 261 0 639 3 787 5000 0 0 4171 142 687
2000-01 501 3205 261 0 1156 3 623 5749 0 0 4874 158 717
2001-02 563 3687 261 0 1187 3 899 6600 0 0 5453 166 981
229
2002-03 831 4683 261 0 517 6 1285 7584 0 0 5999 171 1413
2003-04 871 5037 259 0 1236 9 1328 8740 0 0 7079 192 1469
2004-05 875 6942 475 0 1789 54 1662 11797 0 0 9363 235 2199
2005-06 1026 8077 641 0 1260 41 3056 14102 0 0 10284 282 3535
2006-07 1211 9767 954 0 616 43 4417 17008 1 0 12194 322 4491
2007-08 1553 11809 1050 0 488 48 5905 20853 0 0 14399 348 6106
2008-09 1817 14339 929 0 1075 49 7213 25515 0 0 17268 395 7852
2009-10 3275 16877 1661 156 764 55 6893 29682 0 0 21532 425 7725
2010-11 3774 20930 1896 151 562 60 8924 36296 1 0 26582 492 9222
Note : Data on liabilities and assets of DICGC relate to end-December for 1988-89 and from 1989-90 onwards, they refer to the financial
year (April-March).
Also see Notes on Tables.
Source : Deposit Insurance and Credit Guarantee Corporation.
230
Table 5.13 : Deposit Insurance and Credit Guarantee Corporation - Liabilities and Assets ( Credit Guarantee Fund )
(Rs. crore)
Invest
Claims
Estimated ments in
Invest- Intimated Guran- teed Total Interest
Liability in Other Central
Surplus ment and Claims Credits Liabi- Balances Deficit Accrued Other
Year Fund Respect of Liabi- Govern-
Balance Re Admitted Remai-ning lities/ with RBI Balance on Invest- Assets
Claims intimated lities ent
serves but not Un-claimed Assets ment
but not Admitted Securities
paid
(at cost)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1997-98 679 0 104 372 1922 0 677 3754 1 0 2866 101 786
1998-99 548 210 104 128 1066 0 1106 3162 1 0 1679 46 1436
231
2002-03 0 1393 104 0 0 0 909 2406 0 0 1479 45 882
Note : Data on liabilities and assets of DICGC relate to end-December for 1988-89 and from 1989-90 onwards, they refer to the financial year (April-March).
Also see Notes on Tables.
Source : Deposit Insurance and Credit Guarantee Corporation, page no. 32.
232
Table 5.14 : Deposit Insurance and Credit Guarantee Corporation - Liabilities and Assets ( General Fund )
(` crore)
Cash in Investment in
Capital Current Total Interest
General Investment Other hand and Government Other
Year provided liabilities and liabilities/ accured on
reserves reserves reserves balances securities (at assets
by RBI provisions assets investment
with RBI cost)
1 2 3 4 5 6 7 8 9 10 11
1989-90 50 18 12 0 3 84 0 75 3 6
1990-91 50 17 12 0 8 87 0 78 3 6
1991-92 50 18 13 0 5 86 0 77 3 6
1992-93 50 14 16 0 7 87 0 76 3 8
1993-94 50 12 16 0 7 85 0 72 3 10
1994-95 50 9 16 0 9 84 0 70 3 11
1995-96 50 14 16 0 10 90 0 77 2 11
1996-97 50 15 16 0 9 90 0 76 2 12
1997-98 50 17 16 0 9 92 0 79 2 11
1998-99 50 17 16 0 9 93 0 77 2 14
1999-00 50 17 16 0 10 93 0 81 2 10
2000-01 50 18 16 0 3 87 0 77 2 8
2001-02 50 20 16 0 5 91 0 88 2 1
2002-03 50 22 16 0 5 93 0 88 2 3
2003-04 50 24 16 0 7 97 0 91 2 4
233
2004-05 50 26 17 0 8 101 0 93 2 6
Note : Data on liabilities and assets of DICGC relate to end-December for 1988-89 and from 1989-90 onwards, they refer to the financial year
(April-March).
Source : Deposit Insurance and Credit Guarantee Corporation, page no. 38.
The all above tables represent sequential growth of Indian insurance industry as well its growth has also been calculated on
the behalo of statistical tool SPSS analyses by which CAGR has been calculated.
234