Dr Vijay H. Pithadia
Time value divided into two horizons, i.e. (I) Absolute time (ii) Relative time. The new waves of Globalization era of General Insurance follow second things, Relative time. Change set for Rapid Globalization of the business and service Industry relying on open market forces for resolutions of economic problems and allowing creation of more and more competition within an economy. Two major changes may propel globalization of general insurance - The Emergence of Global Economy & the Slowing of Growth in the Domestic Insurance Markets of Insurance in various parts of world.
At the time of Nationalization of the general Insurance industry in India the market was consisting of 58 domestic and 44 units of foreign companies opening in the market writing gross direct premium of 1700 million rupees & GIC becomes holdings with form subsidiaries Viz. National Insurance Company Limited New India Assurance Company Limited The Oriental Insurance Company Limited & United India Insurance Company Limited, was adopted for the purpose of centralizing control of basic guidelines of business in respected of socio-economic objectives
1 Albert Einstein equation E=mc2 suggested ultimate idea which describe that all the things occur according to the relative time. It imposes on the relativity concern. Position belongs to situations and relative changes.
2 Professor Abraham Maslow's need based theory described that when security needs take first position among all another need may becomes subsidiaries.
3 Hedonism theory based on happiness things It denotes that such things applied reason for that. Insurance provides safety among the concern with relief and its may leads towards hedonism in the business the hedonism factor involved because achievement of ultimate Goal satisfaction in business.
4 Charity chain model suqqested for effective business cycle through low level of risk the building of Ethical norms in Business it serves the purpose and concrete work. General business cycle carries seven types of risk i.e. wastage, stolen, fire, accident etc. but charity chain Serve the purpose of Auto Insurance and prevent safety in the business / Individual. Accurate motion with low degree of Risks
All the things may be follow the changing principle as per Requirement, Acceptance etc. and there fore time value divided into two horizons. i. e. (I) Absolute time (ii) Relative time The new waves of Globalization era of General Insurance follows second things, Relative time without time things change has no meaning and without change time it would stop. For much of the twentieth century business mangers around the world confronted a series of walls between company and society, work and home, dividing managers from workers, function from function, line from staff.| Change set for Rapid Globalization of the business and service Industry relying on open market forces for resolutions of economic problems and allowing creation of more and more competition within an economy.
# New Horizons: Globalization of General Insurance Industry
Two major changes may propel globalization of general insurance to the forefront. The first has been The Emergence of Global Economy where events that take place in the corner of world may affected the price and supply situation at distant part of the world the second has been The Slowing of Growth in the Domestic Insurance Markets of Insurance in various parts of world.
# Global Scenario of General Insurance
The global general Insurance premium under writing during 1987 was 524,900 million dollars out of rest world U.S.A. ranked first with 45.96 % of share subsequently Japan with a premium volume 44,962 million dollars and world share of 8.57% against 1987 figures the world general insurance U.S, having 697,503 million dollars business showing a growth rate of 32.88% over 1987. with 43.86 % of rest of world while Japan continued the rank second with a premium volume of 83,701 million dollars and increased world share of 12 % Germany ranked third with a volume of premium 65,105 million dollars and with increased world share of 9.33% Switzerland remains the country with the highest capita expenditure on general insurance with 1,090 dollars in 1987 to 1,231 dollars in 1992. The significance to the general insurance Industry as an economic ft measured in terms of premium income as a share of Gross Domestic Product
# Indian General Insurance Market
At the time of Nationalization of the general Insurance industry in India the market was consisting of 58 domestic and 44 units of foreign companies opening in the market writing gross direct premium of 1700 million rupees. Unit wise composition of the market shows (1) domestic sector 75% and (2) foreign share 25% the leading insures Viz. New India Assurance Company Limited along controlled rounded 35% of the market share. After nationalization general Insurance Corporation of India (GIC) becomes holdings with form subsidiaries Viz. National Insurance Company Limited. New India Assurance Company Limited The Oriental Insurance Company Limited & United India Insurance Company Limited was adopted for the purpose of centralizing control of basic guidelines of business in respected of socio-economic objectives and operations, norms in respect of insurance administration and investment of funds.
The growth of gross premium from the level of 1840 million Rupees in 1973 to 47,660 million of Rupees registered average annual growth rate of about 17% is indeed tremendous. The profitability remains constant in the region of 16.19% of the net premium income increase in the premium retention level of the market from level of 50% of gross premium in 1973 to over 90% in 1992 has put the industry in a very impressive position. Nation wide expansion of organization from the level of 780 units in 1973 to more than 4000 units covering the entire sub-continent of manpower of 70,000 marketing and administering its portfolio thus the general insurance provides better opportunities with nation wide coverage.
# Philosophical Views
Insurance is a commercial activity many Risks insured against, e.g. loss in Transits by sea (Marine), Road (Motor) etc. Wants and desires with high speed growth or progress leads towards high risk. It may be simple rule over lapped i.e. Take a Risk which can you Afford easily at your level/capacity.
(1) Equation Theory
Famous philosopher Albert Einstein suqqested Equation related to wants, Creation, destruction and worth less feelings of risks. The natural connection of mass and energy E=mc2 following from the special Theory of Relativity is of enormous significance for science and practice. According to this theory the mass of a body increases with and increase in its velocity Einstein expressed the proposition that if the accretion to the mass of a moving body was due its kinetic body, the mass was the internal energy of body. Einstein's theory thus indicated the inseparable connection of mater and nation. Nothing producing and destruct, all the Energy converted, things have Relatives i.e. Mechanical energy Converted in to Electrical Energy.
Psychologist professor Abraham Maslow of Brandies University has pointed out that the needs are organized in a series of levels, called hierarchy of needs. According to him needs characterized into five groups i.e. Physiological needs, safety, social, esteem and Self Actualization. When first need satisfied second need counted for emergence automatically. Satisfied Insurance safety needs and when fixing safety is emergence criteria for business / Individual then another needs graph laid down subsequently.
Figure 1 shows safety needs may assume a considerable importance for Individual/business. It indicates may be instability in business, high borrowings from out side, more risky business and Risky style of risk taker, the desires for safety and security is satisfied by the any types of insurance i.e. fire insurance, marine insurance, motor insurance etc.
(3) Hedonism Theory
Insurance provides safety among things which may be related to vehicle, time etc. The style of business may leads towards less and less risk, with high degree of earnings and takes more enjoyment / happiness from business. Classic stage of Hedonism characterized above things same. Aristipieus (Who was one of the followers of Hedonism Tradition) believes that achieve ultimate satisfaction among the things. Hedonism may classify into two Ways.
(A) Psychological hedonism
It describes that all the part of world find their piece with enjoyment and resist undesirable Applied things.
(B) Ethical hedonism
Some time Ethics called as moral philosophy. Basically Ethics belongs to Greek words "Ethica" and it’s belonging to 'Ethos' words. 'Ethos' means Tradition, or classical ways. Ethical hedonism describes those select proper alternatives which may provide maximum relief and happiness with minimum undesirable feelings. / sorrow. Various Theories may be follows hedonism theory. i. e. Utilitarianism It was a chained by England's political philosopher. It is based on Ethics and Psychology with Hedonism foundation. Utilitarianism described that any things or work or product might be proposed happiness or grief based among their utility. Thus hedonism criticize ultimate goal of happiness while utilitarianism characterized dependability upon utility.
# New Era:
Security through Insurance creates more insecurity of things, tension, more concentration among price, materialistic value. While such things have their own distinct characteristic with invaluable things i.e. Arts, heritage, etc
Ancient Indian Philosopher suggested Auto Insurance chain for the safety of Assets and capital. The model namely Charity It may be the one of the best self insure Instrument of Business activity. Figure shows the general Business chain among charity chain.
General Business chain carries seven risks for each cycle while charity chain prevents farther motivation for General Business chain.
(1) Insurance business follows second thing of time, relative time because it describes that such things acceptable today those may not reliable for future. The things changing according to the situation i. e. political things, business concern, geographical etc. values and beliefs produced as per the needs and requirement.
(2) Albert Einstein equation E=mc2 suggested ultimate idea which describe that all the things occur according to the relative time. Time and motion based on matter. It imposes on the relativity concern. Position belongs to situations and relative changes.
(3) Professor Abraham Maslow need based theory described that when security needs take first position among all another need may becomes subsidiaries. It may resist the sequential growth of needs based on Maslow. Safety may be important further needs i.e. social, esteem, etc., has their own characteristics.
(4) Hedonism theory based on happiness things. It denotes that such things applied reason for that. Insurance provides safety among the concern with relief and its may leads towards hedonism in the business the hedonism factor involved because achievement of ultimate Goal satisfaction in business.
(5) Charity chain model suqqested for effective business cycle through low level of risk. The building of Ethical norms in Business it serves the purpose and concrete work. General business cycle carries seven types of risk i.e. wastage, stolen, fire, accident etc. but charily chain Serve the purpose of Auto Insurance and prevent safety in the business / Individual, Accurate motion with low degree of Risks.
(1) Dr. C. B. Mamoria "Personnel Management" Himalaya Publishing House; Bombay 1994
(2) D. P. Gribanov “Albert Einstein's Philosophical views and the theory of relativity “Progress publishers, Moscow 1987
(3) Dr. Gangadutt Tiwari "ADHUMK RAJNITIK VICHAR DHARAYAN” Minaxi Prakashan, Begam Bridge, March 1976
(4) Zhaveri. Kothari & Bhatt “Ethics ", Gujarat University, Ahmedabad 1981
(5) Dr. Jawaharlal Sharma “SHRIMAD BHAGVAD KA SANSKRTTIK ADHYAYAN “Rajasthan Hindi Granth Academy, Jaipur -1984
(6) R N. Zha " Globalization of world insurance market "The insurance Times, 25, Baranashi Ghosh Street, Calcutta - 7. May 1995
(7) L. R. Chandnani "Globalization of General Insurance Industry” The Insurance Times, Calcutta-7 Oct. 1995 and Nov. 1995
Nationalization of Insurance Companies' affected from first January 1974. After amalgamation General In Corporation of India becomes holding company among their subsidiaries i. e.
 National Insurance Company Limited Calcutta
 New India Assurance Company Limited Bombay
 Oriental Fire & General Insurance Company Limited Delhi
 United India Fire & General Insurance Company Limited Madras
 National Insurance Company Limited Calcutta holding on following:
[a] Indian Companies
1) Calcutta Insurance Company Ltd.
2) Clive Insurance Company Ltd.
3) General Assurance Society Ltd.
4) Hindustan General Assurance Society Ltd.
5) Hukamchand Insurance Company Ltd.
6) Mill Owners Mutual Insurance Association
7) Neptune Assurance Company Ltd.
8) Ruby General Insurance Company Ltd.
9) Titan Insurance Company Ltd.
10) India Reinsurance Corporation ltd.
[b] Foreign Companies
1) Alliance Assurance Company Ltd.
2) London Assurance
3) Sun Insurance Office Ltd.
4) Commercial Union Assurance Company Ltd.
5) Atlas Assurance Company Ltd.
6) Caledonian Insurance Company
7) Century Insurance Company Ltd.
8) Guardian Assurance Company Ltd.
9) Royal exchange Assurance
10) Union Assurance Society of Canton Ltd.
11) National employers Mutual General Insurance Association Ltd.
12) New Zealand Insurance Company Ltd.
13) United Scottish Insurance Company Ltd.
14) Welfare Insurance Company Ltd.
15) Norwich union Fire Insurance Society Ltd.
16) Scottish Union & National Insurance Company
17) Lever Pool & London & Globe Insurance Company Ltd.
18) London & lane crasher Insurance Company Ltd.
19) Royal Insurance Company Ltd.
20) Scandia Insurance Company Ltd.
21) Western Assurance Company
 New India Assurance Company Limited Bombay holding on following:
1) Bhabha Marine Insurance Company Ltd.
2) Indian Met cants Marine- Insurance Company Ltd.
3) Indian Ocean Company Ltd.
4) Kalyan Marine Insurance Company Ltd.
5) Naranji Bhanabhai & Company Ltd.
6) Narhari Marine Insurance Company Ltd.
7) New Merchants Insurance Company Ltd.
8) Porbandar Insurance Company Ltd.
9) Shree Mahasagar Vima Company Ltd.
10) Jalnath Insurance Ltd.
11) South India Assurance Company Ltd.
12) Anand Insurance Company Ltd.
13) Common Wealth Assurance Company Ltd.
14) Howrah Insurance Company Ltd.
15) Liberty Insurance Company Ltd.
16) Mother India Fire & General Insurance Company Limited
17) Motors Owners Insurance Company Ltd.
18) New Premier Insurance Company Ltd.
19) Northern India General Insurance Company Limited
20) Orissa Cooperative Insurance Society Ltd.
21) Prachi Insurance Company Ltd.
22) Vanguard Insurance Company Ltd.
23) Reinsurance Association of India (International)
 Oriental Fire & General Insurance Company Limited Delhi holding on following:
[a] Indian Companies
1) Bharat General reinsurance Ltd. (Closed Fund)
2) Central mercantile assurance Company Ltd.
3) Devkaran Nanji Insurance Company Ltd.
4) Indian mercantile Insurance Company Ltd.
5) Jupiter General Insurance Company Limited
6) Marine & General Insurance Company Limited
7) New Great Insurance Company of India Limited
8) Sterling General Insurance Company Limited
9) Indian Guarantee & General Insurance Company Limited
[b] Foreign Companies
1) Eagle Star Insurance Company Limited
2) Balories Insurance Company Limited
3) Gelling Global Reinsurance Company Limited
4) Hanover Insurance Co.
5) New Hamsters Insurance Co.
6) The Union Fire, Accident and GIC Limited
7) National Insurance Company of New Zealand Limited
8) British Aviation Insurance Company Limited
9) London Guarantee and Accident Company Limited
10) London Assurance Company Limited
11) Switzerland General Insurance Company Limited
12) Three nodal Insurance Company Limited
13) Tokyo Marine and Fire Insurance Company Limited
14) Yorkshire Insurance Company Limited
15) Zurich Insurance Company
 United India Fire & General Insurance Company Limited Madras holding on following:
[a] Indian Companies
1) All India General Insurance Company Limited
2) British India General Insurance Company Limited
3) Concord of India Insurance Company Limited
4) Co-Operative Fire and General Insurance Society
5) Co-Operative General Insurance Society Ltd
6) Hercules Insurance Company Limited
7) Hindustan Ideal Insurance Company Limited
8) Indian Mutual General Insurance Society Ltd
9) Indian Trade and General Insurance Company Limited
10) Madras Motors and General Insurance
11) Madura Insurance Company Limited
12) Pandian Insurance Company Limited
13) Pioneer Fire and General Insurance Company Limited
14) Union Co-Operative Insurance Society
15) Universal Fire and General Insurance Company Limited 16) Walcon Insurance Company Limited
[b] Foreign Companies
1) American Insurance Company
2) Great American Insurance Company
3) Hard Ford Fire Insurance
4) Home Insurance Company
5) Legal and General Assurance Society Ltd
6) Prudential Insurance Company Limited
7) Quince land Insurance Company Limited
8) South British Insurance
Source: Mumbai Samachhar Dated 2nd January, 1974. Page No. 7