General Insurance Industry has grown from a premium base of around 160 crores way back in 1973 to approximately 10,000 crores as of now. This spread of insurance is not only in terms of volume but also in terms of the number of individuals, Societies, Schools, Trusts, various forms of incorporated or non-incorporated institutions, commercial establishments, industrial Houses, to space satellites, oil rigs etc. we have about 4000 officers. We cover loss or damage to persons on property including their health contingent liabilities/expenditure in the course of personal life or official business. The product range of around 200 types of policies, 3 crores of policies and approximately 25 lakhs claim settles.

How do you look at the future of the Indian Insurance Sector?
With the size of geographical as well as population, insurance potential immense any event or incident, which cannot be predicted fairly, can be covered under insurance policy. Right from bullock cart to satellite, every item of property is exposed to hazards and hence can be covered. Natural hazards like super cyclone in Orissa, earthquake in Gujarat is a grim reminder of the need for insurance. Hence insurance potential is immense and life whether personal or commercial cannot do without insurance.

Where does Indian Insurance Sector Stand compared to International Insurance Sector?
Indian insurance is unique in as much as unlike other countries. Vast content of Social insurances such as the health of the citizens and also the rural wealth on the form of farms implement, cattle wealth and also agricultural insurance whereas international insurance is predominantly commercial / industrial. While the volume may be huge in terms of Premium, income, the number of variety and distribution of insurance products and its coverage is uniquely different.

Since India emerging in the area of Information Technology, all risks related to computer industry can be covered. In this way though the insurance penetration and insurance density in India is not pronounced, it has a mammoth potential.

What do you think are the major problems of Insurance Sector in India?
The main problems are:-

• Insurance awareness is not fully realised, eg. super cyclone, earthquake etc. In case of Gujarat earthquake estimated loss of property is 30,000 crores but actual insured losses are 750 crores only.
• Inaccessibility in view of size and vastness of the area.
• Premium paying capacity is not sufficient.
• Insurance industry has not exploited its sole resources effectively and efficiently.

Can you mention some measures, which are required to remove the difficulties faced by the insurance sector in India?
These are :-

• To spread the message of insurance through panchayat, co-operative societies, post offices etc.
• Computerisation and establishing connectivity through length and breadth of the country.
• Better deployment of the resources eg, human, infrastructure, finance and information.

What is your opinion of the Indian Insurance Sector being opened to the private sector?
While the private sector insurance may not have the inherent strength and vitality of the PSUs, they would be more efficient and effective. But it will make the industry competitive, Price efficient and customer oriented. PSUs will have to redefine the role in the competitive environment and that will make us lot.

What are you doing about improving the service of NICL?
There are three important measures :-

• Greater delegation of authority to lower levels.
• Simplification of Procedure, Practices to make more market responsive.
• Elaborate computer and connectivity. Massive training programmes.
• From a pure Government bureaucratic undertaking, the company is being run on professional / commercial lines.

Any comments on Government policy?

• Government giving greater autonomy by making it board run company.
• Make the management more professional and market - driven.
• Removal of excessive controls and regulations.
• Make institution more profit oriented.

Have you any observation on any other issues?
Though PSUs are criticised for their lethargic, indifferent, on responsive attitude in a situation like that of cyclone and earthquake, but only PSUs can rise to the occasion and fresh challenges in view of its enormous strength. At the same time, PSUs will take care of the social insurance needs of the country. In other words, PSUs have social insurance as well as social investment. In a competitive environment PSUs have to make themselves cost effective and profit making. To that extent the arrival of competitions are welcome. Finally it must be mentioned that PSUs will be the backbone to the insurance industry of our country.