Progress of Miscellaneous Insurances (complete information)
The progress of miscellaneous insurances before nationalisation has been analysed in the following paragraphs:
The gross premium of Indian Insurers has increased from Rs. 39.78 crores in 1969 to Rs. 45.90 crores in 1970 and Rs. 50.65 crores in 1971 and further to Rs. 57.28 crores in 1972.
The gross premium received by the Indian insurers has increased from 85.5 per cent of total gross premium in 1969 to 87.4 percent in 1971 and further to 88.5 percent in 1972. This shows that the Indian insurers are getting increasing business.
Consequently, the shares of non-Indian insurers were also declining from 14.5 percent in 1969 to 11.5 percent in 1972.
Thus, the total gross premium of miscellaneous insurance a had increased from Rs. 46.55 crores in 1969 to Rs. 57.93 crores in 1971 and further to Rs. 64.70 crores in 1972.
As compared to total insurances, the share of Indian insurers to miscellaneous insurance had been higher. It was 82.6 per cent in case of total insurances and 88.5 per cent in ease of miscellaneous insurances.
Thus the miscellaneous insurances of Indian insurers have been at higher level. Consequently the share of non-Indian insurer has been decreasing. The total gross premium has increased from Rs. 116.88 crores in 1969 to Rs. 131.62 crores in 1970 and further to Rs. 147.53 crores in 1971 and again to Rs. 195.83 of ores in 1972.
In both the cases, the share of Indian insurers to gross premium has increased from Rs. 116.88 crores in 1969 to Rs. 131.62 crores in 1970 and further to Rs. 147.53 crores in 1971 and again to Rs. 195.83 crores in 1972. In both the cases, the share of Indian insurers to gross premium was rising.
The share of net claims payable to net premium hall increased from 56.8 per cent in 1970 to 57.20 per cent in 1972. It means the amount of claim has been Increasing m case of miscellaneous Insurances.
The net commission has also increased from 11.4 per cent of net premium in 1970 to 11.8 per cent in 1971 and further to 12.5 per cent in 1972. However, the percentage of management expenses has also been declining.
The reserve has decreased but the balance of Income has increased from 8.5 per cent of net premium in 1970 to 11.2 per cent in 1971 and declined to 10.3 per cent in 1972.
The non-Indian Insurers have paid lesser amount in the shape of claims whereas the Indian insurers have paid more amounts as compared to net premium. Expenses of management in case of non Indian insurers are also increasing.
It had increased from 32.7 per cent of net premium to 34.3 per cent in 1972. The balance of income bass increased from 8.5 per cent in 1970 to 15.5 per cent in 1971, but declined to 9.8 per cent in 1972. Thus the non-Indian insurers were increasing their balances at higher speed.
The gross claims payable has been 40.7 per cent of gross premium in 1958. 64.9 per cent of gross premium in 1970 and again 51.8 per cent in 1972. Thus, the share of gross claims payable has been decreased in 1971.
The percentage of direct commission has been constantly decreasing. The percentage of management expenses has been declining from 32.6 per cent in 1958 to. 20.7 per cent in 1970 and further to 19.2 per cent in 1971 but increased to 20.1 per cent in 1972.
The miscellaneous income has been increasing in both the cases. Similarly the balance of income in case of Indian insurers has increased from 13.5 per cent of gross premium in 1958 to 22.0 percent of gross premium in 1971 and declined to 21.2 per cent in 1972. The Non-Indian insurers have lesser balance of income than the Indian insurers had.
The Indian insurers have experienced increasing loss in case of miscellaneous insurance. The loss has gone up from 8.7 per cent in 1970 to 11.7 per cent in 1971. It was most probably due to increasing amount of claims payable and direct commission.
From the analysis of progress of different types of insurance it has been revealed that the Indian insurers were doing well more in marine insurance than in other types of general insurances.
The net premium income of Miscellaneous insurance outside India has declined from Rs. 25.92 crores in 1975 to Rs. 25.46 crores in 1977. Thus, the miscellaneous insurance has lesser scope outside India.
The excess of income over outgo has been increasing from Rs. 2.66 crores in 1958 to Rs. 20.91 crores in 1970 and further to Rs. 32.88 crores in 1972. Thus, the reserve has also been increasing from Rs. 1.57 crores in 1958 to Rs. 7.31 crores in 1970 and further to Rs. 9.40 crores in 1972.
The premium income in India has been constantly increasing from Rs. 12.96 crores in 1958 to Rs. 75.84 crores in 1970 and further to Rs. 86.45 crores in 1971 and again to Rs. 103.13 crores in 1972.
The total income has increased from Rs. 25.56 crores in 1958 to Rs. 132.14 crores in 1971, and further to 154.37 crores in 1973, but the increase in total outgo was lesser than this, so the excess of income over outgo and increase in reserve has been rapidly rising.
The general insurance could not increase rapidly as industrial production did up to 1967. The general insurance would have risen at least parallel to the development of industries. If the general insurance is rising at a faster speed than the industrial production does, it is a clear indication of satisfactory development or general insurance.
The Index of general insurance reveals that it had gone up to 137.5 in 1967 and 158.9 in 1968 whereas the index of industrial production has gone up 143.2 in 1967 and 152.9 in 1968.
Thus the general insurance started rising more rapidly after 1967 and touched the maximum of 22.5 in 1971 while the index of industrial production has gone only up to 173.6 in 1971 making a gap of 27.4 in 1971 which was maximum up to 1970.
The index number of general insurance was 202.8 whereas the index number of industrial production was 182.6 in 1972. It reveals that the general insurance business was satisfactorily progressing.