Policy

OBJECTIVE: The impact of industrial policies on insurance business in india.

INTRODUCTION: The business all over the world was left in a state of shock and confusion. 5. Insurance co. are likely to face claim arising out of life,accident,health,property,and liability insurance covers as a fall out of the attacks. 4.

INDUSTRIAL POLICY RESOLUTION, 1948 The resolution emphasized expansion of production in the short run along with need and importance of public enterprises (PE) to grow. According to this resolution, industries were divided into two categories.The first catogory is following, 4. Manufacture of arms and ammunition 5. Production and control of atomic energy, 6. The ownership and mgmt. of railway

The second category, covered six industries, 2. Coal 3. Iron and steel 4. Aircraft manufacturing 5. Ship building 6. Manufacture of telephone, telegraph and wireless apparatus 7. Mineral oils.

ARTICLE 39(B)AND (C) OF THE CONSTITUTION OF INDIA The constitution of india directs the state to secure “that the ownership and control of the material resources of the community are so distributed as best to sub-serve the common good”. Attainment of these objectives is fundamental to the growth of public enterprises.

INDUSTRIAL POLICY RESOLUTION, 1956 

In this policy referred to article 39(b)and (c) of the constitution to the socialist pattern of society and to the need for planned and development and declared that “ all industries of basic and strategic importance should be in the public sector”. Industries were classified into three categories, The first, where the future development was to be responsibility of the state was to cover 17 industries, listed in schedule “A” to the resolution. In addition to the 9 industries

Eight others were ;

Air transport ; 3. Heavy casting and forgings of iron and steel; 4. Heavy plant and machinery required for production of iron and steel for mining and machine tools; 5. Heavy electrical plant; 6. Mining of iron and manganese ore etc; 7. Mining and processing of copper,lead,zinc,tin,etc; 8. Minerals used for producing atomic energy and; 9. Generation and distribution of electricity. 2.

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In the second category were 12 industries to private enterprise to supplement the efforts of the state. These were; Aluminum and other non-ferrous metals Fertilizers Machine tools Antibiotic and other essential drugs Road transport Sea transport

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Chemical plup; Carbonisation of coal ; Ferro-alloys and tool steels; Basic and intermediate chemical produce Synthetic rubber;and All minerals except “minor minerals.” the third category comprised the remaining industries the further development of which was generally to be left the initiative and enteprise of the private sector but “it will be open to the state to start any industry even in this category”

Industrial policy statement 1977, the industrial policy announced by the janta party government on december 23,1977 envisaged PE as a means of socializingh the means of production in strategic areas and for providing a countervailing force to the growth of large houses and large-scale enterprises in the private sector.

Industrial policy statement 1980 In the statement the government emphasized the desirability of allowing private sector undertaking “to develop in consonance with targets and objectives of national plans and policies”, but it did not want “the growth of monopolistic tendencies or concentration of economic power and wealth in a few hands.”

Post – Indira gandhi government policies; The rajiv gandhi govt. which was in power from 1984- 89 never made any formal statement of its PE policy, but continued to show faith in PE. The new policy permitted foreign investment up to 40 percent of equity, both for new and expansion of existing units.

REASONS FOR MAJOR CHANGE IN POLICY;

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In this policy the govt. felt that “ a number of problems have begun to manifest themselves”. Six of these listed in the statement were; Insufficient growth in productivity; Poor project mgmt. Over managing; Lack of continuous technological upgradation Inadequate attention to R & D and human

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A very low rate of return on the capital employed. The fact of the matter is that govt. itself has been responsible for poor mgmt. of PE . so changes made by the policy statement, Boards of PE would be made more professional and given greater powers. PE essential for the operation of the industial economy will be made more growthoriented and dynamic.

INSURANCE AND INDUSTRIAL POLICY ;

The worker was working day and night without rest. We was giving his best to the organization but in- turn no wages no payments for the kind of job performed. At the most, the employer will give the employee few kilograms of food so that his family barely survives in the name of compensation for the job, what to talk of regular wages or salary. Making both ends meet was vicarious task. In nut shell the worker was badly exploited by the employer.

This is one part of the life of the industrial worker in both organized sector and the unorganized sector. The govt. of india through insurance co. Devised various covers like workman’s compensation Act, 1923, personal accident policy, janta personal accident policy, mediclaim, long-term hospitalization policy. The insurance sector has helped the economy of our country to grow along with the banking and capital markets, as insurance sector cannot function and grow in