• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Irda Journal Jan09

Irda Journal Jan09






Total Views
Views on SlideShare
Embed Views



0 Embeds 0

No embeds


Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

    Irda Journal Jan09 Irda Journal Jan09 Document Transcript

    • Volume VII, No. 1 January 2009 Hazards: The Additional Risk ’Ë◊Ê ÁflÁŸÿÊ◊∑§ •ı⁄U Áfl∑§Ê‚ ¬˝ÊÁœ∑§⁄UáÊ
    • Editorial Board J. Hari Narayan C.R. Muralidharan S.V. Mony K.N. Bhandari Vepa Kamesam Ashvin Parekh Editor U. Jawaharlal Hindi Correspondent Sanjeev Kumar Jain Printed by Alapati Bapanna and published by J. Hari Narayan on behalf of Insurance Regulatory and Development Authority. Editor: U. Jawaharlal Printed at Kala Jyothi Process Ltd. (with design inputs from Wide Reach) 1-1-60/5, RTC Cross Roads Musheerabad, Hyderabad - 500 020 and published from Parisrama Bhavanam, III Floor 5-9-58/B, Basheer Bagh Hyderabad - 500 004 Phone: +91-40-66820964, 66789768 Fax: +91-40-66823334 e-mail: irdajournal@irda.gov.in © 2007 Insurance Regulatory and Development Authority. Please reproduce with due permission. Unless explicitly stated, the information and views published in this Journal may not be construed as those of the Insurance Regulatory and Development Authority.
    • From the Publisher E quitability in charging the premium, take one’s own life just because there is some commensurate with the risk, is the money to be earned. This factor puts moral hazard fundamental principle on which the almost out of reckoning in the case of life success of insurers depends. In order to insurance. All the same, in order to protect accomplish this, insurers subject each proposal themselves against being taken for a ride, life to a detailed underwriting. In a hypothetical insurers scrutinize sensitive applications from this situation, the payment of claims must also follow angle also. Moral hazard, however, has a huge role a similar trend which however does not happen. to play in several classes of non-life insurance. A major factor that adds to the complexity in This is particularly significant in emerging markets assessing a risk is the presence of hazards. Physical where the insured does not attach a great deal hazards manifest themselves explicitly, one way of criminality to enforcing or exaggerating a claim. or the other; and hence can be compensated to Insurers should, on their part, ensure that no a large extent by charging an additional premium. genuine claim is repudiated so that the confidence of the industry is not eroded. The one hazard that makes things very complex and poses a big challenge to the underwriting ‘Hazards in Insurance’ is the focus of this issue of the Journal. The freedom given to the non-life acumen of insurers is Moral Hazard. In view of the fact that it is to do with the mindset of the insurers in policy wording gives them the leverage prospect whose sole intention it is to defraud to customize the product to be in tune with the the insurer, no amount of additional premium needs of the industry. ‘Customizing the Product would be sufficient to offset the extra hazard. in a Detariffed Era’ will be the focus of the next issue of the Journal. However, it is not an easy task to gauge the existence of moral hazard in a particular application. If insurers play safe and reject every suspicious applicant, it won’t be long before they not only lose business to competitors but a great deal of reputation in the market. It would be foolhardy to expect an individual to J. Hari Narayan
    • Need for Cautious Approach FOCUS 15 - Dr G Gopalakrishna Risk Acceptance Criteria 22 - G V Rao Hazards in Motor Insurance 25 - Loknath P Kar Hazards in Insurance 29 - Dr K C Mishra ISSUE Hazards in Health Insurance 32 - Pratik Priyadarshi Hounding the Hazards 34 - Devarakonda V S Ramesh Statistics - Life Insurance 4 In the air 6 Vantage Point 10 U. Jawaharlal RESEARCH PAPER uƒußëÁ u∆qm uƒuáÆÁ LƒÊ ∫yuoÆÁ 11 Indian Life Insurance Industry 41 EY|åÁ uÃã“Á osÁ G™z∆Y㸠NÏ˛tzuÃÆÁ - An Executive Summary T¿Á™ym §y™Á uƒúmå - éßÁƒåÁL LƒÊ YÏåÁ{uoÆÁ 46 ü™Ázt NÏ˛™Á∫ ƒ™Á| Statistics - Non-Life Insurance 47
    • from the editor Underwriting in a Hazardous Domain - Upsetting the Vital Balance I n a domain where the awareness levels of the insuring public is not very high, there is a tendency on the part of the policyholder to feel that having paid the premium, there is nothing wrong in making a claim under an insurance policy. The fact that insurance comes to the rescue of the insured ‘on the happening of an event’ does not appeal to a majority of the masses. This fundamentally leads to the genesis of moral hazard in the insured community. If this is the problem with regard to the retail segment, it is no different in the case of corporate entities except that the scale is very high. In a way, this is one factor that compels the insurer to look at any claim with a discerning eye; and possibly reject, although unintentionally, an occasional, genuine claim, either partially or totally. The problem of moral hazard is not unique to any particular line of insurance but spreads across the entire industry – the incidence may be higher in a specific class, though. For example: Moral hazard in life insurance is reduced to a great extent for the simple reason that one cannot be lured into making some money by sacrificing one’s own life. However, an underwriter has to be careful in guarding against the menace in cases that exhibit extra sensitivity. In the personal lines, two of the most sensitive areas in this regard are Health and Motor. There is reportedly a tacit support in most of the cases from the service providers. The low awareness levels of the public may once again be responsible for such a phenomenon. There is immediate need for arresting such trends in the long-term interests of the industry. On their part, underwriters have to be on guard at the very initial stages and put a check on perpetration of frauds rather than indulging in a post-mortem at later stages. To be able to screen out all such attempts is easier said than done, but by putting in place checks at various stages, a vast majority of such intended frauds can be arrested. Where a claim has to be rejected either in toto or partially, insurers would do well to explain the reasons for such rejection so that there is an element of transparency. It would certainly contribute to an enhancement of the insurer’s reputation in the market. The availability and sharing of data across all the players would contribute a great deal in putting a check on the fraudulent attempts of unscrupulous elements. In the case of physical hazards, underwriters should undertake a proper assessment of the risk at hand; and charge the premium accordingly so that the twin evils of inequitability and adverse selection are kept at bay. ‘Hazards in Insurance’ is the focus of this issue of the Journal. We open the issue with an executive summary of the first occasional paper published by IRDA on the lapsation trends in the Indian life insurance industry. In the first article on issue focus, Dr. G. Gopalakrishna brings in the richness of his vast experience on the various factors associated with moral hazard in life insurance. Mr. G.V. Rao puts emphasis on the dictum ‘Behave at all times, as though uninsured’ as a remedy for dealing with hazards in insurance. He also has a word of caution for the insurers to refrain from indiscriminate repudiation of claims. In the next article, Mr. Loknath P. Kar elucidates the problem of a high incidence of moral hazard in the domain of Motor Insurance; and what needs to be done to check it. Dr. K.C. Mishra dwells upon the effect of hazards in insurance across all classes; and how they affect the management in several aspects and not just exaggerated claims. Health Insurance is a class where the incidence of moral hazard is very high. Mr. Prateek Priyadarshi discusses the issue threadbare; and argues that widening the client base would be one way of fighting the menace. In the end, we have an article by Mr. Devarakonda V.S. Ramesh who deals with the tricky issue of moral hazard in life insurance. The second stage of detariffing is effective from the beginning of this year in the form of partial freedom in Terms and Conditions of Coverages. The ensuing ‘Customization of the Product’ will be the focus of the next issue of the Journal. The Journal wishes all its readers a very happy and prosperous NEW YEAR 2009. U. Jawaharlal
    • Report Card:LIFE First Year Premium of Life Insurers for the Period Ended November, 2008 Sl No. of Policies / Schemes No. of lives covered under Group Schemes Premium u/w (Rs. in Crores) Insurer No. Nov, 08 Up to Nov, 08 Up to Nov, 07 Nov, 08 Up to Nov, 08 Up to Nov, 07 Nov, 08 Up to Nov, 08 Up to Nov, 07 Bajaj Allianz 1 Individual Single Premium 36.98 227.46 366.77 11739 57997 55272 Individual Non-Single Premium 267.68 2375.88 2712.00 190715 1564597 1978028 Group Single Premium 0.63 2.42 8.13 1 2 0 435 1946 5720 statistics - life insurance Group Non-Single Premium 4.34 64.48 14.25 79 414 172 962125 4287358 508673 ING Vysya 2 Individual Single Premium 1.11 18.48 14.06 156 2256 1325 Individual Non-Single Premium 38.90 381.32 333.85 23275 208375 201512 Group Single Premium 0.78 10.84 0.81 0 1 0 642 4121 183 Group Non-Single Premium 0.19 17.09 2.44 4 81 15 4620 44119 69276 Reliance Life 3 Individual Single Premium 13.79 244.01 120.95 2271 60647 26017 Individual Non-Single Premium 220.27 1612.79 800.17 166701 1050964 428715 Group Single Premium 1.71 74.47 148.05 2 19 43 -1586 40805 68856 irda journal Group Non-Single Premium 2.47 19.37 14.70 28 202 169 142305 486643 244401 SBI Life 4 4 Individual Single Premium 29.80 350.62 636.42 7161 59242 87750 Individual Non-Single Premium 232.97 1550.48 970.33 70778 447859 306301 Group Single Premium 30.16 160.25 127.62 1 4 0 28210 91823 66186 Group Non-Single Premium 267.91 1230.64 113.73 12 75 36 459831 2963170 380758 Tata AIG 5 Individual Single Premium 1.99 28.93 22.81 469 5924 3587 Jan 2009 Individual Non-Single Premium 63.01 527.25 415.17 57463 415398 273968 Group Single Premium 2.13 23.87 42.85 0 7 3 4574 71432 255162 Group Non-Single Premium 2.22 44.55 40.35 3 48 45 102374 229968 138897 HDFC Standard 6 Individual Single Premium 6.75 83.70 72.22 1858 31156 182459 Individual Non-Single Premium 115.75 1487.88 1086.22 73870 510584 341849 Group Single Premium 6.52 54.81 41.00 12 96 83 11310 142487 84719 Group Non-Single Premium 0.28 15.29 45.59 1 8 36 1799 15578 31712 ICICI Prudential 7 Individual Single Premium 9.45 145.93 220.72 1536 25751 34838 Individual Non-Single Premium 317.74 3239.52 3196.78 201029 1620096 1490421 Group Single Premium 18.78 171.58 157.64 13 175 130 64898 464748 327090 Group Non-Single Premium 31.40 691.21 306.96 5 299 264 17881 486576 309395 Birla Sunlife 8 Individual Single Premium 0.93 22.92 14.31 15172 102705 46818 Individual Non-Single Premium 148.44 1355.05 827.23 110964 587579 237721 Group Single Premium 3.16 14.26 3.06 0 1 3 7448 37238 3797 Group Non-Single Premium 21.23 136.14 52.60 17 127 86 11571 148274 127641 Aviva 9 Individual Single Premium 0.80 31.54 13.34 77 3760 1973 Individual Non-Single Premium 42.96 406.98 506.88 27205 220004 202807 Group Single Premium 0.00 0.05 1.60 0 0 0 0 65 841 Group Non-Single Premium 1.89 14.10 20.86 7 51 84 56291 598759 432991 Kotak Mahindra Old Mutual 10 Individual Single Premium 0.82 14.03 14.26 135 1725 1914 Individual Non-Single Premium 60.21 696.83 381.90 24168 361929 136503 Group Single Premium 2.72 23.78 14.46 2 7 2 8750 90206 117741 Group Non-Single Premium 7.33 32.38 31.40 42 253 152 55920 369250 306842
    • Max New York 11 Individual Single Premium 18.41 160.67 137.77 918 11098 9134 Individual Non-Single Premium 107.55 989.46 630.43 85441 724840 421756 Group Single Premium 0.04 7.45 0.00 0 10 0 19284 206678 0 Group Non-Single Premium 0.48 13.81 29.97 2 282 231 3468 194326 355185 Met Life 12 Individual Single Premium 0.54 4.09 14.57 230 1459 2237 Individual Non-Single Premium 56.15 579.16 315.25 19130 157343 113765 Group Single Premium 2.58 19.85 5.48 17 91 39 30498 215919 129971 Group Non-Single Premium 0.00 0.00 0.00 0 0 0 0 0 0 Sahara Life 13 Individual Single Premium 3.34 29.24 18.60 983 7610 4850 Individual Non-Single Premium 5.91 44.81 33.09 6955 51899 48120 Group Single Premium 0.00 0.00 0.00 0 0 0 0 0 0 Group Non-Single Premium 0.01 0.01 0.00 4 6 2 464 542 52 Shriram Life 14 Individual Single Premium 6.74 106.54 92.55 1097 17687 17058 Individual Non-Single Premium 13.75 93.94 66.19 8158 49317 40610 Group Single Premium 0.00 0.00 0.02 0 0 1 0 0 1625 Group Non-Single Premium 0.04 0.28 0.00 1 3 2 3690 14445 623 Bharti Axa Life 15 Individual Single Premium 0.29 3.96 0.94 56 907 86 Individual Non-Single Premium 19.43 152.29 34.01 14088 104166 28504 statistics - life insurance Group Single Premium 0.41 5.04 0.00 0 1 0 2121 25300 0 Group Non-Single Premium 0.00 0.00 0.00 0 0 0 0 0 0 Future Generali Life 16 Individual Single Premium 0.48 1.43 0.00 87 296 0 Individual Non-Single Premium 4.33 15.13 0.00 4621 18483 0 Group Single Premium 0.03 0.03 0.00 1 1 0 220 220 0 Group Non-Single Premium 1.88 9.66 0.55 2 38 1 30209 246835 18105 IDBI Fortis Life 17 Individual Single Premium 7.17 65.14 1110 10151 Individual Non-Single Premium 9.64 81.86 4419 28015 Group Single Premium 0.00 0.00 0 0 0 0 irda journal Group Non-Single Premium 0.00 0.00 0 0 0 0 Canara HSBC OBC Life 18 5 Individual Single Premium 0.53 0.54 14 18 Individual Non-Single Premium 27.05 121.21 2982 12361 Group Single Premium 0.00 0.00 0 0 0 0 Group Non-Single Premium 0.00 0.00 0 0 0 0 Aegon Religare 19 Individual Single Premium 0.06 0.22 8 33 Jan 2009 Individual Non-Single Premium 2.87 8.24 2599 8196 Group Single Premium 0.00 0.00 0 0 0 0 Group Non-Single Premium 0.00 0.00 0 0 0 0 DLF Pramerica# 20 Individual Single Premium 0.00 0.00 0 0 Individual Non-Single Premium 0.10 0.24 166 294 Group Single Premium 0.00 0.00 0 0 0 0 Group Non-Single Premium 0.00 0.00 0 0 0 0 Private Total Individual Single Premium 139.96 1539.45 1760.31 45077 400422 475318 Individual Non-Single Premium 1754.73 15720.34 12309.50 1094727 8142299 6250580 Group Single Premium 69.63 568.69 550.73 49 415 304 176804 1392988 1061891 Group Non-Single Premium 341.69 2289.01 673.38 207 1887 1295 1852548 10085843 2924551 LIC 21 Individual Single Premium 1169.66 8289.81 10820.65 343899 2356822 2938711 Individual Non-Single Premium 1319.21 9447.23 13676.29 2233249 14938541 17160319 Group Single Premium 857.52 7483.58 4904.95 1943 12098 13724 2703928 16956045 13281280 Group Non-Single Premium 0.00 0.00 0.00 0 0 0 0 0 0 Grand Total Individual Single Premium 1309.62 9829.26 12580.96 388976 2757244 3414029 Individual Non-Single Premium 3073.94 25167.57 25985.80 3327976 23080840 23410899 Group Single Premium 927.14 8052.26 5455.68 1992 12513 14028 2880732 18349033 14343171 Group Non-Single Premium 341.69 2289.01 673.38 207 1887 1295 1852548 10085843 2924551 Note: 1. Cumulative premium / No.of policies upto the month is net of cancellations which may occur during the free look period. 2. Compiled on the basis of data submitted by the Insurance companies. 3. # Started operations in September, 2008.
    • in the air PRESS RELEASE December 15, 2008 Raheja QBE General Insurance Company Limited, a joint venture been issued by the Authority on 12.12.08. With this registration, general insurance company promoted by Prism Cements Limited, the total number of general insurers registered with the India and QBE Holdings (AAP) Pty Limited, a wholly owned Authority has gone up to 21. subsidiary of QBE, Australia has been registered as a General Sd/- (C R Muralidharan) Insurer under Section 3 of the Insurance Act, 1938 with the Member Authority. The Certificate of Registration (Forms IRDA/R3) has CIRCULAR 22nd December, 2008 Cir. No. 026/IRDA/SUR/CIR/DEC-08 To loss assessment work to the three categories of surveyor s. For this purpose, every general insurance company shall adopt a CEOs of all General Insurance Companies policy specifying the internal limits and circulate it to all its Sub: Loss Survey Limits for Categorized Surveyors operating offices in a transparent manner. A copy of the circular be filed with the IRDA and also displayed on the website of the The Authority vide its circular dated 24th May 2003 fixed the company. financial limits (based on the value of loss as estimated by insurers) up to which surveyor s in the three categories namely This is issued with the approval of Chairman, IRDA. A, B and C were permitted to carry out survey / loss assessment Sd/- work. (Prabodh Chander) The Authority has decided that the insurers may, with immediate Executive Director effect, have their own internal limits in allocation of survey / PRESS RELEASE December 26, 2008 Star Union Dai-Ichi Life Insurance Company Limited, a joint on 26.12.08. With this registration, the total number of Life venture life insurance company promoted by Bank of India, Insurers registered with the Authority has gone up to 22. Union Bank of India and Dai-ichi Mutual Life Insurance Company, Sd/- Japan, has been registered as a Life Insurer under Section 3 of (C. R. Muralidharan) the Insurance Act, 1938 with the Authority. The Certificate of Member Registration (Forms IRDA/R3) has been issued by the Authority CIRCULAR Date: 26th Dec, 2008 REF: IRDA/INV/CIR/027/2008-09 To Please refer to the IRDA (Investment) Regulation 2008 notified vide F.No.IRDA/Reg./5/47/2008 dated 30 th July, 2008 published CEO of all Insurance Companies in the 4 th amendment in the Investment Regulation on 22 nd Dear Sirs, Aug, 2008. The Authority has carefully examined the requests from the industry for certain relaxation to facilitate more Sub: Relaxation in Investment Parameters of Debt / Equity investments. With a view to enhancing the flow of insurance Segment – Reg. irda journal 6 Jan 2009
    • in the air funds to meet the present needs of infrastructure financing Infrastructure activity shall be as defined under IRDA and keeping policyholders’ interest in view it has been decided (Registration) Regulation, 2000 as amended from time to time. to partially amend the requirements insofar as it relates to In the case of Debt investments, the duration of investment exposure limits applicable to investments in Public limited shall be not less than 10 years and they should have a minimum companies engaged in ’Infrastructure Sector’ and ‘Housing rating of AA by a Credit rating agency registered under SEBI Sector’. The limits would apply as under with immediate effect. (Credit Rating Agencies) Regulations, 1999 The exposure of any insurer to an infrastructure company may In the case of Equity investment, dividend of not less than 4% be increased to not more than 20% as against the present ceiling including bonus should have been declared in at least for the 5 of 10% as referred in Reg. 5. The limit would be combined for preceding years. However in the case of primary issuance of a both Debt and Equity taken together without sub ceilings. wholly owned subsidiary of a corporate/PSU, the track record This exposure of 20% can be further increased by an additional as mentioned above would be applied to the holding Company. 5% (i.e. the aggregate exposure to a single investee company (C R Muralidharan) being upto 25%) with the PRIOR approval of Board of Directors. Member Such additional investments shall however be restricted to debt instruments. CIRCULAR 1st January, 2009 Circular No:029/IRDA/ACTL/RSM/2008-09 To insurance penetration increases. The Authority has reviewed the solvency margin requirement for the linked business and CEOs of Life Insurance Companies proposes the following first factor and second factor with respect Sub: Determination of Required Solvency Margin under Life to linked business in working out the required solvency margin. Insurance Business These factors shall come into effect for the business as on December 31, 2008 and onwards. This is further to our recent circular no. 25/IRDA/ACTL/RSM/ sd/ 2008-09 dated December 17, 2008 on the above subject. Given (R. Kannan) the macroeconomic environment and risk parameters there is a Member need to utilize the capital optimally with affordable cost so that Category of business First factor Second factor Category of business First factor Second factor Linked Business Linked Business Individual Business General Annuity 13: With guarantees 1.8% 0.0% Life Business 14: Without guarantees 0.8% 0.0% 11: With guarantees 1.8% 0.2% Pension 12: Without guarantees 0.8% 0.2% 15: With guarantees 1.8% 0.0% General Annuity 16: Without guarantees 0.8% 0.0% 13: With guarantees 1.8% 0.0% Health Insurance 14: Without guarantees 0.8% 0.0% Individual Business Pension Linked business 15: With guarantees 1.8% 0.0% 21: With guarantees 1.8% 0.0% 16: Without guarantees 0.8% 0.0% 22: Without guarantees 0.8% 0.0% Group Business Group Business Life Business Linked business 24: With guarantees 1.8% 0.0% 11: With guarantees 1.8% 0.2% 25: Without guarantees 0.8% 0.0% 12: Without guarantees 0.8% 0.2% irda journal 7 Jan 2009
    • in the air CIRCULAR 25th November, 2008 023/IRDA/HI-TPA/CIR/Nov-08 Re: Constitution of Committee for Evaluation of the Performance The Committee will go into the various aspects of the performance of the Third Party Administrators-Health Services (TPAs). of TPAs as per the Terms of Reference given below:- In accordance with Sub-Regulation 23 of the IRDA (Third Party 1. To examine the role of TPAs in the current health insurance Administrators-Health Services) Regulations, 2001, the Authority market scenario and to make suitable recommendations has constituted a Committee comprising of the following members clarifying their utility to the future growth of the health for “Evaluation of the Performance of the Third Party insurance industry. Administrators-Health Services (TPAs)”:- 2. To evaluate the performance of the TPA system till date, with S. Name particular reference to the objectives behind the introduction Distribution No. of the TPA system and specifically with regards to the provision 1. Sri S.B. Mathur, Secretary General, of cashless facilities, data management, timely settlement of Life Insurance Council Chairman claims and reducing claim ratios. 2. Sri S.L. Mohan, Secretary General, 3. To suggest standards of best practices for TPAs. General Insurance Council Member 3. Sri G Srinivasan, CMD, 4. To devised customer service benchmarks for TPAs (including United India Ins. Co. Ltd Member TAT for ID Cards, settlement of claims, etc.) with optimum and 4. Sri Sandeep Bakshi, CEO, maximum time lines for different processes. ICICI Lombard Gen. Ins. Co. Ltd. Member 5. To suggest minimum skill sets for the TPA personnel, including 5. Sri V. Jagannathan, CEO, training in ICD-10 coding, claim and pre-authorization Star Health & Allied Ins. Co. Ltd. Member processing, medical and insurance knowledge etc. 6. Sri S. Krishnamurthy, CEO, TTK Healthcare TPA Pvt. Ltd. Member 6. To suggest any regulatory changes needed in pursuit of the 7. Sri Suresh V Karanadikar, CEO, MD objectives of a robust health insurance system in the country. India Healthcare Services (TPA) Pvt. Ltd. Member 7. To deliberate on any other matter as the Committee may 8. Representative of consider relevant in the best interests of the future growth Apollo Hospitals Group Member of the health insurance market, the insurers and the insuring 9. Representative of public. Wockhardt Hospital Group Member The Committee shall submit its Report to the Authority by 30th 10. Ms. Pusha Girimaji, Consumer Activist Member April, 2009. 11. Sri Suresh Mathur, Joint Director, IRDA Member 12. Dr. Somil Nagpal, Member- (J Hari Narayan) Special Officer – Health Ins., IRDA Convener Chairman irda journal 8 Jan 2009
    • in the air CIRCULAR December 17, 2008 Circular No.25/IRDA/ACTL/RSM/2008-09 To financial markets there is an urgent need to emphasize the efficient use of capital and provide insurance products at CEOs of Life Insurance Companies affordable rates while maintaining the continued safety of the Sub: Determination of Required Solvency Margin under Life insurance companies so that they maintain solvent at all point Insurance Business of time. Please refer our circular No.065/IRDA/ACTL/RSM/2007-08 dated As you are aware that the computation of the required solvency March 24, 2008. In the light of the recent developments in margin reckons two factors, viz., the first factor which is applicable to the sum at risk. Category of business First factor Second factor The Authority has reviewed the position in the above background Non-linked Business and proposes the following first factor and second factor with Individual Business respect to non-linked business in working out the required solvency margin. These factors shall come into effect for the 01: Life Business business as on December 31, 2008 and onwards. Pure Term 3% 0.1% Others 3% 0.3% With this change, the first factor for other than pure term 02: General Annuity 3% 0% products is brought on par with pure term products. In addition, 03. Pension 3% 0% the revision of the first factor for general annuity and pension 04. Health 3% 0% business, both for individual and group under non-linked business would help life insurers to offer more affordable pension / Group Business annuity products. It may be noted that there is no change in Life: Premium guaranteed for the factors that pertain to non-linked pure term business and 05. Not more than one year 1% 0.1% linked business. These changes would help in widening and 06. More than one year 1% 0.1% deepening the market. 07. General Annuity 3% 0% 08. Pension 3% 0% (R. Kannan) 11th Global Conference of Actuaries The 11th Global Conference of Actuaries (GCA) is being held jointly by the Institute of Actuaries of India (IAI) and International Actuarial Association (IAA) on 12th and 13th February, 2009 at Mumbai. The focus of the conference would be “Global Frontiers in Risk Management”. World over, the actuary’s role has been identified with such areas as Solvency II, Enterprise Risk Management, Economic Capital, European Embedded Value, Market Consistent Embedded Value etc. More recently, the world has been witness to a great financial turmoil and in these days of globalization, it is very difficult to imagine any country being immune to the effects of such a meltdown. In this background, the 11th GCA assumes a huge importance. The conference would provide an effective platform for discussing the emerging scenario and the role of the actuarial profession. Venue Dates 12th & 13th February, 2009 Hotel Hyatt Regency, Mumbai irda journal 9 Jan 2009
    • vantage point Customizing the Product RECIPE FOR LONG-TERM SUCCESS U. JAWAHARLAL WRITES THAT THE PARTIAL FREEDOM GIVEN TO THE INSURERS IN THE AREA OF POLICY WORDING WILL CERTAINLY LEAD TO BETTER PRODUCTS EMERGING IN THE MARKET; AND AN EVENTUAL HEALTHY COMPETITION. T he primary consideration in having tested. With this background, it was Engineering, Industrial All Risks and Motor a competitive market is that there found safer to go for a phased detariffing (Own Damage) with the necessary would be emergence of the best process and the first phase of detariffing additional premiums. products and the best service that would hit the Indian insurance industry in This step in the process of detariffing is ensure that customer will be the ultimate January 2007 with pricing freedom in the sure to go a long way in ensuring that winner. In fact, it has been one of the hitherto tariffed classes. insurers will be able to attune their major considerations for opening up the The experience with the pricing freedom products to the demands and market to private participation during the has not led to any major upheavals and requirements of the industry; and at the early part of this century. The flavour of the Indian players have shown the maturity same time use the tool as an efficient a competitive market has since been to deal with the process in a dependable medium to boost their market. The largely felt; and one can easily say that manner. The limitations in designing the brokers will especially have a more we have had the benefit of some of the policies, however, continued to leave a dynamic role to play in identifying the globally acclaimed products being taste of undesirable restraint; and the needs of the customers and designing the introduced in the Indian insurance demand for the freedom in policy wording policies accordingly. It would also market. continued, in order that the most efficient enhance the process of the client, All the same, it has often been felt that player emerges as the most successful especially the retail one, making an despite the opening up of the market, one as well. Going with the cautious informed decision; as the policies are the presence of tariffs in the non-life approach once again, the freedom in going to be designed after a proper insurance class greatly stifles the freedom policy wording has been given to the negotiation. of the operators; and the real purpose players to the extent of filing variations ‘Customizing the Product in a Detariffed for which the market has been privatized in deductibles in classes which were Regime’ will be the focus of the next is being defeated. For the policy-makers, under the tariff earlier. The insurers have issue of the Journal. Needless to say that however, it is a challenge to throw the also been given the freedom, inter alia, the debate is going to be an interesting market totally open to the players when to file add-on covers, over and above the one. their experience in the field has not been earlier tariff covers in the classes of Fire, Moulding to Requirement in the next issue... irda journal 10 Jan 2009
    • research paper Indian Life Insurance Industry LAPSATION AND ITS IMPACT AS ESTIMATION/STUDY OF LAPSE RATE IS USEFUL IN MANY WAYS BOTH FOR THE REGULATOR AND FOR THE INSURANCE COMPANIES, A STUDY WAS UNDERTAKEN TO ANALYZE LAPSES IN THE LIFE INSURANCE INDUSTRY IN INDIA DURING 2002- 03 TO 2006-07 FOR INDIVIDUAL LIFE POLICIES. IT WAS DECIDED TO COLLECT THE DATA FROM ALL THE LIFE INSURANCE COMPANIES WITH RESPECT TO SOME FACTORS/COMBINATIONS OF FACTORS, AFFECTING LAPSE RATES. THIS IS A PIONEERING STUDY AIMING AT ESTIMATION OF LAPSE RATES AND RANKING THE FACTORS WHICH AFFECT THE LAPSE RATES. E stimation / study of lapse rates is exposed to risk) by a considerable Over the five years of investigation period, margin. useful for i) pricing the insurance industry lapse rate by number of policies products ii) valuation of insurance increased from 5.62% (2002-03) to 7.8% • Assuming that lapse rates across various liabilities, iii) comparison of experience (2004-05) and decreased to 6.64% (2006- companies follow a normal distribution with other countries iv) bench marking 07). However, lapse rate by premium with mean lapse rate of 18.1% and a industry lapse rate v) as back ground increased from 4.40% to 6.95%, slowly standard deviation of 7.5%, four information in product development vi) increasing year by year except for a small companies could be considered to have identification of changing needs of the lapse rate in the average range (17.21% decrease in 2006-07. insured public and vii) identifying the to 19.82%), seven companies can be The following are major findings of factors influencing the lapse rates and considered to have lighter lapse rate the study: hence the changes required in various (ranging from 6.93% to 14.66%) than the pricing parameters including marketing average range and five companies to The lapse rates for the non-linked strategies. have higher lapse rate (23.07% to products and linked products over the 35.51%). last three years were as follows: • Age at entry, mode of premium payment, • Lapse rate for seven companies out of A majority of the duration elapsed since policy inception, sixteen exceeded the industry average policy type and type of underwriting (simple arithmetic mean) of 18% (lapse companies are found to be the most significant rate by number) and 11.9% (lapse rate exceeded the factors affecting the lapse rates. by premium amount). However, a industry average • Lapse rate with respect to age at entry majority of the companies exceeded showed a decreasing trend from age the industry average rate (weighted rate (weighted group 18-22 to around 60 years and average with weights being premium average with weights being Lapse rate: premium exposed Duration Non-linked Linked to risk) by a elapsed in years 2004-05 2005-06 2006-07 2004-05 2005-06 2006-07 considerable 0-1 22.31% 18.95% 6.10% 24.19% 41.06% 13.43% 1-2 12.12% 12.96% 2.50% 9.43% 17.62% 18.10% margin. 2-3 4.51% 5.94% 2.18% 8.73% 6.10% 8.78% 3-4 3.50% 4.74% 5.55% 2.23% 2.50% 3.94% 4-5 3.26% 3.97% 4.42% 6.07% 2.18% 2.08% irda journal 11 Jan 2009
    • research paper lapse rate tended to increase from the - Statutory reserve increased with • Lapse rate with respect to number in range below 18 to age group 18-22. increase in lapses up to seven year traditional products was observed to duration. After seven years, the have decreased from 7.69% in 2004-05 • Lapse rate (by number of policies) with statutory reserve decreased with to 6.59% 2006-07 and premium lapse rate respect to mode of premium payment increase in lapses. decreased from 6.45% to 5.63% in the tended to be higher with the frequency same period. of premium payment and lower for - Statutory reserve decreased with monthly and salary deduction modes. decrease in lapses up to seven years. • Lapse rates for non-medical policies are After seven year the statutory reserve • Lapse rates are observed to be observed to be higher than for medical increased with increase in lapses. decreasing with duration elapsed since policies. inception. - Similar was the case with solvency margin. This clearly indicates that Analysis of causes affecting lapse • It was observed that the trends in lapse lapsation has asymmetrical effects on rates indicated the following: rate with respect to both number and statutory reserves and on solvency premiums were almost similar to each • Revival campaigns seemed to have margin. other. significant effect in reduction of the - The observed changes in reserves • With-profit policies showed higher rates levels of lapse rate. might be due to the release of asset of lapse when compared to their non- • Low commission in the first year share for policies lapsed before profit counter parts for endowment and contributes to the lower level of lapses acquiring surrender value which whole life policies. in the following years as the omission is could result in increase in the surplus • Term assurance products showed the well distributed over the initial period. and thereby increase the liability highest rate of lapse with respect to towards existing policies. Hence per both number and premium lapsed • The special incentives (as per product policy reserve increased. (28.27% by number and 18.95% by approval conditions) given to - If the policy lapses after acquiring premium). intermediaries had significant effect in surrender value, no asset share would reducing the levels of lapse. • Whole life products showed higher lapse be released (unless the policy is rate than endowment products for with • Sending copies of notices to surrendered) and there is no addition profit policies and converse is observed intermediaries helped in bringing down to the surplus from these policies. for non-profit policies. lapse rates considerably. Hence per policy reserve was less • Pension policies were observed to show affected. • As all companies had reported sending the least lapse rates among all premium notices in advance, no categories. differences could be analysed on this • Unit linked contracts had lapse rate as factor, although this practice is 18.09% by number and 10.01% by positioned strongly since mid 2004. premium. These were higher than for traditional plans. Low commission Impact of lapses on reserves and • Lapse rate with respect to number in solvency margin in the first year Unit linked products was observed to • For an Endowment type of product contributes to have increased from 17.80% (2004-05) to (with profits): (for a typical endowment 26.09% (2005-06) and decreased to the lower level policy of term 15 years with age at 14.34% (2006-07) while premium lapse of lapses in the entry of 35 years and sum assured of rate continued to increase from 4.89% following years 25,000/-) (2004-05) to 11.35% (2006-07). as the omission is well Duration since Per unit increase in lapse rate Per unit decrease in lapse rate inception distributed over (years) Change in Change in Change in Change in statutory reserve solvency margin statutory reserve solvency margin the initial 0-3 1.85 0.84 -1.84 -0.83 period. 4-7 0.31 0.22 -0.41 -0.29 8-12 -0.08 -0.07 0.15 0.12 13-15 -0.50 -0.41 0.34 0.28 irda journal 12 Jan 2009
    • research paper • For a Term Assurance Product: (for term assurance product with term 20 years with age at entry of 35 years) Duration Per unit increase in lapse rate per unit decrease in lapse rate elapsed (in years) Change in Change in Change in Change in statutory reserve solvency margin statutory reserve solvency margin 0-8 0.00 0.00 0.00 0.00 9-15 -0.94 -0.03 0.75 0.06 For a typical term 16-20 -1.79 -0.04 1.96 0.05 assurance product, there was no - For a typical term assurance product, the initial years lead to zero statutory there was no considerable effect of reserves and constant solvency considerable increase/decrease of lapses on margin. effect of increase/ statutory reserve or solvency margin - In the later years of the policy, decrease of lapses in the initial seven to eight years after statutory reserves and solvency on statutory inception of the policy. This was margin decreased with increase in due to the fact that negative lapses and vice versa. The level of reserve or solvency mathematical reserves resulting in change increased with duration. margin in the initial seven to • For a Unit-Linked product: (for an age at entry 35 years with term of 15 years and eight years after sum assured of Rs. 2 lakh) inception of the Duration since Change unit statutory reserve policy. inception (years) Per unit Per unit increase lapse rate decrease lapse rate 0-5 -0.15 0.32 6-10 -0.35 0.95 11-15 -0.78 0.57 Statutory reserve in respect of non-unit which might be due to the nil outgo - Profit increased even at later fund decreased with increase in lapses from the company on lapses and the durations due to excess of asset share and the level of decrease was higher with total asset share released the profit over the surrender value. duration elapsed since policy inception. to the company. - The rise in profit with rise in lapses - At the first one or two year duration, Effect of lapsation on profits of insurance increased with duration after the over which surrender value begins to company commencement of surrender- become payable, the profit for the eligibility period. • For an Endowment type of product company increased with lapses but (without profits): For a typical endowment policy of term the increase was smaller than that - For a typical age at entry, higher 15 years with age at entry of 35 and sum before the surrender-eligibility losses were observed with higher assured of 25000. period. lapses in the first policy year which might be due to heavy initial expenses for which loading has been spread Duration since Change in profit over the term of the contract and inception high negative asset share. (years) Per unit increase lapse rate Per unit decrease lapse rate 0-1 -7.99 4.47 - After the first policy year and up to 1-6 0.93 1.35 the period during which no surrender 7-10 0.91 0.92 value was payable, the profit 10-15 0.95 0.61 increased with increase in lapses irda journal 13 Jan 2009
    • research paper Recommendation • For a Term assurance product: - For a typical term insurance product, It is recommended to have a uniform For a typical term profits decreased with increase in grace period of 30 days for annual, half lapses at almost all durations of the yearly and quarterly modes, and 15 days insurance product, term. The rate of decrease was for monthly mode; and to consider a profits decreased higher in initial years than in the later policy lapsed if the premium is not paid with increase in years. with in the grace period. (Uniform “Grace Period” and uniform “Lapse Definition” - The decrease in profits with increase lapses at almost all across the industry shall go together.) in lapses could be attributed to i) low durations of the Policies, for which the premiums are paid premiums charged which do not term. The rate of after the grace period date may be cover the expenses unless received treated as reinstatements, provided the fully ii) increase in lapses resulting decrease was premium is paid within the revival period from selective withdrawals which higher in initial of 2 to 5 years, as per insurers’ internal tend to increase the average years than in the practice. Companies may be asked to mortality of the remaining follow this definition even for reporting policyholders exposed to risk and later years. purposes to IRDA. hence mortality cost increases. For term insurance product with term 20 years with age at entry of 35 years Duration since Change in profit inception (years) Per unit increase lapse rate Per unit decrease lapse rate 0-3 -0.16 0.84 4-8 -0.39 2.01 9-12 -0.23 0.37 13-19 -0.65 0.85 19-20 -0.09 0.13 • For a Unit Linked Product: (For an age allocation rates and high surrender at entry 35 years, Sum assured of Rs.2 penalties. In later years of the policy lakh and term of 15 years) term, higher lapses resulted in decrease in profits and the level of - Higher profit/lower loss was observed decrease increased with duration. with higher lapses in the first three years. However, the level of increase - Converse was the case with decrease in profits decreased as the duration in lapse rate. elapsed which could be low initial This is an executive summary of the first occasional paper published by IRDA. Duration since Change in profit The study has jointly been conducted by inception Dr. R. Kannan, Member (Actuary), IRDA; (years) Per unit increase lapse rate Per unit decrease lapse rate Mr. K.P. Sarma, Appointed Actuary, 0-3 0.16 -0.28 Cholamandalam General Insurance Co. Ltd.; Mr. A. V. Rao, Deputy Director 4-10 -0.24 0.67 (Actuary), IRDA; and Mr. S.K. Sarma, Asst. Director (Actuary), IRDA. 10-15 -0.71 0.57 irda journal 14 Jan 2009
    • issue focus Need for Cautious Approach MORAL HAZARD IN LIFE INSURANCE DR. G. GOPALAKRISHNA OBSERVES THAT ALTHOUGH IT IS HIGHLY IRRATIONAL TO ATTRIBUTE THE EXISTENCE OF MORAL HAZARD IN LIFE INSURANCE, THE UNDERWRITERS HAVE STILL TO BE CAUTIOUS ABOUT THE POSSIBLE MAL-INTENTIONS OF AN APPLICANT. I n general, the most important To fix the rates, it is necessary to give a It says that the rates of premium should question in undertaking a risk for ‘mathematical value’ to the risks. For be equitable and fair as between insurance is: what should be the rate example, if the loss experience of a large different individuals insured. Strictly of premium to be charged under a policy number of motor cycles is collected for speaking, each individual should be of insurance? The rate of premium is fixed a period of say 10 years, the result will charged a premium according to the according to certain principles: indicate the sum total of the losses hazard to which he is exposed. But this resulting from damage to the vehicles. If is not feasible. Therefore, a system of Firstly, the premium varies according to this amount of loss is expressed as classification of risks in broad categories the degree of hazard or exposure to loss percentage of the total value of motor is adopted. Accordingly for purposes of or damage of the property. cycles, we are in a position to fix the premium rating, motor vehicles are Secondly, to assess the variations to the mathematical value of the risk. classified into private cars; motor cycles degree of hazard, property must be and scooters; and commercial vehicles. classified according to the hazards Hazards in Life Insurance For fire insurance, risks are categorized involved. into dwellings, shops, godowns, The factors affecting risk on the life of Thirdly, the degree of hazard is manufacturing risks etc., on the basis of determined on the basis of past loss occupancy. Within the broad groups, experience. further sub-division, according to hazards involved, is attempted. Private cars are Degree of Hazard: The first principle says classified according to the cubic capacity that greater the risk, the higher should Strictly speaking, of the engine. Higher the C.C. more be the premium. The more probable the each individual powerful the engine and higher the loss and the more severe it is likely to should be premium. In fire insurance, godowns are be, the higher should be the premium. classified according to the type of goods charged a There is a greater likelihood of fire in a stored e.g., non-hazardous, hazardous, building of wooden construction than in premium extra-hazardous etc. The similarity of a concrete building. Hence, the former according to the hazard is the basis of classification. is charged higher premium and the latter hazard to which lesser premium. Goods vehicles are more Past Loss Experience: The third principle he is exposed. exposed to accidental loss or damage says that the rate of premium is arrived than private cars. Hence the former at on the basis of past loss experience. attract higher premium than the latter. Therefore, statistical data regarding past losses is most essential for purposes of Classification of Risks: The second calculating rates. principle flows from the first principle. irda journal 15 Jan 2009
    • issue focus submission of hospital or treatment which are not illnesses or degenerative, records. It may be fear of disclosure of are hazards affecting the probabilities personal and family matters. It may be a of death. feeling that the facts are not very • Personal history: This is important as important. Sometimes field workers in pointers to the health as well as the Moral Hazard in their enthusiasm for business help the life style of the person. life insurance is proposer in doing so or even make him • Family history: This is looked at to see of greater and the victim of their design instead of whether there is any hereditary factor faithfully acting as the primary particular that makes the person susceptible to underwriter. An agent may, for instance, importance and illnesses. Family history of early deaths, arrange for an informal examination of the of cardiac illnesses or diabetes, could significance to prospect and if some adverse features, be significant. the last core say a trace of sugar or albumen in urine • Occupation: Extra hazard due to whether at all to or an abnormal blood pressure is noticed accident, (e.g., Truck driver, Permanent the doctor gives some casual instructions entertain to way Engineer, blaster, aviator etc.): about diet and tells him that there is consider for affecting health (e.g., Glass blowing, X- nothing to worry about. After one or two insurance. ray machine operators); affecting mode informal examinations prove favourable, of living, (e.g. liquor trade). a formal examination is done and proposal • Residence for maximum possible sum assured secured. • Environments • Habits The likelihood of hiding or distorting some information affecting risk appraisal is Part or certain of these and particularly called Moral Hazard. It is said to arise the last two come under Moral Hazard. an individual are called hazards. Hazards whenever it is within the control of the By far, Moral Hazard in life insurance is of may be (i) Physical (ii) Occupational or applicant to increase risk to the insurance greater and particular importance and (iii) Moral. Physical Hazards are: company. The underwriter has to exclude significance to the last core whether at • Age: As age increases, the probability the possibility of moral hazard so far as is all to entertain to consider for insurance. of death increases. practicable. Preliminary: Life insurance is a long-term • Sex: Mortality of female lives is seen to Thus, Moral Hazard in life insurance refers contract and a correct appraisal of risk be more than that of male lives at to the intentions of the proposer. If the can only be made if the insurance younger ages, among the poorer and proposal is being made because there is company has before it information on all uneducated sections, especially during a genuine need for insurance, there is the factors which influence its decision. child-bearing period. no moral hazard. If the intention is to seek But there are certain aspects of risk • Build: Build including height, weight, undue advantage through the insurance about which only the applicant has and chest and abdomen measurements, policy, there is some moral hazard. The complete knowledge. These facts should may suggest tendencies towards undue advantage may be to get a lower be carefully and truthfully recorded in cardiac and other ailments like diabetes premium or to make some quick the application. The applicant may for or tuberculosis. monetary gains. This has to be judged various reasons deliberately hide or largely from secondary evidence like life • Physical condition: The medical distort some information or do so styles, income as compared to premium examination of reflexes, blood pressure, inadvertently. It may be to make a gain payable, reputation for integrity, and so pulse rates, urine etc. provides data upon death. It may be feared that on. with regard to the condition of disclosure may result in declination of important systems of the body. proposal by insurer. It may be an anxiety Moral Hazard is not measurable. There is to obtain insurance at standard rates. It • Physical impairments: Blindness, no test to establish it. It is a matter of may be fear of being harassed for deafness, etc. and other conditions, opinion. If moral hazard is suspected, no irda journal 16 Jan 2009
    • issue focus amount of extra premium will be of residence, when the nominee is not insurer is in a position to gauge the risk the nearest dependent of the applicant; involved because it can ascertain appropriate. Underwriters would hesitate when there is an indication that the therefrom the age, sex, occupation, to accept such proposals at any cost. But agent has some interest other than merely physique and present condition of health they would like to be fairly certain before his commission; when the proposer is a of the individual; the risk of death in the deciding so. Some of the situations where female who has no income of her own or case of a particular proponent depends moral hazard can be suspected are when has a very small unearned income and has also on other factors such as his own the proposer is old and has not been no dependents: (in this case apart from personal habits, his standard of living, insured earlier and the proposal is for a the lack of capacity to pay premiums, income etc. To this extent, the insurer large amount; when the proposal is for there may not be any need for insurance). is dependent upon the agent for a true an amount much larger than what the and correct picture of the individual to income would justify; when the premiums Financial Underwriting be given in the Agent’s Confidential under all policies (old and new) are out Report, which is required to be of proportion to the income of the One of the indicators of moral hazard is completed in all cases. applicant; when there is request for the size of the insurance proposed sudden increase in insurance; (when a compared to the income. The extent of The income of a proposer plays a very person who has all along been obtaining insurable interest of a person in his own important part in deciding the moral insurance policies for small or moderate life is unlimited. It is not limited to his hazard involved in acceptance of the risk amounts suddenly applies for a high sum current levels of income, because it is on his life. Moral Hazard would operate assured policy, especially at higher ages); assumed that these levels can go up any in cases where there is no genuine need when a large amount of insurance is time. There is nothing that prevents a for insurance. The need for insurance proposed on the life of a family member petrol pump attendant becoming the which is a financial transaction can be while the main earning members are not biggest industrialist of the country or measured by the financial loss to the insured or are insured for relatively small those sleeping on the footpaths becoming beneficiary resulting from the cessation amounts; when medical examination is rich film stars. Yet, the premium on the of the income earned by the life assured done at some place other than the place insurance policy has to be paid regularly. due to his death. Income from If it is being paid from current income, investments or property does not give rise then the source of the premium needs to to a need for insurance as it does not be checked. If someone else is paying cease on the death of the holder. Policies for it, there could be issues of insurable of assurance are sometimes taken for interest and wager. The need for insurance securing rebate of income tax; such has to be related to current situations rebate is available in respect of premiums The need for and not to a desirable situation of the paid not only under standard tables of insurance has to future. When the premium paid is large assurance but under Deferred Annuities compared to the income, there are be related to as well, subject to certain conditions. possibilities of heavy lapses, higher claims, Where there is no genuine need for current situations money laundering and fraud. The insurance, the object in taking out and not to a underwriter has to be satisfied on these insurance would be speculative in a desirable counts. Making a judgment on these proportion of cases; and even after all financial aspects is called financial situation of the reasonable precautions are taken by the underwriting. Thumb rules like ‘insurance not insurer to control the operation of moral future. more than 10 years income’ are guidelines, hazard, the mortality of a group of such but may not do justice in all cases. assured lives would be higher than expected. In view of this, the insurer must Aspects of Risk and Moral Hazard be supplied with correct information as regards the means of livelihood and Although from the statements made in the income of the proposer to enable it to proposal form, personal statement and judge whether the amount of assurance medical report (where required) the irda journal 17 Jan 2009
    • issue focus proposed is commensurate with the persons in this category is easily known, proposer’s income. For this purpose a it is difficult to get full information Moral Hazard Report is obtained in all relating to health and habits. cases of large sum proposed. Necessity for Moral Hazard It may be possible to group the persons Reports It is for the who go in for large amounts into three For a proper financial underwriting which underwriters to categories. has as its objectives (i) prevention of anti- insist on the • Persons who have large inherited selection (which has a great scope and information wealth (Princely families in India may be attraction in the case of proposals for considered as belonging to this relating to large sums) and (ii) prevention of mortality category); various aspects of experience in respect of policies for large • Persons who have large inherited amounts becoming worse than average, the matter in full wealth personally accumulated; it is absolutely essential for the from the field underwriter to obtain a very accurate and • Persons who have moderate wealth force. detailed information on the health, habits personally accumulated, but of recent and financial worth of the proposers apart acquisition. from a satisfactory medical insurability. Moderate Wealth of Recent Acquisition: The two sources through which the moral It is the third category which is the hazard can be assessed are (1) reports largest number and most likely to be met from independent sources and (2) from by us. The ‘neo rich’ which is a fast- A favourable feature in this category may field personnel from the organization. growing class in our country may perhaps be that persons are likely to have their Reports from Independent Sources: come under this category. The most wealth well-distributed over different Reports from independent sources mean common cases to be met in our work are businesses or enterprises and direct enquiries by the insurer or persons of persons who have moderate wealth but consequently the risk of the fortune who are likely to have information about accumulated in a short span of time. The being wiped out due to failure in one the proposers. Such reports may not be unfavourable factors in respect of such enterprise or the other would be little of value since the persons inquired are proponents would be that the entire and hence the chances of suicide under no obligation to report the exact fortune may have been created and negligible. It is, however, difficult to truth and it is also possible that their invested in one or two business concerns. obtain detailed information regarding the knowledge is meager. It may be that the wealth so accumulated wealth and the sources of income of such is due to speculative enterprises. The persons. Reports from Field Personnel of the possibilities, therefore, of a failure and Organization: It is, therefore, desirable Wealth Inherited: The persons in the first the entire fortune being wiped out is to attach more importance to the reports category may be considered to have some quite large and hence the risk of suicide. of sales force who are salaried officials favourable factors from financial The question of business strain as well as of the organization. The field personnel, underwriting angle. Unlike active the habits and the manner of spending unfortunately do not investigate into all businessmen, they are not subject to leisure hours is also very important. the relevant aspects of the problem or strain and stress of modern business life. perhaps they are not aware of what Wealth Personally Accumulated: In the It could normally be expected that aspects are to be looked into and second category, the adverse features persons in this category would apply for reported upon. It is for the underwriters would be that the persons would insurance at a comparatively young age. to insist on the information relating to generally be of an advanced age and Caution is, however, required in various aspects of the matter in full from would have undergone tremendous examining the habits and how they spend the field force. To ensure better and business strain before they could their leisure hours. With plenty of money more accurate reports, it is advisable that accumulate vast wealth and such strain and leisure some are likely to lead a fast the officer calling for the reports should may have adverse effect on their health. life. Although the financial worth of irda journal 18 Jan 2009
    • issue focus a problem of environment, and reputation or the way he conducts list the points on which he wants the field environment is a function of occupation. himself in general. The problem of moral official or the Branch Manager to focus The underwriter has to first analyze the hazards may be divided into 2 sections. upon and at the same time allowing them hazard as it exists and then classify the The first is sexual morals and the second, to add anything else of material employee and give him his exact position other morals. With regard to the first, importance. in that hazard. In covering occupational there is the hazard of promiscuity, of Most applicants make honest answers to hazards, there are also illegal occupations. being inflicted with disease, of being shot the questions on insurance applications. In any illegal occupation, the problem is at by some other individual. The second Occasional applicants give dishonest one of selection. Such cases have to be problem is that of business morals, e.g., answers. The coverage is highly desirable underwritten with great caution. an individual with a spotty business and they seek it by fair means or foul. record, with a criminal record, or with a The next major factor that the Insurance contracts are based on record of undesirable associates. The underwriter is concerned is that of habits representations. If materially only advice to give an underwriter in such and morals, what the underwriter calls misrepresentative, a life office may deny a case is to be on his guard, because such intangibles. The information available is liability but not beyond a two-year limit people cheat the insurer. It is necessary invariably incomplete and it is difficult to except on grounds of fraud which is a to distinguish between real business measure departures from the normal. The statutory restriction imposed by law criticism and business envy. There are information as to habits comes generally under Section 45 of the Insurance Act certain occupations wherein the from the (inspection) moral hazard report. 1938, in recognition of the interests of individual has to be pretty shrewd or In reporting, the sales official must realize the beneficiaries. sharp operator in order to survive, the that the insurance office is interested in Every underwriter evaluates moral hazard scrap metal business is an example. That finding out whether his habits are every time he makes an appraisal of a risk. does not mean that the applicants in the different from the normal. It is not unusual He accepts statements from applicant, business are crooked. On the other hand, when there is criticism of man’s habits to agent, sales supervisor, family physician, an applicant with a record of business find criticisms of his morals, business at full value or less, and approves or failures, most of which have a faint aroma hedges, according as he believes those of suspicion about them, calls for careful underwriting. It will probably be necessary statements. Chief hazard from company to charge a small extra premium. insurability standpoint is character or lack of it that the applicants show. Habits The Speculative Hazard is the main hazard. reflect character. Character can be good The man may be buying the insurance in or bad, strong or weak. order to make a dishonest fortune and It is necessary particular care is called for if he is buying Outside the physical impairments, the to distinguish a cheap form of insurance. This is the first factor is Occupational Hazard. This between real group wherein the underwriter is under can be divided into 3 groups: accidental business great pressure to take them at standard hazard, health hazard and a social class rates, being assured that their habits and hazard. Example of accidental hazard is criticism and morals are above reproach. the worker in a power plant. The best business envy. example of a health hazard is the Again, Moral Hazard in Life Insurance incidence of silicosis among workers in includes such matters as personal dusty trades, such as stone-cutting. In reputation or character, business ethics, the 3rd category, the unskilled labourer, environment, speculation and as said, sex for example, is a member of a social relations. They are frequently found with group, which returns a much poorer criticism of alcoholic and drug habits. mortality than do many other Broad cases may be discussed under two occupations. headings. (1) morals of a sexual nature, and (2) other moral criticisms. In The Social Class Hazard is fundamentally irda journal 19 Jan 2009
    • issue focus classifying the applicants under these The record of business failures is available, categories, it is not the function of the but a reputation for shrewd trading underwriter to sit in moral judgment; his should not necessarily be interpreted as business is to classify them according to sharp practice. The general reputation their expected longevity. The moral of the business should be considered. It hazard group involves a departure from is possible in this group of applicants with Good faith is of the normal accepted standards in one poor business records that we face the the essence of way or another and such departures greatest hazard of speculation. the contract and produce extra mortality. Applicants who have a criminal record, a the primary The chief problem is that although an smaller group, require careful scrutiny danger is severe individual is criticized and treated as a and the reasons why the applicant has social outcast from the point of view of been in jail must be thoroughly anti-selection morals – social or other – yet, he will be investigated. These cover evasion of laws, since the accepted as a normal member of the or thieving or homicide. Speculation is applicant may society. The adverse information is public another hazard and each case has to be decide that it is to property but in the majority of instances, considered on its own merits. his advantage to the information will be discovered only The next question falling under the broad in the course of a thorough investigation. conceal pertinent groups are applicants whose associates Sexual Morals: This is a very difficult one information. are undesirable even though the from an underwriting viewpoint because applicant himself may have an apparently the cases which arise run all the way from clean record. An applicant should be the indiscretions of youth, which may be judged by the company he keeps and, overlooked, to the front page extra- for example, the politician whose marital affairs of a millionaire playboy or associates are underworld figures is not careful inspection as being not as much playgirl. The hazards of promiscuity are an attractive risk. In this group the pillar of the church as everybody the possibility of contracting particularly, though it is common to all thinks he is, and on the other hand the communicable diseases, the frequently moral hazard cases, the question of public individual who is spreading across the undesirable associates and of being shot relations should not be overlooked. front pages of the newspapers from coast at by some other individual who does not to coast. Many examples of the dangers Lack of insurable interest suggests like the attentions to his wife or to of these various items can be found by speculation. It may not always be evident someone else’s wife. drawing upon claim experience rather and may be unintentional. For example, than upon underwriting experience. The next question is divorces. Although cases written on a basis of tax advantages divorce is an accepted social solution to from an investment angle as distinct from Other Moral Hazards: Cases that come the problem of incompatibility, a an ownership angle. If such insurance is under this broad group are called succession of divorces betokens a mal- purchased by a person other than the business morals e.g., an individual with a adjustment to normal ways of living. insured, suspicion should inevitably arise spotty business record, with a criminal Further, many divorces have their origin and investigations to this end may properly record, or with a record of undesirable in the habits or morals of one of the be conducted. associates. partners. The cases require careful Even well-to-do persons reported to be Good faith is of the essence of the investigation and the underwriter should having adequate income but with a queer contract and the primary danger is severe be satisfied as to the true nature and way of life cannot be taken on the face anti-selection since the applicant may circumstances coming under this value. Their mode and standard of living decide that it is to his advantage to category. may not be consistent with the reported conceal pertinent information. The There is a difference between on the one income and investigations to this end have hazard in this group is discovered all too hand, the individual who is revealed by to be carefully carried out. In one case frequently only on an early death claim. irda journal 20 Jan 2009
    • issue focus in U.S.A. an application was received for The underwriter must regard life vehicles on account of growth of weeds an amount of $ 50,000 from a real estate insurance as “essentially a contract of and bushes. The dwelling house was dealer aged 40. Existing insurance was indemnity,” and see that the amount surrounded by bushes and swampy land there to the tune of $ 52,000. An bears a reasonable relationship to the loss and was enclosed by a fence. Only one inspection report estimated the worth the beneficiary will suffer by the death person in the neighbourhood knew the of the applicant to the tune of $ 100,000. of the insured. The underwriter obviously applicant although he had lived there for The inspection revealed that the must have information regarding the 5 years. He had been in an unfavourable proponent had formerly kept a saloon current and prospective financial illegal occupation. There was additional during the prohibition period and made condition of the proposer and his information that this man had been plenty of money selling bootleg whisky. complete insurance programme. This may arrested twice for the illegal sale of liquor. The application was approved by the require supplementing the usual sources It will, therefore, be necessary to insurer. Shortly after 5 years, the company of information with verified statements carefully investigate the question of over- was called upon to pay the claim due to from the proposer himself. insurance whenever there is a proposal the death of the policyholder. In order that the life assurance contract for a large amount of assurance, prior to Postmortem underwriting revealed that is sound, the person who stands to the granting of assurance itself. The only the applicant is reported to be a well-to- benefit from the proceeds must be in advice to give an underwriter in such a do man, he was practically unemployed such a relationship to the assured as to case is to be on his guard, because such except for looking after his own have a real and genuine interest in the people cheat the insurer. investments. He lived under conditions continued survival of the assured. not normal for a well-to-do individual. He Moreover this real interest should only Conclusion was reported to occupy a house in a be partly compensated for by the Thus the underwriter’s approach to any sparsely settled section of New York City financial result (proceeds) of the application should be from the indemnity on a street which was impassable for assurance. Any other basis involves an standpoint – that insurance cannot be element of gambling and the presence of justified where a loss will not be suffered. Moral Hazard. Unless the beneficiary stands to lose rather than gain by the death of the insured, an insurance contract is without adequate insurable interest and insurance without insurable interest is a mere It will be necessary “wager” in law and is prohibited. It is up to carefully to the underwriter to evaluate the probable loss on the death of the life investigate the proposed and whether the insurance question of over- applied for together with already carried insurance on the life can be regarded as excessive whenever there is or otherwise. The amount, need and purpose of insurance are important. The a proposal for a amount must be consistent with his large amount of economic value and the amount of assurance, prior to insurance that is “normally” carried in the granting of similar circumstances. A sudden interest assurance itself. in a relatively large amount of insurance is a warning signal unless changes in the particular person’s affairs establish both increased need and increased ability to The author is a retired Senior Officer, LIC of India. pay for such large insurance. irda journal 21 Jan 2009
    • issue focus Risk Acceptance Criteria UNDERWRITERS’ DILEMMAS G V RAO EMPHASIZES THAT THERE IS A TENDENCY ON THE PART OF THE UNDERWRITERS TO ASSOCIATE PHYSICAL HAZARD ONLY, WITH HEALTH INSURANCE AND NOT MORAL HAZARD; AND HENCE THE PREMIUM THAT VARIES WITH ONLY ONE FACTOR - AGE. HE FURTHER ADDS THAT THIS APPROACH SHOULD UNDERGO A METAMORPHOSIS IF HEALTH INSURANCE HAS TO BE MORE SUCCESSFUL. How does insurance operate? experience of the category of the risk in behavior. An insured’s protective instincts I its entire range in the pool and. the may, therefore, slip a notch or two. nsurance, essentially, is an special risk management practices arrangement of risk-transfer by one The risky behavior can also become voluntarily undertaken by the insured. entity, called the insured, to another, apparent, ‘ex-post’ of a claim occurrence. The insurer has also an option to inspect called the insurer, who has the expertise As full claim payments are assured in many the risk offered for insurance to validate and the financial means to pool similar insurance contracts, the post claim its risk assumptions and perceptions. risks and manage them to be able to pay behavior of an insured could pose the claims of one or more insured, out of challenges to an insurer on the moral Moral hazards the premiums collected from the other hazard of the insured, unanticipated by insured members of the pool. Each the insurer, at the acceptance stage. The Moral hazard is the idea that concludes insured member of the pool has peculiar degree of inherent moral hazard in either that providing insurance in any form risk exposures of its own, in terms of the makes an insured’s behavior riskier. Once physical hazards of the property, and its the risk is insured, the insured is insulated techniques of risk management practices from the full financial consequences of to prevent occurrence of accidents; and the risk, and could behave differently from Behave at all times, for minimizing loss potential, if a loss were the way he would have behaved, had not as though uninsured’ to occur. The premium collected from the risk been insured. Such a likely is the golden maxim each member of the pool is based on the behavioral change in an insured is called extent of its risk total exposure, and the ‘moral hazard’, associated with a risk and principle in probability of loss occurrence and its acceptance. ‘Behave at all times, as insurance parlance. likely magnitude. though uninsured’ is the golden maxim Yet, it is not possible and principle in insurance parlance. Yet, Physical hazards it is not possible for an insurer to for an insurer to undertake a ‘perfect monitoring’ process The hazards or risk exposures of an undertake a ‘perfect of such behavior from an insured insured’s property, which threaten the monitoring’ process throughout the policy period. physical safety of the properties, of such behavior operations and occupations, are called Such a ‘risky behavior’ can arise ‘ex-ante’ the ‘physical hazards’. These hazards can of insurance buying, when an insured may from an insured reasonably be assessed by an insurer, feel it as an incentive to neglect or dilute throughout the policy based on the common risk characteristics the degree of care and skill, with which period. of the category or occupation to which his property was protected earlier, just the risk belongs, its peculiar risk or hazard because it is now insured; and because exposures, if any, and how these are he would not have to bear in full, the handled by the insured, the loss negative consequences of his new irda journal 22 Jan 2009
    • issue focus before them, for quoting the lowered case throws the mutual interests of an premium rates, as they are doing now. insurer and its insured, out of alignment, Insurance underwriting is fast turning out causing problems to both, at a claim The current to be a profession, based more on negotiation stage. ‘speculative skills’ of how their acceptances proposal forms in While insurers’ underwriters are trained would turn out in the end than usage of usage are not to price risks, based on the physical ‘underwriting skills’, based on actuarial features of the risk, they lack a lot more designed to obtain principles and data. Such an underwriting information, at the underwriting or process is unfair to the other insured information on acceptance stage to discover the extent members of the pool. of moral hazard that usually gets other important associated with it. The entire tariff rating aspects of physical Economic pricing vs. Efficiency structures, built in the earlier era, were pricing hazard; nor on the based on insurers’ perceptions of physical In pricing a risk based on economic hazard alone. risk management factors, the risk factors presented by practices of the each insured are evaluated to include, Hazards’ evaluation specific insured. both the moral and physical hazards. In An insurer has the tools of a ‘screening efficiency pricing, the insured’s appetite process’ through collection of a completed for risk-taking would decide the rate to proposal form, risk inspections and analysis be quoted to grab the premium numbers of such data. But, unfortunately, the involved. The group medical insurance of insurance industry has inherited a system Moral Hazard a corporate entity is a classic example of of not taking proposal forms for evaluation the cover being rated on efficiency rating Between the two hazards—the physical of hazards. And even if some of them did, on what gets the deal done. The market and the moral hazards—it is this writer’s occasionally, it was done more for behavior of competitors would dictate the view that insurers should even be better knowing the choice of perils selected, efficiency pricing mechanism. Competition informed on the moral hazard aspects of the identification of the property insured has, therefore, an important role to play an insured, before committing themselves and their sums to be insured and the in regulating and fixing the behavior of to risk acceptance. Moral hazard comes address at which the property is situated. all insurers. We are witnessing the in five shapes: (1) informational asymmetry The current proposal forms in usage are scenario of rapidly declining rates, despite (2) adverse selection (3) fraud (4) not designed to obtain information on such rates being uneconomic. deliberate breach of statutory laws, or other important aspects of physical scant regard for their compliance, and It is uncertain, if insurers of today have hazard; nor on the risk management (5) poor housekeeping and unsatisfactory any lists of their customer profiles, in practices of the specific insured. industrial relations. detail, of the top fifty profit givers in their Since the moral hazard factor was never amounts; neither is it likely that they Insurers do not currently have a an underwriter’s concern in the tariff era, would have the list of the top fifty loss standardized mechanism to evaluate it was left out of underwriter’s reckoning, givers, in order of magnitude of losses. these five issues. The first three aspects either in collection of information Unless one has such data, the fifty loss of moral hazard are too well known to be gathering or screening it further to be givers would continue to be regarded as recounted here. In respect of dealing able to adjust the rating process for it. valued connections, more on account of with the moral hazard of an insured, The consequences of moral hazard of an the premiums they give; and the top fifty insurers have shown a lot of vacillation, insured continue to be dealt with only profit givers would receive the same kind in deciding on the quality of the moral at the claims settlement stage. And the of services that the others would get, as hazard of the insured, particularly when process is popularly called, as ‘underwriting their premiums may not be big enough. claims are reported. Every claimant is at the claims stage’. The mindset of all Insurers should build customer profiles regarded as a virtual suspect character; insurers, both in the private and public of each customer and pass on such data and their claims are scrutinized for lapses sectors, is rooted to the past practices, to underwriters. The underwriter should in moral hazard more seriously. The with changes coming in slowly. be allowed to use subjective judgment damages caused to the reputations of in addition to rating structures given to insurers are just ignored. In a detariffed Neither the insurers nor their underwriters him, based on profitability capital built scenario, as now, such risky behavior of have any statistical or other acceptable by an insured. insurers is inexcusable. evidence or any theoretical reasoning irda journal 23 Jan 2009
    • issue focus For the insured claimants, therefore, forms to elicit answers on issues also probability of a loss occurrence; and it is such negative attitudes compel them to impinging on the moral hazard aspects of this probability variable that an question the moral hazard of insurers, who insured to make their answers, as examination of hazard analysis must focus seem either unwilling or unable to pay representations made that are binding on upon. The rate charged must also be fair their claims promptly, as promised. the insured. Quite often accidents do to the other insured members in the pool. Inefficient and ignorant claim staffs of occur, due to deliberate breaches of insurers have added a lot more to safety laws, and insurers must make them Final word reinforce this belief of poor moral hazard. aware, that while negligent aspects of Perhaps one of the reasons why hazard Insurers should be aware of it; and they implementation are covered, deliberate evaluation is not yet a part of a serious should take particular measures to act in breaches of laws to gain monetary underwriting process is the lack of good faith. advantages are not. Laws on fire safety education of present underwriters, are an important aspect. Secondly, insurers, Surveyors and their inefficiencies are also whose ‘mental risk horizons’ are not while adjusting their premium rates, a source of bad moral hazard for insurers. expanded enough for them to work out should ensure that full indemnity is not The powerlessness of insured claimants possible scenarios of how to deal with usually provided, and the insured too to take on their insurers, who refuse to each of them. Lack of information on should suffer in the bargain, making them document their grounds for delays or frequency of claims and average severity pay for their risky behavior. Where the repudiation or partial settlement of of claims for each risk category, and for industrial relations are bad, it is a sure claims, does represent the biggest moral each customer and collection of risk sign that safety practices are lax. Safety hazard of insurers. The public perception profiles of the portfolio in identified audit reports must be scrutinized to ensure of moral hazard, unfortunately, is focused ranges of sums insured, premiums and improvements in loss prevention processes, more on the poor moral hazard of an claims reported inhibits how to evaluate following audit recommendations. insured claimant. Insurers too should and determine rates for physical hazard. look, without and within themselves, to The moral hazard phenomenon in health For dealing with the moral hazard, it minimize the impact of their poor moral insurance is due to the continued should be relatively easier, as it is based hazard on the insured. Moral hazard is encouragement of insurers to fully on the individual risk. The underwriters, double-edged sword. indemnify their claimants. The statistical by adjusting rates and terms, can deal evidence put out by the TAC has shown with them, so that the image of an insurer that the frequency of claim occurrence Moral hazard and solutions is not tainted by poor behavior later at is low; and that only a few claimants are Insurers should design their proposal the claim settlement stage. taking away, the entire premium in the Natural perils’ exposures present their pool. Insurers have done little to change own difficulties to an underwriter, from the risky behavior of their claimants. the hazards perspective. The claim results Insurers are treating the health portfolio, Insurers should could be catastrophic in nature and as though the portfolio has only physical design their proposal extent; and an underwriter has to deal hazards to deal with; and that is why ‘age’ with groups of bunched risks in each of an insured alone is the determining forms to elicit location. This situation is even more factor for premium rate. This is entirely answers on issues complex, as the physical and moral hazards a wrong way of underwriting the physical also impinging on of several acceptances are bunched and moral hazards involved in this together. But the present method of portfolio. the moral hazard hazard analysis and the measures taken The maxim that an insured should act at aspects of insured to by insurers to deal with them are not all times, as though he is uninsured, must make their answers, adequate. be tested by examining the ground as representations It is hoped that the above exposition realities in usage. Rating the risk must be would stimulate insurers to begin to divorced from evaluating the features of made that are understand the hazard exposure analysis hazards. When a loss does occur, it does binding on the with more clarity, purpose and effect. not matter, what exactly was the rate insured. charged; similarly when a loss does not result, it does not matter how low the rate charged was. Loss occurrence is a The author is ex-CMD, Oriental Insurance matter of computing the degree of Co. Ltd. irda journal 24 Jan 2009
    • issue focus Hazards in Motor Insurance DEALING WITH COMPLEXITIES LOKNATH P KAR EMPHASIZES THAT THE INCIDENCE OF MORAL AND MORALE HAZARD IN THE DOMAIN OF MOTOR INSURANCE . PLAYS HAVOC WITH THE UNDERWRITING ESTIMATES AND PRICING. T he term hazard is derived from the for the benefit of the community of Arabic word ‘Az-zahar’ meaning insureds and society at large than the chance or luck. A hazard within community of insurers. the framework of insurance represents a In the Indian scenario hazards may condition that may create or accelerate embrace a broad category of factors that a loss-generating event out of a peril. usually tend to multiply the liability of While Basically hazards are external factors that insurers. Amongst the insurance products trigger peril, leading to losses. From an underwriting a in India, motor insurance suffers underwriting perspective, hazards risk, the comparatively higher susceptibility to represent the unknown factor that may underwriters are hazards because of a traditionally lead to unwarranted losses resulting into also expected to hazardous environment, multiparty increase in the premium. At the time of service procedures, geographical account for evaluating a risk, underwriters look at distribution and unlimited liability in various factors for the pricing of hazards by motor third party insurance. insurance policies. Separate values are whatever best attached to the specific characteristics possible way Hazards in Motor Insurance of the perils covered, probable frequency those could be and severity of the perils vis-a-vis insured’s Morale Hazard evaluated. capability for loss prevention and Morale hazard refers to a tendency on minimization through various preventive the part of the insured to be careless and safety measures. While underwriting merely because there exists an insurance a risk, the underwriters are also expected cover. The careless attitude of the insured to account for hazards by whatever best tends to magnify the risk and increases possible way those could be evaluated. the liability of the insurer. This differs from Moral hazard, as there is no deliberate The risks involved in hazards are unknown intention to cause the loss. and causes the underwriters to struggle the events of morale hazard are Ex-ante Morale Hazard for putting a value to it, consequently comparatively more than that of any other Ex-ante morale hazard refers to a situation policies are usually priced higher causing product of general insurance and factors undesirable additional burden to the wherein the insured behaves in a more more on the claim events than the policy larger innocent policy holders for the acts risky manner having obtained a motor events during the tenure of a typical of a few self-seeking insured propagating insurance. It is the attitude of the insured motor insurance policy. hazards. Therefore mitigating hazards that and his reckless nature that causes An insured is always expected to act in a arise in the context of insurance is more accidents and losses. In motor insurance irda journal 25 Jan 2009
    • issue focus classified as ‘Adventure Hazards’. In the imbalancing the underwriting context of insurance, most of such premeditations. Such morale hazards, hazards although rampant are which may be termed as ‘Adversarial undeterminable and remarkably influence Hazards’ although are less in frequency motor claims by events and quantum. in comparison to the other classes of hazards also have a deep impact on Violation of traffic rules in India is pricing parameters of motor policies. Somehow, many admittedly an oft-repeated social offence. Last minute rushing over the yellow light, of these taboos A fairly high number of vehicles in India frequent change of lanes, rushing over registered for private use are indulged have been so an unmanned railway level crossing, into public transport activities. This deep-rooted in leaving the vehicles unattended etc are predisposition of the insured has become our daily lives common sights on Indian roads. Somehow, all the more hazardous in the wake of that we have many of these taboos have been so deep- some recent judicial findings interpreting rooted in our daily lives that we have subconsciously (hire and reward) as not a standard subconsciously accepted it as a exclusion for private motor insurance accepted it as a customary practice. Such hazards, which policies. Such hazards most of the times customary may conveniently be classified as compels the insurer to admit a claim practice. ‘Customary Hazards’, are also which the insured has not paid for. These undeterminable in the context of kinds of hazards are potent enough to insurance and cannot be evaluated for subvert the underwriting philosophy of the purpose of pricing. motor insurance. Geographical and environmental Ex-post Morale Hazard way as if not insured. Morale hazards in conditions of India do not always Ex-post morale hazard deals with the motor insurance in India mostly arise from contribute to ‘Physical Hazards‘. More negative consequences of a loss. Once the adventurous predisposition of the than Physical Hazards, Morale Hazards the loss has occurred and insurance cover insured. For example more serious arise under unwelcoming physical is to be provided, the insured desires the accidents occur on the national highways conditions. India still has a number of insurer to pay for more than what the or on the smoother, swifter and wider isolated road stretches with no support negative consequences actually amount roads of India. The tendency of being lax facility for miles. Under such to. Here because it is the insurer who in driving on such roads although circumstances, most of the times an shall pay for the negative consequences hazardous is not uncommon. The most insured drives his partially broken down of the loss, the insured desires the best glaring examples of morale hazards falling vehicle causing further damage to the and the most elaborate of services. into this category are driving under the vehicle. Although the additional damage influence of alcohol or drugs. It could caused to the vehicle is not covered These morale hazards can sometimes lead easily be assessed that every fourth or under the motor policies in India as to extreme liability for the insurer and fifth major accidents in India have some ‘consequential loss‘, it is practically make insurance an impossible business. connection with the toxicity of the driver. impossible to differentiate such damages It is unscrupulously human to expect Apart from the above many of us, at some from the original damage to the vehicle. better services than one is entitled to. point of time in our lives, either under The underwriters, while evaluating There is a plethora of instances where compulsion or otherwise must have taken probable perils with respect to a motor the insured disputes the surveyor’s a decision to drive-on even when feeling vehicle, certainly do not contemplate the decision on reparability of a damaged sleepy, drive across a pot-hole on the road cost of such additional damages and price vehicle or any part thereof demands though it seems dangerous, decided to the policy accordingly. As a result the cost replacement of either the spare part or drive out even on heavy fog and heavy of such damages causes an additional the entire vehicle. In such cases the rains. All such morale hazards may be unaccounted impact on the claims, irda journal 26 Jan 2009
    • issue focus insured starts believing an accident as an to secure a hassle free claim. Under such etc are most common examples of such opportunity than a mishappening and tries circumstances when the insured gets to ‘Inflicted Hazards’ . to capitalize upon such events. Eventually know that there exists some element in Major instances of moral hazard in motor the insured is always given the benefit of the circumstance of the accident which own damage claims is a schematic act by doubt under the principles of ‘Contra may invoke repudiation of the claim by more than one person or entity including proferentem’ but such claims highly the insurer fully or partially, the insured the insured, who in connivance with each aberrate the loss expectations of the instinctively puts every endeavor to façade other fabricate events, procure underwriter and thereby the price such anomalies. In an informed motor documents and manipulate situations to allocation. insurance market like India such conceal the repudiable circumstances or endeavors by the insured easily finds A majority of the motor insurance claims create evidence to establish false vicious advices in fulfillment of the in India carry some element of morale circumstances devoid of any contractual desires. hazard inherent to it. It is believed, if the anomaly. The intention is common and for morale hazard element could be reined In own damage claims the events of the material benefit out of an insurance in motor insurance, the frequency and independent effort of insured to conceal claim, to which the insured is not cost of claims would reduce remarkably. or reconstruct the facts which may lead contractually entitled to. The most to repudiation of the claim ranges widely. common of such ‘Intrigued Hazards’ are Moral Hazard Substitution of a licensed driver fabrication of driving license, road Moral hazard refers to a certain confessing to the accident in place of an permits, medical papers and injury undesirable predisposition on the part of unlicensed driver actually driving the certificates in case of motor-personal the insured or the party to be insured, vehicle, misrepresentation of the facts accident claims etc. which adds to the chance of risk and to secure a claim for repair of a damage The most hazardous events are the claims, increases the liability of the insurer. caused to the vehicle prior to insurance which are entirely constituted only for Inflating an insurance claim is not securing an insurance claim, such as uncommon around the world. Motor lodging a theft claim against a vehicle insurance in India is the biggest victim of after selling it off, dismantling it or the practice. A moral hazard in motor concealing it. Such ‘Constituted Hazards’ insurance in India is not only a function most disproportionately inflate the claims of the insured or the beneficiaries of the cost of the insurer than expected and insured, it is an organized function of all thereby the pricing at the expense of In terms of claim the constituents involved in the service scrupulous policy holders. quantum, motor of motor claims. There have been third party As it could be conceived from the instances where even a scrupulous characteristic description of the above insurance claim insured gets influenced by unscrupulous hazards, they are difficult to be identified service providers to inflate the claim or is the biggest of and to be eliminated whereas they leave to constitute a non-claim to be an all claim a remarkable impact on the cost of the insurance claim. components of claims. A moral hazard in motor insurance has a motor insurance. catastrophic effect upon the Hazards in Third Party Claims underwriting assessments of both the In terms of claim quantum, motor third own damage and third party segment of party insurance claim is the biggest of all the motor claims. claim components of motor insurance. In addition, the liability of the insurers is Hazards in Own Damage Claims unlimited. As far as moral hazard in motor Consequent to an incident, a desperate third party claim is concerned, the insured always looks for ways and means irda journal 27 Jan 2009
    • issue focus revealed including substitution of an claims; and the other by accepting the insured vehicle in the place of an hazards and distributing the cost of hazard uninsured vehicle causing the accident, evenly on all policy holders in the form substitution of a licensed driver in place of increased pricing. Since it is impossible of an unlicensed driver causing accident, to root out hazards from motor Hazards in unlawful occupants of the insured vehicle insurance, the only way left for the portrayed as pedestrian victims of the insurers is to build the same in the pricing. motor insurance accident, natural deaths having been are not only Hazards in motor insurance are not only portrayed as pedestrian victims of confined to confined to India, in fact hazard is a accidents, fabricated employee – India, in fact common phenomenon suffered by employer relationships in order to prove insurance companies across the world, hazard is a higher income of the purportedly victim more so in motor insurance. Nevertheless employee etc. common insurance companies around the world phenomenon The noble phenomenon of motor third are able to fix a cumulative value upon suffered by party insurance which is to support the identifiable hazards faced by them. In insurance livelihood of the survivors of road India, it may seem harsh to make the vast accident victims is manipulated by some majority of the innocent policy holders companies unscrupulous persons causing huge pay for the acts of a few unscrupulous across the world, financial stress to the insurance insured propagating hazards. However de- more so in companies in India. The impact of such tarrifing is an important evolution which motor insurance. claims on the insurers use to be very has allowed freedom to the insurers to high as the claims are determined on the identify and evaluate cost of such hazards basis of annual income of the victim and and to apply the same to the appropriate the left out earning years of his life. classes of insured than penalizing the innocent. Moral hazard, like morale hazard also has system is understandably hazardous as it a huge impact on the motor claims in India has begetted the phenomenon and the influencing the price. The difference term ‘Ambulance Chasing’. between the two is that the morale The most striking feature of motor third hazard is more frequent whereas moral party claim settlement procedure is that hazard is more impactful in terms of cost. the same is statutory and the adjudication However a combined impact of both the is by a judicial tribunal, whereby it hazards on motor insurance consumes involves the entire judicial machinery with substantial part of the accumulated the traditional litigation procedures. premium, which would otherwise have However, despite being under such resulted into making the motor insurance severely prescriptive and controlled cheaper. procedures, the motor third party claims There are two conceivable ways to are not devoid of moral hazards. During The author is National Manager, Legal and eliminate hazards. One - By identifying and investigations conducted by agencies, a Compliance, ICICI Lombard General Insurance Co. Ltd. refusing to accept hazards in the form of number of hazardous instances have been irda journal 28 Jan 2009
    • issue focus Hazards in Insurance ESSENTIAL FACTOR IN UNDERWRITING DR K C MISHRA WRITES THAT INSURANCE PROVIDES A VEHICLE FOR PEOPLE TO POOL RISKS ASSOCIATED WITH HAZARDS AND VULNERABILITIES. H The insurance industry accepts what is a the event of the protection being azards have potency of risk and potentially threatening financial risk for surrendered. Started as ‘whole-of-life may result in loss. A worker inside individual, and to operate a profitable insurance’ the industry has evolved today a mine has the professional hazard insurance pool by successfully taming to provide life, disability and trauma of mine collapse but actual collapse may uncertainty of hazard manifesting into risk. insurance products, as well as or may not occur. Sea storm is a peril of By accepting risk and meeting claims, superannuation, retirement income and the sea. There may be hazard of jettisoning insurance is one of the primary risk non-superannuation investment products. of cargo due to this sea peril. But actual management tools of the community. The jettisoning may or may not occur. Hazard As with any business, insurers have insurance sector helps the economy work gets accentuated due to vulnerability of shareholders’ capital and retained more smoothly than would otherwise be the situation. For similar hazard, a more earnings. These are held either as the case by enabling individuals and vulnerable situation will have more loss solvency and capital adequacy reserves businesses to remain financially viable in than a less vulnerable situation. So the face of hazard adversity. severity of the hazard is a function of both peril that causes the hazard and General insurance covers hazards vulnerability. Frequency of the hazard associated with property and liability. depends on return period of the peril. Products where the claim amount relates Usually frequency and severity are not to making good loss due to hazard of correlated as much as morbidity and physical damage to property is referred For similar hazard, mortality are correlated. Insurance to collectively as ‘short-tail risk’. Liability a more vulnerable carriers follow an adoptive control cycle and similar products, such as public to insure the risk resulting from ex-ante liability, product liability, professional situation will have stage of the hazard. indemnity, workers’ compensation and more loss than a motor third party, which is compulsory The humorist Will Rogers once said: less vulnerable insurance for vehicle owners against “Insurance is the only way an ordinary damages arising from injury to other situation. So person can purchase a catastrophe on parties; are referred to collectively as severity of the an installment plan”. Insurance provides ‘long-tail risks’. These products often a vehicle for people to pool risks hazard is a operate within a framework of associated with hazards and government social policy or certain legal function of both vulnerabilities. It associates a potential benchmark. Health insurance covers peril that causes hazard with a potential claim on the pool medical, hospital and related costs arising and allows people to contribute to this the hazard and out of health hazards. In mature markets pool to meet other people’s claims. The health insurance graduates to cover vulnerability. core function in insurance, then, is to hazards in the way of wellness. intermediate risk itself. The risk in the Life insurance not only provides service must not just be well managed protection against survival and death but bearing the brunt of the hazard is hazards but also builds up a cash value in the service. irda journal 29 Jan 2009
    • issue focus to match broadly the incidence and and expenses, but also to provide an future value of outstanding claims. economic return on the appropriate level of solvency capital. In the course of doing In the case of life insurance investment this, the premiums acquire a security business, premiums are not paid simply margin. for risk cover but also to invest in the Premiums need to industry’s savings products. Some If a house is in a cyclone-prone area be calculated not products, such as whole-of-life insurance, where all houses are blown on average in have limited guarantees and are invested one year out of every three, the risk of just on the basis of in diversified investment portfolios. Other cyclone hazard becomes uninsurable. meeting expected products have strong guarantees and are This is the case for two reasons. First, either invested in matching assets or insurers are no longer able to reduce risk claims and supported by additional solvency of hazard by pooling, making the expenses, but also reserves. The remainders are investment- insurance unaffordable. More generally, to provide an linked, with policyholders being issued the incidence of cyclone can demonstrate with units that fluctuate in value in step abnormal trend persistence or otherwise economic return on with the market value of the underlying be incapable of being represented as a the appropriate investments. These products are invested simple random process. The second level of solvency without constraint, except that they reason is that the precautionary must be ‘true-to-promise’. This means behaviour normally adopted by people capital. that the investments must be in line with faced with cyclone can be relaxed when the descriptions in the promotional they are insured, to the point that the material on which people base their damage is much worse than otherwise and decisions to invest. the likelihood of claims much greater. This is a form of moral hazard. Certain risks Insurance works by charging premiums may be excluded from cover or be that spread the number of expected accepted on special terms because they claims across a large number of people involve too much hazard or would, if or as free reserves i.e. as funds that are who encounter hazards, commensurate accepted, undermine the homogeneity not yet committed to supporting the with their contribution to the overall of the relevant risk classification. business. Solvency and capital adequacy exposure, and then drawing upon the reserves are aimed at ensuring that collective pool of premiums to meet Three conditions must be satisfied for insurance companies can meet their actual claims. This process, referred to insurance to work. The insurer needs to policy obligations irrespective of as underwriting risk of hazard, becomes be able to accept or decline risks of fluctuations in claims and investment robust as the number of people who want hazards and classify them into reasonably performances. Typically, these reserves to be covered becomes sufficiently large. homogeneous groups for premium rating are invested in a similar fashion to the The reason for this is that, provided all purposes. The insurer needs to be able underlying insurance funds. Free capital people do not get affected by the same to adjust premiums for these groups in will typically be invested in a diversified hazard event, the proportionate variability the light of experience. The insurer needs investment portfolio aimed at achieving a of claims outcomes becomes smaller as access to a means of reinsuring, risks or balance between stable profits and good the number of individually insured risks outcomes that are beyond its capacity returns, while a lesser amount will be becomes larger. This is the principle of to bear. Risks may need to be ceded if invested in physical assets. risk diversification. the insurer has too few people exposed to a hazard for the law of large numbers Fundamentally, insurance companies take The fundamental hazard in insurance is to work well or does not have the capital on obligations and in return receive not being able to meet claims because of needed to achieve the desired probability insurance premiums from which they meet their variability. This hazard is known as of ruin. Additionally, an insurer may current claims and expenses, as well as the ‘risk of ruin’. The insurers can bring choose to reinsure those risks that are build up investment funds to meet future the chance of ruin under control by unusually large or that may give rise to a claims. In the case of pure-protection holding appropriate amounts of capital. cluster of claims. products, for short-tail business these Capital is essential for the on-going funds are typically invested in short-term solvency and viability of an insurer. When the necessary conditions are securities, while for long-tail business a Premiums need to be calculated not just present, a disciplined insurer can operate range of longer-term securities are used on the basis of meeting expected claims a sound and adaptive control process. irda journal 30 Jan 2009
    • issue focus This means that the insurer can price for profitable. The insurer should gather data level four underwriting deals with risk, it can adjust its prices in the light of and make assumptions, set premiums and significant deviations in group exposure experience, and it can match the risks it capital requirements using those in the hinterland of a hazard. retains with its capacity to meet claims assumptions to analyze its emerging Depending on hazard severity, frequency, in reasonably likely circumstances. If any experience against those assumptions vulnerability and exposure to insurer’s of these conditions is absent, the and, if necessary, revise them. The review portfolio, insurance products are capacity to insure breaks down. If an should be separate from, but coordinated classified as internal tariff-rated products, insurer cannot classify and charge with, the rating unit to enable the individual experience-rated products, properly for risks, its operation will development of a common set of exposure-rated products, packaged or flounder as under-priced risks are assumptions arising out of a robust review customized products and large risk attracted and over-priced ones process. The insurer should set products. Insurers try to become well discouraged. outstanding claims provisions and report diversified by building up sufficiently large profit in the light of this analysis and the For example, health insurance attracts and homogeneous portfolios; revised assumptions. If appropriate, people who are older or less healthy than underwriting several hazards; the insurer should set new premium rates implied by the common premium rate, implementing accumulation control in and new capital requirements using the rendering it unsound whatever rate is order to avoid overexposure to risks revised assumptions, and continue the set. This is an example of what Akerlof, underlying the hazards, possibly in several cycle for as long as it stays in the Rothschild and Stieglitz have called lines of business; and purchasing business. adverse selection. If an insurer cannot reinsurance and other instruments like adjust premiums, its operation may Hazard in insurance is ameliorated by ART, and creating Captives and Side Cars. flounder if adverse trends erode its referrals. Referrals are required for A collateral of underwriting activity is that capital and profit margins. Similarly, if an clearance prior to committing for any product of insurance is meant to do four insurer does not have access to underwriting decision taken outside the things simultaneously namely pay the reinsurance, its operation may flounder scope of business defined as per claims as they logically arise in the when random fluctuations or underlying risk of hazard in the assumption aftermath of an event arising out of hazard catastrophic events wipe out its of a simple Poisson distribution. The manifestation, strengthen the balance necessarily limited capital and profit procedure should outline who has to be sheet of insurance company, nurture the margins. involved in the referral process and who intermediary system by a legitimate comes in addition to the individual acquisition cost; and participate in the An insurer needs to operate an adaptive delegated underwriting authority. Four supply side market development as control cycle to remain sound and types of referrals are technical referrals, envisaged in the objectives of harnessing policy referrals, capacity referrals and contractual savings and hazard mitigation pricing referrals. All these aspects are mobilization requirements. That is how reviewed on an annual basis; and in the hazard in insurance gets trapped within interim, the underwriter addresses adoptive control cycle. If an insurer specific changes that raise specific aggregated capacity issues or changes Reference cannot adjust in concentration of risk underlying the premiums, its 1. Tripathy Manas, Simita Mishra and K C hazard. Mishra, (2008), General Insurance operation may Depending on hazard sophistication, Business Operations and Decision flounder if adverse there are four levels of underwriters as Making, Cengage Learning, Delhi. per international market conventions and trends erode its 2. Tim Jenkins, (1999), Risk in the usage. Level one underwriting works Insurance Sector, Pricewaterhouse capital and profit within underwriting guidelines and Coopers Actuarial Practice, USA. margins. referral limits and issue referrals when necessary; level two underwriting deals with basic referral cases and sends significant cases to Enterprise Risk Management process; level three underwriting assesses residual risk The author is Director, National Insurance Academy, Pune. exposures and capital requirements; and irda journal 31 Jan 2009
    • issue focus Hazards in Health Insurance NEED FOR A CLOSER LOOK PRATIK PRIYADARSHI ARGUES THAT WHILE HEALTH INSURANCE IS BESET WITH PROBLEMS ASSOCIATED WITH HAZARDS, INCREASING THE PENETRATION IN THIS CLASS WILL CERTAINLY GO A LONG WAY IN SOLVING MOST OF THEM. T raditionally, Health Insurance for a prominently is that there is a ‘limited majority of us meant the ‘Mediclaim public spending on healthcare and low Policy’ being marketed and sold by coverage in India’. the general insurance companies across Knowing the This brings us to some of the ramifications the country. of the limited public spending because background in the With the advent of the Third Party that leads to an increase in the ‘out of country, it is no Administrators, it was assumed that the pocket’ expenses; and one is forced to surprise that this has solution of all the ills pervading the health make direct payments to access sector in the insurance companies had healthcare from the market. Knowing the actually led to a arrived. It was not so, as was evident from background in the country, it is no situation of heavy the developments of the later days. surprise that this has actually led to a situation of heavy burden of debt in many burden of debt in Then came along the private sector cases. insurance companies and once again the many cases. hopes were raised that the common There are certain hard facts that one ailments of the health sector, prominent must bear in mind before we actually among them being start working on the information provided above. • Low level of awareness of the common could be because of many factors coming public together, some of the prominent ones The underwriting in the health sector for • Limited products coverages in the being: majority of the insurers, is based on an market ‘accept or decline’ model, meaning • Adverse selection on part of the • Limited medical infrastructure thereby that either the proposal is clients/groups • Frauds on the insurance companies and accepted or declined, based on whatever • Insufficient data and informations on • Absence of a standardized healthcare information is made available to the clients and ailments costs etc insurers. The concept of a “Medical • Lack of medical history of individuals / Underwriting” has just about started to would be taken care of; and situation groups make inroads and hence there is a distinct would improve. • Absence of a standardized health care scope of improvement as far as It is in light of the recent developments facility and costs underwriting is concerned. in the health care sector, that the KPMG- • Frauds being perpetuated in Secondly, the high claims ratios are a CII report released during recent Health connivance with interested parties detriment to the pro active steps which Insurance Summit 2008 held on 9 th • Variation in costs for ‘insured’ public would have normally come out. The high December 2008 assumes importance. It has and ‘uninsured public’ claims ratio could be there because of brought out certain startling facts. various factors. In spite of this, the almost • Rigidity of policy terms and conditions Just about 15% of the population was INR 5200 crore health insurance sector • Lack of control over the service covered under some or the other pre- is looking to grow to about INR 28,000 providers paid scheme in India in 2007 and a little crore by 2015. • Moral hazards and less than 2% are covered under the Health As mentioned above, the high claims ratio Insurance schemes. So what comes out • Lack of technically skilled manpower irda journal 32 Jan 2009
    • issue focus Thirdly, the health sector has seen a high challenges are mitigated and the high growth rate because of several factors, growth of the sector goes on with prominent among them is the detariffing minimum hazards to all of us. of the various products and thus the Notwithstanding the sunrise area status The insurers could requirement of the individual portfolio to to this sector, we need to work on a design the products be sustainable. There are certain common platform where there could be regulatory changes coming in favour of an exchange of ides and data for the with maximum the sector and there has been a distinct benefit of all concerned. coverages and shift in the socio economic trends. The We could think of the support from the health care scenario is undergoing change minimum exclusions; Government in lines of extending the and all these changes are going to impact price it according to existing tax exemption limits. Most of us the sector in a very positive manner. are aware that the growth period of the the target groups; Lastly, the Government has actually state-owned Life Insurance Corporation and thus make the pitched in with the introduction of the was the ‘70s and the ‘80s when people RSBY schemes, though we have yet to invested in the LIC as a tax saving healthcare more see the outcome of this scheme. The mechanism. affordable. Government’s role would have to be seen Or could we think of a Long Term Health as a facilitator rather than active policy where the support from the involvement because ultimately, the Government could come from a pool services would have to be delivered by specifically created for the health of the the insurers and the health care service aged, where the medical inflation could healthcare more affordable. We could providers. be taken care of. Even the insurers could have the expertise of the reinsurers in While there are a number of hazards in think about such pooling of resources for designing these new products with inbuilt the way of the future prospects of the a common fund for the aged taking the mechanisms to ensure that the product health industry and there has been a public-insurer partnership into being. is not misused. decrease in the group health business in The Governments’ intervention would be The Healthcare providers and the TPAs the recent months, the outlook is positive. necessary and important because the could ensure that the standardization of Apart from the fact that the direct Health Insurance portfolio has not been cost and prices is done, thereby involvement of the insurers and the Third making business sense to the insurers in eliminating the scope of variable pricing Party Administrators constitute the two general. As we talked about the RSBY, for the insured and non insured people. ends of the bridge, the role that the there are pitfalls there as the Government In fact we are now communicated that others, namely the health care providers goes by the criterion of lowest rates in probably there is a process of this sort and the reinsurers, play is of crucial the tenders. It would be premature to already in practice. importance keeping the history of the talk about the success or failure of such We could also work on extending the health sector in mind. steps, but one thing is for sure and that reach of the sector by way of a is if the policy does not break even, the While it is true that the economic specialized distribution channel and service parameters would suffer and the meltdown has affected the paying utilizing the regulatory changes to the end user, the common man suffers. capacity of all, one of the first casualties maximum. However, even with stand alone has been the reduction in payment for If we are able to extend the scope and Health Insurance companies, the moot health insurance. But the more difficult coverage of the health insurance from question that comes up is that they have question here is that a major chunk of the existing 2% of the population to 5%, also failed to deliver the goods, if the the people in the age group of 30 years in the next 3-5 years, we would have figures of KPMG-CII are any indication. to 45 years do not voluntarily go for health definitely done some service to mankind But what is of prime importance to all of insurance until and unless they are a part and to us. The credibility of the general us is the collection of the data and of the corporate system. So, what insurance companies would have been re- medical history of the individual or the happens to the larger group which comes established. There is need to work on group, because the origin of the health from the unorganized sector most of this. care should be on a true and factual basis. whom are self employed? We have many challenges being faced by The insurers could design the products the stakeholders of the health sector and with maximum coverages and minimum The author is Head - Retail Underwriting, the consumers; and the efforts must be exclusions; price it according to the IFFCO Tokio General Insurance Company made to ensure that the consumer’s target groups; and thus make the Limited. irda journal 33 Jan 2009
    • issue focus Hounding the Hazards IMPERATIVE FOR INSURERS DEVARAKONDA V S RAMESH WRITES THAT IN VIEW OF THE ALTERNATIVE CHANNELS OF DISTRIBUTION, THE PERSONAL TOUCH THAT USED TO NULLIFY THE EXISTENCE OF MORAL HAZARD TO A GREAT EXTENT, HAS BEEN DILUTED. T he peculiarity of insurance other particulars of such prospects. that insurers commonly attempt to resist contracts is well acknowledged Traditionally, insurance agents have been is the Moral Hazard, which is otherwise with invisible nature of its in the practice of tapping the insurance not visible by any means but only by fact ingredients; be it the contingent benefits business from their known circle and of experience and judgement. The need that are assured or the inherent risks through the referral leads of their known for resisting the moral hazards also stems associated with them. As a thumb rule, in circle, hence were in access to the vital from the legal angle that insurance any of the contracts one of the parties information pertaining to the prospect. policies shall not be the contracts of to the contract needs to rely on the Also, when insurance agents are tied up wagering. In an attempt to filter the moral disclosures made by the other and both hazards not being enwrapped into the parties shall have consensus to the terms insurance contracts, conventionally life of the contract. However, while agreeing insurers rely on the intermediaries. to the terms of insurance contracts Role of individual Agents – A Retrospect: before issuance of policy contract, As per the market practices that have insurance companies need to gauge the been in vogue, individual agents Life insurers, inherent and latent risks associated with established the conventional standards in the subject of insurance, which is had a higher filtering the moral hazards well before the referred to as hazards in insurance level of comfort issuance of life insurance policies. Life parlance. It is but natural that insurance in imparting this insurers, on the other hand, had a higher companies elicit information pertaining to responsibility to level of comfort in imparting this personal and family history of the their tied responsibility to their tied agents who are proposed to assess the hazards involved. more familiar with the insureds or the agents who are However, despite disclosures voluntarily subject matter of insurance. Especially revealed by the proponents, the more familiar in life insurance, the role of individual insurance companies cannot leave the with the tied agents has occupied such an information gaps unattended which are insureds or the important position that they are being not readily available to judge but are subject matter hailed as first line underwriters. Getting corollary to the main revelations. Knowing of insurance. the desired information through a tied the otherwise unknown history or hidden agent is rather easy, as it is the agent mental intentions of the proposed is an who would be approaching the prospects uphill task to the insurer, nevertheless a for canvassing the life insurance policies duty bound chore as he holds the and would be conversant with the responsible custodianship of various other knowledge of behavioural aspects and classes of policyholders. One such hazard irda journal 34 Jan 2009
    • issue focus with an insurance company, they too insurable interest on the lives of attain higher levels of ability in reporting individuals. Thus, the insurable interest the moral hazards involved based on of a person on his own life or on the life prevailing practices of the insurer. This of his spouse and children is to an usual practice of obtaining Moral Hazard unlimited extent. Does it totally preclude reports from these agents also brought the possibility of moral hazard? In its The suspicion on in the accountability to their respective strictest sense, presence of insurable the possibility of market conduct practices. In a majority interest cannot eliminate the moral existence of of moral hazard reports obtained, some hazard in toto. The possibility of a person of the main queries being replied by contemplating suicide to transmit the moral hazard insurance agents are; whether they policy benefits to the beneficiaries, the arises when a satisfy the financial sources of the possibility of a person with life threatening person attempts proposed; for how long they have known disease volunteering to buy a pure term to benefit from the prospect etc. Now in the changed life insurance policy concealing the the subject matter market environment, it deserves to be disease etc. are a few instances where of insurance reviewed as to how a proposal form with risk filtering practices of life insurers all similarities would be dealt with. The mitigate moral hazards. The same is the whether or not reply to the said queries provides a level case with juvenile life insurance. he/she has of comfort to underwriters while insurable interest. A South Korean incident1 reported in New underwriting the life insurance proposal. York Times on 02nd November, 1998 speaks Moral Hazard Vs Insurable Interest: on the possibility of a moral hazard in Neither insurable interest nor moral respect of Juvenile Life Insurance. To hazard has a specific definition. Nor do succinctly place the news; they have a reference in Insurance Act, A 42 year old fortune teller who 1938 the principal legislation governing instances may totally go unnoticed. That traps himself in debt and destitute insurance business in India. Both the is why exclusions are put in place by life reports to police that three masked concepts are left to the qualitative insurers to mitigate moral hazards in life men robbed his home and chopped judgements of prudent underwriters. insurance and hence the need for off the little finger of his 10 year Moral Hazard may be portrayed as the underwriting restrictions limiting old son in an act of viciousness. inherent threat posed with the insurable interest to various classes of The investigations reveal that behavioural attitude of human beings in policyholders. As regards non life father reportedly persuaded his 10 relation with subject matter of insurance. insurance, prevalence of moral hazards year old son, eyeing to claim the And based on certain legal would be equally possible even at the insurance monies, to sacrifice his pronouncements, an insurable interest is stage of claims. finger as he was dying and on described as the proponent having a cutting off the finger he would be monetary interest on the existence and Varying Levels of Insurable Interest able to live. Duteous boy remained continued well being of the subject Limits – is there a need for uniform silent even during the stage of matter of insurance. The suspicion on the ceilings across the industry? – An open investigation till father confessed possibility of existence of moral hazard discussion: As a conventional practice, before police. arises when a person attempts to benefit insurable interest is limited based on the from the subject matter of insurance type of policy like individual insurance, Reports of this nature, albeit sporadic, whether or not he/she has insurable female insurance and juvenile insurance; do exist and fall under the ambit of frauds; interest. The theory of life insurance does and based on retention capacities and or suspicion of moral turpitude of the not put any limits on the extent of underwriting standards adopted by insured/beneficiary. Several other such irda journal 19 Jan 2009 irda journal 35 Jan 2009
    • issue focus respective life insurers. Financial of the adverse claims experience; industry level reporting data base and underwriting norms also automatically put communication gaps across the industry monitoring mechanism. Thus putting in the limits to some extent. But the need to pass on the pertinent information on place appropriate fraud reporting systems for putting the limits on grounds of moral the cases of moral hazard and fraudulent at industry level is a prerequisite for hazards remains same irrespective of the claims; the efficacy of the reporting resisting the moral hazard. paying capacity of the prospect. To put standards of moral hazard to the Changing Paradigms – Access to sources it differently, mere capacity to pay higher underwriters; and the underwriting of personal information of insured – Is amounts of premium may not justify standards adopted. The consequences of there any need for additional safeguards? according higher sum assured policies. varying limits may also not be alarming at The changes that strode the market Underwriting being a prudent policy of the infancy stage say when spread of practices across the industry have accepting the liability by an insurer, is female insurance or juvenile insurance is significantly affected the Moral Hazard there any scope for uniformly limiting negligible; and also when the scope for reporting practices. As against the case insurable interest across the industry for taking undue advantage of varying limits of individual agents who would be various classes of policies by a statutory of various life insurers is limited by introducing the prospective policy or regulatory intervention? Is there any suppressing facts pertaining to previous holders with the element of personal need for such policy prescriptions insurance history. But there is always a touch, some other distribution channel especially when the industry is in the need for tracking the evolution from a may be introducing totally unknown fledgling stage? To initiate a reply first to moral hazard perspective. clients with a proposal for life insurance. the last and may be to all, this may be Frauds Vs Moral Hazard: There is a close It is widely known that the time to close pre-emptive. The need for a uniform link between moral hazard and fraudulent a sale by an individual agent is relatively ceiling arises on grounds of percentage claims, be it in life insurance or general longer than the one by other alternate insurance. All fraudulent cases are a channels. Especially with regard to the result of existence of moral hazards. But following alternate channels there is a existence of moral hazard necessarily need for assimilating the reporting need not result in fraudulent claims. In standards to maintain the uniform the absence of industry level referral approach while resisting the Moral Hazard. The possibility of mechanism, the lives turned down knowing the mental Brokers: Clients approach broking without issuing life insurance policies intention of the companies for professional advice. Broking (declined lives) on grounds of moral prospect and his companies being institutional agencies, hazard by one life insurer may result into there would be a flow of clientele behavioural life policies at another life insurer, leading thereby minimising the scope for to potential fraudulent cases. Previous approach would be establishing a personal rapport with history of fraudulent claims deserves to missing; and hence prospects. And with regard to broking be tracked, and cracked down by suitably the need for companies who concentrate on the retail putting in place an industry level additional spread of life insurance policies, they reporting and monitoring mechanism, or safeguards against work on similar lines of direct marketing otherwise there could be a higher degree approach, banking on the data base from a possible Moral of potential moral hazard. Though there referrals etc. Thus the possibility of would be some reporting formats to check Hazard. knowing the mental intention of the the moral hazards at the time of prospect and his behavioural approach underwriting, a casual reporting would be missing; and hence the need procedure with suppression of material for additional safeguards against a possible facts may jeopardise these checks, Moral Hazard. especially in the event of absence of irda journal 36 Jan 2009
    • issue focus Corporate Agents: Corporate agents also Tracking Claims Experience: The need for tracking the distribution channel-wise work on similar lines of broking companies claims experience may be felt more but represent one life and one non life needful given the above related companies. The possibility of the specified interconnected issues. A further persons of the corporate agents having a segregation of claims experience among personal rapport before introducing the various classes of policies like females, prospect for life insurance is as remote juveniles etc., cause-wise analysis of as in the above case. Hence there is a One of the ways death claims, and policy year-wise analysis need for additional safeguards. of smelling would provide inputs on the extent of potential moral With institutional intermediaries prevalence of moral hazard and the need procuring higher number of retail hazard in life for putting in place any additional insurance policies, the scope for safeguards to resist the same. Also insurance is a detailed due diligence at their intermediary-wise claims experience data eliciting the end itself on each of these policies may provide valuable inputs to the information is apparently limited. Hence, there industry on the need for taking up the pertaining to the is a practice of obtaining specific/ sound reporting standards and the base sources of additional moral hazard reports for monitoring the market conduct income for beyond specific limits, in such practices of various classes of cases. Given the constraints for intermediaries. A further practice of payment of obtaining these reports on a huge sharing specific information pertaining to premiums. institutional intermediary would alert number of prospects there may be other insurers and would act as a a reason for increasing the limits. deterrent to other intermediaries. An idea is to be floated if this practice could be monitored by Sources of Income – A Cue: One of the tracking the claims experience. ways of smelling potential moral hazard in life insurance is eliciting the involved, speaks on the need for putting Referral Arrangements: Under this, as information pertaining to the sources of in place better systems for getting moral insurers and insurance intermediaries get income for payment of premiums. If an hazards report, more so when these the clientele data base from the third unrelated third party is financing the marketing practices are outsourced. parties with no prior information about payment of premiums, it is as good as the their history, there is a need for a closer Direct Marketing: For long, direct insured fronting for that financier. watch before underwriting these marketing is considered as one of the cost Though, the relationship of the named proposals. effective means of marketing insurance beneficiary of the policy does provide products in light of higher initial costs Telemarketing: Under this marketing further indications on this, absence of involved with conventional marketing technique, the increasing trend of monitoring procedures when altering the mechanism. There may be also specific sourcing the information through beneficiary at a subsequent stage, products with varying limits of insurable telephones, forwarding the proposal enables the financing third party to interests for various classes of forms for a signature by post and benefit out of the proceeds of the life policyholders to cater to the needs of subsequently issuing a life insurance policies. Evolution of the following various this particular market segment. The need policy is leaving no chance of eye to eye alternate ways of premium remittance for keeping track of moral hazards involved channels reinforces the need for a closer contact between the prospect and in respect of prospects of this market tracking of the existence of moral hazard, marketing executive. The preservation of even after issuance of policy on a segment is inherent in its market voice record data which may not be continuous basis. practices. useful for gauging the moral hazard irda journal 37 Jan 2009
    • issue focus cheques to adjust against premiums due ECS Mandates: One of the easiest and clues to enable life insurers to put in it works well within the theory. However, cost effective ways of receiving premiums place measures against a deeper when collecting the cheques from these is by way of obtaining a mandate from penetration of these practices. boxes and also their onward transmission the insured to auto debit his Savings Bank/ Given the wide spread of insurance directly to the bank account of the Current Account through Electronic business across various sections of insurer is outsourced to a third party; it Clearance System. However, if premium society, eliminating moral hazard by moral is not possible to track the real payees monies are financed by a third party to suasion is a difficult task. Imparting of the premium monies when premiums these bank accounts, there are, education to the intermediaries and also are deliberately remitted by a third party currently, no systems to track at the level to the personnel of institutional as the outsourced entities do not have of life insurer. intermediaries is one of the ways of the particulars pertaining to the life Cheque Drop Boxes - Collecting Agents mitigating the spread of moral hazard risk. assured and his specimen signature. – Issues of outsourcing: Facilitating the Underwriter’s expertise is a sine qua non Online Payments through debit/credit policyholders for dropping their premium to smell the existence of moral hazard; cards: Evolution of technology enabled cheques in various centres like malls, ATM and there is need for specific further the policyholders to pay premiums at any counters etc. is one of the evolutions of investigating procedures to be in place, time and from anywhere by using the time. As long as insurers collect the independent of marketing personnel. online payment procedures that are made However, insurance councils may consider available. However, there is a possibility establishing the information sharing of this facility being utilised by a few procedures across the board. On their unrelated third parties to finance the part insurance companies may put in Given the wide premiums of some of the policyholders place continuous monitoring of reporting spread of with an eye of benefiting out of the policy standards within their respective insurance proceeds. These online payment portals companies. These measures may help in receive payments and simultaneously business across minimizing the spread/impact of Moral transmit/adjust premiums. Hazards on the life insurance business as various sections a whole. of society, Despite strict financial underwriting eliminating norms in vogue, the possibility of a few third party financiers eyeing to benefit moral hazard by out of life insurance may be easier owing moral suasion is to the availability of the above referred a difficult task. alternate systems of premium collection. To guard against these inherent risks there is a need for a periodical random tracking of the premium receipts received through alternate channels of premium The author is Senior Assistant Director collections. Though, these steps may be (Inspections), IRDA. The views expressed are personal. on lines of post mortem, they provide irda journal 38 Jan 2009
    • ¬˝∑§Ê‡Ê∑ ∑§Ê§‚¥Œ‡Ê §y úq osÁ å{uoN˛ ÁzuQ™ yƒå §y™Á Nz˛ ™Á™¬z ™ı N˛Á¢˛y ™ÁN˛oÁ| N˛y ⲬoÁ ™Ó¬o: Fà ú∫ uåß|∫ N˛∫oy “t oN˛ tÓ∫ “{@ FÃy üN˛Á∫ Eúåz EÁú N˛Áz EÁÃÁåy Ãz “{ uN˛ uüu™Æ™ N˛Áz ÁzuQ™ Nz˛ ÃÁu©úN˛ øú Ãz u¬L Áåz Ãz §Yåz Nz˛ u¬L, yƒå §y™ÁN˛oÁ| Ãʃztå∆y¬ u¬ÆÁ ÁL@ FÃz üÁõo N˛∫åz Nz˛ u¬L §y™ÁN˛oÁ| ünÆzN˛ EÁƒztåÁı N˛Áz Fà N˛Ázm Ãz ßy tzQoz “{@ å{uoN˛ ÁzuQ™ N˛Áz üÀoÁƒ N˛Áz uƒÀowo §y™Á ¬zQå Ãz TÏ∫oÁ “{@ LN˛ N˛Á¡úuåN˛ w T{∫ yƒå §y™Á Nz˛ N˛F| üN˛Á∫ Nz˛ §y™Á ™ı ™“nƒúÓm| uÀsuo ™ı tÁƒÁı Nz˛ ßÏToÁå N˛Áz ßy FÃy úu∫úÁby ú∫ Y¬åÁ ßÓu™N˛Á uåßÁåy “Ázoy “{@ Æ“ uƒ∆z øú Ãz åƒz ™ §ÁÁ∫Áı “ÁzTÁ Áz uN˛ “ÁzoÁ å“Î “{@ LN˛ uƒÀowo N˛Á∫N˛ Áz ÁzuQ™ ™ı EÁƒ≈ÆN˛ “{ “Á} §y™ÁN˛oÁ| tÁƒÁı Nz˛ é§ãá ™ı EuáN˛ N˛y ub¬oÁ N˛Áz ÁzgoÁ “{ ƒ“ “{ Qo∫Á@ ßÁ{uoN˛ Qo∫z Eú∫ÁuáN˛ EsƒÁ FÃÃz ™ÏuO˛ üÁõo N˛∫åz N˛y N˛Ázu∆∆ å“Î ÀƒÆÊ ™ı Àú…boÁ ütÁå N˛∫oz “¯, LN˛ ÆÁ EãÆ üN˛Á∫ N˛∫oz@ §y™ÁN˛oÁ| Eúåz ßÁT Nz˛ øú ™ı FÃN˛Áz ÃÏuåu≈Yo Ãz Eo: FåN˛Áz úÁzu o uN˛ÆÁ Á ÃN˛oÁ “{ Euou∫O˛ N˛∫oz “¯ uN˛ N˛ÁzF| ƒÁÀouƒN˛ tÁƒÁı uå∫Ào å “Áz uÃz uüu™Æ™ ¬zN˛∫@ G˘ÁzT ú∫ uƒ≈ƒÁà N˛™ å “Áz ÁL@ LN˛ ÁzuQ™ Áz uÀsuoÆÁı N˛Áz §“Ïo ub¬ N˛∫ tzoÁ “{ å|¬ Nz˛ Fà EÊN˛ Nz˛ Nz˛ã¸u§ãtÏ ™ı <<§y™Á ™ı Qo∫Á>> “{@ osÁ §y™Á¬zQå Nz˛ u¬L YÏåÁ{oy GnúëÁ N˛∫oÁ “{ ƒ“ “{ úÁ¬Ãy ∆£tÁı ™ı T{∫ yƒå §y™ÁN˛oÁ| N˛Áz ty TF| ÀƒoãfioÁ å{uoN˛ ÁzuQ™@ Fà §Áo N˛Áz ÜÆÁå ™ı ∫Qoz “ÏL N˛y ßÁƒy Fà §Áo N˛y tÓ∫ tzoy “{ uN˛ GnúÁt G˘ÁzT N˛y EN˛ÁÊ∆EÁzÊ N˛y ™åÁzuÀsuo §y™ÁN˛oÁ| Nz˛ ÃÁs N˛úb N˛∫åz N˛y “Ázoy “{@ Nz˛ EåÏøú “Áz@ >>ü∆Ó¡N˛ ÆÏT ™ı GnúÁt N˛Áz T¿Á“N˛ EåÏøú N˛ÁzF| ßy Euou∫O˛ §y™Á uüu™Æ™ ∫Áu∆ Fà Euou∫O˛ Qo∫z N˛∫åÁ>> å|¬ Nz˛ ET¬z EÊN˛ Nz˛ Nz˛ã¸u§ãtÏ ™ı “ÁzTÁ@ Ãz uåúbåz Nz˛ u¬L úÆÁ|õo å“Î “ÁzTy@ uN˛Ãy uƒ∆z  N˛ÁÆ| ™ı å{uoN˛ Qo∫z N˛Á EÁN˛¬å N˛∫åÁ ÃÊ߃ å“Î “{@ Æut §y™ÁN˛oÁ| §“Ïo ÃÏ∫qÁúÓm| o∫yNz˛ EúåÁÆıTz ƒ“ utå tÓ∫ å“Î “ÁzTÁ § ƒ“ √ƃÃÁÆ N˛Áz QÁz tıTı ÃÁs “y §ÁÁ∫ ÃÁQ N˛Áz ßy QÁz tzTı@ z. “u∫ åÁ∫ÁÆm •äÿˇÊ Æ“ N˛“åÁ ÁzuQ™úÓm| “ÁzTÁ N˛y N˛ÁzF| √ÆuO˛ FÃu¬L Eúåy Áå ¬z ¬zTÁ N˛y GÙı NÏ˛Z áå∫Áu∆ N˛Á ÙÁ“å “{@ Æ“ irda journal 39 Jan 2009
    • issue focus “ ŒÎÁc≈U ∑§ÙáÊ YÁ¬Ó uƒu Æ GnúÁo Nz˛ ™ÜÆ ™ı S¬Áz§¬ úÏå§y|™Á §ÁÁ∫ ™ı EåÏúÁuoN˛ øú Ãz ™§Óo osÁ ¬ÁzYtÁ∫ √ƃÀsÁ ünÆq EÁáÁo Nz˛ uƒªá “y “{ úu∫mÁ™Àƒøú S¬Áz§¬ §y™Á §ÁÁ∫ osÁ Eãoo: √ÆuO˛To §y™Á T¿Á“N˛ N˛y ÃÏ∫qÁ N˛Áz ÀsÁuÆnƒ utÆÁ “{@ »y úyb∫ §¿Á™Ï¬∫ EÁF|.L.EÁF|.LÃ. N˛ÁÆ|N˛Á∫y N˛™zby Nz˛ EÜÆq E§ Ã™Æ “{ § GúßÁzO˛Á N˛Áz YoÏ∫ “ÁzåÁ YÁu“Æz Eúåz §y™Á GnúÁtÁı Nz˛ üuo osÁ Gå EƒÃ∫Áı N˛Á ¬Áß GeÁåÁ YÁu“Æz uÃÃz GåN˛Á EÁƒ∫m EuáN˛ Ãz EuáN˛ “Áz ÃNz˛ osÁ ¬ÁTo ˚Á∫Á Eúåz N˛Áz uƒu Æ øú Ãz ÃÏ∫uqo §åÁ ÃNı˛@ »y ∫Áz∫ ÃÁzuƒu Lå.L.EÁF|.Ãy. Nz˛ EÜÆq osÁ ãÆÓ “©™y∆ÁÆ∫ Nz˛ §y™Á N˛™y∆å∫ Eúåz EÁN˛Á∫ ™ı ƒo|™Áå EÁus|N˛ ÃÊN˛b §“Ïo §gÁ “{ ub¬oÁ osÁ ¢{˛¬åz N˛y Tuo Nz˛ EåÏÃÁ∫ ßy@ uƒu Æ üÁuáN˛∫m N˛Áz N˛ÁÆ|ƒÁ“y Nz˛ oÁ¬™z¬ osÁ Ã∫N˛Á∫ åz Áz §ÁÁ∫ N˛Áz ÀsÁuÆnƒ tzåz N˛y §Áo N˛y “{ §ÁÁ∫ N˛Á ª^Áå ÃÏT§ÏTÁ“o úÓm| “{ osÁ §“Ïo Ãy ™ÏPÆ Ã™ÀÆÁ Qgy “{@ »y “¯T Àƒy N{˛b ü§ãá uåtz∆N˛, uÃÊTúÏ∫ N˛y ™Á{åzbu∫ÊT EsÁzu∫by uƒ≈ƒ Ào∫ ú∫ EÁoÊN˛ƒÁt Ãßy tz∆Áı Nz˛ u¬L uYÊoÁ N˛Á uƒ Æ “{@ FÃN˛Áz LN˛ VbåÁ Nz˛ øú ™ı tzQåz Nz˛ §ÁL FÃÃz ÆÏÚ Ào∫ ú∫ ¬‰gåz N˛y EÁƒ≈ÆN˛oÁ “{@ »y z. “u∫ åÁ∫ÁÆm EÜÆq, §y™Á uƒuåÆÁ™N˛ uƒN˛Áà üÁuáN˛∫m, ßÁ∫o uƒ≈ƒ Nz˛ uƒußëÁ ßÁTÁı ™ı uúZ¬z tú|m Ãz tzQåz Nz˛ twu…bN˛Ázm Nz˛ §ÁL Æ“ Ã∫N˛Á∫ (N˛åÁgÁ) Há|ƒÁá∫ tzQåz ú∫ Nz˛uã¸o “{@ Æ“ Gà Ào∫ ú∫ “{ uN˛ “™åz Eão∫Á…b~yÆ uƒu Æ GnúÁ ú∫ uN˛Ã üN˛Á∫ N˛ÁÆ|ƒÁ“y N˛y@ »y u™ °¬Á“z b y uƒ ™Êfiy, N˛åÁgÁ Ã∫N˛Á∫ “™ ET¬z ƒ | MÆÁ N˛∫ ∫“z “¯ Æ“ GÃz EÁTz Á ∫“Á “{ (ÃÁ¡ƒıÃy II) osÁ FÃåz EÁus|N˛ úÓÂy ƒy §y™Á ™Ág¬ N˛Áz ÀƒyN˛Á∫ N˛∫åÁ üÁ∫Êß uN˛ÆÁ “{@ “™ Eßy LN˛ Ãz| Nz˛ ™ÜÆ ™ı Áz §ÁÁ∫ üßÁƒÁzEÁzÊ Nz˛ é§ãá ™ı “{, uÃÃz Æ“ tzQ ÃNz˛ N˛y “™Á∫y ™Águ¬ÊT uN˛oåy EXZy “{@ »y ™{ X ÆÓ F¡g∫¢˛y¡g Ãy.F|.EÁ{, §{™ÏgÁ ™Á{åzb∫y EsÁu∫by ” irda journal 40 Jan 2009
    • u∆qm uƒußëÁ u∆qm uƒuáÆÁ LƒÊ ∫yuoÆÁ EY|åÁ uÃã“Á osÁ G™z∆Y㸠NÏ˛tzuÃÆÁ N˛“oz “¯ uN˛ u∆qN˛ N˛Áz rÁåƒÁå LƒÊ uƒYÁ∫ƒÁå “Ázåz Nz˛ ÃÁs u∆qm uƒusÆÁı N˛Á rÁoÁ “ÁzåÁ YÁu“Æz@ (uúZ¬z EÊN˛ Ãz EÁT{) • §y™Á u∆qN˛ N˛Áz Fà uƒuá N˛Á oßy üÆÁzT N˛∫åÁ üu∆qÁsy| ÀƒÆÊ N˛y q™oÁ, ÆÁzSÆoÁ osÁ ªuY ™ÁåuÃN˛ q™oÁ, ÆÁzSÆoÁ osÁ GåN˛y ªuY Nz˛ YÁu“Æz § §y™Á ÃʧÊáy ub¬ §Áoı Áz Ã∫¬oÁ Nz˛ EåÏÃÁ∫ uƒ ÆƒÀoÏ N˛Áz ÃyQoz “¯@ EåÏÃÁ∫ “y utÆÁ ÁåÁ YÁu“Æz@ u∆qN˛ Nz˛ N˛ÁÆ| Ãz Ù^ ™ı å“Î EÁoy “¯, GåN˛Á EÜÆÁúå N˛Á uåáÁ|∫m √ÆuMoTo uƒßzt Nz˛ uÃÚÁÊo N˛Áz • üu∆qÁus|ÆÁı ™ı ÀƒÁÜÆÁÆ N˛∫åz N˛y EÁto N˛∫åÁ “Áz@ üu∆qÁsy| ü≈åÁı N˛Áz úÓZN˛∫ Àƒo:“y ÜÆÁå ™ı ∫QN˛∫ N˛∫åÁ YÁu“Æz, uÃÃz Ãßy Ào∫ uƒN˛uÃo “Áz Áoy “{ EÁ{∫ ƒz Eúåy ÙÀÆÁEÁı rÁå üÁõo N˛∫ ¬zoz “¯@ ƒz N˛ueå §ÁoÁı N˛Á Nz˛ üu∆qÁsy| uåáÁ|u∫o N˛ÁÆ| N˛Áz Eúåy q™oÁåÏÃÁ∫ N˛Á uå∫ÁN˛∫m §T{∫ uN˛Ãy N˛y ÓÁÆoÁ Nz N˛∫ uƒ≈¬z m N˛∫Nz˛ GÃz Ù^åz Nz˛ u¬Æz ÃÊ≈¬z m Ã™Æ ú∫ éúëÁ N˛∫ ÃNı˛@ Fà uƒuá N˛Áz EúåÁoz ¬zoz “¯@ N˛∫oz “¯@ Fà EƒÃ∫ ú∫ u∆qN˛ N˛Áz YÁu“Æz uN˛ Ã™Æ Ã©úÓm| uN¿˛ÆÁEÁı N˛Áz u∆qN˛ Nz˛ ™ÁT|t∆|å • Fà uƒuá ˚Á∫Á u∆qN˛ EÁ{∫ üu∆qÁus|ÆÁı Nz˛ ƒz tzQı uN˛ üu∆qÁsy| Óy uƒ≈¬z m N˛∫ ∫“z “¯ ™ı uN˛ÆÁ ÁåÁ GuYo “ÁzTÁ@ Fà uƒuá Nz˛ ü™ÏQ ™ÜÆ tÓ∫y ÙÁõo “Áz Áoy “{ EÁ{∫ üu∆qÁsy| EsƒÁ å“Î@ Æut uƒ≈¬z m T¬o jÊT Ãz uN˛ÆÁ TÏmÁı N˛y YYÁ| åyYz N˛y Á ∫“y “{:- N˛Áz u∆qN˛ Ãz éúN|˛ N˛∫åz Nz˛ EƒÃ∫ EuáN˛ ÁƒzTÁ oÁz úÁe∞ ÃÁ™T¿y N˛Áz üu∆qÁsy|Tm N˛ßy Gú¬£á “Ázoz “¯@ ßy å“ΠÙ^ úÁÆıTz@ Eo: u∆qN˛ N˛Áz ™ÁT|t∆|å • Æ“ uƒuá N˛∫Nz˛ ÃyQåz, (¬uå˙T ƒÁF| gÓF˙T) osÁ GÃNz˛ ˚Á∫Á Eƒ¬ÁzN˛å N˛∫åÁ Fà uƒuá ™ı Nz˛ uÃÚÁÊo ú∫ EÁáÁu∫o “{@ Eo: üu∆qÁus|ÆÁı EnÆão ™“nƒ ∫QoÁ “{@ üÁÆ: u∆qN˛ ˚Á∫Á Fà N˛Áz ÀƒÆÊ Nz˛ EåÏ߃Áı Nz˛ EÁáÁ∫ ú∫ ÃyQåz N˛Á uƒuá N˛Áz N˛™ EƒÃ∫Áı ú∫ “y üÆÁzT uN˛ÆÁ ÁoÁ EƒÃ∫ üÁõo “ÁzoÁ “{@ “¯@ Fà uƒuá N˛Á üÆÁzT N˛∫åz Nz˛ u¬Æz u∆qN˛Áı §y™Á u∆qN˛ N˛Áz Fà N˛Áz ÀƒÆÊ ßy uƒ≈¬z m LƒÊ ÃÊ≈¬z m uƒuá N˛Á • Fà uƒuá Ãz áy™y Tuo Ãz ÃyQåz ƒÁ¬z üu∆qÁsy| uƒuá N˛Á oßy üÆÁzT üÆÁzT N˛∫åÁ EÁåÁ YÁu“Æz@ ßy N˛ueå ÃÁ™T¿y N˛Áz ∆yV¿ ÃyQ ¬zoz “¯@ N˛∫åÁ YÁu“Æz § Fà uƒuá N˛Á üÆÁzT N˛∫oz Ã™Æ u∆qN˛ N˛Áz uå∫yuqo EÜÆÆå uƒuá (ÃÏú∫ƒÁF¡g §y™Á Ãʧáy ub¬ Ê ÜÆÁå ∫QåÁ YÁu“Æz uN˛ ƒ“ Eúåz rÁå N˛Áz Gà Àbgy™{sg) Ào∫ oN˛ §åÁÆz ∫Q ÃNı˛ uN˛ ƒ“ utÆz TÆz §Áoı Áz Ã∫¬oÁ Ãz Fà uƒuá ™ı üu∆qÁus|ÆÁı N˛Áz uåáÁ|u∫o N˛ÁÆ| tz uå∫yqN˛ N˛ÁÆÁz˙ N˛Á GuYo ™Ó¡ÆÁÊN˛å N˛∫ ÃNı˛ ÁoÁ “{@ üu∆qÁsy|Tm utÆz TÆz Eúåz N˛ÁÆÁz˙ N˛Áz Ù^ ™ı å“Î EÁoy EÁ{∫ üu∆qÁus|ÆÁı N˛Áz Ã™Æ Ã™Æ ú∫ EÁƒ≈ÆN˛ N˛∫åz ™ı Ïb Áoz “¯ EÁ{∫ u∆qN˛ GåNz˛ N˛ÁÆÁz˙ uåtz|∆å ßy tz ÃNz˛@ Æ“ ßy ÜÆÁå ∫“z uN˛ u∆qN˛ “¯, GåN˛Á EÜÆÁúå N˛Á uå∫yqm N˛∫oÁ “{@ “Á EÁƒ≈ÆN˛oÁ “Ázoy “{ üu∆qÁus|ÆÁı N˛Áz utÆz TÆz N˛ÁÆÁz˙ ™ı EuáN˛ “Àoqzú ƒ“Á u∆qN˛ GuYo uåtz|∆å ßy tzoÁ “{@ FÙı N˛∫åÁ “Áz@ å N˛∫z EãÆsÁ üu∆qÁsy| Àƒo: EÜÆÆå å“Î u∆qN˛ N˛Á ü™ÏQ ÀsÁå “{ MÆÁıuN˛ u∆qN˛ “y N˛∫ıTz EÁ{∫ Áz GÒz≈Æ Fà uƒuá N˛Á “{ ƒ“ úÓ∫Á üu∆qÁus|ÆÁı N˛Áz uåáÁ|u∫o EÜÆÆå N˛ÁÆ| N˛∫åz å“Î “Áz ÃNz˛TÁ@ u∆qN˛ N˛Áz üu∆qÁus|ÆÁı ™ı N˛Áz tzoÁ “{@ Æ“ uåáÁ|u∫o N˛ÁÆ| üu∆qÁusÆÁı N˛y EÁn™uƒ≈ƒÁà LƒÊ EÁn™uåß|∫oÁ ÁTwuo N˛∫åÁ irda journal 41 Jan 2009
    • u∆qm §yY-§yY ™ı ü≈å-∫yuo, N˛så ∫yuo, GtÁ“∫m §Áz¬oz Ã™Æ LzÃÁ N˛så N˛∫åÁ YÁu“Æz Áz ∫yuo EÁut N˛Á ßy üÆÁzT N˛∫åÁ EÁƒ≈ÆN˛ “¯ Ãßy N˛Áz ÙÏuYo ªú Ãz ÃÏåÁF| tz@ oßy üu∆qÁus|ÆÁı N˛Áz §y™Á ÃʧÊáy uƒ ÆƒÀoÏ N˛Á §y™Á-u∆qN˛ N˛så N˛∫oz Ã™Æ Æut ƒ“ YÁ“z oÁz rÁå Ã∫¬ ªú Ãz “ÁzåÁ é߃ “{@ §y™Á-u∆qÁ GtÁ“∫m N˛Á ÓÁ∫Á ßy ¬z ÃN˛oÁ “{@ N˛så N˛Á u∆qN˛ N˛Áz N˛qÁ ™ı N˛Á u∆qm N˛∫oz Ã™Æ “™ EåzN˛ u∆qm ∫yuoÆÁı GÒzΩ≈Æ N˛ueå §Áo N˛Áz Àú…b N˛∫åÁ osÁ N˛Á üÆÁzT N˛∫ ÃN˛oz “¯, uN˛ãoÏ Z:u∆qm ∫yuoÆÁı NÏ˛Z ü≈å LzÃz ßy üu∆qÁus|ÆÁzÊ N˛Áz N˛qÁ ™ı ÃuN¿˛Æ §åÁÆz ∫QåÁ “{@ N˛Á üÆÁzT EuáN˛ üYu¬o “{@ u∆qN˛ N˛Áz N˛så N˛∫oz Ã™Æ uƒ ÆÁão∫ å“Î úÓZåÁ YÁu“Æz • N˛så ∫yuo (å∫z∆å b{MåyN˛) “ÁzåÁ YÁu“Æz@ • uÃÃz üu∆qÁus|ÆÁı ü≈å ∫yuo (Mƒ≈YuåÊT b{MåyN˛) • GtÁ“∫m ∫yuo (F¬Àbz~∆å b{MåyN˛) ü≈å ∫yuo (Mƒ≈YuåÊT b{MåyN˛) N˛y Euß√ÆÊåÁ • √ÆÁPÆÁ ∫yuo (LMÃúÁzy∆å b{MåyN˛) N˛qÁ ™ı üu∆qÁusÆÁı N˛Áz ÃuN¿˛Æ ∫Qåz Nz˛ u¬Æz • ∆uMo N˛Á uƒN˛Áà E•ÆÁà ∫yuo (ug~¬ b{MåyN˛) ü≈å ∫yuo Ãz EXZy N˛ÁzF| ∫yuo å“Î “{@ u∆qm • uå∫yqm ∫yuo (EÁ{£§z|u∆å b{MåyN˛) “Áz ÃNz˛@ N˛∫oz Ã™Æ u∆qN˛ N˛Áz ü≈å úÓZN˛∫ üu∆qÁus|ÆÁı N˛Áz ÃuN¿˛Æ ∫QåÁ “{@ ÃÁs ™ı úÁe Nz˛ üÀoÏoyN˛∫m N˛så ∫yuo (å∫z∆å b{MåyN˛) ™ı GåN˛y ßÁTytÁ∫y ßy ÃÏuåu≈Yo N˛∫åÁ “{@ N˛qÁ ™ı u∆qm N˛∫oz Ã™Æ § u∆qN˛ ˚Á∫Á u∆qN˛ N˛Áz úÁe N˛y üÀoÁƒåÁ uåN˛Á¬åz “zoÏ ü≈å úÓZz TÆz ü≈åÁı Nz˛ G ∫ üu∆qÁsy| tzåz ™ı EÙs| úÓZåÁ YÁu“Æz@ Få ü≈åÁı N˛Áz üÀoÁƒåÁn™N˛ ü≈å ∫“oz “¯ oÁz u∆qN˛ ÀƒÆÊ Nz˛ N˛så ˚Á∫Á Gå N˛“oz “¯@ ZÁfiÁı Nz˛ ÓÆÁzT Ãz úÁe Nz˛ uƒN˛Áà Nz˛ ü∆åÁı Nz˛ Gno∫ Ù^ÁoÁ “{@ FÃNz˛ Euou∫Mo “{@ Fà twu…b Ãz uå∫yqm EÜÆÆå uƒuá EnÆão u¬Æz Áz ü≈å úÓZz Áoz “¯, Gã“ı uƒN˛ÁÃÁn™N˛ ub¬ uƒ ÆÃÁ™T¿y Nz˛ uN˛Ãy EÊ∆ N˛Áz Ù^Áåz GúÆÁzTy ™Áåy Áoy “{@ §y™Á-u∆qÁ ™ı u∆qN˛ N˛Áz ü≈å N˛“oz “¯@ N˛ßy-N˛ßy u∆qN˛ N˛Áz Æ“ ÁÂYåz Nz˛ u¬Æz ßy N˛så ∫yuo N˛Á üÆÁzT uN˛ÆÁ ÁoÁ “{@ rÁå tzoz Ã™Æ uåáÁ|u∫o N˛ÁÆ| N˛∫åz Nz˛ u¬Æz Nz˛ u¬Æz uN˛ üu∆qÁsy| uƒ ÆƒÀoÏ N˛Áz Ù^ ßy GtÁ“∫m Nz˛ u¬Æz §y™Á tÁƒÁ Ãz ÃʧÊuáo N˛ueå üu∆qÁus|ÆÁı N˛Áz tzåÁ YÁu“Æz uÃÃz ƒz ÀƒÆÊ ∫“z “¯ EsƒÁ å“Î ü≈å úÓZåÁ YÁu“Æz@ LzÃz ü≈åÁı §ÁoÁı N˛Áz ƒ“ N˛så ∫yuo Ãz EÁÃÁåy Ãz üu∆qÁus|ÆÁı Eúåz Hú∫ uåß|∫ “ÁzN˛∫ EÁn™uƒ≈ƒÁà Nz˛ ÃÁs N˛Áz ú∫yqm ü≈å N˛“oz “¯@ Æut üu∆qÁus|ÆÁı N˛Á N˛Áz §o¬Á ÃN˛oÁ “{@ N˛så ∫yuo Ãz ú‰jÁoz Ã™Æ §y™Á ÃʧÊáy N˛ÁÆÁz˙ N˛Áz N˛∫åz Nz˛ u¬Æz o{ÆÁ∫ “Áz ÜÆÁå N˛qÁ N˛y TuouƒuáÆÁı ™ı å“Î “{ oÁz ü≈å u∆qN˛ N˛Áz uå©å úÁÂY §ÁoÁÊz N˛Áz ÜÆÁå ™ı ∫QåÁ ÃNz˛@ úÓZN˛∫ u∆qN˛ GÃNz˛ ÜÆÁå N˛Áz N˛qÁ N˛y EÁƒ≈ÆN˛ “{@ TuouƒuáÆÁı N˛y EÁz∫ QÎY ÃN˛oÁ “{@ u∆qN˛ N˛Áz u∆qm ∫yuoÆÁ (byuYÊT b{MåyMÃ) • N˛så ∆ÏÚ, Ã∫¬, Àú…b EÁ{∫ §ÁzáT©Æ “ÁzåÁ N˛qÁ ™ı NÏ˛Z ü≈å LzÃz ßy úÓZåÁ YÁu“Æz uÃÃz YÁu“Æz@ ÃyQåz N˛y uƒuáÆÁı Nz˛ Euou∫Mo uÃQÁåz N˛y üu∆qÁus|ÆÁı N˛y Euß√ÆÊåÁ ∆uMo N˛Á uƒN˛Áà ∫yuoÆÁ (byuYÊT b{MåyMÃ) Nz˛ uƒ Æ ™ı ßy ÁååÁ “Áz ÃNz˛@ NÏ˛Z ü≈å LzÃz ßy úÓZz Áåz YÁu“Æz Áz • N˛så “Á oN˛ é߃ “Áz uN˛Ãy ÓÁÆN˛ EÁƒ≈ÆN˛ “{@ ÃyQåz N˛y uƒuáÆÁı Nz˛ ÃÁs u∆qm üu∆qÁsy| Nz˛ rÁå N˛Á ™Ó¡ÆÁÊN˛å N˛∫åz ™ı Ùs| ÃÁ™T¿y N˛y ÓÁÆoÁ Ãz uN˛ÆÁ ÁåÁ YÁu“Æ@ N˛∫oz Ã™Æ u∆qm ∫yuoÆÁı N˛Á ßy üÆÁzT uƒ Æ “Áı@ LzÃz ü≈åÁı N˛Áz ™Ó¡ÆÁÊN˛å ü≈å ßy N˛“oz “¯@ • N˛så ÃÊuqà “Áz EÁ{∫ §Á∫-§Á∫ GÃz N˛qÁ ™ı N˛Áz ÃÏT™ osÁ ∫ÁzYN˛ §åÁåz Nz˛ u¬Æz N˛∫åÁ u∆qN˛ ü≈åÁı Nz˛ ™ÁÜÆ™ Ãz ÀƒÆÊ Nz˛ u∆qm N˛Á tÁz“∫ÁåÁ å“Î YÁu“Æz@ YÁu“Æz@ u∆qm N˛y N˛ÁzF| ßy uƒuá §TÁ{∫ u∆qm ßy ™Ó¡ÆÁÊN˛å N˛∫ ÃN˛oz “¯@ Æut üu∆qÁsy| úÓZz • N˛så Ãt{ƒ N¿˛™§Ú, √ƃuÀso LƒÊ oÁuN|˛N˛ ∫yuoÆÁı Nz˛ GúÆÁzTy å“Î “Áz ÃN˛oy “¯, Eo:“™ı TÆz ü≈åÁı Nz˛ G ∫ N˛qÁ ™ı Ã∫¬ jÊT Ãz tz tzoz ªú Ãz uN˛ÆÁ ÁåÁ YÁu“Æz@ u∆qm N˛y ∫yuoÆÁı Nz˛ uƒ Æ ™ı ßy ÁååÁ “¯ oÁz GÃN˛Á Es| “{ uN˛ u∆qN˛ ˚Á∫Á utL TÆz EÁƒ≈ÆN˛ “{@ GtÁ“∫m Nz˛ oÁ{∫ ú∫ Æut “™ ƒÁt- • u∆qm N˛Á ¬Áß Gã“Áıåz GeÁÆÁ “{, EÁ{∫ Æut ƒz N˛så üu∆qÁus|ÆÁı N˛y ™ÁÂT ú∫ EsƒÁ GåN˛y uƒƒÁt N˛y u∆qm uƒuá N˛Á üÆÁzT N˛∫oz “¯ oÁz ü≈åÁı Nz˛ G ∫ å“Î tz úÁ ∫“z “¯ oÁz FÃN˛Á oÁnúÆ| EÁƒ≈ÆN˛oÁåÏÃÁ∫ “y N˛∫åÁ YÁ“yÆz@ ÃÁs “y irda journal 42 Jan 2009
    • u∆qm GtÁ“∫m ∫yuo (F¬Àb~∆å b{MåyN˛) z • “{ uN˛ u∆qN˛ ˚Á∫Á uN˛Æz TÆz u∆qm Ãz üu∆qÁsy| ü≈åÁı N˛y N˛qÁ ™ı §Á{ZÁ∫ å N˛y Áƒz ÃÁs “y ¬ÁßÊÁuƒo å“Î “ÏÆz “¯@ Gã“ı √Æs| ™ı tÁz“∫ÁåÁ ßy å“Î YÁu“Æz@ GtÁ“∫m Nz˛ ™ÁÜÆ™ Ãz “™ rÁo Ãz ErÁo N˛y • EÁz∫ §‰joz “¯@ GtÁ“∫m Nz˛ ™ÁÜÆ™ Ãz §y™Á NÏ˛Z ü≈å úÁe Nz˛ ÙÁuõo ú∫ uƒ Æ ÃÁ™T¿y N˛Áz ü≈åÁı Ãz üu∆qÁus|ÆÁı ™ı uYÊoå ∆uMo, oN|˛∆uMo u∆qN˛ üu∆qÁus|ÆÁı N˛Áz ErÁo o·ÆÁı, uƒYÁ∫Áı, tÁz“∫Áåz Nz˛ u¬Æz úÓZz Áåz YÁu“Æz@ LzÃz ü≈åÁı N˛Áz osÁ uåm|Æ ¬zåz N˛y ∆uMo N˛Á uƒN˛Áà “Áz §ÁoÁı LƒÊ EåÏ߃Áı Ãz EƒTo N˛∫Á ÃN˛oÁ “{@ ÃÁ∫ÁÊ∆ ü≈å N˛“oz “¯@ u∆qN˛ Nz˛ úÁà Æut Ã™Æ ÃNz˛, ÃÁs “y ü≈å N¿˛™§Ú √ƃuÀso osÁ §y™Á uƒ ÆƒÀoÏ Æut ub¬ LƒÊ N˛ueå “{ oÁz “{ oÁz úÁe Nz˛ EÊo ™ı NÏ˛Z ü≈å LzÃz ßy úÓZz Áåz oÁ∫o©ÆoÁ §åÁoz “ÏÆz úÓZz Áåz YÁu“Æz@ u∆qN˛ N˛qÁ ™ı GtÁ“∫m tzN˛∫ GÃz Ã∫¬ ªú ™ı YÁu“Æz uN˛ uÃÃz uƒ ÆƒÀoÏ N˛y úÏåÃÁƒwuno N˛y • u∆qN˛ N˛Áz ü≈å üÃãå ™Ï¸Á ™ı ÓÁåÏßÓuo jÊT Ù^Á ÃN˛oÁ “{@ “™ u∆qm ™ı tÁz üN˛Á∫ Nz˛ Á ÃNz˛@ LzÃz ü≈åÁı N˛Áz úÏå∫Áƒ¬ÁzN˛å ü≈å Ãz úÓZåÁ YÁu“Æz@ LzÃz ü≈å N˛tÁuú å“Î úÓZåÁ GtÁ“∫mÁı N˛Á üÆÁzT N˛∫ ÃN˛oz “¯@ üs™ ™Á{uQN˛ N˛“oz “¯@ ü≈å ∫yuo N˛Á üÆÁzT N˛∫oz Ã™Æ LN˛ YÁu“Æz uåN˛Á G ∫ ÀƒÆÊ u∆qN˛ N˛Áz å“yÊ GtÁ“∫m (EÁz∫¬ F¬Àbz~∆å) uÙı u∆qN˛ Eúåz u∆qN˛ N˛Áz uå©å úÁÂY §ÁoÁı N˛Á ÜÆÁå ∫QåÁ ™Á¬Ó™ “Áz@ ∆£tÁı Ãz ∆Áu£tN˛ uYfi QÎYoÁ “{ EÁ{∫ åƒyå YÁu“Æz@ u∆qN˛ N˛Áz N˛qÁ ™ı ü≈å úÓZoz Ã™Æ uN˛Ãy rÁå N˛Áz úÓƒ| rÁå Ãz Áz‰gN˛∫ Ù^Áåz N˛Á üÆÁà • ü≈åÁı N˛y ßÁ Á Ã∫¬, §ÁzáT©Æ EÁ{∫ ÃÏT™ üu∆qÁus|ÆÁı N˛Áz åyYÁ utQÁåz Nz˛ u¬Æz å“Î úÓZåÁ N˛∫oÁ “{@ tÓÃ∫Á üt∆|åÁn™N˛ GtÁ“∫m “ÁzoÁ “{ “Ázåy YÁu“Æz EÁ{∫ ƒz uN˛Ãy uåu≈Yo GÒz≈Æ Ãz YÁu“Æz@ u∆qN˛ N˛Áz Ã™Æ √Æoyo N˛∫åz Nz˛ u¬Æz uÙı u∆qN˛ ÓÁÆN˛ ÃÁ™T¿y N˛Áz N˛qÁ ™ı “y úÓZz Áåz YÁu“Æz@ ßy ü≈åÁı N˛Á ÓÁ∫Á å“Î ¬zåÁ YÁu“Æz@ Æut N˛ÁzF| üÀoÏo N˛∫Nz˛ úÁe N˛Áz Ù^ÁoÁ “{@ Fà üN˛Á∫ Nz˛ • úÓZÁ TÆÁ ü≈å ÃÊtz“Án™N˛ å“Î “ÁzåÁ YÁu“Æz@ üu∆qÁsy| ü≈åÁı Nz˛ G ∫ T¬o tzoÁ “{ oÁz u∆qN˛ GtÁ“∫mÁı ™z ∫zQÁuYfi, uYfi, ™ÁÂg¬, úz©°¬zb ÃÁs “y ƒz üu∆qÁus|ÆÁzÊ Nz˛ ™ÁåuÃN˛ Ào∫ Nz˛ N˛Áz GÃN˛y uåÊtÁ å“y N˛∫åÁ YÁu“Æz ƒ∫å tÓÃ∫z üÆÁzT N˛∫oz Ã™Æ üu∆qÁus|ÆÁı N˛Á ÓÆÁzT EåÏÃÁ∫ EÁ{∫ uƒ ÆƒÀoÏ Ãz ÃʧÊuáo “ÁzåÁ üu∆qÁsy| N˛y ÓÁÆoÁ Ãz Gà ü≈å N˛Á G ∫ EÁƒ≈ÆN˛ “{@ YÏåz TÆz GtÁ“∫m ÃyQy Áåz YÁu“Æz@ uåN˛¬ƒÁåÁ YÁu“Æz@ u∆qN˛ N˛Áz Æ“ ÜÆÁå ∫QåÁ ƒÁ¬y uƒ ÆƒÀoÏ Ãz Ãyáz ωgz “ÁzåÁ YÁu“Æz@ “{ uN˛ Æut GÃåz uN˛Ãy uƒ ÆƒÀoÏ ú∫ N˛så LN˛ u∆qN˛ Nz˛ u¬Æz GtÁ“∫m ∫yuo N˛Á üÆÁzT N˛∫oz Ã™Æ uå©å úÁÂY §ÁoÁı N˛Á ÜÆÁå ∫QåÁ uN˛ÆÁ “{ oÁz GÃy Ã™Æ Gà uƒ ÆƒÀoÏ ú∫ ü≈å EÁƒ≈ÆN˛ “{:- å“Î úÓZz ÁåÁ YÁu“Æz@ £¬Ó©Ã b{Mà oÁz ßy Nz˛ EåÏÃÁ∫ u∆qN˛ N˛Áz N˛qÁ ™ı rÁå ú∫ T‰jz Áåz • ™Á{uQN˛ GtÁ“∫m üu∆qÁus|ÆÁı Nz˛ úÓƒ| rÁå ú∫ ƒÁ¬z ü≈å (åÁ¬z ¬zuƒ¬ Mƒ≈Yå), Ù^åz Nz˛ EÁáÁu∫o “Áı EÁ{∫ Ã∫¬ LƒÊ Àú…b ßÁ Á ™ı u∆qN˛ Eúåz ∆£tÁı Ào∫ ú∫ T‰jz Áåz ƒÁ¬z ü≈å (N˛Á©üy“ı∆å ¬zuƒ¬ utÆz Áƒı@ Ãz ∆Áu£tN˛ uYfi Mƒ≈Yå) rÁo N˛Á üÆÁzT N˛∫åz Nz˛ Ào∫ ú∫ T‰jz • GtÁ“∫m uƒ ÆƒÀoÏ N˛Áz Ù^åz ™ı ÓÁÆN˛ Áåz ƒÁ¬z ü≈å (Lõ¬yNz˛∆å, ¬zuƒ¬ Mƒ≈Yå), QÎYoÁ “{ EÁ{∫ “Áz osÁ GåNz˛ EÁáÁ∫ ú∫ uƒ ÆƒÀoÏ N˛y uƒ≈¬z m N˛∫åz ƒÁ¬z ü≈å (LåÁ¬zuÃà ¬zƒ¬ √ÆÁPÆÁ Ã∫¬oÁ Ãz N˛y Á ÃNz˛@ åƒyå rÁå N˛Áz úÓƒ| Mƒ≈Yå), ÃÊ≈¬z m N˛∫åzƒÁ¬z ü≈å (Ãzãszuà • üt∆|åÁn™N˛ GtÁ“∫m ƒÁÀoƒ ™ı uƒ ÆƒÀoÏ ¬zƒ Mƒ≈Yå) osÁ, ™Ó¡ÆÁÊN˛å N˛∫åz ƒÁ¬z ü≈å rÁå Ãz ÁzgN˛∫ ‰ Ãz u™¬oz Ϭoz “¯@ ÃÁs “y YÏåy TF| ÓÁÆN˛ (ƒ{¡ÆÓÆz∆å ¬zƒ¬ Mƒ≈Yå) §y™Á uƒ Æ ƒÀoÏ Ã™^Áåz N˛Á üÆÁà ÃÁ™T¿y GÃÃz ÃʧÊuáo “Ázåy YÁu“Æz@ LzÃz N˛Á rÁå tzoz Ã™Æ Eƒ≈Æ úÓZåÁ YÁu“Æz@ £¬©Ã GtÁ“∫m EÁƒ≈ÆN˛oÁ ú‰gåz ú∫ “y üÆÁzT Nz˛ EåÏÃÁ∫ Gå ü≈åÁı N˛Áz úÓZåz N˛Á Es| “{ uN˛ N˛∫oÁ “{@ uN˛Æz Áåz YÁu“Æz@ üu∆qÁsy| ߬y ßÁÂuo uƒ ÆƒÀoÏ N˛Áz EÁn™ÃÁo N˛∫ ÃNz˛@ N˛ÁzF| ü≈å Áz u∆qN˛ ˚Á∫Á úÓZÁ ÁoÁ • LN˛ “y GtÁ“∫m §Á∫-§Á∫ å“Î tzåÁ YÁu“Æz “{ GÃN˛Áz N˛ÁzF| QÁà GÒz≈Æ “ÁzåÁ YÁu“Æz@ GÒz≈Æ“yå “Á oN˛ é߃ “Áz §y™Á-u∆qN˛ N˛Áz ü≈å Nz˛ƒ¬ Ã™Æ å…b N˛∫oz “¯ GÃÃz uN˛Ãy √ÆÁƒ“Áu∫N˛ EÁ{∫ ÃXYz GtÁ“∫m tzåÁ “y GúÆÁzTy üN˛Á∫ N˛Á ¬Áß üu∆qÁus|ÆÁı N˛Áz å“Î “ÁzoÁ “{@ uÃÚ “ÁıTz@ irda journal 43 Jan 2009
    • u∆qm • GtÁ“∫m üz∫mÁ ütÁå N˛∫åz ƒÁ¬z “Ázåz YÁu“Æz, uN˛Ã ßÁT ™ı üu∆qÁsy| N˛ueåÁF| ™“ÃÓà N˛∫ ∫“z “¯@ Nz˛ƒ¬ GÃy ßÁT N˛Áz GtÁ“∫m Ãu“o √ÆÁPÆÁ uÃÃz üu∆qÁsy| GåN˛Á EåÏÃ∫m N˛∫Nz˛ §y™Á N˛∫åÁ GuYo “ÁzTÁ@ √ÆÁPÆÁ å oÁz EuáN˛ ¬Ê§y √ƃÃÁÆ N˛y ƒÁÀouƒN˛oÁ N˛Á rÁå Ó ªú EÁ{∫ å “y EuáN˛ ÃÊuqõo “Ázåy YÁu“Æz@ u∆qN˛ ™ı T¿“m N˛∫ ÃNı˛@ N˛Áz √ÆÁPÆÁ N˛∫åz Nz˛ §Át NÏ˛Z ü≈å ßy üu∆qÁus|ÆÁı u∆qN˛ N˛Áz YÁu“Æz uN˛ § ƒz N˛qÁ ™ı GtÁ“∫m Æut N˛ÁzF| N˛Á∫ Ãz úÓZåÁ YÁu“Æz uÃÃz ƒ“ ™Ó¡ÆÁÊN˛å N˛∫ ÃNz˛ ∫yuo N˛Á üÆÁzT N˛∫ı oÁz GÃNz˛ oÏ∫Êo §Át N˛så uN˛ üu∆qÁsy| GÃNz˛ ˚Á∫Á N˛y TF| √ÆÁPÆÁ N˛Áz Y¬ÁåÁ ÃyQoÁ “{ N˛∫åÁ EsƒÁ GtÁ“∫m Nz˛ EÁáÁ∫ ú∫ √ÆÁPÆÁ Ù^ ßy úÁÆz “¯ EsƒÁ å“Î@ N˛ßy N˛ßy YoÏ∫ N˛∫åÁ §“Ïo EÁƒ≈ÆN˛ “{@ N˛qÁ ™ı EÃʧÊuáo EÁ{∫ NÏ˛Z utå Nz˛ EÁ{∫ §ÏuÚ™Áå üu∆qÁus|ÆÁı Ãz ßy N˛ueå EÊ∆ N˛y GtÁ“∫mÁı N˛Á üÆÁzT N˛∫åz N˛Á Es| u∆qm N˛¬ÁEÁı √ÆÁPÊÆÁ u∆qN˛ N˛Áz N˛∫ƒÁåÁ YÁu“Æz uÃÃz GåNz˛ u¬Æz ƒ“ N˛Á∫ Y¬Áåz N˛Áz åy∫à §åÁåÁ “{@ Æut u∆qN˛ üu∆qÁus|ÆÁı Ãz EÊt∫ EÁn™uƒæÁÁ∫ Nz˛ ÃÁs “y GåN˛y Euß√ÆÊåÁ GtÁ“∫m tzåz N˛Áz N˛“ı oÁz EÁ{∫ ßy EuáN˛ ∫ÁzYN˛ N˛Á E•ÆÁà §Êt N˛∫ ∆uMo N˛Á ßy uƒN˛Áà “Áz ÃNz˛@ EXZy √ÆÁPÆÁ ∫“zTÁ@ áy™y Tuo Ãz ÃyQåz ƒÁ¬z üu∆qÁus|ÆÁı N˛Áz üu∆qÁus|ÆÁı N˛Áz ÃyQåz Nz˛ u¬Æz üzu∫o N˛∫oy “{@ tz oÁz GÃN˛Á éúÓm| ÃʧÊuáo GtÁ“∫mÁı N˛Áz §o¬ÁN˛∫ Ó ªú ™ı rÁå utÆÁ Á ÃN˛oÁ “{@ u∆qN˛ N˛Áz YÁu“Æz uN˛ úu∫»™ √Æs| “Áz E•ÆÁà ∫yuo (ug~¬ b{Ní˛yN˛) ƒz uƒ ÆƒÀoÏ N˛Áz ÜÆÁå ™ı ∫QN˛∫ N˛ßy ™Á{uQN˛ uN˛Ãy ßy qzfi ™ı uoåÁ ÃyQy “ÏF| ƒÀoÏ N˛Á ÁÆzTÁ@ GtÁ“∫mÁı N˛y EÁz∫ N˛ßy üt∆|åÁn™N˛ GtÁ“∫mÁı E•ÆÁà uN˛ÆÁ ÁoÁ “{ Goåy “y GÃNz˛ EÊt∫ N˛Á üÆÁzT Eúåz uƒƒzN˛ Ãz N˛qÁ ™ı N˛∫ı@ N˛Á{∆¬oÁ N˛Á uƒN˛Áà “ÁzoÁ “{@ Æut N˛ÁzF| N˛Á∫ Y¬ÁåÁ ÃyQoÁ “{ EÁ{∫ NÏ˛Z utå Nz˛ u¬Æz ƒ“ √ÆÁPÆÁ ∫yuo (LMÃúÁzy∆å b{MåyN˛) N˛Á∫ Y¬Áåz N˛Á E•ÆÁà §Êt N˛∫ tz oÁz GÃN˛Á éúÓm| úu∫»™ √Æs| “Áz ÁÆzTÁ@ Æut N˛ÁzF| §y™Á §y™Á ÃʧÊáy ub¬ tϪ“ LƒÊ N˛ueå üuN¿˛ÆÁ N˛Áz ÃʧÊáy ÁåN˛Á∫y T¿“m N˛∫ ∫“Á “{ EÁ{∫ Fà Ù^Áåz Nz˛ u¬Æz √ÆÁPÆÁ N˛∫åÁ EnÆão EÁƒ≈ÆN˛ å“Î N˛∫åÁ YÁu“Æz@ FÃÃz üu∆qÁus|ÆÁı N˛Áz ß¿™ ÁåN˛Á∫y Nz˛ uƒ Æ ™ı ƒ“ tÁz§Á∫Á úÏå∫Áƒwuo å“Î “{@ √ÆÁPÆÁ N˛∫åz N˛Á ü™ÏQ GÒz≈Æ u∆qm N˛∫oz osÁ ß¿ÁÂuo “Áz ÃN˛oy “{@ N˛∫oÁ “{ oÁz ƒ“ u¬Qz “ÏÆz rÁå N˛Áz ßÓ¬ ÁƒzTÁ Ã™Æ ub¬ §ÁoÁı N˛Áz Ã∫¬ o∫yNz˛ Ãz √ÆÁPÆÁ • Eo: GÃz GÃN˛Á E•ÆÁà N˛∫åÁ §“Ïo ø∫y “{@ Æut √ÆÁPÆÁ ˚Á∫Á N˛“y TF| §Áo N˛Áz üu∆qÁsy| N˛∫Nz˛ Ù^ÁåÁ “{ uÃÃz ÃyQåz N˛y üuN¿˛ÆÁ ™ı N˛“Á ßy TÆÁ “{ uN˛ <<N˛∫o N˛∫o E•ÆÁà Nz˛ å“ΠÙ^ ∫“z “¯ oÁz FÃN˛Á ßÁå “Ázoz “y uN˛Ãy üN˛Á∫ N˛y §ÁáÁ Gnúãå å “Áz ÃNz˛@ §y™Á ‰g™uo “Ázo ÃÏÁå>>@ uN˛Ãy ßy qzfi ™ı E•ÆÁà u∆qN˛ N˛Áz GÃy Ã™Æ úÏå: √ÆÁPÆÁ N˛Áz tÁz“∫ÁåÁ u∆qN˛ N˛Áz √ÆÁPÆÁ ∫yuo N˛Á üÆÁzT N˛∫oz Ã™Æ N˛∫åz N˛Á Es| Gà NÏ˛∆¬oÁ üÁõo N˛∫åÁ “{@ YÁu“Æz@ uå™í §y™Á N˛Áz ÜÆÁå ∫QåÁ EÁƒ≈ÆN˛ “{: EÊT¿zy ™ı ßy Æ“ N˛“Áƒo üuÃÚ “{ uN˛ <<ü{uMbà • √ÆÁPÆÁ N˛∫oz Ã™Æ u∆qN˛ Nz˛ §Áz¬åz N˛y Tuo • u∆qN˛ ˚Á∫Á N˛y TF| √ÆÁPÆÁ ÃyQy Áåz ƒÁ¬y ™zMà L ™{å ú∫¢{˛Mb>> Æ“ ∫yuo ™åÁzƒ{rÁuåN˛ å oÁz EuáN˛ oz EÁ{∫ å “y EuáN˛ áy™y ÃÁ™T¿y Ãz ÃʧÊuáo “Áz EÁ{∫ Æ“ √ÆÁPÆÁ Ã∫¬ sÁå|gÁFN˛ Nz˛ <<E•ÆÁà Nz˛ uåÆ™>> ú∫ EÁáÁu∫o “Ázåy YÁu“Æz@ GÃz LzÃy √ÆÁPÆÁ N˛∫åy YÁu“Æz LƒÊ §ÁzáTÆ™ “Áz@ Æut √ÆÁPÆÁ uN˛Ãy ÓÁÆN˛ “¯@ Fà ∫yuo Ãz rÁå ™ı úu∫úMƒoÁ EÁoy “{ uÃÃz u∆qm N˛Á GÒz≈Æ úÓm| “Áz ÃNz˛@ ÃÁ™T¿y EsƒÁ ≈ÆÁ™úb N˛Á üÆÁzT N˛∫åz Nz˛ üu∆qÁsy| Nz˛ EÁn™uƒ≈ƒÁà Nz˛ ¬zuƒ¬ ™ı ƒwuÚ ÃÁs N˛y Áƒz oÁz EÁ{∫ EXZÁ ∫“zTÁ@ • “Áz o y “{ @ E•ÆÁà ∫yuo N˛Á üÆÁz T N˛∫oz u∆qN˛ oßy √ÆÁPÆÁ ∫yuo N˛Á üÆÁzT N˛∫z § Ã™Æ u∆qN˛ N˛Áz uå™í §ÁoÁı N˛Á ÜÆÁå ∫QåÁ GÃz uƒ ÆƒÀoÏ N˛Á éúÓm| rÁå “Áz@ EáÓ∫z • u∆qN˛ ˚Á∫Á √ÆÁPÆÁ ∫yuo Nz˛ƒ¬ ub¬ ÃÁ™T¿y EÁƒ≈ÆN˛ “{@ rÁå Ãz √ÆÁPÆÁ å“Î “Áz ÃN˛oy “{@ N˛Áz Àú…b N˛∫åz Nz˛ u¬Æz “y N˛∫åÁ YÁu“Æz@ ÃÁs “y Æut LƒÊ u§ãtÏ ú∫ √ÆÁPÆÁ N˛y Á u“Î • u∆qN˛ N˛Áz Fà ∫yuo N˛Á üÆÁzT N˛∫oz Ã™Æ Fà ∫yuo Nz˛ üÆÁzT Ãz üu∆qÁus|ÆÁı N˛y À™∫m “{ oÁz GÃy Ã™Æ tÓÃ∫z u§ãtÏ N˛y YYÁ| N˛tÁuú ∆uMo N˛Á uƒN˛Áà “Áz ÃN˛oÁ “{ Áz LN˛ §y™Á tzQåÁ YÁu“Æz uN˛ ÃyQy Áåz ƒÁ¬y ÃÁ™T¿y Nz˛ irda journal 44 Jan 2009
    • u∆qm • üu∆qÁus|ÆÁı N˛Áz E•ÆÁà GåN˛y √ÆuMoTo o·ÆÁı, üuN¿˛ÆÁEÁzÊ EÁut Nz˛ uƒ Æ ™ı üu∆qÁus|ÆÁı üu∆qÁus| Nz˛ u¬Æz §“Ïo EÁƒ≈ÆN˛ “{, ÃÁs “y EÁƒ≈ÆN˛oÁEÁzÊ Nz˛ “y EåÏÃÁ∫ N˛∫ÁåÁ YÁu“Æz@ N˛Áz ú“¬z “y §o¬Á tzåÁ YÁu“Æz uÃÃz ƒz ƒz Eu|o rÁå N˛Áz EÁ{∫ EuáN˛ úMN˛Á N˛∫ Áz üu∆qÁsy|| uà uƒ ÆƒÀoÏ ™ı uúZ‰gÁ “{Ê Ãßy uN¿˛ÆÁEÁzÊ N˛Á Óy uå∫yqm N˛∫ ÃNz˛@ ÃN˛oz “¯@ Nz˛ƒ¬ GÃz GÃy uƒ ÆƒÀoÏ N˛Á E•ÆÁà N˛∫ÁåÁ • • uå∫yqm N˛∫åz Nz˛ §Át u∆qN˛ N˛Áz N˛qÁ ™ı Fà ∫yuo Ãz ÃyQåz N˛y üuN¿˛ÆÁ ™ı uå∫Êo∫oÁ YÁu“Æz@ uå∫yqm N˛y TF| §ÁoÁı, o·ÆÁı osÁ üuN¿˛ÆÁEÁzÊ §åy ∫“oy “{ EÁ{∫ üu∆qÁsy| ÃʧÊuáo ÃÓYåÁEÁzÊ E•ÆÁà ∫yuo N˛Á GúÆÁzT N˛∫oz Ã™Æ u∆qN˛ N˛Áz ú∫ üu∆qÁus|ÆÁı Ãz ƒÁt-uƒƒÁt N˛∫ƒÁåÁ YÁu“Æz N˛Á Ãʧá ÀsÁuúo N˛∫åz ™ı Ùs| “Ázoz “¯@ ÀƒÆÊ N˛y ÃÏuƒáÁ N˛Á å“Î ƒ∫å üu∆qÁus|ÆÁı N˛y EÁ{∫ u¢˛∫ u∆qN˛ N˛Áz Ãßy §ÁoÁı ú∫ üN˛Á∆ • E•ÆÁà N˛∫oz Ã™Æ u∆qN˛ N˛Áz ÜÆÁå ∫QåÁ ÃÏuƒáÁ N˛Á ÜÆÁå ∫QåÁ EÁƒ≈ÆN˛ “{@ Fà ∫yuo gÁ¬N˛∫ GúÆÁzTy uå…N˛ | uåN˛¬ƒÁåÁ YÁu“Æz@ “{ uN˛ üu∆qÁsy| uN˛Ãy T¬o §Áo N˛Áz T¬o N˛Á üÆÁzT üu∆qÁsy| N˛qÁ Nz˛ §Á“∫ ßy N˛∫ • Æut EÁƒ≈ÆN˛ “Áz oÁz u∆qN˛ N˛Áz uå∫yqm N˛y o∫yNz˛ Ãz EÁãÆÃÁá å N˛∫åz ¬Tz EãÆsÁ ÃN˛oz “¯@ E•ÆÁà N˛y üNw˛uo üu∆qÁsy| uƒ∆z  TF| uƒ ÆƒÀoÏ ú∫ üu∆qÁus|ÆÁı Ãz uå§Êá ßy üu∆qÁsy| eyN˛ Ãz ÆÁt å“Î N˛∫ ÃNı˛Tz@ N˛y q™oÁ ú∫ uåß|∫ ∫“oy “{@ u¬QƒÁåÁ YÁu“Æz EÁ{∫ GÃN˛Á ™Ó¡ÆÁÊN˛å ßy • u∆qm N˛Áz E•ÆÁà N˛∫Áåz Ãz úÓƒ| üu∆qÁus|ÆÁı N˛∫åÁ YÁu“Æz, uÃÃz üu∆qÁsy| Gúåz rÁå ™ı N˛Áz ÃyQy TF| uƒ Æ ÃÁ™T¿y N˛y ™“ Á §o¬ÁN˛∫ uå∫yqm ∫yuo (EÁ}§[ƒz|∆å b{Ní˛yN˛) ƒwuÚ N˛∫Nz˛ N˛ÁÆ| N˛∫åz N˛y N˛Á{∆¬oÁ ™ı ßy GåÃz üuo Gå™z øuY GnúëÁ N˛∫åÁ YÁu“Æz@ Fà ∫yuo ™ı üu∆qsy| N˛Á ™“nƒ EuáN˛ “{@ Fà ƒwuÚ N˛∫ ÃNı˛@ u∆qN˛ N˛Áz uå∫yqm ∫yuo N˛Á ∫yuo Nz˛ ˚Á∫Á ƒz §y™Á ÃʧÊáy uN¿˛ÆÁN˛¬ÁúÁı N˛Á üÆÁzT N˛∫åz Ãz ú“¬z uå∫yqm N˛y ÆÁzåÁ Eƒ¬ÁzN˛å osÁ uå∫yqm N˛∫oz “¯ EÁ{∫ §y™Á o{ÆÁ∫ N˛∫åÁ YÁu“Æz EÁ{∫ uà üuN¿˛ÆÁ N˛Á N˛ÁÆ| Ãz ÃʧÊuáo √ƃ“Áu∫N˛ rÁå üÁõo N˛∫oz “¯@ osÁ uà ÃÊÀsÁ N˛Á uå∫yqm N˛∫ƒÁåÁ “{ uå∫yqm ˚Á∫Á Áz ßy rÁå üu∆qÁsy| üÁõo N˛∫oz GÃN˛Áz ú“¬z “y éúN|˛ N˛∫Nz˛ ÆÁzåÁ §åÁ üu∆qÁus|ÆÁı N˛Áz ÀƒÆÊ “¯ ƒ“ GåNz˛ ™uÀo…N˛ ™ı ÀsÁF| øú Ãz ÀsÁuúo “Áz ¬zåy YÁu“Æz@ uå∫yqm Nz˛ tÁ{∫Áå § üu∆qÁsy| ÁoÁ “{@ uå∫yqm ∫yuo N˛Á üÆÁzT N˛qÁ ™ı N˛™ N˛Áz N˛ÁzF| ∆ÊN˛Á ÆÁ ß¿Áuão “Áz oÁz GÃz tÓ∫ N˛∫åÁ@ Nz˛ EåÏ߃Áı osÁ rÁå uN˛ãoÏ u¢˛¡g ™ı EuáN˛ uN˛ÆÁ ÁoÁ “{@ T¿Á“N˛Áı Ãz uå∫yqm ∫yuo Ãz ÃyQåz ™ı üu∆qÁsy| √ÆÁƒ“Áu∫N˛ Nz˛ EÁáÁ∫ ú∫ N{˛Ãz §Áo N˛∫ı Gã“ı §y™ÁáÁ∫N˛ N{˛Ãz §åÁÆı osÁ rÁå üÁõo N˛∫oz “¯ Áz §y™Á √ƃÃÁÆ Nz˛ u¬Æz §y™Á N˛Á éúÓm| N˛ÁÆ| üÀoÏuo üÁõo N˛∫åz Ãz EnÆão GúÆÁzTy “{@ uå∫yqm N˛∫åz tzåÁ ¬zN˛∫ tÁƒÁ ∫Áu∆ Nz˛ ßÏToÁå oN˛ N{˛Ãz uN˛Æz Áoz YÁu“Æz EÁ{∫ uå∫yqm “¯ N˛Á rÁå uå∫yqm ∫yuo Ãz “y é߃ “{@ u∆qN˛ N˛Áz uå∫yqm ∫yuo N˛Á üÆÁzT N˛∫oz Ã™Æ N˛y Áåz ƒÁ¬y uå©å úÁÂY §ÁoÁı N˛Áz ÜÆÁå ™ı ∫QåÁ YÁu“Æz@ uN¿˛ÆÁÆı GÃNz˛ • uå∫yqm N˛∫Áåz Ãz úÓƒ| u∆qN˛ N˛Áz üu∆qÁus|ÆÁı √ƃÃÁÆ Ãz Ãyáz Nz˛ é™ÏQ uå∫yqm N˛Á GÒz≈ÆÀú…b N˛∫ tzåÁ YÁu“Æz@ ÃÁs “y uå∫yqm N˛∫oz Ã™Æ Gã“ı Ãʧá ∫Qåz ƒÁ¬y Ê Ã™Æ Ã™Æ ú∫ ™ÁT|t∆|å ßy tzoz ∫“åÁ YÁu“Æz@ “Ázåy YÁu“Æz@ • üu∆qÁus|ÆÁı N˛Áz ÀƒÆÊ Nz˛ EåÏ߃Áı osÁ rÁå Nz˛ EÁáÁ∫ ú∫ uå∫yqm N˛∫åz tzåÁ YÁu“Æz EÁ{∫ uå∫yqm N˛y Áåz ƒÁ¬y uN¿˛ÆÁÆı GÃNz˛ √ƃÃÁÆ §y™Á-u∆qÁ N˛y u∆qm N˛¬Á EY|åÁ uÃã“Á ƒ Ãz Ãyáz ÃʧÊá ∫Qåz ƒÁ¬y “Ázåy YÁu“Æz@ G™z∆Y㸠NÏ˛tzuÃÆÁ osÁ §y™Á “ÁHÃ, • ßÁzúÁ¬ Ãz é™Á∫@ u∆qN˛ N˛Áz uå∫yqm N˛y Áåz ƒÁ¬y §ÁoÁı irda journal 45 Jan 2009
    • u∆qm uƒúmå T¿Á™ym §y™Á uƒúmå - éßÁƒåÁL LƒÊ YÏåÁ{uoÆÁ ü™Ázt NÏ˛™Á∫ ƒ™Á| N˛“oz “¯ uN˛ T¿Á™ymÁı N˛Á yƒå ∆“∫y √ÆuO˛ÆÁı N˛y oϬåÁ ™ı [ÆÁtÁ ÁzuQ™Áı LƒÊ Euåu≥ÁooÁEÁzÊ Ãz ß∫Á “{@ Euåu≥ÁooÁEÁzÊ Ãz ß∫Á “{ MÆÁıuN˛ EÁÁty Nz˛ Z: ∆“∫y oϬåÁ ™ı T¿Á™ym qzfiÁı ™ı EÁáÁ∫ßÓo ÃÊ∫YåÁ ƒÁı N˛y §Áo N˛∫oz “y EÁÂQÁı Nz˛ ÃÁ™åz TÁ t∆N˛ §Át ßy EÁ Nw˛u  ™ÁåÃÓå ú∫ uåß|∫ “{ ßy EúÆÁ|õo “{ Få Ãßy Nz˛ N˛Á∫m “y §y™ÁN˛oÁ|EÁzÊ “∫z-ß∫z Qzo, §{¬Áz N˛y Ázgy, QzoÁı N˛y EÁ{∫ FÃN˛y GnúÁtN˛oÁ ™ÁåÃÓå Ãz üßÁuƒo Nz˛ u¬L ∆“∫ §y™Á uƒúmå N˛Á Nz˛ã¸ §åÁ “ÏEÁ ÏoÁF| N˛∫oÁ “ÏEÁ uN˛ÃÁå, VÁà Nz˛ “Ázoy ∫“oy “{@ uÃN˛Á üßÁƒ uâ|˛ TÁƒÁı N˛y “{@ T¿Á™ym §ÁÁ∫ ™ı §y™ÁN˛oÁ|EÁzÊ N˛Áz T“∫y ú{e ™{tÁå ™ı Y∫oy “ÏF| TÁÆı, §ÄÁÁı N˛Á ¢˛¬Áı Nz˛ úz‰g Es|√ƃÀsÁ ú∫ “y å“Î §u¡N˛ úÓ∫z tz∆ N˛y §åÁåz Nz˛ u¬L T¿Á™ym §ÁÁ∫ N˛y uƒuƒáoÁ LƒÊ Ãz ¢˛¬ oÁz‰gåÁ, ÃÁÆÊN˛Á¬ ™ı T¿Á™ymÁı N˛Á Eúåz Es|√ƃÀsÁ ú∫ ú‰goÁ “{, ßÁ∫oyÆ Es|√ƃÀsÁ GÃN˛y EÁƒ≈ÆN˛oÁ N˛Áz ÜÆÁå ™zı ∫QN˛∫ §y™Á ú‰gÁzuÃÆÁı Ãz YÁÆ ú∫ §Áo N˛∫åÁ ÆÁ ÃÁs ™ı GnúÁt / ÃzƒÁ T¿Á™ymÁı oN˛ Gú¬£á N˛∫ÁåÁ N˛Á EÁáÁ∫ Nw˛u  “{ osÁ ßÁ∫o Nz˛ ÃN˛¬ V∫z¬Ó “Ï≤˛Á úyåÁ ÆÁ NÏ˛Z ™åÁz∫Êå Nz˛ u¬L Tyo TÁåÁ GnúÁt ™ı Nw˛u  LƒÊ FÃÃz é§uãáo qzfiÁı N˛Á §y™ÁtÁoÁEÁzÊ N˛Á ™ÏPÆ GÒz≈Æ “ÁzåÁ YÁu“L@ {Ãz NÏ˛Z tw≈Æ Gß∫ N˛∫ ÃÁ™åz EÁoz “¯ Áz uN˛ ÆÁzTtÁå VbN˛∫ ¬TßT 22 üuo∆o ∫“ TÆÁ “{, Hú∫y øú Ãz EnÆuáN˛ ÃÏ“Áƒåz ¬Toz “¯ ú∫ãoÏ Fà §ÁÁ∫ N˛Áz ÜÆÁå ™ı ∫QN˛∫ §y™ÁN˛oÁ|EÁzÊ N˛Áz §uN˛ tz∆ N˛y 65-70 üuo∆o åÃÊPÆÁ Eúåy EÁãou∫N˛ øú Ãz T¿Á™ymÁı N˛y LN˛ E¬T N˛“Áåy Eúåz √ÆÁúÁ∫, TÁƒ LƒÊ tz∆ Nz˛ uƒN˛Áà Nz˛ u¬L yuƒN˛Á Nz˛ u¬L FÃy ú∫ uåß|∫ ∫“oy “{@1 “y §ÆÁÊ N˛∫oz “¯@ T¿Á™ymÁı N˛Á yƒå ∆“∫y uå∫ão∫ onú∫ ∫“åÁ “ÁzTÁ@ T¿Á™ymÁı Nz˛ ÁzuQ™Áı √ÆuO˛ÆÁı N˛y oϬåÁ ™ı [ÆÁtÁ ÁzuQ™Áı LƒÊ {ÃÁ uN˛ Hú∫ §oÁÆÁ TÆÁ “{ uN˛ T¿Á™ymÁı N˛Á N˛Áz §y™Á Nz˛ N˛ƒ∫ ˚Á∫Á GåN˛y “ÁuåÆÁı N˛y yƒå EúzqÁNw˛o EuáN˛ ÁzuQ™Áı Ãz ß∫Á “ÏEÁ quoúÓuo| N˛∫Nz˛ EÁus|N˛ uÀsuo N˛Áz ™§Óo N˛∫åz “{ uÃN˛Á ƒ“å ƒz EÁ ßy ÀƒÆÊ N˛∫oz “¯@ NÏ˛Z N˛Á üÆÁà uN˛ÆÁ ÁoÁ “{ uÃÃz ƒz EúåÁ yƒå T¿Á™ymÁı Nz˛ ÁzuQ™Áı FÙı Ãz ÃÁzåz-YÁÂy, ßÓu™ ÆÁ EãÆ uN˛Ãy üN˛Á∫ uåuß|N˛oÁ Ãz √Æoyo N˛∫ ÃNı˛@ §y™Á N˛©úuåÆÁ N˛Áz §y™Á Nz˛ N˛ƒ∫ N˛y éúu ÆÁı ™ı uƒuåƒz∆ N˛∫Nz˛ ÁzuQ™ Nz˛ T¿Á™ymÁı Ãz üÁõo üyu™Æ™ N˛Áz tz∆ Nz˛ uƒN˛Áà “zoÏ Ã™Æ Eúåy uÀsuo N˛Áz ÃÏáÁ∫åz N˛Á üÁÆÁà N˛∫oz EÁáÁ∫ßÓo ÃÊ∫YåÁ LƒÊ Ã∫N˛Á∫y üuoßÓuoÆÁı ™ı ˚Á∫Á GåN˛y “ÁuåÆÁı “¯ oÁz NÏ˛Z EÁúÃy ÓÆÁzT Ãz LN˛ N˛Áz  N˛Á uƒuåƒz∆ N˛∫oy “¯@ FÃÃz tz∆ N˛y EÁáÁ∫ßÓo uå™Á|m N˛∫Nz˛@ Æz Ãßy ÁzuQ™ ƒ“å N˛∫åz Nz˛ ÃÊ∫YåÁ ßy ™§Óo “Ázoy “{ ÃÁs “y Es|√ƃÀsÁ N˛y quoúÓuo| N˛∫Nz˛ EÀsÁÆy ÃÁáå “¯, T¿Á™ymÁı N˛Áz ÁzuQ™Áı Ãz ÃÏ∫qÁ N˛Áz ßy Tuo u™¬oÁ “{@ Fà uƒuåƒz∆ Ãz üÁüo EÁus|N˛ uÀsuo N˛Áz ütÁå N˛∫åz Nz˛ u¬L §y™Á EãÆ ÃÁáåÁı ™ı çÃz ¬Áß N˛Áz §y™ÁN˛oÁ|EÁzÊ ˚Á∫Á ¬ÁßÁÊ∆ ÆÁ tÁƒz N˛y E ™ LƒÊ ÀsÁÆy ÃÁáå “{@ úÓuo| ÆÁ úu∫úÅ˛oÁ ú∫ T¿Á™ymÁı N˛Áz GåN˛y ™§Óo N˛∫åz N˛Á EÁƒ≈ÆN˛oÁ Nz˛ Ã™Æ ƒÁúà uN˛ÆÁ ÁoÁ “{ - T¿Á™ym §ÁÁ∫ §yu™o N˛Áz ÁzuQ™ Ãz ÃÏ∫qÁ / quoúÓuo|@ üÆÁà uN˛ÆÁ ÁoÁ “{ ßÁ∫oyÆ T¿Á™ymÁı N˛Áz §y™Á ÃÏ∫qÁ ütÁå N˛∫åÁ Ãßy §y™Á N˛©úuåÆÁı Nz˛ u¬L LN˛ §‰gy YÏåÁ{oy uÃÃz ƒz EúåÁ “{ YÁ“z ƒz ÃÁƒ|uåN˛ N˛©úuåÆÁ “Áz ÆÁ uåy N˛©úuåÆÁÂ@ ßÁ∫oyÆ T¿Á™ym ßÁ{TÁzu¬N˛, ÃÁ™ÁuN˛, yƒå uåuß|N˛oÁ Ãz ÃÁÊÀNw˛uoN˛, EÁu|sN˛, ∆Á{qumN˛, ∫Áå{uoN˛, ßÁ ÁEÁzÊ |{ √Æoyo N˛∫ ÃNı˛@ LƒÊ ∫“å-Óå Nz˛ EÁáÁ∫ ú∫ EÁúà ™ı LN˛ tÓÃ∫z Ãz ußëÁ LƒÊ uƒ ™ “¯, Áz §y™ÁN˛oÁ|EÁzÊ Nz˛ u¬L Æ“ LN˛ §‰gy YÏåÁ{oy “{ FÃNz˛ ÃÁs “y 1. Bharat 2008, Annual reference Publication Department, Ministry of Information and Broadcasting, Government (∆z  ßÁT ET¬z EÊN˛ ™ı) of India, New Delhi, p.67 irda journal 46 Jan 2009
    • statistics - non-life insurance Report Card: General GROSS PREMIUM UNDERWRITTEN FOR AND UP TO THE MONTH OF NOVEMBER, 2008 (Rs.in Crores) NOVEMBER APRIL - NOVEMBER GROWTH OVER THE INSURER CORRESPONDING PERIOD 2008-09 2007-08 2008-09 2007-08 OF PREVIOUS YEAR Royal Sundaram 65.77 60.42 527.00 439.73 19.85 Tata-AIG 52.13 55.28 609.05 527.69 15.42 Reliance General 181.34 186.68 1316.09 1315.36 0.06 IFFCO-Tokio 110.81 97.49 932.09 708.35 31.58 ICICI-lombard 230.54 283.98 2471.66 2348.10 5.26 Bajaj Allianz 188.74 190.45 1801.90 1515.52 18.90 HDFC ERGO General 25.33 18.63 203.58 148.18 37.39 Cholamandalam 52.82 34.23 467.43 349.02 33.93 Future Generali* 13.76 0.86 101.19 0.86 11672.09 Universal Sompo # 0.90 0.00 2.49 0.00 Shriram General @ 17.18 0.00 37.57 0.00 Bharti AXA General @ 2.09 0.00 3.93 0.00 New India 364.77 397.96 3597.03 3517.22 2.27 National 314.47 316.00 2823.80 2591.89 8.95 United India 338.91 304.71 2754.60 2446.71 12.58 Oriental 265.97 274.28 2632.42 2598.67 1.30 PRIVATE TOTAL 939.33 928.01 8470.04 7352.81 15.19 PUBLIC TOTAL 1284.12 1292.95 11807.85 11154.49 5.86 GRAND TOTAL 2223.45 2220.96 20277.89 18507.30 9.57 SPECIALISED INSTITUTIONS: 1.Credit Insurance ECGC 59.93 55.38 465.91 420.26 10.86 2.Health Insurance Star Health & Allied Insurance 7.07 3.55 318.76 98.99 222.00 Apollo DKV* 7.31 0.00 25.46 0.00 Health Total 14.39 3.55 344.22 98.99 247.72 3.Agriculture Insurance AIC 78.04 63.51 540.69 552.13 -2.07 Note: Compiled on the basis of data submitted by the Insurance companies * Commenced operations in November, 2007. # Commenced operations in February, 2008. '@ Commenced operations in July, 2008. irda journal 47 Jan 2009
    • SPREAD THE WORD... The above advertisement is issued by IRDA in the Public interest. Those wishing to publish it for spreading consumer awareness of Insurance may use this artwork for reproduction. irda journal irda journal 48 48 Jan 2009 Jan 2009
    • events Management of Strategic Issues for 12 - 17 Jan 2009 Insurance Executives Venue: NIA, Pune By National Insurance Academy 2nd India Rendezvous 19 - 21 Jan 2009 Venue: Mumbai By Asia Insurance Review, Singapore Frontline Marketing Strategies 02 - 04 Feb 2009 Venue: NIA, Pune By National Insurance Academy 1st Seoul Rendezvous 05 - 06 Feb 2009 Venue: Seoul, S.Korea By Asia Insurance Review, Singapore 1st Seoul Rendezvous 08 - 09 Feb 2009 Venue: Kingdom of Bahrain By Bahrain Insurance Association Financial Awareness Programme 09 - 11 Feb 2009 Venue: NIA, Pune By National Insurance Academy Reinsurance Management 16 - 18 Feb 2009 Venue: NIA, Pune By National Insurance Academy 3rd MENA CEO Insurance Summit 02 - 04 Mar 2009 Venue: Tunis, Tunisia By Asia Insurance Review, Singapore Effective Claims Management 02 - 07 Mar 2009 Venue: NIA, Pune By National Insurance Academy
    • RNI No: APBIL/2002/9589 “ view point Amid the ongoing financial turmoil, the global reinsurance market has proven relatively robust and resilient against direct shocks thus far, which has contributed to both the stability of the global insurance markets as well as ultimately the security of individual insurance customers. Mr Peter Braumuller Chair of the IAIS Executive Committee Now is the time for consumers to get smart about their insurance and take advantage of the opportunities to maximize their coverage, minimize their costs and protect themselves financially. Mr Roger Sevigny NAIC President and New Hampshire Insurance Commissioner The current financial crisis is unprecedented in terms of its scale, complexity, and speed of transmission. While the series of coordinated actions by financial authorities and Governments have helped to stabilise the markets somewhat, sentiments remain fragile; and many of the underlying problems remain. Mr Heng Swee Keat Managing Director, Monetary Authority of Singapore Terrorism has been one problem that has been bothering all the nations universally. Rather than looking at the happenings as sporadic ones, there is need for fighting the menace on a war-footing. Mr J. Hari Narayan Chairman, Insurance Regulatory & Development Authority, India Instead of the rear-view mirror approach now on display in other parts of the world, this government (Canadian) has been focused on the horizon. This extends to how we acted in advance of international financial turmoil. Mr Jim Flaherty Minister of Finance, Govt. of Canada What we are doing next year is moving beyond that (Solvency II) and starting to accept the use of economic capital models for insurers. We are currently in the midst of a survey of our market practice, to see how good our modeling is. Mr Mathew Elderfield CEO, Bermuda Monetary Authority ”