Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognised in respect of timing differences between taxable income and accounting income i.e. differences that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.
has created exceptional growth forever attempt for additional improvement.However,Govern men-t created a paradigm modification within the policy by adopting the course of easement, privatization and globalization at the tip of earlier decade. Consequently a committee was started beneath the berth of adult male. Malholtra, Ex-governor of RBI for enterprise a spread of reforms within the insurance sector in the lightweight of contemporary policy. The Committee that submitted his details in 1993 recommended the institution of a special administrative unit on the lines of SEBI and gap of insurance trade for personal region. This was forcefully opposed by the varied trade unions of then in operation insurance firms that led to some holdup in implementation of Malhotra Committee’s recommendations. However, the govt. approved Insurance restrictive and Development Authority (IRDA) Act in 1999 and established IRDA to manage the insurance
The findings of the study revealed the existence of a positive and significant relationship between product differentiation strategy and growth of the insurance sector in Uganda. This implies that the more the company differentiates its product offering, the more likely it will experience growth in the areas of premium volumes, market share, and profitability levels. This finding is supported by scholars like Shahi (2013), who reported that product differentiation as a marketing strategy is positively related to increasing business volume of insurance firms in India. Through this strategy, the customers are able to receive reliable and accessible products/services at very competitive prices. This is in line with the view of Treacy and Wierserma (2003) basic strategies for a winning product differentiation plan that focuses on: operational excellence, customer intimacy and product leadership. The study also found out that Jubilee Insurance Company encourages continuous product/service innovation to enhance customer utility. This is in agreement with researchers that emphasize product innovation for companies to achieve a competitive edge (Treacy and Wiersema, (2003) and Shahi (2013). Shahi (2013) maintains that insurance companies must introduce many new and innovative products in order to keep up with the competition that is posed by the growing number of insurance service providers. The results revealed that Jubilee Insurance Company has deliberate efforts to positively enhance the consumers’ perception of their products/services. These efforts included among others striving to know the customers and investing in training of agents by the company. The need to train staff and agents as a means to improve the positive perception of the company’s products by the customers is supported by Shahi, (2013); Chernatony and McDonald (2003); Leigh (2017). The argument in favour of training is premised on the understanding that the service provided is inseparable from its provider and hence the need to train staff and agents to improve service provision.
ESPlanner recommends annual levels of consumption, saving, and lifeinsurance holdings that smooth a household’s living standard through time subject to the household not exceeding its self-ascribed borrowing limit. The program treats housing and special expenditures as “off-the- top,” adjusts for economies in shared living and the relative costs of raising children, makes highly detailed tax and Social Security benefit calculations, and permits users who don’t want a stable living standard to specify how they’d like their living standard to change through time. Our findings are striking. First, the correlation between ESPlanner’s saving and insurance prescriptions and the actual decisions being made by BU employees is very weak in the case of saving and essentially zero in the case of lifeinsurance. Many employees are spending far more and saving far less than they should, while others are under-spending and over-saving. The same holds for lifeinsurance. The degree of under-insurance seems particularly acute. Almost 13 percent of those BU spouses who are secondary earners would experience a 40 percent or greater drop in their living standards were their spouses to pass away in the near future. Another 13 percent would experience a 20 to 40 percent drop. Second, planning shortcomings are as common among high-income professors with significant financial knowledge as they are among low-income staff with limited financial knowledge.
To provide the best customer services they operate through single window system manned by trained personnel. They provide Property Advisory Services free of cost and home services to select customers. During the year 1999-2000, the Company plans to sanction 50000 individual loans for Rs. 1300 crores and disburse over 47500 loans for Rs. 1200 crores. Besides, these individual loans, the Company plans to sanction Rs. 55 crores to Corporate Bodies, Public Housing Agencies and Developers out of which disbursements will be of the order of Rs. 50 crores. By 31st March 2000, the outstanding mortgage portfolio is likely to cross 4300 crores. The insurance sector in India has completed all the facets of competition –from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. Insurance Regulatory Development Authority (IRDA) has till now provided registration to 12 private lifeinsurance companies and 9 general insurance companies. If the existing public sector insurance companies are considered then there are presently 13 insurance companies in the life side and 13 companies functioning in general insurancebusiness. General Insurance Corporation has been sanctioned as the "Indian reinsurer" for underwriting only reinsurance business.
In a competitive business environment, service quality plays crucial role in the success of any business and quality is an effective tool to ensure customer satisfaction. Lifeinsurance is a business of long – term relationship between insurers and their customers and a policy holder may require different kinds of services from time to time during the policy term. This article seeks to study the impact of service quality on customer satisfaction in lifeinsurance industry in India. A sample of 1000 lifeinsurance customers (500 from public sector and 500 from private sector) were administered a well–structured questionnaire using quota sampling method. The initial 22 attributes of SERVQUAL scale developed by Parasuraman and colleagues were used in this research without any modifications. This research is also aimed to cross compare the level of customer satisfaction in public and private lifeinsurance spheres. It is found that all SERVQUAL dimensions have significant effect on the level of customer satisfaction in lifeinsurance industry and customers of public sector (LIC) are more satisfied than private sector customers.
DOI: 10.4236/ojbm.2019.72037 547 Open Journal of Business and Management types of prevention and risk reduction methods have been used, especially in the financial dimension in human life. In this regard, insurance as one of the most important tools in the modern civilized world has a significant role in reducing of the risk and providing of the financial and mental security. Today, various types of insurance are formed to reduce the risks people face to them. To reduce the adverse effects of accidents, lifeinsurance is recognized as the most effective and most accepted tool in many countries of the world. Lifeinsurance assures people that they can have a better life in the future, so it is very effective in terms of material well-being and intellectual and spiritual well-being. It can also act as a means of saving for people . Today, people are living in an environment that is increasingly moving towards a service-based economy. Other services are not a small part of the economy, but also it is considered as the heart of value crea- tion in the economy. Today, services are not limited to banking, post, insurance, health and education services, but most of the products we buy that include ele- ments of service. In recent years, growing service has become one of the main trends in the world. The movement and change in the service-based economy has been comprehensive since 1970 . Customers often compare the services offered by an institution to their expected services. They will return again to the institute that provided services are more than or at least equal to their expected services . Lifeinsurance represents the growth of every nation’s culture, a culture that it needs to be expanded daily. Developing countries are always faced with economic fluctuations. The household economy is also heavily influenced by the low incomes of households, not the Head of household! In these coun- tries, the Head of households’ incomes are planned in the form of specific and predetermined household expenditures . Insurance companies, by choosing appropriate financial structures, try to increase their survival and profitability. The capital of these companies is composed of two parts. First: The amount of needed capital, the second: the combination of financing sources. Capital ex- penditures are the items in which the company invests their funds in it and the right side of the company’s balance sheet reflects investment or capital expendi- tures. Funds capital resources that the company invests and these items are in- cluding the company’s owners’ equity (equity) bonds and loans (bank loans or bonds). The manager of finance must try to provide the necessary funds from the places that provide the highest benefit to the company and the lowest risk.
Section 101(j)(1) provides that, in the case of an employer-owned lifeinsurance contract, the amount excluded from gross income of an applicable policyholder under § 101(a)(1) shall not exceed an amount equal to the sum of the premiums and other amounts paid by the policyholder for the contract. In general, an employer-owned lifeinsurance contract is a lifeinsurance contract that is owned by a person engaged in a trade or business and under which that person is a beneficiary under the contract, and that covers the life of an insured who is an employee on the date the contract is issued. An applicable policyholder is a person who owns an employer-owned lifeinsurance contract, or a related person as described in § 101(j)(3).
You didn’t build your business overnight – success takes time and typically the help of a few critical people. Recovering from the loss of one of these key people will take time, and is often the case, time is money. Can you afford the wait? Replacing a key person could lead to significant costs including: recruiting and training a new employee, lost business productivity, weakened relationships and potentially even a lowered credit rating. Key person lifeinsurance is designed to help your business prepare for these costs and reduce the potential for financial disruption to your business. A key person lifeinsurance policy may provide immediate liquidity in the event of a key employee’s unexpected death. The policy may also be able to provide your business with tax advantaged access to policy cash values in times of need, such as if a key employee resigns or becomes disabled.
Insurance is a social device to reduce or eliminate risk of loss to life and property. A group of individuals transfer risk to another party in order to combine loss incurred. With India‟s growing exposure to global markets it is now being appreciated that the business of insurance with its unique features has a special place in the economy of our country. Together with banking services it adds about 7% of the GDP. Towards the end of 1999 India took the bold step of opening up the insurance sector. Within a short span of time the private lifeinsurance companies captured 29.32 % of the market share. The LifeInsurance penetration reached its peak at 4.6% in 2009 and Density also increased to the maximum of 55.7 US$ in 2010. But there after there is a Continuous decline. Many of the private companies even closed their branches. The reducing new business (-24.04%in 2012-13) and market share of the Private Lifeinsurance companies is a matter of concern not only for the private lifeinsurance companies but also the industry as a hole. This study is an attempt to find out the issues and challenges faced by the industry and to suggest some remedial measures to overcome the crisis faced by industry..
Earlier insurance was a unsought product. People were not showed much interest to buy insurance policy unless they expect some loss in future and forced by the insurance agents. Agents had played a vital role in selling insurance products. There is change in thinking of public towards insurance products due to tremendous changes in the economic environment.Public are coming forward to buy the insurance products without any force from the agents. They are showing interest to buy policies through online after comparing the plans of various companies. Thanks to information technology, people are buying insurance products at cheaper rate through online compare to traditional agents method. This study reveals the facts about the changing role of insurance intermediary.
policies” and often raise the ire of regulators and elected officials. As a response to these perceived abuses, the Pension Protection Act of 2006 (“PPA”) was enacted, under which new Section 101(j) was added to the Internal Revenue Code. As is often the case with legisla- tion aimed at curtailing abuse, Section 101(j) not only serves to prevent arrangements that involve the use of so-called janitor policies, but it also creates abundant danger for potentially devastating and unintended tax consequences to the unwitting business owner who is seeking to employ lifeinsurance planning in a com- pletely well intentioned and straight forward fashion.
The former regulation specified that "the transferor company shall not conclude any insurance contract that belongs to the same class as the insurance contracts to be transferred, for the period ranging from the time of adoption of the resolution to the time of execution or renunciation of the transfer of insurance contracts (regulation on suspension of conclusion of insurance contracts)". However, it was pointed out that, in case where an insurance company transfers the insurance contracts on the premise of continuing the business such as where a branch office in Japan of a foreign insurer becomes locally incorporated, this regulation may hinder certain procedures such as renewal of insurance contracts, and thus be inconvenient to policyholders. The revised regulation abolishes the regulation on suspension of conclusion of insurance contracts, while imposing an obligation on insurance companies to obtain the consent of policyholders for the transfer of insurance contracts to the transferee company in case when they conduct insurance solicitation activities for insurance contracts to be transferred during the period of the transfer of insurance contracts.
An individual valuation can also be performed, in which case the highest value is used. For those who are familiar with the European directive of 1991 on settlements in insurance companies, the unexpired risk provision has been divided into two provisions; (i) the provision for unearned premiums (which regulates the premiums covered by the period of insurance protection between the date of the financial statement and the nearest agreed expiry date) and (ii) the provision for unexpired risk in the strict sense of the term, used only if as a result of excessively low tariffs the provision for unearned premiums proves to be insufficient to cover future claims and related costs (in the case of entire agreements where premiums are paid in advance, they are used for covering the cost of claims and costs resulting from those agreements between the financial statement date and the nearest expiry date of the premium payment or the agreement itself).
Non-life premiums in North America grew by 7.2% in 2003 (2002: +11%). The US and Canadian markets achieved above-average growth in an environ- ment of price increases and economic recovery, although performance varied between markets. Premium growth in the US slowed from 10.9% in 2002 to 6.9%, while in Canada it inched up from 13% in 2002 to 13.6%. The reason for this was the strong premium increases in Ontario, Canada’s largest motor insurance market. Net premiums in the US rose for commercial business by 9.6% and for personal lines by 5.7%. The third year of the hard market caused a breakthrough in non-life insurers’ profitability. Despite adding USD 14 billion to reserves, US non-life insurers (excluding health insurers) reported a com- bined ratio of 100.1%, an improvement of more than 7 percentage points compared to the previous year. Investment returns increased and non-life insurers achieved a 9.6% return on equity. The Canadian non-life combined ratio also improved by 7 percentage points to 98.7%. Return on equity, bol- stered by improved investment returns, rose to 11.3%. In 2004, premium growth in commercial property insurance will slow down as prices are now stabilising in that sector. However, rising rates in liability business, the less cyclical nature of personal lines, combined with ongoing economic growth, point towards sustained premium growth.
The examiners randomly selected samples of lifeinsurance policy applications processed during the examination survey period. The objective of reviewing these applications was to record the type and amount of coverage, age, gender, race and premium charged each applicant. For each non-white applicant, the examiners compared the premium charged to the premium for the same coverage that would have been charged to a white applicant. However, certain lifeinsurance plans were not always sold to both white and non-white applicants (for example a lifeinsurance plan available to a white applicant may have been whole life while the plan for non-whites may have been life paid up at age 75). Therefore, premium comparison could not be made in every case. Next the examiners determined the amount(s) of adjustment made if any to the amount of coverage for the non-white applicant. Then the examiners compared the actual amount of adjustment made to the original amount of lifeinsurance applied for. Current policy status sheets were reviewed to verify the amounts of insurance adjustments and the amounts of dividends accumulated (either as accumulations with interest or used to purchase paid up additional insurance). In some cases, the examiners found it difficult to assess the prior adjustments made for race-based pricing because of the adjustments made due to dividends.
Let me provide a real-world example. Prior to annuitization, variable annuity assets are held not in a life insurer’s general account but in separate accounts where investment gains and losses are borne by the customer. Because these assets show up on our balance sheet under GAAP accounting, a literal application of Basel III would require us to factor them into our capital ratios. In MetLife’s case, our risk-weighted assets would more than double and our capital ratios would wither – a result disproportionate to the risk life insurers bear in making variable annuity guarantees. It is hard for me to see how life insurers living under Basel III could remain in the variable annuity business, which would push risk and cost back onto a population in dire need of retirement income solutions.
The sources of secondary data were Annual Reports of the companies and IRDA, Directors and Auditors report, IRDA Journals, Asia Insurance Post, The Insurance Times, Journal of Insurance Institute of India, Insurance Chronicle (ICFAI), Daily papers and government reports relating to the issues under study.
3. “Private Insurers Command Majority Share of LifeInsurance Market” by Paramita Chatterjee in 2009. She plain said private insurers filmed 62% ontogeny measure in April-December 2008 against 45% in the same stop of net business. ICICI, HDFC, SBI and Bajaj Allianz are the predominant players of the living Contract sector. LIC a market trickster prerecorded a wane of 28% and experts said the Industry has witnessed a intelligent ontogenesis despite the fine financial conditions.
The premiums for both sexes were within a couple of dollars of each other for Key Person and Business Partner (or Buy/Sell) insurance. However, there was a marked difference in the policy gap for the sexes for Business Expenses insurance. In a blue collar occupation a woman can expect to pay on average $88 more than her male counterpart. If the same woman switched over to the white collar sector, she would still pay $40 more than her equivalent male work buddy.