36 th Annual Conference of African Insurance Organisation (AIO) Tanzania

1. Access to Insurance Services The Role of Customers 36th Annual Conference of African Insurance Organisation (AIO) Tanzania General Insurance Corporation of India

2. Insurance Landscape in India • India: a vast & virgin market for insurance • Economic Growth has provided the impetus • Freedom to paint the canvas in any way • High growth in automobile & Health care sector • Burgeoning middle class with better life-style • Till recently tariff- based with low claims • A long history with solid foundation

3. Pre Liberalisation Scene • Status of Customers’-pre liberalisation • A case of ‘One Shoe Fits All’. • Traditional & Uniform Policies by LIC & 4 PSUs. • Virtually no choice for the Customers • Low insurance awareness led to customers not being aware of their insurance needs • ‘Take it or leave it’ attitude of the Insurers • Insurance was sold; never bought

4. Post-Liberalisation Scene • Current Scene & Role of Customers • New players on the scene • Customers are better informed & sensitive • Demand for new, better & variety of products • More players, more competition, customers benefit • Changes in economy & social milieu also promote transformation and growth • Detariffication reflects growing demands of Indian consumers.

5. Educating the Customer • The Regulator • Insurers • Intermediaries • Educating the customers to make them more informed • Benefits of taking adequate & appropriate risk covers • Non-dependence on the ‘Chance Factor’ • Not only pure products but also pension, health-care & investment-based

6. Consumer Activism • Prominent in Health Insurance, (one of the fastest growing segments) catalysed by: • Rising Cost of Medical Treatment • Life Style Diseases • Health Consciousness • Customers demand for better & simple products & better services

7. Health Insurance -Consumer Activism • Consumer Fora & NGOs helped in bringing about changes in the Health Insurance. • Simple one-page policy • Scope of ‘Senior Citizens’ expanded • Renewal of Policies can’t be rejected • Critical Illnesses are covered • Coverage of pre-existing diseases made possible • Portability of Health Insurance Policies

8. Government-Industry Efforts • National Health Insurance Programme • For less then $ 1 per annum policy holders entitled to $ 600 of medical care at most public/ private hospitals. • Launched by Federal Government in collaboration with Public & Pvt. Insurance Companies. • Extended to sections other than BPL

9. Why Redressal? • Liberalised Insurance Sector yet to Mature • Transitory & Consolidation Phase • Low Consumer Awareness • Poor Insurance Penetration • Proactive Consumerism in Insurance Missing • Need for Disciplined & Co-ordinated Functioning • Insurance Regulatory & Development Authority (IRDA) set up • To ensure a healthy & systematic growth of the sector and ensure that customers get a fair deal

10. Consumer Protection Mechanism

11. IRDA: the Regulator Enactment of IRDA Act, 1999 & Constitution of IRDA - An Autonomous body to • Regulate & Develop Insurance Business • Promote Market Efficiency – Protect interests of Policyholders • Promotion and Regulation of Professional Organisations of Insurance • Regulating Maintenance of Margin of Solvency

12. Grievance Redressal Mechanism Insurer • IRDA (Protection of Policy holders’ Interests ) Regulations, 2002 • All communications from policy-holders responded to in 10 days. • Guidance on how to lodge a claim. • Settlement of claim with in 7 days of acceptance of offer of settlement. • Proper procedures & effective mechanism to address grievances efficiently. • Information about Insurance Ombudsman communicated with the policy document.

13. IRDA: Regulatory Role- Consumer Protection • Insurance Advertisement & Disclosures Regulations, 2000 • Protection of Policy holders’ Interests Regulations, 2002 • Maintenance of Minimum Solvency Margin • Regulatory Norms for Intermediaries • Licensing of Insurance (Individual) Agents- 2000 • Licensing of Corporate Agents- 2002 • Insurance Brokers- 2002

14. Federal Grievance Redressal Mechanism • Directorate of Public Grievances • Looks into public grievances with government departments • Headed by a Senior Federal functionary • Public Sector Insurance Companies (Life & Non-life) are part of government • Right to Information Act 2005 • Redressal mechanism for information from Government & Government owned or aided organisations • Consumer Protection Act, 1986 • District Forums • State Consumer Disputes Redressal Commission • National Consumer Disputes Redressal Commission

15. Indian Insurance Industry Grievance Redressal Mechanism • Indian Insurance Industry has • 3-tier grievance redressal mechanism • Insurers • Ombudsman • Consumer Forums & Regular Civil Courts

16. Grievance Redressal Mechanism Ombudsman • Introduction of Insurance Ombudsman-1998 • Quasi judicial mechanism-empowering adjudication of disputes • Adjudication limited to personal lines of business- insurance contracts of value not exceeding US $ 40,000 • Award binding on Insurer but not on the insured. Award to be honoured in three months. • Currently 12 Ombudsman across the country • Applicable on both, Public & Private. • Simple filing procedure & no legal attorney required

17. Grievance Redressal Mechanism IRDA • Grievance redressal mechanism • Assesses the quality of service provided by the insurers • Identifies grievance prone areas that require Regulator’s intervention • Provides online registration/redressal of consumers’ grievances • Scope for Arbitration and Conciliation options

18. Insurance Awareness, Reach & Education Regulator & Insurers • Media Campaigns • Standardisation of Policy documents and other literature • Updated Web-portals: Online Premium Calculator, Rates & Conditions & Payments • 24-hour toll free call numbers • Implementation of ‘state-of-the-art’ technology • Representation of Policy Holders/ Consumer Activists on Board

19. GIC Re: A Profile • Reinsurance support on facultative & treaty basis for risks in India & abroad • Manages Pools- Terrorism Insurance Pool, Indian Motor Third Party Insurance Pool & Marine Hull Pool • Diversification in areas of Life, Takaful Re, Liability & Oil & Energy • Enhanced Risk Management Capabilities • Value Added Services to Customers • Technical Underwriting aided by IT Tools

20. Standard & Poor’s, A M Best & CARE GIC Re: Ranking & Rating Standard & Poor’s ranking (latest 2007) of top Reinsurers: GIC Re moves to 16th position from 22nd Rated “A-” (Excellent) by A. M. Best for Financial Strength Rated AAA (in) for its Claims Paying Ability by CARE (Credit Analysis and Research Limited) GIC Re is the 5th Largest Aviation Reinsurer

21. International Business Capacity Foreign Inward Business (Other than Aviation) Aviation Business

22. GIC Re’s Overseas Operations GIC Re sources its business globally Branch offices in London and Dubai & Representative office in Moscow Eventual Reinsurer Status in Brazilian market Foreign Operations contributed approx. 27% of total business in 2007-08 22

23. GIC Re’s Overseas Operations • Thrust areas: Far East Asia, Africa, Middle East & G8 • GIC Re also holds significant interests in – • Kenindia & East Africa Re in Kenya • Asian Re, Thailand • India International Insurance, Singapore • LIC (Mauritius) Offshore Limited, Mauritius

24. Business Performance – 2007-08 US $ Mln

25. Thank You