...Name – Olagunju Tahir Matric No. – 139022111 Course Title – Theory of Risk and Insurance Topic - Social and Economic benefits of Insurance. Insurance occupies a critical position in any developing economy yet insurance penetration remains abysmally low in Nigeria. Insurance penetration is measured by Total Premium to Gross Domestic Product. Nigeria is ranked 85th in terms of global Insurance Density Premium Per Capita (IDPPC) while South Africa occupies 32nd position-Sigma Publication 2011. The latter is number 1 in Africa with IDPPC of $1,037 while that of Nigeria is $10. Prior to rebasing of the GDP, insurance contribution was N 300billion or just a little less than 1% of Nigerian GDP. Insurance contributes 15% (approx) to South Africa GDP whilst the average for Africa is 3%. The rebasing of Nigeria GDP which came on stream on Sunday 6th April 2014, has further depressed Nigeria IDPPC to 0.56% of GDP. With the attendant hardship associated with economic downtown and systemic disappearance in public corporate and solidarity funding for social and economic disasters, businesses and households have become increasingly vulnerable to risks of losses caused by fire, industrial accidents, sudden death of critical staff or family breadwinner, motor accidents, flash floods and emerging risks such as aircraft crashes, terrorism and kidnapping. The last two are not covered by conventional insurance but are special risks the market accommodates under special arrangement on request...
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...Social insurance is Social Security, Medicare, Unemployment Insurance, workers’ compensation and employment related insurance coverage for like, health, and disability. (Chambers, 2005) Social Seciruty is insurance savings for retirement or disabled. Many of these Social Insurances are from taxes paid from workers or payments made . This money is used for a safety net when person resources are inadequate to maintain basic standards for quality of living. (Chambers, 2005) Some benefits of government funding is that is can provide services for low income or no income individuals. All indivudals that work must pay taxes no matter what the income. The ones that have a low income or no income can receive most of these services. These services include; Temporary Assistance for Needy Families (TANF), Medicaid, Disability Services, and Child Welfare are a few on the list. The collection of the tax money funds these programs to help others in need. The drawback from government funding is the taxes that are paid out from the individuals. There are tax rates. Some of them are different tax rates are called; regressive, neutral, or progressive. Social Security is a exampl e of regressive. Resgressive tax system taxes those who earn the least at higher rates. Flat rate taxes everyone at the same rate regardless of income. This rate is in the health insurance, Medicare, Federal and State excise, and State and local tax. Flat rate is a a fair rate, because all indivudals...
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...or substance with a specific end goal to get benefits, or to make a budgetary benefit. Both people and social insurance suppliers confer medicinal services extortion, in various diverse ways. The laws in regards to social insurance misrepresentation differ by purview, however both state and government laws are set up to diminish and rebuff this wrongdoing. Fraud in medicinal services can expect differing frames. As indicated by the National Health Care Anti-Fraud Association, the most widely recognized is charging for medicinal services benefits that were never rendered, either by adding charges to honest claims, or by utilizing genuine patient names and medical coverage data to create claims. Up coding is the second most normal; third is the ponder arrangement of medicinally superfluous administrations, which incorporate tests, surgeries, and different methods....
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...In 1935, the Social Security Act was passed to provide workers unemployment and retirement benefits. We are at check number 400 of WC and the job has decided that his leg deems him unfit and the doctor has not cleared him for duty, his services will be terminated. He can now request state assistance and apply for disability insurance. You can actually receive both at the same time but they cannot exceed eighty percent of your normal salary. Based on what you receive from workers’ comp the disability will offset that at a reduced rate until you exhaust your WC. There are two different types of disability insurance. There is the one private insurance which is purchased from a private insurance carrier by your employer but you have to option to...
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...look at how Social Security and Unemployment Insurance work and explain that. The initial hypothesis was that government insurance programs work as a result of the United States Government forcing citizens to pay into these systems threw taxation. To do start this project I began by reading in the text book used in Macroeconomics at Virginia Statue University and the text book used in all Richard Bland College’s Economics courses. The Initial Hypothesis was based off experience in working and paying into Social Security and speaking with employers on what they pay into these programs on there employees behalf. Knowing that an employee was forced to pay 7.5% of his or her income into Social Security and employers must match a portion of those payments. In return for these payments Americans are told that they will receive payments in the future as retirement income or payments made if the person becomes disabled. In return Americans have a sense of security that the Government will take care of them. (Shipman, 2011) The Unemployment Insurance hypothesis was also based on experience speaking with employers. In different States they pay out different amounts based on the wages they pay there employees. Unemployment insurance pays people a portion of their previous wage if they get laid off or lose their job at no fault of their own. The program is designed to help people get by when they are looking for new employment. The hypothesis was that Unemployment insurance causes people...
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...SERVANTS’PERCEPTION ON THE PROPOSED SOCIAL HEALTH INSURANCE WORKING IN GULELE SUB CITY, ADDIS ABABA, ETHIOPIA. BY MENGISTU KIFLE (BSC) A RESEARCH PROPOSAL TO BE SUBMITTED TO FACULTY OF PUBLIC HEALTH, DEPARTMENT OF HEALTH SERVICES MANAGEMENT AND PLANNING,JIMMA UNIVERSITY; IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR MASTERS OF PUBLIC HEALTH IN HEALTH SERVICES MANAGEMENT CIVIL SERVANTS’ PERCEPTION ON THE PROPOSED SOCIAL HEALTH INSURANCE WORKING IN GULELE SUB CITY, ADDIS ABABA, ETHIOPIA. BY: Mengistu Kifle (BSC) Name of advisors: 1. Dr Elias Ali Yesuf (MD, MPH) 2. Mr.Tesfamicheal Alaro (Bsc, MPH) Summary Back ground: Health care financing continues to stir debates around the world. Many low and middle income countries especially, keep on exploring different ways of financing their health systems. The government of Ethiopia initiated social health insurance to be applied first on the formal employer with compulsory membership of the system and the members will get health service including their family from contracted health facility with the Ethiopian health insurance agency by contributing a pre-service payment. The health insurance agency will control and manage the insurance system in the country. Objective: The aim of this study is to assess civil servants’ perception and associated factors on the proposed social health insurance working in Gulele sub-city...
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...Comparative study of LIC of India & private Life Insurance companies in India. Introduction: The Indian life insurance industry has its own origin and history, since its inception. It has passed through many obstacles, hindrances to attain the present status. Insurance owes its existence to 17th century England. In fact, it took shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. Life insurance in its modern form came to India from England in 1818 with the formation of Oriental Life Insurance Company (OLIC) in Kolkata mainly by Europeans to help widows of their kin. Later, due to persuasion by one of its directors (Shri Babu Muttyal Seal), Indians were also covered by the company. However, it was after 1840 that life insurance really took off in a big way. By1868, 285 companies were doing business of insurance in India. Earlier these companies were governed by Indian company Act 1866. By 1870, 174 companies ceased to exist, when British Parliament enacted Insurance Act 1870. These companies however, insured European...
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...Insurance Industry – Road Ahead Path for sustainable growth momentum and increasing profitability kpmg.com/in Foreword The Insurance industry in India has undergone transformational changes over the last 12 years. Liberalization has led to the entry of the largest insurance companies in the world, who have taken a strategic view on India being one of the top priority emerging markets. The industry has witnessed phases of rapid growth along with spans of growth moderation, intensifying competition with both life and general insurance segments having more than 20 competing companies, and significant expansion of the customer base. There have also been number of product innovations and operational innovations necessitated by increased competition among the players. Changes in the regulatory environment had path-breaking impact on the development of the industry. While the life insurance industry got affected by the introduction of cap in charges, the general insurance industry got impacted by price detariffication and Motor third party risk pooling arrangements. While the insurance industry still struggles to move out of the shadows cast by the challenges and uncertainties of the last few years, the strong fundamentals of the industry augur well for a roadmap to be drawn for sustainable long-term growth. The available headroom for development, sustainable external growth drivers, and competitive strategies would continue to drive growth in the gross written premiums. However...
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...------------------------------------------------- CHAPTER 2 FORMATION AND GROWTH OF INSURANCE INDUSTRY IN INDIA * INTRODUCTION * NATURE AND CHARACTER OF INSURANCE * NEED FOR INSURANCE * FUNCTIONS OF INSURANCE * HISTORICAL BACKGROUND OF INSURANCE * TYPES OF INSURANCE * HISTORY OF INSURANCE IN INDIA * Formation of Insurance Industry in India * Nationalization of Insurance Business in India * Privatization of Insurance Industry * LEGISLATIONS REGULATING THE INSURANCE SECTOR IN INDIA ------------------------------------------------- CHAPTER 2 FORMATION AND GROWTH OF INSURANCE INDUSTRY IN INDIA INTRODUCTION Insurance is a practice by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment. Insurance is a social device, to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risks, which can be insured against include fire, the peril of sea, death, incident, & burglary. The aim of insurance is to protect the owner from a variety of risks which he anticipates. Insurance is actually a contract between two parties. A contract of insurance is a contract where one person undertakes to pay another person, a sum of money or its equivalent on the happening of a specified event. And there is an agreed consideration for such undertaking. The person who seeks this protection...
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...Social Security Systems in the Netherlands From decades social security policies are in question all across Europe. Moreover, the future expectations of changes in the social security systems due to the variations in household structures and ageing of the society bear new social security systems. As most of the European countries the Netherlands, had a substantial growth in the 1960s. After the oil crises, the economy of the Netherlands worsened. Despite the successful creation of a large number of new jobs in the 1980s the growth of unemployment continued and remained persistent in character and still today. However, the social security system in the Netherlands is not alike to the 1970s and 1980s. The Dutch government expenditure on social benefits is characteristic of the well-developed welfare states - at 27.4 percent it is now above the EU average of 22.9 percent. It is among the high taxation countries and over average GDP per capita. Public employment is low and it has one of the lowest poverty rates. The extraordinary level of economic growth of the 1960s created the economic surplus in the Netherlands but by the world’s two oil crisis in the early 1970s the economic climate started to deteriorate. A stunning increase of unemployment in the late 1970s provoked a policy of labor cost reduction and cuts in the social security budget. It was believed that an increase in the real wages and social benefits would imply a further rise of unemployment. Moreover, it was...
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...their employees. These benefits are mandatory or voluntary. The mandatory benefits consist of Worker’s Compensation insurance, Social Security, Unemployment insurance, and Family Medical Leave Act (FMLA). Worker’s Compensation insurance is enforced when an individual is injured on the job and provides coverage for the following: disability income, medical care, death benefits, and rehabilitative services. Social Security benefits are a percentage of the employee’s income is taken out and placed aside, which payments go into effect after retirement or in the event of permanent disability. Unemployment insurance covers the employee by protecting and preserving his or her income if faced with the loss of employment due to no fault issues, such as cutbacks or the organization is in termination. FMLA provides up to 12 weeks of unpaid leave to employees undergoing childbirth, a recent adoption, or serious illness of his or her self; child; spouse; parents. Organization also offer voluntary benefits: paid time off, life insurance, medical insurance, health centers, retirement plans, education reimbursement, executive perks, leave of absence, and wellness plans. These accommodations are beneficial to employees based on what he or she deems necessary. Some organizations offer paid time off for employees personal, illness, or vacation needs. Life and medical insurance is offered to employees at a discounted rate and payment is taken out of his or her income monthly. Some organizations...
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...Competitor analysis: Website & Thought leadership Report by Rashmi Singh (PGDM No: 10098) Work carried out at Tata Consultancy Services, Bangalore, Karnataka Submitted in partial fulfilment of the requirement of Summer Internship Programme Under the Supervision of Mr. Ashish Shetty, Marketing Lead, Insurance ISU, TCS, Bangalore SDM Institute for Management Development Mysore, Karnataka, India (June 2011) SDM IMD INSTITUTE CERTIFICATE This is to certify that Ms. Rashmi Singh, undergoing PGDM program 2010-12 at this institute has successfully completed the Summer Internship Programme on the project titled ―Competitor Analysis: Website and Thought Leadership‖ at TCS, Bangalore, from April 01, 2011 to May 31, 2011 as a partial requirement for completion of his PGDM curriculum. Prof. Govinda Sharma Internal Faculty Guide SDM IMD, Mysore. Date: 24/06/2011 Place: Mysore Summer Internship Project Page 2 SDM IMD Acknowledgement I take this opportunity to extend my sincere gratitude to our guides at Tata Consultancy Services, Mr. Ashish Shetty and Ms. Varsha Nair who spent a lot of time mentoring and guiding us. The insurance ISU was a completely new arena for us. We stumbled a few times, yet they have been very patient and supportive with us, always encouraging us to give our best. I also thank the Academic relationship manager, TCS, Mr. Chandra Koduru, for helping us with the joining formalities and induction program. I would also like to thank Prof. N. R. Govinda Sharma...
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...2013) ISSN: 2249-7382 ANALYSIS OF FDI IN INSURANCE SECTOR IN INDIA Yogita Sharma* ABSTRACT There is hardly a facet of the Indian psyche that the concept of ‘foreign’ has not permeated. This term, connoting modernization, international brands and acquisitions by MNCs in popular imagination, has acquired renewed significance after the reforms initiated by the Indian Government in 1991. Generally speaking FDI refers to capital inflows from abroad that invest in the production capacity of the economy and are “usually preferred over other forms of external finance because they are non-debt creating, non-volatile and their returns depend on the performance of the projects financed by the investors. FDI also facilitates international trade and transfer of knowledge, skills and technology. “Foreign direct investment is of growing importance to global economic growth. This Paper mainly focus on the Foreign Direct Investment in the Insurance sector and its significance in insurance sector in India . The Insurance sector in India has a great potential even during the downtrend and FDI flow is expected to rise in the mere future. This paper attempt to current status of fdi in insurance sector in India. Currently, only 26% of FDIs is permitted in insurance sector. The total insurance business would touch US$ 60 billion size. If insurance sector is opened up to an extent of 49% for FDIs, it is expected that FDI’s contribution to insurance business would touch nearly US$ 2 billion. ...
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...The Essentials of Life Insurance Kent Irwin Categories: Insure, Life & Health Life Insurance Defined Insurance providing for payment of a sum of money to a named beneficiary upon the death of the policyholder. In other words, it is insurance of a risk (death) to replace the financial loss suffered by those dependent on the deceased. History of Life Insurance Life insurance is nothing new, its history spans back several hundred years. The original policies were simple term insurance policies. The contract was for the term of one year. Each year it renewed, with an increased premium because the person was a year older, and presumably closer to death. To address this increasing premium dilemma—the older you became the more difficult it was to pay the premiums. About 100 years ago, insurance companies issued policies that insured for entire lifetimes (hence the term “whole-life”) with a level premium, which means the premium payments did not change. These whole-life policies have a cash value that provides the ability to borrow or access cash values. Historically, life insurance existed to pay the cost of the funeral and last expenses, such as debt. Most people could not afford to purchase a policy that provided for much more. Neighbors and relatives pitched in to help after a death. Churches, Widow and Orphan Societies, and Fraternal Organizations were social service organizations that also helped. The later part of the last century witnessed an explosive...
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...Health Insurance Fraud By: WAHEED ALKHAMEES KHALED ALNAFEE Further Issues Hospital Administration PA 551 Master of Health and Hospital Administration (Parallel) King Saud University One:- Introduction Definition Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. Types of Insurance Services Insurance can take a number of different forms. Some of these types: Auto insurance Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as...
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