Page 12 - RMAI BULLETIN Oct - Dec 2019

RMAI BULLETIN OCTOBER TO DECEMBER 2019

Generally study of Risk Management is done from Indian Insurance Market's dire need/
considering the worst possible situation. Probability of agendaofthecurretEra:
catastrophiclossesisalwaysborneinmindalltimes/all
Insurers rather than the regulator have set micro-
reasonable action is scheduled to be taken to combat
insurance procedures and services to be rendered to
these catastrophic losses. In Risk Identification
various communities. Since all the insurers are having
processes–theriskstraditionallyconsideredare:-
obligations to operate in social & rural sector in India
1. EnvironmentalRisks;
and all micro-insurance policies could be counted for
2. Safety&SecurityRisks; that purposes of social obligations to be fulfilled by an
3. TransportRisks; insurer as per the provisions of the Insurance Act, 1938
and the IRDA Micro Insurance Regulation, 2005 made
4. LiabilityRisks;
thereunder&settingotherparameters.
5. MaterialStorage,Procurement&dispatchrisk;
PrimeministerSriNarendraModideclaredonthe15TH
6. HealthRisks;
August 2014 the scheme of ‘Jan dhan yojna’ for
7. Operational risks –like fire /explosion/breakdown / opening bank account for all the individuals especially
accidentalconsequences. in rural areas all over the country to facilitate
government subsidies and other transactional facility
But it should be clearly noted that neither insurance to all citizens individually. The scheme offers 1 lakh
nor risk management covers risks like improper insurance cover to account holder. Scheme is a super
housekeeping, uneconomic waste, labour unrest, hit with 1.5 Crores account opened on the first day of
politicaldisturbances,etc. launch & willhelp spreadingin ruralinsurance schemes
organized by banks & N.G.O.s./S.H.G.s/M.F.I.s inclusive
In property and casualty insurance, the insurer retains of all. Thereafter we all know that under the banner of
the right to make inspections and surveys relating to “Pradhan MantriYojana” three(3) InsuranceSchemes
the insurability of the risk and the premiums charged. were launched by the Central Government subsequent
For example, the insurer may look for inherent to a lot of money market initiatives along with
structural defects and other hidden hazards. demonetization&others andtheseare:-
Inspections provide the opportunity to develop a loss 1. Pradhan Mantri Suraksha Bima Yojana (PMSBY)
preventionprogramfortheinsured. withGeneralInsuranceCompanies;

2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The verification of statements by a life insurance
withLifeInsuranceCompanies;
applicant, along with a summary of the applicant's
financial, moral, and physical condition and any other 3. Atal Pension Yojana (APY) with Pension Fund
relevant information, obtained through insurance RegulatoryandDevelopmentAuthority(PFRDA)
investigators, agency personnel or an independent
source. The product of this investigation is called an Now let us consider the formalities for Pradhan Mantri
inspection report. The in-person evaluation of an Suraksha Bima Yojana (PMSBY) issued by General
individual risk is done to determine whether it meets InsuranceCompanies:-
underwriting standards and to gather pertinent
underwritinginformation. Since the insurers and all the connected banks are
involved in these synchronized methods – the
An inspection may be performed by an agent or by a requirement & smooth operation with the Information
loss control specialist employed by the insurer. It may Technology (IT) Integration has become a dire need
result in recommendations for loss prevention. A being required to be to be vividly implemented for all
workers' compensation insurer's requirement is the insurers in General Insurance Industry for issuance
verification of a payroll record. Workers' compensation ofPSMSBYinvolvingthefollowingsteps:
premiums are based on the business's gross payroll, so 1) Data Capture - Integration with Bank and Insurer
inspectionisthebasisforthepremiumtobecharged. asestablished:

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