OBJECTIVE:

The impact of industrial policies on

insurance business in india.
INTRODUCTION:
4. The business all over the world was left in a
state of shock and confusion.
5. Insurance co. are likely to face claim arising
out of life,accident,health,property,and
liability insurance covers as a fall out of the
attacks.
 INDUSTRIAL POLICY RESOLUTION,
1948
The resolution emphasized expansion of
production in the short run along with need
and importance of public enterprises (PE) to
grow.
According to this resolution, industries
were divided into two categories.The first
catogory is following,
4. Manufacture of arms and ammunition
5. Production and control of atomic energy,
6. The ownership and mgmt. of railway
 The second category, covered six industries,
2. Coal

3. Iron and steel

4. Aircraft manufacturing

5. Ship building

6. Manufacture of telephone, telegraph and

wireless apparatus
7. Mineral oils.
ARTICLE 39(B)AND (C) OF THE
CONSTITUTION OF INDIA
The constitution of india directs
the state to secure “that the ownership and
control of the material resources of the
community are so distributed as best to
sub-serve the common good”.
Attainment of these objectives is
fundamental to the growth of public
enterprises.
 INDUSTRIAL POLICY RESOLUTION,
1956
 In this policy referred to article 39(b)and
(c) of the constitution to the socialist pattern
of society and to the need for planned and
development and declared that “ all
industries of basic and strategic importance
should be in the public sector”.
Industries were classified into three
categories,
The first, where the future development
was to be responsibility of the state was to
cover 17 industries, listed in schedule “A” to
the resolution. In addition to the 9 industries
 Eight others were ;
2. Air transport ;
3. Heavy casting and forgings of iron and steel;
4. Heavy plant and machinery required for
production of iron and steel for mining and
machine tools;
5. Heavy electrical plant;
6. Mining of iron and manganese ore etc;
7. Mining and processing of
copper,lead,zinc,tin,etc;
8. Minerals used for producing atomic energy
and;
9. Generation and distribution of electricity.
 In the second category were 12
industries to private enterprise to
supplement the efforts of the state. These
were;
 Aluminum and other non-ferrous metals
 Fertilizers
 Machine tools
 Antibiotic and other essential drugs
 Road transport
 Sea transport
 Chemical plup;
 Carbonisation of coal ;
 Ferro-alloys and tool steels;
 Basic and intermediate chemical produce
 Synthetic rubber;and
 All minerals except “minor minerals.”
the third category comprised the remaining
industries the further development of which was
generally to be left the initiative and enteprise of
the private sector but “it will be open to the state
to start any industry even in this category”
Industrial policy statement 1977,
the industrial policy announced by the
janta party government on december
23,1977 envisaged PE as a means of
socializingh the means of production in
strategic areas and for providing a
countervailing force to the growth of large
houses and large-scale enterprises in the
private sector.
Industrial policy statement 1980
In the statement the government
emphasized the desirability of allowing
private sector undertaking “to develop in
consonance with targets and objectives of
national plans and policies”, but it did not
want “the growth of monopolistic tendencies
or concentration of economic power and
wealth in a few hands.”
Post – Indira gandhi government
policies;
The rajiv gandhi govt. which was in
power from 1984- 89 never made any formal
statement of its PE policy, but continued to
show faith in PE.
The new policy permitted foreign
investment up to 40 percent of equity, both
for new and expansion of existing units.
 REASONS FOR MAJOR CHANGE IN
POLICY;
In this policy the govt. felt that “ a
number of problems have begun to manifest
themselves”. Six of these listed in the
statement were;
 Insufficient growth in productivity;
 Poor project mgmt.
 Over managing;
 Lack of continuous technological
upgradation
 Inadequate attention to R & D and human
 A very low rate of return on the capital
employed.
The fact of the matter is that govt. itself
has been responsible for poor mgmt. of PE .
so changes made by the policy statement,
 Boards of PE would be made more
professional and given greater powers.
 PE essential for the operation of the
industial economy will be made more growth-
oriented and dynamic.
INSURANCE AND INDUSTRIAL POLICY
;
The worker was working day and night
without rest. We was giving his best to the
organization but in- turn no wages no
payments for the kind of job performed. At
the most, the employer will give the
employee few kilograms of food so that his
family barely survives in the name of
compensation for the job, what to talk of
regular wages or salary. Making both ends
meet was vicarious task. In nut shell the
worker was badly exploited by the employer.
 This is one part of the life of the industrial
worker in both organized sector and the
unorganized sector. The govt. of india
through insurance co. Devised various covers
like workman’s compensation Act, 1923,
personal accident policy, janta personal
accident policy, mediclaim, long-term
hospitalization policy.
The insurance sector has helped the
economy of our country to grow along with
the banking and capital markets, as
insurance sector cannot function and grow in