Considering the Internet As a Valid Way of Marketing

It is very common for business owners to dismiss the internet. Many people still hold to the old beliefs in marketing, and are convinced that only ads on TV, the Yellow Pages, radio, or print media are valid ways of promoting their business. This couldn’t be further from the truth. What has really happened in the world of marketing is that online small business marketing has actually become the best return on investment option available to a business looking to promote their services. What remains is for more business to realize the opportunities which will become available to them as soon as they consider the internet a valid way to market their services.There are several ways to convince business owners that the internet is the most advantageous media for them to pursue in terms of their marketing. The first way to do this is by example. It is always important to have access to success stories. When you can point to businesses that have expanded their operations or become more profitable since they started marketing online, it goes a long way to helping convince business owners that they can also profit from online marketing. A business owner should also take the time to talk to peers or colleagues to find out what benefits they have had when they started marketing online. The results will be almost universally the same. Almost every business notices their business pick up once they commit to a proper online marketing effort.The next way to show a business owner how the internet can work for them is to talk about the ROI which is involved with internet marketing. The cost of marketing and advertising through traditional media is incredibly expensive. Often, the return seen through this type of advertising, especially if a campaign is not maintained long enough, is very low. However, the ROI on internet marketing can be extremely profitable. There have even been studies done which have shown that email marketing is one of the best ROI investments that any company can make in their marketing funnel. When small business owners come to understand this, they start to see why marketing on the internet is something that they need to be strongly considering.The next step in showing business owners why the internet is a valid means of marketing is actually being able to explain to them what kinds of services they should be paying for or receiving. The reason that many people fear advertising on the internet is because they don’t know exactly what types of services they should be pursuing, and what types of benefits they can expect to see from them. When a business owner starts to understand the value of social networking, social media, local business marketing and search engine optimization, they will start to see why they need to be marketing on the internet.The final reason that local business owners should consider internet marketing is that the internet is how people find businesses these days. People no longer open up the yellow pages or flip open a newspaper to find a certain type of business. Instead, they pull out their cell phone, punch in a search term into Google, and see what businesses are suggested to them. This trend has been growing more and more over recent years, especially with the huge increases in the use of mobile web technology. The real truth of the matter is that, if a business doesn’t start consider online marketing, they won’t just find it difficult to grow their business, they could actually start to lose business as their competitors find ways to attract customers over the internet.

3 Benefits to Using Cloud Yoga Business Software for Your Yoga Studio

A Fictional Tale of Two Yoga Teachers:Wendy and John are each starting a yoga studio. They have their space, a website, and recently opened for business.They also chose to administer as much of their business as possible on computers (who doesn’t these days). They each have a laptop so they can be mobile, or so they think. They also have a desktop in their studio.Students are coming to their classes and they’re delighted by this. Yet, they both desire more students. Their business is in a growth stage.When not teaching classes and chatting with students, they’re on their computers taking care of the financial aspects, marketing, curriculum / class planning, and overall administration of their business.When they started, they weren’t sure the direction their business would take so they held off buying any specific business management software. Instead they used Word and Excel to take care of their software needs. So far their software set up is working okay, but they see the writing on the wall how something more sophisticated could save them time.Wendy and John go online to start looking at yoga business software options. They’re pleased that there’s a lot of options. Of course options mean making a decision.Wendy decides to go with a cloud computing software platform while John opts for an installation software option.Wendy’s option requires that she pay a monthly cost to use her software. John likes the fact he only pays one time for the software.Wendy logs into her software account through the Internet and sets up your software for your business. It takes a few days to get familiar with it, but within a week she has her software working for her with a class schedule set up and she’s put her student contact information into the database. She also set up her autoresponder email account and integrated it with your student contacts.John installed his software on both his laptop and desktop computer. He opted for no server and instead figured out how to network the two computers together so when a change is made in one computer it’s reflected in the other computer. He spent about a day getting his software installed and networked.


Like Wendy, he takes a few days inputting his student contact information and formatting his class schedule in the scheduling software. His email software is separate, but he’s managed to integrate it using an APP with his installation-based yoga business software.Fast forward 2 years. Both their yoga businesses are doing better than ever. Each of them hire 2 teachers to teach designated classes and a receptionist. This growth required more computers for their staff. Wendy, simply upgrades here software to add another user. Her staff simply logs into the software through the Internet.John buys another license and then goes through the installation process. Now he must network another computer. He’s read that using a server is a good idea, but has no idea how to set up a server. Given his business is growing, he decides to hire a networking consultant. After buying a dedicated server and paying networking consultant fees, John spent $1,500. His software also upgraded 6 months ago and so he paid $300 in upgrade fees.As their businesses grew, both Wendy and John started selling some retail items in their studio and on their website. They also discovered how effective email marketing is to student retention and growing their business. Wendy’s online software platform offered e-commerce, credit card processing, and integrated e-mail marketing software. She was able to set up her stores and beef up her e-mail marketing quickly.John leased credit card processing hardware, bought a license for e-commerce software and continues to use his original e-mail marketing software that’s integrated with his student contact database.At this point Wendy’s entire yoga business software is centralized and accessible over the Internet. John uses several software services that are installed and networked among his computers. As John’s business grows, his computing needs become more complex and he now has his networking consultant on speed-dial.He now budgets annually for computer consultant fees – something he never anticipated. He of course has heard about cloud software and is now interested in making the switch, but is reluctant given the amount he’s invested in his desktop installation software. He’s going to wait and see.Wendy pays a monthly fee for her service, but is pleased with how easy it is to add new users and grow her business with hardly an interruption in doing her core activities – which is teaching yoga and marketing her business. In fact, Wendy is considering opening another yoga studio knowing aside from finding and designing space, here business is easily duplicated at another location.John would love to expand to another location, but is concerned about the expense of expanding and managing his business so that all his business information integrates seamlessly between his multiple locations. He puts expansion on hold.About Cloud Computing SoftwareWhat is Cloud Computing Software?It’s software that’s hosted by the software company. When you sign up, you get an account and all your software is handled on the cloud – that is hosted and powered by the company’s servers – not your servers. You simply access it online.The biggest reason business owners are reluctant to use cloud computing is the ongoing cost. Most cloud computing software platforms charge monthly to use the service. This ongoing cost is understandably a concern, especially for new businesses. The last thing you want is to be committed to ongoing costs if at all possible avoided.However, when you look at the long-term of your business, and your software in particular, there’s ease-of-use and expansion to consider. With installation software you must always consider the upgrade costs and potential for paying consultants to maintain and grow your network. These unforeseen costs can be hefty in the long run.
3 Key Benefits to Using Cloud Software for Your Yoga Business Software


1. Access it AnywhereBecause it’s accessible over the Internet, you can access your entire software set up wherever you have an Internet connection (which is pretty much everywhere these days).2. Integrates it with your WebsitesA quality cloud software service for yoga studios makes it easy to update it simultaneously with your websites. For example, when you make changes to your class schedule, those changes are immediately reflected on your website where you post your class schedule. There’s no need to go into your website(s) and manually make the changes (assuming you remember to do this).Also, if you have e-commerce on your website selling gift certificates, yoga class packages, and perhaps gear and apparel, when you make pricing changes (or any changes) in your software, it’s immediately reflected in your website(s).3. No installation and networking costsThis is a biggie. Many business owners when starting out with buying software tend to undermine this. With cloud computing you don’t have to worry about installation and networking your software. As you can see from the above Tale of 2 Yoga Teachers, John’s software costs escalated beyond what he anticipated because of unforeseen consultant costs. This is common with specialized business installation software. Networking software among computers is not an easy task and usually requires an expert to do it well.Will your yoga business fail by not using cloud computing yoga business software? No, but it could make administration and growth more difficult.

Insurance Law – An Indian Perspective

INTRODUCTION”Insurance should be bought to protect you against a calamity that would otherwise be financially devastating.”In simple terms, insurance allows someone who suffers a loss or accident to be compensated for the effects of their misfortune. It lets you protect yourself against everyday risks to your health, home and financial situation.Insurance in India started without any regulation in the Nineteenth Century. It was a typical story of a colonial epoch: few British insurance companies dominating the market serving mostly large urban centers. After the independence, it took a theatrical turn. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then the general insurance business was nationalized in 1972. It was only in 1999 that the private insurance companies have been allowed back into the business of insurance with a maximum of 26% of foreign holding.”The insurance industry is enormous and can be quite intimidating. Insurance is being sold for almost anything and everything you can imagine. Determining what’s right for you can be a very daunting task.”Concepts of insurance have been extended beyond the coverage of tangible asset. Now the risk of losses due to sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages can also be covered.But if a person thoughtfully invests in insurance for his property prior to any unexpected contingency then he will be suitably compensated for his loss as soon as the extent of damage is ascertained.The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. The collective experience of the other countries in Asia has already deregulated their markets and has allowed foreign companies to participate. If the experience of the other countries is any guide, the dominance of the Life Insurance Corporation and the General Insurance Corporation is not going to disappear any time soon.
The aim of all insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is mainly of two types: life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance for employer’s liability, and insurance of motor vehicles, livestock and crops.LIFE INSURANCE IN INDIA”Life insurance is the heartfelt love letter ever written.It calms down the crying of a hungry baby at night. It relieves the heart of a bereaved widow.It is the comforting whisper in the dark silent hours of the night.”Life insurance made its debut in India well over 100 years ago. Its salient features are not as widely understood in our country as they ought to be. There is no statutory definition of life insurance, but it has been defined as a contract of insurance whereby the insured agrees to pay certain sums called premiums, at specified time, and in consideration thereof the insurer agreed to pay certain sums of money on certain condition sand in specified way upon happening of a particular event contingent upon the duration of human life.Life insurance is superior to other forms of savings!”There is no death. Life Insurance exalts life and defeats death.It is the premium we pay for the freedom of living after death.”Savings through life insurance guarantee full protection against risk of death of the saver. In life insurance, on death, the full sum assured is payable (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.The essential features of life insurance are a) it is a contract relating to human life, which b) provides for payment of lump-sum amount, and c) the amount is paid after the expiry of certain period or on the death of the assured. The very purpose and object of the assured in taking policies from life insurance companies is to safeguard the interest of his dependents viz., wife and children as the case may be, in the even of premature death of the assured as a result of the happening in any contingency. A life insurance policy is also generally accepted as security for even a commercial loan.NON-LIFE INSURANCE”Every asset has a value and the business of general insurance is related to the protection of economic value of assets.”Non-life insurance means insurance other than life insurance such as fire, marine, accident, medical, motor vehicle and household insurance. Assets would have been created through the efforts of owner, which can be in the form of building, vehicles, machinery and other tangible properties. Since tangible property has a physical shape and consistency, it is subject to many risks ranging from fire, allied perils to theft and robbery.
Few of the General Insurance policies are:Property Insurance: The home is most valued possession. The policy is designed to cover the various risks under a single policy. It provides protection for property and interest of the insured and family.Health Insurance: It provides cover, which takes care of medical expenses following hospitalization from sudden illness or accident.
Personal Accident Insurance: This insurance policy provides compensation for loss of life or injury (partial or permanent) caused by an accident. This includes reimbursement of cost of treatment and the use of hospital facilities for the treatment.Travel Insurance: The policy covers the insured against various eventualities while traveling abroad. It covers the insured against personal accident, medical expenses and repatriation, loss of checked baggage, passport etc.Liability Insurance: This policy indemnifies the Directors or Officers or other professionals against loss arising from claims made against them by reason of any wrongful Act in their Official capacity.Motor Insurance: Motor Vehicles Act states that every motor vehicle plying on the road has to be insured, with at least Liability only policy. There are two types of policy one covering the act of liability, while other covers insurers all liability and damage caused to one’s vehicles.JOURNEY FROM AN INFANT TO ADOLESCENCE!Historical PerspectiveThe history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more risky for coverage.


The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies.Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during 20′s and 30′s desecrated insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon.The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization. This was in conformity with the Government’s chosen path of State lead planning and development.The (non-life) insurance business continued to prosper with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies – National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).The life insurance industry was nationalized under the Life Insurance Corporation (LIC) Act of India. In some ways, the LIC has become very flourishing. Regardless of being a monopoly, it has some 60-70 million policyholders. Given that the Indian middle-class is around 250-300 million, the LIC has managed to capture some 30 odd percent of it. Around 48% of the customers of the LIC are from rural and semi-urban areas. This probably would not have happened had the charter of the LIC not specifically set out the goal of serving the rural areas. A high saving rate in India is one of the exogenous factors that have helped the LIC to grow rapidly in recent years. Despite the saving rate being high in India (compared with other countries with a similar level of development), Indians display high degree of risk aversion. Thus, nearly half of the investments are in physical assets (like property and gold). Around twenty three percent are in (low yielding but safe) bank deposits. In addition, some 1.3 percent of the GDP are in life insurance related savings vehicles. This figure has doubled between 1985 and 1995.A World viewpoint – Life Insurance in IndiaIn many countries, insurance has been a form of savings. In many developed countries, a significant fraction of domestic saving is in the form of donation insurance plans. This is not surprising. The prominence of some developing countries is more surprising. For example, South Africa features at the number two spot. India is nestled between Chile and Italy. This is even more surprising given the levels of economic development in Chile and Italy. Thus, we can conclude that there is an insurance culture in India despite a low per capita income. This promises well for future growth. Specifically, when the income level improves, insurance (especially life) is likely to grow rapidly.INSURANCE SECTOR REFORM:Committee Reports: One Known, One Anonymous!Although Indian markets were privatized and opened up to foreign companies in a number of sectors in 1991, insurance remained out of bounds on both counts. The government wanted to proceed with caution. With pressure from the opposition, the government (at the time, dominated by the Congress Party) decided to set up a committee headed by Mr. R. N. Malhotra (the then Governor of the Reserve Bank of India).Malhotra CommitteeLiberalization of the Indian insurance market was suggested in a report released in 1994 by the Malhotra Committee, indicating that the market should be opened to private-sector competition, and eventually, foreign private-sector competition. It also investigated the level of satisfaction of the customers of the LIC. Inquisitively, the level of customer satisfaction seemed to be high.In 1993, Malhotra Committee – headed by former Finance Secretary and RBI Governor Mr. R. N. Malhotra – was formed to evaluate the Indian insurance industry and recommend its future course. The Malhotra committee was set up with the aim of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the needs of the economy keeping in mind the structural changes presently happening and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:o StructureGovernment bet in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.
CompetitionPrivate Companies with a minimum paid up capital of Rs.1 billion should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.o Regulatory BodyThe Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance – a part of the Finance Ministry- should be made Independent.o InvestmentsCompulsory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time).o Customer ServiceLIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee accentuated that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new competitors could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores.The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body – The Insurance Regulatory and Development Authority.Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has meticulously stuck to its schedule of framing regulations and registering the private sector insurance companies.Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken at the same time to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity lid for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent.The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001Mukherjee CommitteeImmediately after the publication of the Malhotra Committee Report, a new committee, Mukherjee Committee was set up to make concrete plans for the requirements of the newly formed insurance companies. Recommendations of the Mukherjee Committee were never disclosed to the public. But, from the information that filtered out it became clear that the committee recommended the inclusion of certain ratios in insurance company balance sheets to ensure transparency in accounting. But the Finance Minister objected to it and it was argued by him, probably on the advice of some of the potential competitors, that it could affect the prospects of a developing insurance company.LAW COMMISSION OF INDIA ON REVISION OF THE INSURANCE ACT 1938 – 190th Law Commission ReportThe Law Commission on 16th June 2003 released a Consultation Paper on the Revision of the Insurance Act, 1938. The previous exercise to amend the Insurance Act, 1938 was undertaken in 1999 at the time of enactment of the Insurance Regulatory Development Authority Act, 1999 (IRDA Act).The Commission undertook the present exercise in the context of the changed policy that has permitted private insurance companies both in the life and non-life sectors. A need has been felt to toughen the regulatory mechanism even while streamlining the existing legislation with a view to removing portions that have become superfluous as a consequence of the recent changes.Among the major areas of changes, the Consultation paper suggested the following:a. merging of the provisions of the IRDA Act with the Insurance Act to avoid multiplicity of legislations;b. deletion of redundant and transitory provisions in the Insurance Act, 1938;c. Amendments reflect the changed policy of permitting private insurance companies and strengthening the regulatory mechanism;d. Providing for stringent norms regarding maintenance of ‘solvency margin’ and investments by both public sector and private sector insurance companies;e. Providing for a full-fledged grievance redressal mechanism that includes:o The constitution of Grievance Redressal Authorities (GRAs) comprising one judicial and two technical members to deal with complaints/claims of policyholders against insurers (the GRAs are expected to replace the present system of insurer appointed Ombudsman);o Appointment of adjudicating officers by the IRDA to determine and levy penalties on defaulting insurers, insurance intermediaries and insurance agents;o Providing for an appeal against the decisions of the IRDA, GRAs and adjudicating officers to an Insurance Appellate Tribunal (IAT) comprising a judge (sitting or retired) of the Supreme Court/Chief Justice of a High Court as presiding officer and two other members having sufficient experience in insurance matters;o Providing for a statutory appeal to the Supreme Court against the decisions of the IAT.LIFE & NON-LIFE INSURANCE – Development and Growth!The year 2006 turned out to be a momentous year for the insurance sector as regulator the Insurance Regulatory Development Authority Act, laid the foundation for free pricing general insurance from 2007, while many companies announced plans to attack into the sector.Both domestic and foreign players robustly pursued their long-pending demand for increasing the FDI limit from 26 per cent to 49 per cent and toward the fag end of the year, the Government sent the Comprehensive Insurance Bill to Group of Ministers for consideration amid strong reservation from Left parties. The Bill is likely to be taken up in the Budget session of Parliament.The infiltration rates of health and other non-life insurances in India are well below the international level. These facts indicate immense growth potential of the insurance sector. The hike in FDI limit to 49 per cent was proposed by the Government last year. This has not been operationalized as legislative changes are required for such hike. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have tipped into the Indian market and 21 private companies have been granted licenses.


The involvement of the private insurers in various industry segments has increased on account of both their capturing a part of the business which was earlier underwritten by the public sector insurers and also creating additional business boulevards. To this effect, the public sector insurers have been unable to draw upon their inherent strengths to capture additional premium. Of the growth in premium in 2004-05, 66.27 per cent has been captured by the private insurers despite having 20 per cent market share.The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2004-05 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 per cent), respectively. In the year 2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34,898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.The size of life insurance market increased on the strength of growth in the economy and concomitant increase in per capita income. This resulted in a favourable growth in total premium both for LIC (18.25 per cent) and to the new insurers (147.65 per cent) in 2004-05. The higher growth for the new insurers is to be viewed in the context of a low base in 2003- 04. However, the new insurers have improved their market share from 4.68 in 2003-04 to 9.33 in 2004-05.The segment wise break up of fire, marine and miscellaneous segments in case of the public sector insurers was Rs.2411.38 crore, Rs.982.99 crore and Rs.10578.59 crore, i.e., a growth of (-)1.43 per cent, 1.81 per cent and 6.58 per cent. The public sector insurers reported growth in Motor and Health segments (9 and 24 per cent). These segments accounted for 45 and 10 per cent of the business underwritten by the public sector insurers. Fire and “Others” accounted for 17.26 and 11 per cent of the premium underwritten. Aviation, Liability, “Others” and Fire recorded negative growth of 29, 21, 3.58 and 1.43 per cent. In no other country that opened at the same time as India have foreign companies been able to grab a 22 per cent market share in the life segment and about 20 per cent in the general insurance segment. The share of foreign insurers in other competing Asian markets is not more than 5 to 10 per cent.The life insurance sector grew new premium at a rate not seen before while the general insurance sector grew at a faster rate. Two new players entered into life insurance – Shriram Life and Bharti Axa Life – taking the total number of life players to 16. There was one new entrant to the non-life sector in the form of a standalone health insurance company – Star Health and Allied Insurance, taking the non-life players to 14.A large number of companies, mostly nationalized banks (about 14) such as Bank of India and Punjab National Bank, have announced plans to enter the insurance sector and some of them have also formed joint ventures.The proposed change in FDI cap is part of the comprehensive amendments to insurance laws – The Insurance Act of 1999, LIC Act, 1956 and IRDA Act, 1999. After the proposed amendments in the insurance laws LIC would be able to maintain reserves while insurance companies would be able to raise resources other than equity.About 14 banks are in queue to enter insurance sector and the year 2006 saw several joint venture announcements while others scout partners. Bank of India has teamed up with Union Bank and Japanese insurance major Dai-ichi Mutual Life while PNB tied up with Vijaya Bank and Principal for foraying into life insurance. Allahabad Bank, Karnataka Bank, Indian Overseas Bank, Dabur Investment Corporation and Sompo Japan Insurance Inc have tied up for forming a non-life insurance company while Bank of Maharashtra has tied up with Shriram Group and South Africa’s Sanlam group for non-life insurance venture.CONCLUSIONIt seems cynical that the LIC and the GIC will wither and die within the next decade or two. The IRDA has taken “at a snail’s pace” approach. It has been very cautious in granting licenses. It has set up fairly strict standards for all aspects of the insurance business (with the probable exception of the disclosure requirements). The regulators always walk a fine line. Too many regulations kill the motivation of the newcomers; too relaxed regulations may induce failure and fraud that led to nationalization in the first place. India is not unique among the developing countries where the insurance business has been opened up to foreign competitors.The insurance business is at a critical stage in India. Over the next couple of decades we are likely to witness high growth in the insurance sector for two reasons namely; financial deregulation always speeds up the development of the insurance sector and growth in per capita GDP also helps the insurance business to grow.

Different Types Of Data Communication Media

The process in which data is transferred from one computer to another is known as communication media. Data communication involves transmission of digital of information to different electronic devices through wireless or cabled connections. The two commonly used computer communication media used are bounded and unbounded media.A. Bound MediaData transfer through physical connections is referred to as bounded media in that signals are sent to other external devices from one computer in a network. Computers can be interconnected to share files and devices in a network by means of cabling which facilitates faster communication of information. Bounded media is a faster data communication that provides high speed transfer of signals over long distances and is the most reliable media for message sending.Bounded media is categorized into three types of data communication which enables connection of different types of network. These cables include:


1. Coaxial cableThis is most common bounded media that is many electronics to transfer data and it is designed with two parallel copper conductors. It has a solid central copper conductor that transmits signal and is coated with a protective cover to reduce electromagnetic interference. Coaxial cable is found in different gauges at affordable prices and is easier to work with. They are easy to install and can support up to 10Mps capacity with medium attenuation. Despite its popularity, the only serious drawback it has is that the entire network is always affected with a single cable failure.2. Twisted pair cableTwisted pair cables are found in two types and these include unshielded and shielded twisted pair cables. It is commonly used because it is lighter and inexpensive. They are made up of twisted solid copper wires which help to reduce vulnerability to EMI and cross talk effects. This type of cables is cheaper and can support up to 100mps speed capacity.3. Fiber opticUnlike other types of cables, fiber optic uses electrical signals for communication and is made up of reflective cladding that prevents loss of light in the glass core. Although it very expensive and hard to install, optic cables can support at least 2gbps and are not vulnerable to EMI interference. It has got also very fast data transmission and very low attenuation compared to other data cables.B. Unbounded mediaThis type of data communication media involves networking of multiple computers through a wireless connection. Creating a wireless connection is much easier since no physical connection is required and can connect multiple computers in a room. Unbounded media uses space or air as the transmission medium for electronic waves. Some of the unbounded media are the satellites, radio, Bluetooth and Wi-Fi among others. Installation of wireless network is much easier and faster compared to the bounded media which require an expert to do the configuration. Through wireless settings, you can also transfer huge files of data to any networked computer since the unbounded media supports very high bandwidths just like the cabled network.


Generally, in order to transmit data over networked computers, you will have to use either bounded or unbounded types of media. Depending on the type of network you want to create, convenient type of media is required to enable consisted and proper data communication.