Consideration of baseline in EIA

Consideration of baseline in EIA Consideration of baseline in EIA Chapter one: Introduction 1.1 EIA and Baseline Environmental impact assessment, EIA was developed in order to provide decision makers with an understanding of the environmental consequences of a proposed development. It provides information on the nature and extent of impacts arising from the construction and operation of proposed projects. This is presented in environmental reports that contain information required by the EIA directives. These required information may include; a description of the proposed project, an outline of main project alternatives, description and assessment of aspects of environment likely to be significantly affected by the proposed development and a description of measures established to manage significant adverse effects on the environment. A key element of EIA is to provide adequate description of the current environment condition, otherwise referred to as baseline assessment. They are often referred to as the environmental setting, existing conditions, affected environment, background environment, environmental conditions, environmental receptors, and baseline data (Shepherd, 2006, Canter 1996, Eccleston, 2001). The need for its consideration in EIA is a topic raised by several researchers (Wood 2003, Glasson et al., 2005, Carroll and Turpin 2009, Lawrence 2003, Morris and Therivel 2009, Wathern, 1992). For them baseline can be regarded as the main support for the EIA process, which identifies existing environmental conditions and relevant potential areas that may be affected by a proposed project. The importance of baseline is also manifested in EU regulations. It is moreover set in EIA directives (schedule 4, part 11) that the current environmental conditions of the study area, its possible future evolution and tech nical deficiencies/ limitation experienced while carrying out the study should be reported in an environmental statement. Studies (Wathern 1992, Glasson et al., 2005; Andre et al., 2004, Wood, 2007) revealed that despite its roles and benefits in the EIA process, the aspects of baseline considered remains substandard. Questions on the definition, methodology, specific aspects to be considered, remain an issue. 1.2 Contextual review Baseline is a preliminary step in the EIA process which is implemented in the UK through the Town and Country planning (SI 1999 N0 293) Regulations 1988 and the subsequent 1999, 2000, 2006, 2008 amendments. Theories have revealed though it is recognized that collection of appropriate and sufficient, baseline data can be time consuming and expensive. In spite of this, the value of this information can produce a significant outcome on the quality of the overall EIA process. 1.3 The research This research intends to address the subject of baseline in EIA process. It will look specifically at the influence of baseline on the EIA process. It begins by describing the origins and principle of EIA with particular reference to its legislative beginnings, secondly, the issue of good quality baseline and effectiveness of EIA is discussed, research approach is then outlined and the findings of the studies are presented and analysed. The findings of the research are considered in comparison with the literature, with reference to its more substantive purposes before drawing conclusions and possible recommendations. Moreover, there has been limited investigation to date on baseline and how it influences the out come of EIA process in practice. It is therefore expected that this dissertation would add to the knowledge on baseline and make recommendations on baseline implementation in EIA process. 1.4 Aim Overall aim is: To determine how baseline influence EIA process decision making and promote the importance of baseline in EIA process. 1.5 Research questions and Hypothesis In order to pursue the aim identified above, a set of research questions have been developed which when answered enable the research aims to be achieved. Responding to this question is the focus of the dissertation. Questions to be answered include: How are baseline currently addressed in ES? Does adequate baseline study influence EIA decision making process? For this research the hypothesis has been formulated that: Good baseline quality contributes to effectiveness of the EIA process The formulation of this hypothesis was influenced by the EIA regulation requirement for baseline information and also limited knowledge on baseline influence in EIA decision making process. 1.5 Dissertation structure Based on the research aims and hypothesis the structure of the dissertation is divided into seven chapters and is set as follows: Chapter 1: Introduction The dissertation begins with an introductory part to set out an overview of EIA process, explaining how the baseline fits into the EIA process. The research aim is then identified and hypothesis is formulated and justified for the purpose of this research. A brief summary of the research approach and contents of subsequent chapters are then revealed. Chapter 2: Methodology This chapter outlines the research methodology, the parameters of the literature search, selection of relevant information and research limitations. Provides details of evaluation framework developed to analyse the chosen environmental statements, relevant planning files and interview approach and structure. Chapter 3: Background Following the methodology, this chapter sets out a literature review as the backbone of this research. The structure of the literature review is based on EIA and baseline. It starts by examining the concept of EIA and it various steps; attention is based more on how baseline fits into the overall EIA process. Chapter 4: Criteria for effective EIA process and good practice baseline This chapter sets out the first stage of the methodology. It explores the terms used in developing the research hypotheses i.e. effective EIA and good quality baseline in order to develop a checklist for the review. This was achieved by information from various researchers who have studied EIA effectiveness and good practice baseline and also notes from existing guidance documents and existing EIA/EIS review criteria. Chapter 5: Presentation of result and analysis This chapter Outlines presentation of results and analysis of the interviews and reviews of EISs. Details on results and findings of the 3 research are then discussed, linking the theoretical perspectives and frameworks discussed to that of practice. Chapter 6: Conclusion Finally, the conclusion is drawn whilst connecting the research hypothesis and literature review to the content of the dissertation, limitation is outlined and recommendations are drawn. Appendices: Relevant appendices of supporting information follow a bibliography of information sources. Appendix A lists acronyms used in this research, Appendix B lists EIA directive requirements of information to be presented on the ES. Appendix C lists the summary of the four statements reviewed, a summary of the interview together with their individual responses are attached as appendix D. A summary of the findings of the review are then attached as appendix E. 1.7 Relevance of the research topic to course of study The course of study Environmental assessment and management deals with natural resource management and planning. Specifically, management of the environment and project coordination. EIA was introduced as an environmental management tool its purpose and principle plays an important role in planning system of UK environment. It involves assessment of a specific environment to identify impacts and develop measures of controlling the impacts that may occur as a result of a proposed development in order to enhance the environment. Baseline is an initial step in the EIA. There have been numerous questions on how EIA achieves its primary purposes. In this case, it is important to evaluate baseline which is one of the initial steps to highlight how it helps achieve its purposes. In general, the course aims to provide student with an understanding of principles methods and procedure in EAM. EIA is central to environment assessment and management. Hence, it is evident that the research topic is relevant to the course of study and its proposed aim is expected to be achieved. 1.8 Overview In summary, the EIA regulation indicates that the data required for any project which is likely to generate significant environmental effects must be assessed and stated in an environmental statement. In addition, the influence of baseline on outcome of EIA is limited. This research sets out to address this issue. For this purpose, research aim and hypothesis have been developed, to set out research questions in order to identify a focus of the research. A methodology adopted for this purpose is exposed in the next chapter. Drawing generalization from research investigation and providing information for subsequent replication of studies, suggestions are made about the types of information to include when describing baseline conditions in this research.

Colombian Immigration to America

Colombian Immigration to America Nicole University Of Phoenix ETH/125 Katherine Ruberto In the early nineteenth century the first known Colombian immigrants settled in New York City. Among these immigrants were nurses, accountants, lab technicians, and pharmacists. The Colombian Civil War called â€Å"La Violencia† of 1948 where more than 250,000 people were killed in total after the popular presidential candidate Jorge Eliecer Gaitan was assassinated forced many to flee Colombia and settle in America. The ongoing struggle with Colombia’s government and the recession also pushed many Colombians to migrate. Between 1960 and 1977 about 116,000 Colombians came to America. Because of the signing of the Immigration Act of 1965, Colombians as well as other potential immigrants of other countries were brought to a halt when there was a limit placed on how many visas were handed out. The fact that visas were limited to only 20,000 visas per country a year along with the high unemployment rate in Colombia put pressure on many families. Colombians that were able to come to America on a temporary based visa became illegal because they stayed beyond the allotted time. As a result the rate of undocumented immigration soared: estimates of those living in the country without permanent residency status ranged from 250,00 to 350,000 in the mid 1970s† (Sturner, n. d. ). The Immigration Act of 1965 was later revised to allow more visas to be issued. Colombians settled throughout the country in areas such as New York, New Jersey, Chicago, San Francisco, Houston, and Washington D. C. The late 70s and early 80s brought many Colombians to Miami, Fl. that is a city that thrives on Hispanic cultures and is very accepting of immigrants. Miami is a city that most people will speak Spanish before they even speak English, so for immigrants this allowed them to communicate and learn skills easier than in other parts of the country. The 80’s and the 90s proved to be a tough time for Colombians. America became more advanced technology wise, therefore the work immigrants performed was no longer needed. Another factor hitting Colombians hard was the recession of 1981. Americans felt that immigrants were a financial burden on the country and it became a pressing issue. As the Guerilla violence escalated in Colombia more Colombians fled to America. During that time, my mother had been traveling to New York to visit her father and I was born there practically by accident because I was suppose to be born in Colombia. My family suffered a tragedy when two of my uncles were murdered and we received threats not to go to the police or they would take every family member out. I am the only one from my family that was born a U. S. citizen, but I recall when my mother would have to tell people that I was an American Citizen in order to receive my health care and other things. It was like people looked at me differently because I had a Colombian last name. When I was young my mother made it a point that I learn English since I was about four years old because she knew that America was very discriminating against those that do not speak English. My mother knew first hand how limiting it is to have a degree in another country that is not worth anything here. My grandmother was a detective in Colombia, yet when we came here she had to clean houses because that career was worthless here. Because we came during the escalating drug war that was going on, we did feel that people stereotyped us. Even today when I tell people where I am from, they say an ignorant comment about my country and the drug that it is mostly connected to. People do not know how many lives and families were innocently ruined because of a war that is uncontrollable and is still going strong today. Because of the resentment from the American Society felt towards immigrants Proposition 187 was passed which denied health care, education, and other services to undocumented immigrants. In 1999 the federal court ruled that Proposition 187 was unconstitutional and their decision was not appealed by the state of California. I would say that I culturally identify with my Hispanic roots because it is attached to my family. We all want to preserve our family roots and values so that we can pass them on to our future generation. When my family comes together we cook Hispanic food and listen to Spanish music. Colombians are known to speak the best form of Spanish, which is known as â€Å"Castellano† and we have a heavy accent. For my family it has always been important that we preserve the language since we are around many other Hispanics and we tend to pick up their form of Spanish. In â€Å"Castellano† the words that we use are very different from the Spanish that a Cuban or Dominican would use. I love the American mainstream culture because I have spent the majority of my life here and grew up listening to Britney Spears, and watching Boy Meets World, and Full House. America is a great country for opportunity and although I was born here, whenever anyone asks me where I am from, I always smile proudly and say, â€Å"I am Colombian. Reference Page †¢Berube, Myriam. (November 2005). (Online) Migration Information Source. Available http://www. migrationinformation. org/Profiles/display. cfm? ID=344 (Retrieved Dec 4, 2011) †¢Sturner, Pamela n. d. (Online) Colombian Americans. Available http://www. everyculture. com/multi/Bu-Dr/Colombian-Americans. html#b †¢(Retrieved Dec 4,2011) †¢Colombia’s Civil War (Online) PBS. Available http://www. pbs. org/newshour/bb/latin_america/colombia/timeline. html (Retrieved Dec 4, 2011)

Business Aspects in Banking and Insuarance

Present Scenario of insurance in business The liberalization, privatization and globalization policies of the nation along with the revolution in the field of Information Technology and communication have been advantageous for the insurance sector in India. ? Entry of private players and foreign collaborations: It was on the recommendation of the Malhotra Committee that private players were allowed to enter into the insurance market. Today there are almost 22 players who have entered the Indian insurance market besides the giant Life Insurance Corporation of India (LIC).Another major development that has taken in the field of general insurance is the de-linking of the 4 subsidiaries of the General Insurance Corporation of India (viz. Oriental Insurance Company Ltd. , New India Assurance Company Ltd. , National Insurance Company Ltd. and United India Insurance Company Ltd) from the parent company. ? Marketing strategies and approaches: The entry of private players and their foreign pa rtners has given domestic players a tough time, because the opening up of the sector has not brought in only foreign players, but also professional techniques and technologies.The present scene in India is such that everyone is trying to put in the best efforts. One can see strategies being more for survival than growth. But the most important gift of privatization is the introduction of customer-oriented services. Utmost care is being taken to maximize customer satisfaction. Insurance Sector Today: Opportunities and Challenges Opportunities As compared to the Western countries, where they have already reached a stage of saturation, India can exploit some golden opportunities in the following fields. 1. Mass MarketingIndia is a highly populated country and would continue to be so in the near future. New players may tend to favour the â€Å"creamy† layer of the urban population. But, in doing so, they may well miss a large chunk of the insurable population. A strong case in po int is the current business composition of the dominant market leader – the Life Insurance Corporation of India. The lion's share of its new business comes from the rural and semi-rural markets. In a country of 1 billion people, mass marketing is always a profitable and cost-effective option for gaining market share.The rural sector is a perfect case for mass marketing. Competition in rural areas tends to be â€Å"kinder and gentler† than that in urban areas, which can easily be termed cutthroat. Identifying the right agents to harness the full potential of the vibrant and dynamic rural markets will be imperative. Rural insurance should be looked upon as an opportunity and not an obligation. A smaller bundle of innovative products in sync with rural needs and perceptions, and an efficient delivery system are the two aspects that have to be developed in order to penetrate the rural markets. 2. Job OpportunitiesJob opportunities are likely to increase manifold. The liber alization of the insurance sector promises several new job opportunities for those who are equipped with degrees in finance. Finance professionals who had witnessed a slump in the job market would be much relieved. There will be demand for marketing specialists, finance experts and human resource professionals. Apart from this, there will be high demand for professionals in streams like underwriting and claims management, and actuarial sciences. 3. Inflow of Funds There could be a huge inflow of funds into the country.Given the industry's huge requirement of start-up capital, the initial years after opening up are bound to see a strong inflow of foreign capital. A rise in the equity share of foreign partners to 49 percent will act as a boost to them. 4. Reinsurance Huge capacity is likely to be created in the area of reinsurance. Apart from pure reinsurance activities, which involves providing insurance protection, there will be a revolution in service-related fields like training, seminars, workshops, know-how transfer regarding risk assessment and rating, risk inspections, risk management and devising new policy overs, etc. 5. Marketing Strategies Also, with more players in the market, there will be significant increase in advertising, brand building, and this will benefit whole lot of ancillary industries. A substantial shift is likely to take place in the distribution of insurance in India. Many of these changes will echo international trends. Worldwide, insurance products move along a continuum from pure service products to pure commodity products. Initially, insurance is seen as a complex product with a high advice and service component.Buyers prefer a face-to-face interaction and place a high premium on brand names and reliability. As products become simpler and awareness increases, they become off-the-shelf, commodity products. Sellers move to remote channels such as the telephone or direct mail. Various intermediaries, not necessarily insurance compan ies, sell insurance. In some countries like Netherlands and Japan, insurance is marketed using the Post Office's distribution channels. At this point, buyers look for low price.Brand loyalty could shift from the insurer to the seller. 6. Bancassurance In other markets, notably Europe, this has resulted in bank assurance: banks entering the insurance business. The Netherlands led with financial services firms providing an entire range of products including bank accounts, motor, home and life insurance, and pensions. Other European markets have followed suit. In France, over half of all life insurance sales are made through banks. In the UK, almost 95% of banks and building societies are distributing insurance products today.In India too, banks hope to maximize expensive existing networks by selling a range of products. Many bankers have shown an inclination to enter the insurance market by leveraging their strengths in the areas of brand image, distribution network, face to face cont act with the clients and telemarketing coupled with advanced information technology systems. Insurers in India should also explore distribution through non-financial organizations. For example, insurance for consumer items such as refrigerators can be offered at the point of sale. 7. Information TechnologyWorldwide interest in E-commerce and India's predominant position in Information Technology and software development are also likely to be major factors in the marketing of insurance products in the immediate future. The number of Internet account is increasing and the trend has already been set by some of the leading insurers and insurance brokers worldwide. Challenges If one has opportunities, one has to face challenges; it is like two sides of the same coin. No doubt India has a lot of opportunities coming her way, but there are a few challenges and threats as well.The four main challenges facing the industry are product innovation, distribution, customer service, and investment s. Unit-linked personal insurance products might find greater acceptability with rising customer awareness about customized, personalized and flexible products. Flexible products and new technology will play a crucial role in reducing the cost and, therefore, the price of insurance products. Finding niche markets, having the right product mix through add-on benefits and riders, effective branding of products and services and product differentiation will be some of the challenges faced by new companies. . Technology In today's highly competitive financial services environment, effective organizations will employ technology in a strategic way so to achieve a competitive edge. Technology will play an increasing role in aiding design and administering of products, as well in efforts to build life-long customer relationships. At the same time, investment in technology will only help as long as firms find the right people: people with the right attitude, values, and ethics, commitment to excellence, and focus on customer service.The critical success factor is a top-down emphasis on exceeding customer expectations with quality people, excellent products, and legendary service. As has been seen in other financial services, the entry of private players ensures that the customer will be the beneficiary in the long run. It will also result in enlarging the market and extending the reach of insurance across the country. 2. Competition Thus, apart from the normal issues facing any new company, many new Indian private insurance players will need to cope with the challenges of working with a joint venture partner.They will be competing with large and well-entrenched government-owned players. They have to overcome regulatory hurdles, change the attitude of new recruits and satisfy some very high customer expectations. Also, the players will have to consider the Indian market as a long-term investment, and maintain clear-cut objectives and constant monitoring at all levels. Co nclusion ? Nationalized players will continue to hold strong market share positions: Over the past three years, around 40 companies have expressed interest in entering the sector and many foreign and Indian companies have arranged anticipatory alliances.The threat of new players taking over the market has been overplayed. As is witnessed in other countries where liberalization took place in recent years, we can safely conclude that nationalized players will continue to hold strong market share positions, but there will be enough business for entry to be profitable. ? Recognizing the potential market Opening up the sector will certainly mean new products, better packaging and improved customer service. Both new and existing players will have to explore new distribution and marketing channels.Potential buyers for most of this insurance lie in the middle class. New insurers must segment the market carefully to arrive at appropriate products and pricing. Recognizing the potential, in th e past three years, the nationalized insurers have already begun to target niches like pensions, women or children. ? Facing competition and challenges Competition will surely cause the market to grow beyond current rates, create a bigger â€Å"pie,† and offer additional consumer choices through the introduction of new products, services, and price options.Yet, at the same time, public and private sector companies will be working together to ensure healthy growth and development of the sector. Challenges such as developing a common industry code of conduct, contributing to a common catastrophe reserve fund, and chalking out agreements between insurers to settle claims to the benefit of the consumer will require concerted effort from both sectors. Objectives of Insurance: 1. Risk Sharing: insurance is mechanism adopted to share the losses that might occur to an individual or his family on the happening of a specified event.The event may be death of earning member of the family in case of life insurance, marine perils in marine insurance and other certain events in miscellaneous insurance. The loss arised from thee events if insured are shared by all the insured in the form of premium. Thus, risk is transferred from one individual to a group. 2. Co-operative Device: Insurance is a cooperative device under which a group of persons who agree to share the financial loss may be brought together voluntarily or through publicity or through solicitation of the agents.An insurer would be unable to compensate all the losses from his own capital. Therefore, by insuring a large number of persons, he is able to pay the amount of loss. Like all other cooperative devices there is no compulsion on anybody to purchase the insurance policy. 3. Saving: Insurance is a saving device, particularly the life insurance. The claim is certain in case of life insurance, while it is not certain in general insurance. Therefore, life insurance is considered as saving because; the insu red party gets the sum assured plus bonus at time of maturity.Therefore, life insurance is considered as a savings device. 4. Economic Security: Insurance provides economic security for such losses arising out of happening of insured event such as personal accident. Insurance is a protection against uncertainties of life. It provides monetary compensation for losses suffered due to happening of uncertain events, insured under the policy of insurance. Insurance is a shelter against financial losses arising out of occurrence of an anticipated accident. Thus, it provides economic security to the family of insured person or his property. 5.Economic Development: One of the most important factors contributing to the process of economic development is the capital formation. The relation ship between capital formation and insurance services in both the developed and developing economies of the world has been quite prominent and noteworthy. The savings from the household sector constitute th e major proportions of the total savings in the country. The household savings constitute physical and financial. The insurance is a financial savings. As the economy progresses and attains maturity, progressively larger proportion of savings is invested in the financial assets like insurance. . Capital formation: Capital formation is the increase in capital stock of a country consisting of plant, machinery, equipments, tools, factory buildings, raw materials etc. Capital has always been regarded as a means of increasing production, in the economy and thereby contributing to the future stream of income to the economy as a whole.The process of capital formation envisages real savings, channelising savings and the act of investment. Insurance service acts as a tool to mobilize savings and indulge in direct investment. Principles of Insurance ) Utmost Good Faith: It means a positive duty to disclose accurately and fully all the facts material to the risk being proposed, whether request ed or not. Every circumstance is material whish would influence the judgement of a prudent insurer in fixing the premium or determining to accept the risk. The breach of utmost good faith arises due to misrepresentation or non-disclosure. Insurance is a contract, and each party can examine the item or service, which is the subject matter of the contract. Therefore, the proposer (the one taking the policy) should disclose accurate information as asked by the insurance company, e. . facts relating to age, health, habits, and personal history. If any information is considered to be fraudulent, then the contract is null and void. Under Sec 45 of the Insurance Act, 1938, the insurance company can cancel a policy up until 2 years, but not after after the policy is signed on the grounds of inaccurate or false statement. 2) Insurable Interest: Insurable interest is the legal right of the insurer, arising out of a financial relationship recognized under law between the insured and the subjec t matter of insurance.The interest in the subject matter of a contract of insurance provides the insured person with the right to enforce the contract. All risks are not insurable. In order to be insurable, the risk must be capable of financial measurement. Insurable interest is said to exist when the person insuring stands to lose, if the event insured against occurs. E. g. a person has insurable interest in his own life. Husband and wife have an insurable interest in each other. The main objective of insurable interest is to prevent people from wagering or gambling on the lives of the others. An insurance company cannot issue a policy without insurable interest.In case of non-life insurance, the existence of insurable interest is:- a) Ownership of a property or asset like a car, flat, etc. clearly establishes insurable interest in the property. b) An employer has an insurable interest in the employees working with him in good health. c) A bank has an insurable interest in the loya lty and integrity of its cashiers and managers. d) A businessman has an insurable interest in the stock of goods, vehicles, furniture and machinery. e) A vehicle owner has an insurable interest even in an unknown third party, who may be potentially injured in any accident involved with the vehicle. ) Indemnity: The basic purpose of insurance is to compensate loss and not to allow profit from insurance contract. The insurance company pays compensation to the insured party only in case of loss due to some perils. If there is no such loss, no compensation is to be paid. According to the principle of indemnity, the actual loss incurred by the insured party is to be compensated by the insurance company, as per the terms and conditions laid down in the policy. For this purpose, the insured has to make a claim to the insurance company within a specified period after the occurrence of certain event.The insured party should not make a profit from any insurance contract. The object of insuran ce is to restore the financial position of the insured. 4) Subrogation: Subrogation means the automatic transfer of rights and remedies of the insured to the insurer upon the insured having received the benefits of insurance. For example, a company has insured a car. If the car meets with an accident which damages the car beyond repair, and the company pays full value of insurance to the person for the car, the company has full right to take away the damaged car. The person has no rights left on the car.The principle of subrogation arises from the basic principle of indemnity. When the insurer indemnifies the insured to the extent to his loss and not more than that, the salvaged property goes towards reducing the loss of the insurer. 5) Contribution: The principle of contribution applies when the insured has taken more than one insurance policy for the same risk from more than one insurance company. In case of loss or damage is incurred and if the insured gets benefits from all the insurance companies, the insured will get more profit than his actual loss.The principle on indemnity will not be followed in such a case and it will be against the law of insurance. Therefore, insurance contracts include the principle of contribution expressly. The principle of contribution works in a manner where each insurer pays only that proportion of the risk, as is represented by proportion off the sum assured to the overall sums assured by the different insurers. Whenever, the principle of contribution applies, the insurers make the insured responsible to file the claims in the correct proportion with the insurers. E. g. , A person takes a policy for Rs. 0000, Rs. 100000, and Rs. 150000 for the same thing. He will claim the insurance in the ration of 1/6, 1/3, and ? respectively. 6)Nature of contract-It is the fundamental principle of insurance required for a valid contract. A contract of insurance comes into existence when therte is an offer or proposal ; acceptance of the same by other. It has to satisfy all essential elements of a simple contract. To insurance contract to be valid one must be competent enough ; with sound mind. Premium is yhe consideration that must be given for the commencement of insurance contract.The object of the contrct should be lawful. 7) Risk must attach-It is essential for a valid contract of insurance. A contract of insurance can be enforced only if the risk is being attached. Premium is the consideration of the risk by the insurance companies. If there is no risk in the subject matter there should be no premium. 8)Mitigation of loss-It is applied in valid insurance contract. In the event of some mishap to the insured property ,the insured must make necessary effort to safeguard his remaining property ; minimize the loss as much as possible. ) Terms of policy- An insurance policy is for a specific period or time often the nature of risk against which insurance is sought determines the period or the life of the policy. a c ontract of fire insurance is normally for a period of one year. The primary functions of insurance include the following: Provide Protection – The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others.Collective bearing of risk – Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk – Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also Provide Certainty – Insurance is a devic e, which helps to change from uncertainty to certainty.Insurance is device whereby the uncertain risks may be made more certain. The secondary functions of insurance include the following: Prevention of Losses – Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured.Small capital to cover larger risks – Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. Contributes towards the development of larger industries – Insurance provides development opportunity to those larger industries having more risks in their settin g up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The other functions of insurance include the following:Means of savings and investment – Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange – Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade – Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.IRDA The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. IRDA is the admi nistrative agency of Government of India for insurance sector supervision and development. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is â€Å"to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority. The Authority is a ten member team consisting of (a)  Ã‚  Ã‚   a Chairman; (b)  Ã‚  Ã‚   five whole-time members; (c)  Ã‚  Ã‚   four part-time members, They are all appointed by the government of India. [pic]The law of India has following expectations from IRDA:- 1) To protect the interest of and secure fair treatment to policyholders. ) To bring about sp eedy and orderly growth of the insurance industry (including annuity and superannuation payments), for the benefit of the common man, and to provide long term funds for accelerating growth of the economy. 3) To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates. 4) To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard. ) To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery. 6) To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players. 7) To take action where such standards are inadequate or ineffectively enforced. 8 ) To bring about optimum amount of self-regulation in day to day working of the industry consistent with the requirements of prudential regulation.Slow Growth Of Insurance Business In India 1) Volatile market The people in India who invest their money in the volatile market of India see the upper layer of the insurance industry and say that one can think positive about this sector, but the index chart showing the recent growth figures are having different story to tell. 2) Security downfall in insurance sector Many in India consider the insurance sector as the secured one but the recent downfall in the premium income of private and public life insurance and eneral insurance companies clears this myth. The figures that came out in the light, regarding the premium income of insurance industry clearly show that Insurance in India is not recession proof. Downfall started from the life insurance sector of India where the major and most trusted companies have not recorded much impressive premium income. 3) Mixed results of growth and downfall of insurance business The insurance industry of India is not only witnessing this decline in life insurance sector but is also looking south with its general insurance biz.The recent data shows the slow negative growth of the general insurance industry in India with both public and private companies giving out mixed results. In the first quarter of the current fiscal where the public sector general insurance companies like United India, New India Assurance and Oriental Insurance have recorded the growth of 14%, 7% and 10% respectively, while PSU National Insurance has resulted in the negative growth of 2%. 4) Low penetration of general insuranceThe penetration of general insurance in India remains low on account of low consumer preference, largely untapped rural markets and constrained distribution channels, one of the biggest constraints facing the general insurance business is the lack of reach beyond the cities. With the pri vatization of the Indian insurance sector in 2000, competing among the insurance players has increased manifold ; each insurance player is coming up with innovative channels ; insurance products to meet the needs of different people. Thus, it is clear that the face of life insurance is changing.But with the changes come a host of challenges ; it is only the credible player with a long term vision ; a robust business strategy that will survive. According to the latest figures released by the Insurance Regulatory and Development Authority (IRDA), of the total 22 life insurance companies, only nine companies managed to mop up new business premium, most of them being smaller companies. Among major players, only Reliance Life and SBI Life managed to get more business and witnessed a growth of 6. 88 and 0. 89 per cent respectively.At present there are 22 life insurance companies in India, including the State-run Life Insurance Corporation Swiss Re, the largest reinsurance company, has sai d that insurance in the emerging markets is expected to grow at a slower pace in 2008 and 2009, but its longer term growth prospects remain positive. In India growth of new business in life insurance fell from 145. 7% in 2006 to 9. 6% in 2007. Annual growth is likely to drop from the 2002 to 2007 levels of 11. 4% in life and 10. 6% in non-life to 7-10% in life and 3-8% in non-life between 2008 and 2013, said the company its latest Sigma report.Growth in the life market slowed from 18% to 14% in 2007. Speaking of private general insurance companies, some big players like Reliance General Insurance and Tata AIG General Insurance have witnessed the negative growth. The other players in the same category like Bajaj Allianz General and ICICI Lombard Insurance have reported the southward growth of 13 and 21 percent respectively in the June quarter. Lack of good insurance advisors. Reasons for Slow Growth 1. Slackness in the economy and the markets has put the brakes on the high speed grow th of private life insurance companies. 2.Life insurance companies have slowed down recruitment due to tardy growth in the new business and focus on cost-cutting 3. Ineffective distribution networks 4. Delay in settlement of claims – lengthy procedures 5. Fraud cases : Fraudulent and dishonest claims are a major problem for the insurance industry. An example of life insurance fraud is the John Darwin disappearance case, an ongoing investigation into the faked death of British former teacher and prison officer John Darwin, who turned up alive in December 2007, five years after he was thought to have died in a canoeing accident.Darwin was reported as â€Å"missing† after failing to report to work following a canoeing trip on March 21, 2002. He reappeared on December 1, 2007, claiming to have no memory of the past five years. Reasons for Slow Growth (contd) 1) Poor marketing strategies: India is a developing nation and is new to all these marketing strategies if compared at international standards. Keeping in mind the poor literacy rate of the country, there should be such strategies prepared which not only target the urban areas but also tap and concentrate on the rural areas for basic and vital insurance policies. ) Low consumer awareness: Due to lack of awareness, yet, nearly 80% of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This, itself is an indicator that growth potential for insurance sector is immense, however, it is slow, one reason being lack of awareness.In order to spread awareness, the insurance companies should have differences in approach for rural and urban areas as per the lifestyle, literacy of people. For eg : crops insurance, house insurance for people in rural areas and farmers with low sources of in come should be made aware of in a less complex manner. 3) Lack of competition: public and private insurance companies more or less offer policies with similar terms and conditions. Hence, differentiation lacks which leads to less competition in the insurance sector. ) Government monopoly: there are private and public insurance companies in the insurance sector. However, the government provides financial aid and encouragement only to its own public institutions. Evidently, the government will only support and favor its own agencies. There is concentration of power and due to this there can’t be an overall and fair development in the insurance sector.5) Inefficiency in management: there is a lot of scope and potential for growth in the insurance sector if men, material and money are managed in the best manner. All sections of society should be tackled in an organized anner with suitable strategies so that the objectives of insurance are materialized. 6) Liquidity crunch: due to reasons such as recession, liquidity has dried-up in the economy and hence people are hesitant concerning long-term investments such as insurance. Only when the liquidity situation eases, will the people become comfortable with locking in money for insurance as it is a long-term commitment and requires payment at regular intervals on a quarterly or yearly basis. 7) Financial malpractices: due to inefficiency and lack of verification there are financial malpractices.For eg: car insurance, the insurer may claim more than the actual damage of his car and give other causes for the accident when it is probably his fault. Such practices are illegal. FUTURE PROSPECTS OF INSURANCE IN INDIA With a huge population base and large untapped market, insurance Industry is a big opportunity area in India for national as well as Foreign investors. India is the fifth largest life insurance market in the emerging insurance economies globally and is growing at 32-34% Annually. Life insurance market ha s propelled the Indian lifeInsurance agents into the ‘top 10 country list' in terms of Membership to the Million Dollar Round Table (MDRT) — an Exclusive club for the highest performing life insurance Agents. Total life insurance premium in India is projected to grow Rs 1,230,000 Crores by 2010-11. — Total non-life insurance premium is expected to increase at a CAGR of 25% for the period spanning from 2008-09 to 2010-11. A major study on the Indian insurance sector by consultancy firm McKinsey & Co says less than a third of the life insurance agents meet minimum raining and sales standards set by their companies. It said the life insurance market could easily double to $100 billion in five years Entitled India Insurance 2012: Fortune Favours the Bold, it estimates that higher per capita income will be the key driver of higher demand for insurance products. By 2012, Indian household will be paying premium of up to Rs 4,100 from the current Rs 1,300 India’s ratio of life insurance premium to its GDP is around 4% against 6-9% in the developed world. But, the report claims it could rise to 6. % by 2012, in tandem with the country's demographic profile By 2012, almost 40% of the urban population is likely to have some form of life insurance cover, while in rural areas too it could touch 35%. Current levels are 30% and 25%, respectively FUTURE PROSPECTS OF INSURANCE IN INDIA (CONTD.. ) Insurance 10 years back in India basically was popular only for Life and to some extent for cover against Fire with only players like LIC,GIC etc. and this was one of the contributing factors for the growth of insurance being slow in India.This scenario changed with the entry of private players in the market. With competition came more innovation which ultimately is benefiting this industry in general. Latest 2 examples of innovations are agricultural/crop insurance and wedding Insurance. Bajaj Allianz Insurance has plans for protection against any losses in wedding preparations. The prospect that Insurance industry in India has a bright future can also be believed as not only big corporate houses like Reliance, Tatas and Birlas have stepped in this sector but also big banks like ICICI, SBI, HDFC are a part of it.This is a very positive indication for this sector with also more foreign players trying to come to India. India has an ever increasing population which just increases more and more market for the insurance industry. With more terror attacks and man made calamities and increasing natural calamities like rain deluge, draught, earthquakes etc. there is an increasing feeling of insecurity which is exactly what this industry thrives on. Hence, Insurance has very bright prospects in India. [pic]

Restorative Justice Gaining Support in South Africa

1 Introduction Punishment is central to any legal proceeding where the accused is found guilty. It falls directly under criminal law and is determined by punishment theories. Whether South Africa is moving towards restorative justice approaches influences many aspects: it allows protection of society and results in more crime-free life for the offender. Consequently, it gives offenders the chance to learn from their experiences, gain insight into their behaviour and allows victims to handle their injustice. If South Africa is truly moving towards applying restorative justice principles in the resolution of disputes it will be evident in the legislation and recent case law in different fields; including crimes of child offenders, less†¦show more content†¦In S v Shilubane the offender was originally sentenced to nine months in prison due to the theft of seven fowls, but at review the sentence was set aside and replaced with a suspended sentence that was â€Å"in line with the new philosop hy on restorative justice.† 5 Serious crimes Restorative justice is most suitable for cases that involve an identifiable victim who have suffered a crime of dishonesty and violence, as it allows the victim and the offender to rectify the imbalances and aid in coming to terms with the injustice. In the case of S v Maluleke offender received a suspended sentence after being found guilty of murder. The reason for this unusual sentence was because the mother of the victim only wanted the offender to show her remorse and apologise for her wrongdoing. Showing that legislation should not â€Å"deter courts from investigating†¦[and] introducing†¦alternative sentences into our criminal justice system.† It should be important to consider that â€Å"when nothing is to be gained by punishment, it should not be imposed even†¦when it is deserved.† Nevertheless, section 51 is a specific provision in the Criminal Law Amendment Act 105 1997 that describes discretionary minimum sentences for certain serious offences; including murder and rape. 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