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| HOD's>Directorate
of Insurance> Objectives |
Objectives
Objectives underlying the establishment of the G.I.F.
1. Saving in Margin
Even before the establishment of the G.I.F. there was a practice to insure
the risks of the commercial departments of Government of Gujarat and statutory
Corporations with outside insurers. Every Trade is working for a margin
of profit. This margin is now retained by the GIF. Margin is defined as
premium less claim, less management expenses.
2. Passing of the exact cost of Insurance to the Consumers
In an insurance Fund, specially created for and by any particular Government
generally an ad-hoc contribution is made annually irrespective of the varying
rates of premium concerned with the various items, while the Insurance Fund
of Government of Gujarat is working as an Insurer, charges various rates
of premium according to Tariffs or as prevalent in the market for non-tariff
rates to pass on the exact cost to the ultimate consumer of the goods/services.
3. Creation of a Reserve Fund
The margin of saving as stated in (1) above is accumulated to create a Reserve
Fund. This fund can be utilised for meeting the cost of repair, replacement,
etc. of the Government properties/interest, which is lost on account of
the materialisation of insurable risk. With addition to the Reserve Fund
the capacity of the Fund the capacity of the Fund grows in retaining higher
percentage of risks reducing the drain to certain extent on the outgo of
insurance premium.
4. Guidance
Expertise and Technical knowledge of the insurance underwriting and claims
processing of this department is helpful for quick servicing, assessing
of appropriate premium, quick settlement of claims etc., to all those departments/corporate
board, bodies etc. who have to insure with GIF. |
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