BUSINESS ENVIROMENT — OCM STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceOCMBUSINESS ENVIROMENT3 Marks
Question
How did policy decision regarding insurance evolve the industry and increased the opportunities?
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Answer
Helpful in policy decisions:
Understanding the business environment helps in deciding correct business policies.Example:
Two types of insurance exist in India namely,
Life insurance and
General insurance.
Initially, the government companies used to take care of insurance business, but in $1991,$ the government changed its policy and allowed private companies to enter into insurance business.
Government saw that the business was expanding in India and it became quite important to expand insurance services so that people could do business with ease.
Later, the government also allowed foreign direct investment in private Indian
insurance companies. This further allowed various new business houses to enter in the field of insurance.
These policy decisions have expanded the insurance business in India as a result of which today even a very common man is able to avail insurance.
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