The first presenter for the stream “The Rights and Responsibilities of Service Providers in a Global Economy” on the third day of the conference was Mr. Alan M. White from Valparaiso University School of Law.
The subject of his paper was “Regulating Credit for the Poor: Lessons from Micro-lending in Developing Nations.” He began with a discussion on the access to capital available to the poverty-stricken people of the world, juxtaposing their low capital access with their exploited status.
He mentioned the usury driven credit structures that have typically been employed by low-income groups. The fact that this section of the financial services industry has typically been deregulated has lead to exploitation of people procuring small amounts of money, leading to over-indebtedness of consumers.
He discussed Welfare Economics, the utility as well as the disutility. The utility comes from income-producing investments while disutility results from such factors as overconfidence bias leading to negative returns.
The substance of his discussion came with discussions of such microfinance organisations as the successful Grameen Bank of Bangladesh. Delineating the successful model employed by them, he mentioned their high level of controls leading to comparatively excellent rates of repayment. The welfare impact of such organisations has been tremendous.
Contrasting this to the debt cycle and over-indebtedness created by small-consumer loans in the U.S., he discussed the paternalism of such microcredit organisations. He also discussed similar situations in Bolivia and South Africa and how their debt-remedy measures may be applied to the U.S. small-consumer loan systems.
The second presenter of the day was Ms. Wenette Jacobs, from the University of South Africa, presenting a paper on “The Liability Insurer’s Right to Defend and Settle Claims against the Insured by Third Parties and Legal Protection Insurance in the Context of Liability Insurance.”
The researcher presented the participants with keen and penetrating insights into the liability insurer’s right to defend and settle claims against the insured by third parties and legal protection insurance in the context of liability insurance. The presentation dealt with liability insurer’s right to defend and settle claims and the scope of legal protection insurance in liability policies. The pros and cons of a separate legal protection insurance were gone into.
Regarding the liability insurer’s right to defend and settle, it was said that the Insurer may take over and conduct the defence and settlement of any claim and have the right to use the insured’s name for this purpose. Therefore it becomes imperative to compare the right to subrogation with the right to conduct the insured’s defence and settlement. The liability insurer’s duty to defend was contrasted with its right to defend. The conflicts of interest between the liability insurer and the insured and the conduct of the proceedings by the liability insurer were then discussed.
After a riveting discussion on legal protection insurance it was concluded that there remain limitations in a defence by the liability insurer and the provision of legal protection insurance in a liability policy. Perhaps the time has come to seriously start considering a separate legal protection insurance.
The third presenter for the day was Ms. Surabhi Singh presenting a paper by herself and Ms. Renu Arora.
Professor Surabhi Singh sought to present before the august gathering the pros and cons of banking institutions. These were classified these into public, private and foreign banks.
Starting off with the definition of banks as community based and business organizations, the researcher pointed out that banks play a role of considerable economic significance. It has been observed that in India the bank system is facing stiff competition and advancement of technology. Banking in India is considered as fairly mature in terms of supply, product range and reach but well computerized foreign banks are beginning to compete seriously with the nationalized banks.
The services provided by banks have become more easy and convenient. The Indian banking industry is passing through a phase of customer market. A few of the electronic banking services are offered viz. ATM, ECS, EFT, tele-banking, internet banking and so on. To provide continual customer satisfaction, banks are now required to continually improve the quality of services.
Primarily three research questions were identified.
l What are the major factors affecting customers’ satisfaction with the quality of services?
l What is the level of customers satisfaction with the quality of services provided by public sector, private sector and foreign banks?
l Do customers switch over to the IT adoption in public sector banks and to which extent?
A survey of 60 people was undertaken and their relationship with banking systems was studied and it was confirmed that the younger generation is starting to switch over on private and foreign banks. Reasons for selection of nationalized banks include faith, old bank and near the residence. Good services and more facilities were the primary reasons for choosing private and foreign banks. Respondents of nationalized banks were not satisfied with employee behavior and infrastructure. Respondents of private and foreign banks were not satisfied with high charges, accessibility and communication.
Session rapporteured by
Shuchita Thapar, 1st year
Arushi Garg, 1st year
Note: The previous session was rapporteured by
Shuchita Thapar, 1st year.
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