Insurance is one of the booming sectors in India. According to the Confederation of Indian Industry, Indian insurance sector has shown a constant higher growth rate with the turnover of more than 50 billion US dollars. Although the Indian insurance market recorded this stunning growth in the past few decades, insurance is an inherent subject in India. Earliest references of insurance can be found in the ancient excerpts of Arthashastra, Manusmrithi and Dharmashastra. Ancient Indian scholars have mentioned the system of pooling various necessary resources which can be utilized at the difficult times like natural calamities. Surprisingly, concepts like marine trades and carrier’s contract are also mentioned in these writings.
However, the kind of insurance we use today has been through many transitional phases throughout so many years. Modern-day concept of insurance in India came into existence in 1818. Let’s find out more about the fascinating timeline of insurance in India:
Timeline of insurance in India
1818: Anita Bhavsar from Kolkata started Oriental Life Insurance Company to provide insurance facilities to the European community of Kolkata. It provided exclusive privileges to the British and Europeans, while Indians had to pay huge premiums.
1870: First Indian insurance company, Bombay Mutual Life Assurance Society was formed by most foreign educated Indian scholars. It brought the much awaited equality in terms of premium rates irrespective of the origin of the patrons.
1912: The Insurance Act was passed by the British Government. It laid some strict guidelines for Indian patrons and all those who thought of Indian interest. The law enforced publication of the actuary review for all kinds of premium rates and periodic valuations of the policies.
1956: Government of India nationalized the insurance sector and The Life Insurance Corporation (LIC) was established. It took over all the Indian and foreign insurers and provident societies in India.
1972: General Insurance and Business Act was passed that nationalized life insurance. It merged all Indian insurers into four groups.
1999: Insurance Regulatory and Development Authority Act was passed. It allowed private companies and foreign insurers to enter the insurance sectors.
Today: Insurance Regulatory and Development Authority of India (IRDA) monitors and guides all the governmental, private and foreign insurers in India.
Maps of India: http://business.mapsofindia.com/insurance/