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History of insurance in India

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.

 

References:

Wikipedia: http://en.wikipedia.org/wiki/Insurance_in_India

Maps of India: http://business.mapsofindia.com/insurance/

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History of Insurance in India
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Rise and fall of insurance sector in India

Rise and fall of insurance sector in India | History of Insurance in India | Scoop.it
Insurance sector is supposedly the most secure sector. However, brief study about the public and private sector companies in India shows that this industry is full of ups and downs. A detailed statistical analysis of rise and history of the Indian insurance industry shows how much this sector has evolved in the past few decades. First excerpts of insurance in India were found in ancient Hindu literatures including Dharmashastra, Manusmrithi and Arthashastra. All these scripts highlight the concept of pooling various crucial resources to be utilized during difficult times.

Insurance the way we know today has evolved through numerous transitions. In India it came into existence in 1818, when a woman from Kolkata started pooling money from the European community. Indians had to pay huge premiums if they wanted to participate or avail the insurance. From such discrimination and unawareness of the patrons, today insurance has become a billion dollar company today. While foreign insurers are aiming at the booming Indian insurance market, potential Indian insurance companies are also rising in significant amount.

India is a potential market for insurance with low insurance penetration, more middle class population and increasing awareness about the important of insurance. Such tremendous potential is also attracting foreign investor and leading insurance companies in India. Out of 24 life insurance companies in India, 22 have foreign partnerships. The same is the case with non-life insurance companies. Out of 27 non-life insurance companies, 18 have foreign partnerships. Indian insurance sector is largely ruled by life insurance products with more than 4.5% life insurance companies and 1% general insurance products.

According to the research performed by the Insurance Regulatory Development Authority (IRDA), general insurance companies showed 24.7% raise in the collection of premium that counts up to USD 6.18 billion. The same study also shows that the private life insurers collected USD 1.29 billion of premium, while the state-owned Life Insurance Corporation of India (LIC) solely collected USD 2.82 billion as premium. It shows that despite the freedom and facilities provided to the private players, the state ruled companies rule the market.

References:
http://www.towerswatson.com/india/newsletters/india-market-life-insurance/6837
http://en.wikipedia.org/wiki/Life_insurance_in_India
http://www.ibef.org/artdispview.aspx?art_id=32907&cat_id=801∈=40
http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo4∣=2
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Life insurance in India - Wikipedia, the free encyclopedia

Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players and FDI up to 26% and recently Cabinet approved a proposal to increase it to 49%. Life Insurance in India was nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC.

In 1993, the Government of Republic of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector.

While the committee submitted its report in 1994, it took another six years before the enabling legislation was passed in the year 2000, legislation amending the Insurance Act of 1938 and legislating the Insurance Regulatory and Development Authority Act of 2000. The same year the newly appointed insurance regulator - Insurance Regulatory and Development Authority IRDA—started issuing licenses to private life insurers.

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An Indian summer for actuaries | The Actuary, official magazine of SIAS and The Actuarial Profession

An Indian summer for actuaries | The Actuary, official magazine of SIAS and The Actuarial Profession | History of Insurance in India | Scoop.it
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The Indian Insurance Industry | Economy Watch

The Indian Insurance Industry | Economy Watch | History of Insurance in India | Scoop.it
With policy reforms to regulate the sector, India insurance has evolved as a flourishing industry. This content is part of EconomyWatch.com's extensive resources on Insurance
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Life Insurance | Term Life Insurance | Life Insurance Policy India - AEGON Religare

Life Insurance | Term Life Insurance | Life Insurance Policy India - AEGON Religare | History of Insurance in India | Scoop.it
AEGON Religare Life Insurance offers a range of term life insurance policies at affordable premium rates. Get instant free quotes & buy life insurance policy in few simple steps.
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Private life insurance companies still struggling | Expert Zone

Private life insurance companies still struggling | Expert Zone | History of Insurance in India | Scoop.it
The Life Insurance Corporation of India (LIC) has again come to the rescue of the industry in the financial year ending July 2012.
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Insurance in India

Insurance in India | History of Insurance in India | Scoop.it
As per the Confederation of Indian Industry (CII) the aggregate worth of the Indian insurance industry is $41 billion.
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Insurance

Insurance | History of Insurance in India | Scoop.it
India's Rs. 221,400 crore (US$ 40.26 billion) insurance industry is at a stage of consolidation with many foreign players exploring the immense potential in the fast-growing economy.
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Rise and Fall of Insurance In India

Many in India believe that the insurance sector is a secure sector but the collapse in the premium income of private and public life coverage plans and general insurance companies clears this myth....
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Insurance sector in india

This Paper mainly focus on the Foreign Direct Investment in the Insurance sector in India...
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Insurance sector in india

This Paper mainly focus on the Foreign Direct Investment in the Insurance sector in India...
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History of insurance in India

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.

 

References:

Wikipedia: http://en.wikipedia.org/wiki/Insurance_in_India

Maps of India: http://business.mapsofindia.com/insurance/

more...
No comment yet.