Insurance History in India
In India, insurance has a long history. He is mentioned in the writings of Manu (Manusmrithi) Yagnavalkya (Dharmasastras) and Kautilya (Arthasastra). The writings of speaking in terms of the sharing of resources that could be redistributed with disasters such as fires, floods, epidemics and famine. It was probably a precursor of today's insurance. history of India has held the first proof of insurance in the form of loans, maritime trade and contract carriers. insurance in India has developed over time developed into very different from other countries, especially England.
In 1818, the arrival of life insurance in India saw the founding of the Oriental Life Insurance Company in Calcutta. This company failed, however, in 1834. In 1829, Madras had started only life insurance business in the Madras Presidency. 1870 saw the adoption of the British Insurance and during the last three decades of the nineteenth century, Bombay Mutual (1871), East (1874) and the Empire of India (1897) began in residence in Mumbai. It was, but was dominated by the subsidiaries of foreign insurance companies is a good business in India, namely Rose Albert Life Insurance, Royal Insurance, Liverpool and London Globe Insurance Companies and Agents in India by foreign companies from the last competition.
In 1914 the Indian government has begun to statements of insurance companies in India subject. Indian companies life insurance law of 1912 was the first legislative measure to regulate the activity of life. In 1928 the Indian insurance companies passed on the government to compile statistics on the life and non-life business in India by the insurers in India and abroad, including insurance companies appreciate. In 1938 to protect the interests of public insurance, under the previous regime was consolidated and amended by the health insurance in 1938, general provisions for effective control over the activities of insurers.
Insurance Reform Act of 1950 abolished the large agencies. However, there were a large number of insurance companies and the intensity of competition was high. There were also allegations of unfair trade practices. The Indian government has decided to nationalize the insurance industry.
An order was placed 19th January 1956 created the nationalization of the life insurance and life insurance Corporation the same year. LIC absorbed 154 Indians, 16 insurance companies and non-indigenous insurance companies forecast 75-245 Indian and foreign companies at all. The ICA has a monopoly until the late 90's when the insurance industry was opened again to the private sector.
The history of the general insurance conditions dating back to the industrial revolution in the West and increased maritime trade and commerce in the 17th Century. Came to India as a legacy of British occupation. General Insurance in India has its roots in the creation of Triton Insurance Company Ltd. in 1850 in Calcutta by the British. Founded in 1907, the Insurance India Ltd,. This was the first company to treat all the classes of general insurance conditions.
1957 was the formation of the General Insurance Council, a wing of the trade association of India. The Insurance Council framed a code of conduct for ensuring fair and sound business practices.
In 1968, the Insurance Act was to be amended to regulate investments and minimum solvency margin. Tariff Advisory Committee was then created.
In 1972, the division of the General Insurance Business (Nationalisation) Nationalisation of general insurance business with effect from 1 January 1973. 107 insurance companies have been merged and grouped into four companies, namely National Insurance Company Ltd, New India Assurance Company Ltd., Oriental Insurance Company Ltd. and the United States, India Insurance Company Ltd The Insurance Company India was in 1971 as a trading company and start in January 1SH established in 1973.
This millennium has seen the insurance, the circle on a journey that come out over almost 200 years. The process of re-opening of the sector began in the late 1990s and the last ten years, everything has been opened considerably. In 1993 the government established a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The aim to complete the reforms in the financial sector. The Committee submitted its report in 1994, where among other things recommended that the private sector was allowed in the insurance industry. Declared that foreign companies are allowed by floating companies in India, preferably be a joint venture with partners in India.
Following the recommendations of the Malhotra Committee in 1999, the Insurance Regulatory and Development Authority (IRDA) was established as an autonomous body to regulate and develop the insurance industry. The IRDA was established as a public institution in April 2000. The main objectives of IRDA include promotion of competition for the customer satisfaction by consumer choice and lower premiums increasing and promoting financial security of the insurance market.
The IRDA opening of the market in August 2000 with the invitation for registration. Foreign companies were owned by up to 26% allowed. The Authority has the power to make § 114A of the Insurance Supervision Law Act 1938 and since 2000 several regulations in the field of business registration formulated to carry the insurance, insures the interests of protection.
In December 2000, subsidiaries of General Insurance Corporation of India as an independent were restructured at the same time, the governor of the Council to a new national insurance company. Parliament passed a bill decoupling the four subsidiaries of GIC in July 2002.
Today there are 24 general insurance companies, including ECGC and Agriculture Insurance Corporation of India and 23 insurance companies operating in the country.
The insurance industry is a large and growing at a rapid rate of 15-20%. All banking services, add insurance, 7% of GDP. An insurance industry is well developed and a boon to economic development, providing long-term funds for infrastructure development and strengthening of the capacities of the developing threat to the country.
Source: http://irda.gov.in/Defaulthome.aspx?page=H1
