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1818
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Oriental Life Insurance Company, the first life insurance company on Indian soil
was set up by the British.
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1850
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Triton Insurance Company Ltd, the first general insurance company on Indian soil
was set up by the British.
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1870
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Bombay Mutual Life Assurance Society, the first Indian life insurance company started
its business.
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1907
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Indian Mercantile Insurance Ltd, the first Indian general insurance company started
its business.
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1912
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The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
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1928
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The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.
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1938
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Enactment of the Insurance Act, 1938, earlier legislation replaced and the law relating
to both life and general insurance consolidated.
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1956
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Nationalization of the life insurance business by enactment of the Life Insurance
Corporation Act, 1956.
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1968
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Amendment of the Insurance Act, 1938 providing for, the establishment of the Tariff
Advisory Committee (TAC bold) to fix, control and regulate premium rates and conditions
of policies.
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1971
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The Central Government took over the management of general insurance companies under
the General Insurance (Emergency provisions) Act, 1971.
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1972
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Enactment of the General Insurance Business (Nationalization) Act, 1972, paving
the way for the formation of the General Insurance Corporation of India (GIC) along
with its four subsidiaries viz. the United India Insurance Company (UIIC), the New
India Assurance Company Limited (NIAC), the National Insurance Company Limited (NIC)
and the Oriental Insurance Company Limited (OIC). These companies were given the
exclusive privilege of carrying on general insurance business in India.
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1994
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The Committee, headed by Shri R.N. Malhotra, submitted its report on the structure
of the insurance industry making significant recommendations like allowing domestic
and foreign operators entry into the sector and setting up an independent insurance
regulatory authority.
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1999
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The Insurance Regulatory and Development Authority (IRDA) Act, 1999 was enacted
with the objectives of protecting the interests of holders of insurance policies
and to regulate, promote and ensure the orderly growth of the insurance industry.
The IRDA Act also amended the Life Insurance Corporation Act, 1956 and the General
Insurance Business (Nationalization) Act, 1972, withdrawing the exclusive privilege
of the LIC and GIC and its subsidiaries of carrying on life and general insurance
business.
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2002
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The General Insurance Business (Nationalization) Act, 1972 was amended. Consequently,
the four subsidiary companies of GIC became independent companies wholly owned by
the Government of India. The role of GIC was restricted to the business of reinsurance.
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Classification of Insurance
The insurance business is broadly classified into two segments - Life and Non Life.
Life insurance products include Term Life policies, which give pure risk coverage
of only the death benefit, whereas endowment or money back policies have a risk
as well as savings component i.e. death as well as maturity benefit. Also coming
under the life insurance umbrella are the Unit - Linked Policies in which there
is a risk component and a savings component, which is invested in equity, debt or
gilt funds, depending on the insurance company.
General insurance is a part of the non-life segment and refers to fire, marine and
miscellaneous insurance. The term "miscellaneous insurance" includes engineering,
motor vehicle insurance, health insurance, etc. This insurance class deals with
all the non-life aspects of an insured like his/her house, health, land, office,
cargo, etc which might bring financial loss.
Overview
Insurance is a big opportunity in a country like India with a large population and
untapped potential. The life insurance business (measured in the context of first
year premium) registered a growth of 23.88 per cent in 2007-08, (94.96 per cent
achieved in 2006-07). The general insurance business (gross direct premium) has
registered a growth of 11.72 per cent in 2007-08 (3.52 per cent achieved in 2006-07).
Life insurance industry recorded a premium income of Rs. 201351.41 crore during
2007-08 as against Rs. 156075.85 crore in the previous financial year, recording
a growth of 29.01 per cent.
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