Insurance in India
Our life is fraught with uncertainties. There is nothing that you can take for granted in life. Insurance policies act as a kind of protection against unheralded events that may lead to financial loss. Insurance policy aids in extenuating risks and providing a financial protection against adverse financial encumbrance or damages caused to private property. As far as insurance in India is concerned, the insurance sector has gone through several developmental stages. The most significant change was witnessed in 1999 when the Government of India permitted the private organizations to solicit insurance, and raised the FDI up to 26 percent.
Insurance in India: History
The history of insurance in India dates back to 1818. It is in this year that the Oriental Life Insurance Company was established in Kolkata to meet the requirements of the European community. During the pre-independent period, India witnessed a discrimination among the life of the Europeans and Indians with more premiums being levied on the Indians. Bombay Mutual Life Assurance Society was the first to charge normal rate premiums for the Indians. Several insurance companies were set up in India in the beginning of the 20th Century. The Life Insurance Companies Act was passed in 1912. This act made it mandatory to get the periodical valuations and premium rate tables of the companies sanctioned by an actuary. In spite of this, a a disparage remained due to the discrimination between Foreign and Indian companies. National Insurance Company Ltd, established in 1906, is India's oldest insurance company.
Insurance Acts in India
The Insurance Sector in India is regulated by a number of acts. The insurance Acts in India are as follows:
- The Insurance Act, 1938
- General Insurance Business (Nationalisation) Act, 1972
- Life Insurance Corporation Act, 1956
- Insurance Regulatory and Development Authority (IRDA) Act, 1999
Insurance Policies in India
Insurance Policies in India is usually categorized as follows:
- General Insurance Policies
- Life Insurance Policies
Insurance Companies in India
There are several insurance companies in India. Gian players in the Indian insurance sector include:
- Life Insurance Corporation (LIC)
- Birla Sun Life Insurance
- Reliance Life Insurance
- United India Insurance
- SBI Life Insurance
- Aviva Life Insurance
- Kotak Mahindra
- Shriram Life Insurance
- HDFC Standard Life Insurance
- Bajaj Alliance
- Metlife India Insurance
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