History of Insurance in India: A Comprehensive Overview, Cheat Sheet of Insurance law

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HISTORY OF INSURANCE

PURPOSE OF INSURANCE

❯ The purpose of an insurance and insurance plan is to provide

protection against the risk of financial loss.

❯ Insurance can be of two types

❯ life insurance (LIC)

❯ general insurance(excluding life insurance)

HISTORY OF LIFE INSURANCE

HISTORY OF LIFE INSURANCE

❯ ORIENTAL LIFE INSURANCE company was the first life insurance company in India and was established by Europeans in Calcutta. ❯ This company however failed in 1834. ❯ In 1829 ,the MADRAS EQUITABLE has begun transacting life insurance business in the Madras presidency. ❯ 1870 : Bombay mutual life assurance society was established.This was the first Indian life insurance company. ❯ 1912 : LIFE INSURANCE COMPANY ACT , 1912 was passed.

LIFE INSURANCE COMPANIES ACT , 1912

❯ This act of 1912 made it necessary that th e premium rate tables

and valuations of company should be c ertified by an ACTUARY

(one who calculate the premium)

NATIONALIZATION OF LIFE INSURANCE

COMPANIES

❯ 1956 : On the 19 th of January, 1956 , that life insurance in India was

nationalized.

❯ 245 Indian and foreign insurers and provident societies were

taken over by the central government and nationalized.

❯ The parliament of India passed out life insurance corporation

act on the 19 th of june 1956 with a capital contribution of Rs. 5

crore from the government of india.

❯ The LIC of India was created on 1 st September 1956.

HISTORY OF GENERAL INSURANCE COMPANY

❯ 1850 : General Insurance came to India with the establishment of TRITON INSURANCE company Ltd. in the year 1850. ❯ It was established in the British in Calcutta. ❯ 1907 : INDIAN MERCANTILE Insurance Ltd. ❯ This was the first conpany to transact all classes of general insurance business in India. ❯ 1957 : General insurance council was formed. It was a wing of the insurance association of India. ❯ The general insurance council framed a code of conduct for ensuring a fair conduct and sound business practices.

NATIONALIZATION OF GENERAL

INSURANCE

❯ The general insurance business in India was nationalized general insurance by business (nationalization) act 1972 (GIBNA). ❯ For this 107 insurers were amalgamated and grouped into four companies ,namely ❯ NATIONAL INSURANCE COMPANY Ltd. ❯ THE NEW INDIA ASSURANCE COMPANY Ltd. ❯ THE ORIENTAL INSURANCE COMPANY Ltd. ❯ THE UNITED INDIA INSURANCE COMPANY Ltd. ❯ The General Insurance Corporation (GIC) of India was incorporated as a company in 1971 and it commenced business on Jan 1 st 1973.

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