The document provides a history of insurance over 3000 years and the development of the insurance industry in India. It discusses how the first forms of insurance emerged among traders in ancient Babylon and China in the form of marine insurance. It then outlines the key events in the development of life insurance in India, including the first life insurance policies in the 18th century, the nationalization of the industry in 1956 with the formation of LIC, and the opening of the industry to private players in 2000 with the establishment of IRDA which now regulates 24 life insurance companies. The insurance sector has grown to contribute 7% to India's GDP and supports economic development through risk taking and infrastructure funding.
The document provides a history of insurance over 3000 years and the development of the insurance industry in India. It discusses how the first forms of insurance emerged among traders in ancient Babylon and China in the form of marine insurance. It then outlines the key events in the development of life insurance in India, including the first life insurance policies in the 18th century, the nationalization of the industry in 1956 with the formation of LIC, and the opening of the industry to private players in 2000 with the establishment of IRDA which now regulates 24 life insurance companies. The insurance sector has grown to contribute 7% to India's GDP and supports economic development through risk taking and infrastructure funding.
The document provides a history of insurance over 3000 years and the development of the insurance industry in India. It discusses how the first forms of insurance emerged among traders in ancient Babylon and China in the form of marine insurance. It then outlines the key events in the development of life insurance in India, including the first life insurance policies in the 18th century, the nationalization of the industry in 1956 with the formation of LIC, and the opening of the industry to private players in 2000 with the establishment of IRDA which now regulates 24 life insurance companies. The insurance sector has grown to contribute 7% to India's GDP and supports economic development through risk taking and infrastructure funding.
The document provides a history of insurance over 3000 years and the development of the insurance industry in India. It discusses how the first forms of insurance emerged among traders in ancient Babylon and China in the form of marine insurance. It then outlines the key events in the development of life insurance in India, including the first life insurance policies in the 18th century, the nationalization of the industry in 1956 with the formation of LIC, and the opening of the industry to private players in 2000 with the establishment of IRDA which now regulates 24 life insurance companies. The insurance sector has grown to contribute 7% to India's GDP and supports economic development through risk taking and infrastructure funding.
2 History Of Insurance-3000 years The first forms of insurance were recorded by the Babylonian & Chinese traders-Marine Insurance
The earliest known life insurance policy was made in Royal Exchange, London in 1583
In the 1940s, GI insurance surfaced to help ease the financial difficulties of women whose husbands died while fighting in World War II
In the 1980s car insurance was made mandatory
The sale of life insurance in the U.S. began in the 1760s
3 4 History Of Life Insurance-India
1818- Saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta
1912-The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business
1928-the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies
5 History Of Life Insurance-India 1950-The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business
1956- An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector
6 History Of Life Insurance-India 1999- The Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry
2000- The IRDA was incorporated as a statutory body in April, 2000 & it opened up the market in August 2000 Foreign companies were allowed ownership of up to 26% which was further increased to 74% in May 2021
The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has framed various regulations
7 Insurance Industry In India-Today
8 Insurance Industry In India-Today Today there are 24 life insurance companies in India
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%
Together with banking services, insurance services add about 7% to the country’s GDP
A well-developed and evolved insurance sector is a boon for economic development as it
provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country
