History Of Insurance Sector

Brief history of insurance sector

The insurance sector in India has completed all the facets of competition –from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again. The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately.

With the establishment of the Oriental Life Insurance Company in Kolkata, the business of Indian life insurance started in the year 1818.

Important milestones in the Indian life insurance business

• 1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business.
• 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses.
• 1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public.
• 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. It started off with a capital of Rs. 5 crore and that too from the Government of India.

The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British.

Important milestones in the Indian general insurance business

• 1907: The Indian Mercantile Insurance Ltd. was set up which was the first company of its type to transact all general insurance business.
• 1957: General Insurance Council, an arm of the Insurance Association of India, framed a code of conduct for guaranteeing fair conduct and sound business patterns.
• 1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up.
• 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India. It was with effect from 1st January 1973.

107 insurers integrated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC was incorporated as a company.

Insurance companies in India

IRDA has till now provided registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are considered then there are presently 13 insurance companies in the life side and 13 companies functioning in general insurance business. General Insurance Corporation has been sanctioned as the "Indian reinsurer" for underwriting only reinsurance business.

List of Insurance companies in India

LIFE INSURERS	Websites
Public Sector
Life Insurance Corporation of India	www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Company Limited	www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited	www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited	www.hdfcinsurance.com
ICICI Prudential Life Insurance Co. Limited	www.iciciprulife.com
ING Vysya Life Insurance Company Limited	www.ingvysayalife.com
Max New York Life Insurance Co. Limited	www.maxnewyorklife.com
MetLife Insurance Company Limited	www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd.	www.omkotakmahnidra.com
SBI Life Insurance Company Limited	www.sbilife.co.in
TATA AIG Life Insurance Company Limited	www.tata-aig.com
AMP Sanmar Assurance Company Limited	www.ampsanmar.com
Dabur CGU Life Insurance Co. Pvt. Limited	www.avivaindia.com
GENERAL INSURERS
Public Sector
National Insurance Company Limited	www.nationalinsuranceindia.com
New India Assurance Company Limited	www.niacl.com
Oriental Insurance Company Limited	www.orientalinsurance.nic.in
United India Insurance Company Limited	www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limited	www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd.	www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd.	www.itgi.co.in
Reliance General Insurance Co. Limited	www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd.	www.royalsun.com
TATA AIG General Insurance Co. Limited	www.tata-aig.com
Cholamandalam General Insurance Co. Ltd.	www.cholainsurance.com
Export Credit Guarantee Corporation	www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd.
REINSURER
General Insurance Corporation of India	www.gicindia.com