Insurance in India

Oriental life insurance company, insurance company first India, started by Europeans in Calcutta 1818th The purpose of this company was to cater for the needs of the European Community. There is discrimination between Europeans and Indians living in pre-independent era in India. The higher premiums are charged for the life of Native Americans in comparison with the lives of strangers. Later in 1870 Bombay Mutual Life Assurance Society, the first company of Indians was established, covering the Indian lives at normal rates.

As soon as the twentieth century began, the company in this area began to grow like mushrooms after rain. For the first time the insurance business is regulated by the year 1912 as Life Insurance Companies Act and the Provident Fund Act were passed in that year. According to the former Act, 1912, it became imperative that the premium rate tables and periodical assessment of the company should be certified by an actuary.

National Insurance Ltd., established in 1906, is still in existence and doing business today. There are only two kinds of security viz. life such as LIC and GIC General ie.

General Insurance Company has four subsidiaries. With effect from December 2000, these subsidiaries have been de-linked from the parent company and made as independent companies:. Oriental Insurance Company Limited, New India Insurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited

Insurance in India is still growing sector with great potential. This sector in India has undergone a series of stages and changes, especially in the last few years, when the Govt. India in 1999 opened the sector by allowing private companies to collect the insurance and also allowing FDI up to 26%. Since then, the Indian insurance sector is considered a booming market with every other global companies in the sector who wish to have the largest share. Currently, the largest life insurance company in India is still owned by the state.