INSURANCE LAW

Q) Explain the history and growth of Insurance in India?

             In India, insurance has a deep-rooted history. Basically, insurance is an age old phenomenon and part of the humans society. Insurance in India refers to the market for insurance which covers both the public and private sector organizations. Insurance listed in the constitution of India in the 7th schedule as a Union List. Constitution of India is a federal in nature and there is a division insurance is included in the Union List. The modern form of life insurance come to India from England in the year 1818. oriental life insurance companies in in Calcutta was the first life insurance company on India soil and these companies were insuring Europeans lives only. Bombay Life Assurance was the primary Indian company started in the year 1870, that started insuring Indian lives at standard rates. Oriental life insurance was established in 1874 and became a leading Indian company. There were more than 350 companies Transcting Lief Insrance in India by December 1955. While the demand for nationalisation of insurance companies had been going on for a while, it was only with the passing of the life insurance corporation act,1956 that nationalisation of insurance as finally achieved on september 1, 1956,the life insurance corporation of india (LIC) was established with the objectives of expanding life insurance widely in rural areas and cover financial at a reasonable cost likewise in 1972,the General insurance Business Act was passed which nationalised all general insurance companies in india.The 107 odd companies existing around the time were all merged into 4 companies. 

1.New India Assurance Company Ltd 2.National Insurance Company Ltd 3.Oriental Insurance Company Ltd 4.United India Insurance Company Ltd Later on with the passing of IRDA act(Insurance Regulatory and Development Authority)in 1999,the insurance sector was opened up and private insurance company were allowed to enter in life insurance as well as General insurance The IRDA is an autonomous body that works towards growing life and General Insurance industry in india The authority consists of following members 

1.A Chairperson 2.Not more than 5 full time members 3.Not more than 4 part time members The members would be appointed by central govt From 2009 onwards IRDA has framed various regulations for carrying on insurance business to protection of indian policy holders interest including LIC and GIC Presently there are 24 life insurance Companies, 25 General insurance companies and 6 Health Insurance Companies. 

examples of LIC are Bajaj alliance life insurance,Birla sun life insurance co, HDFC Standard life insurance GIC Bajaj alliance general insurance company LTD, kotak mahindra General insurance.