Insurance in India

Oriental Life Insurance Company, the first insurancewere only two type of insurance viz. life i.e. LIC and
company of India, was started by Europeans ingeneral i.e. GIC.
Kolkata in 1818. The purpose of this company was toGeneral Insurance Company had four subsidiary
cater to the needs of European community. Therecompanies. With effect from December 2000, these
was discrimination among the life of Europeans andsubsidiaries have been de-linked from parent
that of Indians in the pre-independent era in India.company and made as independent companies:
Higher premiums were charged for lives of Indians inOriental Insurance Company Limited, New India
comparison with the lives of foreigners. Later in 1870Assurance Company Limited, National Insurance
Bombay Mutual Life Assurance Society, the firstCompany Limited and United India Insurance
company for Indians was established who coveredCompany Limited.
Indian lives at normal rates.Insurance in India is still a growing sector with huge
As soon as the twentieth century started, companiespotential. This sector in India has gone through a
in this field started growing up like mushrooms. Fornumber of phases and changes, particularly in the
the first time the insurance business was regulated inrecent years when the Govt. of India in 1999 opened
the year 1912 as the Life Insurance Companies Act,up the this sector by allowing private companies to
and the Provident Fund Act were passed in thatsolicit insurance and also allowing FDI up to 26%. Ever
year. According to the former Act, 1912, it becamesince, the Indian insurance sector is considered as a
necessary that the premium rate tables and periodicalbooming market with every other global company in
valuations of companies should be certified by anthis sector wanting to have a lion's share. Currently,
actuary.the largest life insurance company in India is still
National Insurance Company Ltd., founded in 1906, isowned by the government.
still in existence and doing business today. There