Thursday, April 17, 2008

JAWAHARLAL NEHRU COMMENT ON LIFE INSURANCE DT.24.08.1956

The Following is PT. JAWAHARLAL NEHRU Speeach on 24.8.1956 During the Event of Nationalisation of Indian Insurance Industry..
"Life Insurance becomes one of the major state undertakings in india. It is an important step in our march towards socialist society. Its Objective will be to serve the individual as well as the state. The profit motive goes out of it and the service motive becomes much more dominant. I trust that this Corporation will serve an ever increasing number of our people and will do this work in the true sprit of service. We require life insurance to spread rapidly all over the country and to bring a measure of security to our people. The large number of those who will serve this corporation should keep in mind this objective and seek to realise it in their work"

Monday, March 17, 2008

Important Milestones in Insurance Industry in India

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.


The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated 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 incorporated as a company.

Sunday, March 16, 2008

Insurance Regulatory and Development Authority (IRDA) in India

The insurance regulatory and development authority (IRDA) is an autonomous body formed by IRDA ACT' 1999 bill passed in the Parliment of India. The main Objective of the IRDA is to Protect the interest of the insured policy holders in india. The other objective of IRDA is to regulate insurance, Promote and ensure orderly growth of the insurance company's in india.

Tuesday, March 11, 2008

Indian Insurance Industry

In India the saga of Life Insurance begins in the Year of 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies.

Later many companines such as Bombay Mutual Life Assurance the first Indian life insurance company in the year 1870 covered Indian lives .

Later on after the Indedependence many private insurance companies which were performing in the indian soil were taken of by the government of India by an Special billin the Parliment.The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

To Know more on Various Insurance Companies which do Insurance Business in India , Click indian-insurance-news.blogspot.com

History of Life Insurance in India

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

After the opening up of Insurance sector in India there has been many number of insurance companies in India. These companies have come up with innovative and flexible insutrance policies to cater to varying needs of the individual.
To Know More Clickhere