CHAPTER 15. INSURANCE INDUSTRY
MEANING OF INSURANCE:
a) Insurance industry in India is a flourishing industry with many national and international players.
b) In India, insurance is generally considered as a tax-saving device instead of its other implied long term financial benefits.
c) A healthy and developing insurance sector encourages the saving habit, provides a safety net to rural and urban enterprises and productive individuals and generates long-term funds for infrastructure development.
d) Insurance is necessary to protect enterprises against risks such as fire and natural disasters.
e) Individuals require insurance services in such areas like health care, life, property and pension.
ORIGIN AND GROWTH OF INSURANCE IN INDIA:
a) The origin of life-insurance in India dates to 1818 when Oriental Life Insurance Company was started in Calcutta.
b) It was conceived as a means to provide for English Widows.
c) In those days a higher premium was charged for Indian lives than the non-Indian lives.
d) The origin of general insurance business in India can be traced to the Triton Insurance Company Ltd., the first general insurance company established in 1850 in Calcutta by the British.
e) The Bombay Mutual Life Insurance Society started its business in 1870. f) It was the first company to charge same premium for both Indian and non-Indian lives.
g) Regulation of insurance formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912.
h) Till the end of 1999 insurance, both life and general insurance, was the monopoly of the Government.
i) Two state run insurance companies, namely Life Insurance Corporation and General Insurance Corporation were the providers of insurance in India.
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