What Is Insurance ?
►It is a tool in the management of risks –
a device through which the risks faced
by the individuals are pooled together
and thereby all the members of pool
will share the losses suffered by a few
► Insurance is an agreement (the insurance policy or
insurance contracts), by which one party, called
the policy owner, pays a stipulated consideration,
called premium, to the other party called Insurer in
return for which the insurer agrees to pay a
defined amount of money or provide a defined
service if a covered event occurs during the policy
Evolution and Growth
business of organized insurance in India
started with the opening of Oriental Life Assurance
Company in 1818.
► The Bombay Mutual Life Insurance Society started
business in India. It was the first company to
charge same premium from both Indian and non
► The General Insurance business in India was
started by Tritors Insurance company Ltd. which
was established in 1850 in Calcutta by the British
regulation formally began in India with
passing of the Life Insurance Companies Act
► The first comprehensive legislation was introduced
with the Insurance Act 1938.
► After Independence, although there were 245
insurance companies, but they were found serving
► Emergence of LIC in October 1956 was conformity
with the Government’s vision of state led planning
Insurance Sector Reforms
► Regulatory Body
► Customer Service
in the Insurance sector were
initiated with the passage of IRDA Bill in
parliament in Dec 1999.
► Accordingly IRDA was established on 19th
April 2000 to protect the interest of the
insurance policy holders.