3. HISTORY
The market began in Lloyd's Coffee House, opened by Edward Lloyd in 1686 on
Tower Street in the City of London.
This establishment was a popular place for sailors, merchants, and ship-owners, and
Lloyd catered to them with reliable shipping news. The coffee house soon became
recognised as an ideal place for obtaining marine insurance.
The shop was also frequented by mariners involved in the slave trade. Historian Eric
Williams notes: "Lloyd's, like other insurance companies, insured slaves and slave
ships, and was vitally interested in legal decisions as to what constituted 'natural
death' and 'perils of the sea'.“ Lloyd's obtained a monopoly on maritime insurance
related to the slave trade and maintained it until the early 19th century.[
The Royal Exchange was destroyed by fire in 1838. The building was rebuilt by 1844,
but many of Lloyd's early records were lost. In 1871, the Lloyd's Act was passed in
Parliament which gave the business a sound legal footing. The Lloyd's Act of 1911 set
out the Society's objectives, which include the promotion of its members' interests
and the collection and dissemination of information.
4. history of insurance in India
insurancehasadeep-rootedhistory.Insuranceinvariousformshasbeenmentionedinthewritings
ofManu(Manusmrithi),Yagnavalkya(Dharmashastra)andKautilya(Arthashastra).
Insuranceinitscurrentformhasitshistorydatingbackuntil1818,whenOrientalLifeInsuranceCompany
wasstartedbyAnitaBhavsarinKolkatatocatertotheneedsofEuropeancommunity.Thepre-independence
erainIndiasawdiscriminationbetweenthelivesofforeigners(English)andIndianswithhigherpremiums
beingchargedforthelatter.In1870,BombayMutualLifeAssuranceSocietybecamethefirstIndianinsurer.
Atthedawnofthetwentiethcentury,manyinsurancecompanieswerefounded.Intheyear1912,theLife
InsuranceCompaniesActandtheProvidentFundActwerepassedtoregulatetheinsurancebusiness.
TheLifeInsuranceCompaniesAct,1912madeitnecessarythatthepremium-ratetablesandperiodical
valuationsofcompaniesshouldbecertifiedbyanactuary.However,thedisparitystillexistedasdiscrimination
betweenIndianandforeigncompanies.TheoldestexistinginsurancecompanyinIndiaisthe
NationalInsuranceCompany,whichwasfoundedin1906,andisstillinbusiness.
6. Malhotra committee
In 1993, the Government set up a committee under the chairmanship of RN
Malhotra, former Governor of RBI, to propose recommendations for reforms in
the insurance sector.
The objective was to complement the reforms initiated in the financial sector. The
committee submitted its report in 1994 wherein , among other things, it
recommended that the private sector be permitted to enter the insurance
industry. They stated that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the
Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000.
10. Life insurance
• Life insurance is a contract between the policy owner and the
insurer
• the insurer agrees to reimburse the occurrence of the insured
individual's death or other event such as terminal illness or
critical illness.
• The insured agrees to pay the cost in terms of insurance
premium for the service. Specific exclusions are often written
in the contract to limit the liability of the insurer, for example
claims related to suicide, fraud, war, riot and civil commotion
is not covered.
11. History of life insurance
• Insurance in India can be traced back to the Vedas. For instance,
yogakshema, the name of Life Insurance Corporation of India's corporate
headquarters, is derived from the Rig Veda.
• Bombay Mutual Assurance Society, the first Indian life assurance society,
was formed in 1870.
• Other companies like Oriental, Bharat and Empire of India were also set up
in the 1870-90s.
• It was during the swadeshi movement in the early 20th century that insurance
witnessed a big boom in India with several more companies being set up.
• By the mid-1950s, there were around 170 insurance companies and 80
provident fund societies in the country's life insurance scene. However, in the
absence of regulatory systems, scams and irregularities were prevalent in
most of these companies.
• .
13. Why to have a Life Insurance?
Protection
Liquidity
Tax Relief
Money when you need it
14. Types of life insurance
Term life insurance
Whole life policy
Endowment plans
Unit linked insurance plans
15. Health insurance in India
1912: health insurance introduced when
the first insurance act was passed
1947: in 1947 ‘’bhore’’ committee report
make recommendation for the
improvement of health care service in
India
1948: the central government introduced
the employees ‘state insurance scheme’
for Blue-collar workers employed in
private sectors.
16. 1954: The central government Health
schemes for central government
employees and for their families
1986: Mediclaim was introduced. started
by government by government insurance
companies.
1999: with the IRDAI, the insurance sector
opened to private and foreign
participations.
