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Life insurance history
Regulations of insurance in India are listed in the Constitution as a subject of the Central government. The insurance market began in Lloyd's Coffee House in London in 1686 and catered mainly to sailors and merchants. In India, insurance has roots in ancient texts and its modern form began in 1818 with the Oriental Life Insurance Company. The life insurance sector was nationalized in 1956 with the Life Insurance Corporation of India being formed. In 1972, the general insurance sector was also nationalized. The IRDA was set up in 2000 to regulate the now-privatized insurance industry and encourage competition.
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Life insurance history
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- 3. HISTORY The market beganin 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 insurancein 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.
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- 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.
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- 10. Life insurance • Lifeinsurance 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 lifeinsurance • 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. • .
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- 13. Why to havea Life Insurance? Protection Liquidity Tax Relief Money when you need it
- 14. Types of lifeinsurance Term life insurance Whole life policy Endowment plans Unit linked insurance plans
- 15. Health insurance inIndia 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 centralgovernment 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.
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