Sunday, April 29, 2012

History of Insurance


Next to understand after Insurance basic knowledge is Stages of Insurance history in crisp.

    #      It started from Lloyd’s coffee house London
    #      First policy issued in England in 1583
    #      It had its origins in the early 19th century with the arrival of British enterprise in India.
    #      The insurance sector in India dates back to 1818 when first insurance company, The Oriental Life Insurance Company, was established, at Calcutta.
    #      LIC of India formed in 1956 after nationalization of life insurance Business of 245 private (Indian and Foreign) insurance companies
    #      The Life Insurance Corporation of India (LIC) came into existence by an Act of Parliament, viz. LIC act, 1956, with a capital contribution of Rs.5 Crores from the Government of India
    #      The General Insurance Business (Non-Life) in India started with the establishment of Triton Insurance Company Limited in 1850 at Calcutta by the British.
    #      General insurance business of 107 insurance companies was amalgamated and nationalized in 1972 & four public sector General Insurance Companies were formed namely, the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd.

Market Scenario before IRDA Act 1999:

Life Insurance Company
         1. LIC of India

General Insurance Companies
         1. National insurance company ltd
        2. New India assurance company ltd
        3. Oriental insurance company ltd
        4. United India insurance company ltd

Market Scenario after IRDA Act 1999:

This was the period of entering L P G Era;
     #      The Stage of Liberalization (Loosening the government restrictions),
     #      Privatization (Replacing Government Monopolies to open-up for private sector) &
     #      Globalization (Integration of national economies into the international economy i.e opening up of FDI);

These LPG Era has created healthy competition between public sector & private sector to bring good end-product for Insurance to Individuals like us.

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