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Insurance Laws and Practices

Notes growth can only increase, with the period from 2010–2015 projected to be the ‘Golden Age’ for
the Indian insurance industry.

Indian Insurance Policies at a Glance

You need to know that Indian insurance companies offer a comprehensive range of insurance
plans, a range that is growing as the economy matures and the wealth of the middle classes
increases. The most common types include: term life policies, endowment policies, joint life
policies, whole life policies, loan cover term assurance policies, unit-linked insurance plans,
group insurance policies, pension plans, and annuities. General insurance plans are also available
to cover motor insurance, home insurance, travel insurance and health insurance.

Figure 1.4: Various Indian Insurance Companies

Source: http://www.indianmirror.com/indian-industries/images/insurance-top-img.jpg
Due to the growing demand for insurance, more and more insurance companies are now
emerging in the Indian insurance sector. With the opening up of the economy, several
international leaders in the insurance sector are trying to venture into the India insurance
industry.

Indian Insurance: History

You must remember that the history of the Indian insurance sector dates back to 1818, when the
Oriental Life Insurance Company was formed in Kolkata. A new era began in the India insurance
sector, with the passing of the Life Insurance Act of 1912.
The Indian Insurance Companies Act was passed in 1928. This Act empowered the government
of India to gather necessary information about the life insurance and non-life insurance
organizations operating in the Indian financial markets.
The Triton Insurance Company Ltd. formed in 1850 and was the first of its kind in the general
insurance sector in India. Established in 1907, Indian Mercantile Insurance Limited was the first
company to handle all forms of India insurance.

Indian Insurance: Sector Reform

You will find out that the formation of the Malhotra Committee in 1993 initiated reforms in the
Indian insurance sector. The aim of the Malhotra Committee was to assess the functionality of

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