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Mahesh Kumar Sarva, Lovely Professional University Unit 13: Insurance Industry: India

Unit 13: Insurance Industry: India Notes

CONTENTS
Objectives
Introduction

13.1 Privatization of Insurance Sector
13.2 Current Scenario of Insurance Industry in India
13.3 Insurance Sector Today: Opportunities and Challenges

13.3.1 Opportunities
13.3.2 Challenges
13.4 The Way Ahead
13.5 Summary
13.6 Keywords

13.7 Review Questions
13.8 Further Readings

Objectives

After studying this unit, you will be able to:

Examine the privatization of insurance sector
Explain the current scenario of insurance industry in India
Describe the insurance sector today: opportunities and challenges
Discuss the way ahead for Indian insurance industry

Introduction

In the previous unit, you have studied all about the health insurance and catastrophe insurance
such which included the features of health insurance policy and procedure to be followed in case
of health insurance purchase. It also summarized the claim settlement procedure and the various
types of health insurance policies along with catastrophe insurance.
In this unit, we will study about insurance industry in India. Insurance business has emerged as
one of the prominent financial services during recent times, particularly in developing countries
where it could not grow before globalisation. But it is very difficult to trace exactly when
insurance originated.
If we go back to ancient times, we realize that the first insurers of life were the marine insurance
underwriters. They used to issue life insurance policies on the lives of their master and the crew
of the ship and the merchants. These policies were issued only for short periods. The first life
insurance policy was issued on 18th June 1583 on the life of William Gibbons, for a period of
1 year.
You must be aware that people always felt the need to have security of their lives and the
property they owned. Somewhere in 18th century, societies like the Amicable Society, Equitable

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