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Insurance Awareness is one important section of the Mains exam. The notification doesn’t mention Important Topics/ Syllabus – Insurance & Financial Market Awareness. In this article, we are listing important topics of both the Insurance and Financial Market. Aspirants must cover these topics and prepare these topics thoroughly
History of Insurance in India started from the prehistoric period as Insurance in its primitive form has been known to exist from as back as 3000 BC. Various civilizations were known for practicing the basic concept of insurance – pooling and sharing in an unorganized manner.
History of Insurance in modern India
Modern Insurance in India began around 1800 AD with agencies of foreign insurance starting a marine Insurance business. Some Important milestones in insurance history are listed below.
- 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.
- 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.
- 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.
- 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.
- 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
- 1956: Nationalization of life insurance: Life insurance business was nationalized on 1st September 1956 and the Life Insurance Corporation of India (LIC) was formed through the LIC Act, 1956. A capital contribution of Rs. 5 crores from the Government of India was also made. There were 170 companies and 75 provident fund societies doing life insurance business in India at that time. From 1956 to 1999, the LIC held exclusive rights to do the life insurance business in India.
- 1972: Nationalization of non-life insurance: With the enactment of General Insurance Business Nationalization Act (GIBNA) in 1972, the non-life insurance business was also nationalized and the General Insurance Corporation of India (GIC) and its four subsidiaries were set up. At that point of time, 106 insurers in India doing non-life insurance business were amalgamated with the formation of four subsidiaries of the GIC of India.
