NON - LIFE INSURANCE

abhishreshthaa

Abhijeet S
Insurance may be defined as a contract between the insurer and the insured whereby, in consideration of payment of a small specified amount (premium) by the insured, the insurer undertakes to make good any financial loss that the insured may suffer due to the happening of an insured peril.

HISTORY:
In the year
1850: The first General Insurance Company established by the British in Calcutta – The Triton insurance company ltd.

1907: The Indian Mercantile Insurance Company Ltd. Is set up; the first company to transact all classes of general insurance business.

1957:General Insurance Council, a wing of the Insurance Association in India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins; the Tariff Advisory Committee set up.

1972: the General Insurance business
(Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from Jan 1, 1973.

1993: Appointment of the Malhotra Committee to make recommendations for changes in the sector.

1999: Insurance Regulatory and Development Authority Act passed.

2000: Licenses issued to new private sector players.

2002: The bill to delink the four subsidiaries from the GIC passed. Guidelines for licensing and rules of operation of direct and reinsurance insurance brokers announced.

2003: First set of licenses to insurance brokers issued


FEATURES OF NON LIFE INSURANCE:

Ever-growing middle class component in population.

Increasing demand for better insurance products.

Tax incentives to the insured.

Non-life premium has a 0.71 per cent share of GDP.



INDIA IN NON - LIFE INSURANCE :

India is one of the least insured countries but the potential for further growth is phenomenal.

Rates of claim settlement in India were 70 % in general insurance compared to around 40 % internationally.

General Insurers (Private Companies) have earned around Rs.1000-cr income.

Half of the current demand for General Insurance comes from the corporate segment.


BENEFITS OF NON LIFE INSURANCE:

Insurance is the instrument of Security.

Safeguards one’s assets

Peace of mind, in case of financial loss.

Protection from the claim made by creditors.

Encourages saving.

Tax benefit.

Security against a personal loan, housing loan or other types of loan.
 
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