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.
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.