The history and evolution of Insurance in India
Development of Laws of Insurance in India
In the following manner the Indian Insurance Scenario has changed gradually-1938 – This is the year when a comprehensive Act called The Insurance Act, 1938 has been introduced.
1939 – In this year the Insurance Rules were framed for effectuating the Insurance Act.
1956 – This year has witnessed a huge change in the Indian Insurance Sector since the Government of India took over all life insurance companies.
1968┬а– In 1968 The Insurance Act, 1938 was amended to provide for social control, minimum solvency margin and a┬аTariff Advisory Committee (TAC) has also been established.
1972 – This year witnessed the Nationalization of General Insurance Companies and for this General Insurance Business (Nationalization) Act, 1972 was passed.
1973 – The General Insurance Corporation of India (GIC) came into existence as a Government Company.
1974 – A year later 107 insurers practising General Insurance business were grouped and merged to form four subsidiaries of GICs namely –┬аNational Insurance Co. Ltd.┬аThe New India Assurance Co. Ltd.┬аThe Oriental Insurance Co. Ltd.┬аUnited India Insurance Co. Ltd.
1991 – The Public Liability Insurance Act 1991 and Public Liability Insurance Rules 1991 were introduced as another milestone in the series of Public Welfare Laws in India.1994 – The Malhotra Committee┬аsubmitted its report in January 1994 (set up by Govt. in 1993 under Chairmanship of Shri R.N. Malhotra, former Governor of RBI, to examine potential reforms that could be undertaken in the insurance sector and complement them with reforms initiated in the other sectors) submitted its report in January 1994 and recommended establishment of a strong and effective insuranceregulatory authority.
1998 – Insurance Ombudsman Redressal of Public Grievances Rules, 1998 were issued to provide Consumers a Forum with minimal formalities to get their grievances resolved.
1999 – This year has the great relevance in the history of Indian InsuranceSector since based on the Malhotra Committee Report the Insurance Regulatory and Development Authority (IRDA)┬аwas established to regulate, promote and ensure orderly growth of the insurance and reinsurance business in India.
2001 – The year of 2001 brought another transformation in the Insurance Business of India because in addition to the existing Government insurance companies, Private Sector Companies were also licensed by IRDA to conduct general insurance business in India.
2002┬а– General Insurance Business (Nationalization) Amendment Act, 2002 was passed in which the important amendment was that the subsidiaries of GIC were restructured as independent companies and GIC was converted into National Re-insurer.
2003 – This year witnessed the introduction of Broker for first time in Indian Insurance Market to boost up the business in more widened manner.
2015 – The Insurance Laws (Amendment) Act, 2015 was passed toincrease theCeiling of 26% FDI to 49% and in this manner the InsuranceBusiness in India has been widely opened for Foreign Giants of Insurance.
This is the mode by which Indian InsuranceBusiness has transformed and now it is waiting for the Insurers of the World, with widely opened arms, to come up with better ideas of Assuring People that yes in all odd situations we are here to protect.
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