The History Of Insurance In India
The history of insurance in India is very old. It is mentioned in the Manusmriti, Yajnavalkya ( Dharmasastra ) and Kautilya (Arthshastra). Insurance is mentioned in these writings as a collection of resources, which can be redistributed in times of crisis (eg flood, drought, epidemic, famine, fire etc.). This is the backbone of insurance even in the present day.Insurance is defined as a financial product that is purchased by the insured to cover loss in whole or in part due to any event outside his control, i.e. insurance is a form of risk management that is primarily Provides protection against any accidental or uncertain loss. Insurance is an agreement between a person and an insurance company under which the insured person is provided with the facility of partial or full compensation for the damage caused by any accident, as long as the person insured fulfills the conditions mentioned in the insurance . The following two types of insurance products are provided by an insurance company:
1. Life insurance
2. General insurance.
Life insurance covers the risk up to accidental death or even simple death, where as general insurance, also known as non-life insurance, insures the risk associated with assets. In the last few years, new forms of insurance have developed, such as health insurance, pension insurance, unit linked insurance scheme, insurance of a particular event and commodity, etc.f Installment form to policy holders under any insurance plan The payment that has to be made is called 'Premium'. As the first insurance company in India, the Oriental Life Insurance Company in 1818 started working related to life insurance. It was founded by Europeans in Kolkata. However this company failed in 1834.In 1870, an insurance company named 'Bombay Mutual Life Insurance Society' started functioning as the first Indian insurance company.
In 1912, the Indian Life Insurance Companies Act became the first law to regulate the life insurance business.
The Indian Insurance Companies Act was passed in 1928. Through this, the Government of India could get information from life insurance and non-life insurance companies operating in the country. The Insurance Act was passed in 1938, by which the public Consolidation of already existing laws for protection of rights and Necessary amendments were made Life insurance companies in India were nationalized on 1956. At the time of nationalisation, there were about 154 life insurance companies, 16 foreign insurance companies and 75 provident societies (245 Indian and foreign companies in total) operating in India.
