Indian Life Insurance Sector: An Overview
18 Pages Posted: 8 Feb 2009 Last revised: 21 Jun 2009
Date Written: February 8, 2009
In India, the history of life insurance dates back to the year 1818, with the Oriental Lie Insurance Company in Calcutta. At that time a higher premium was charged for Indian lives than the English lives, as Indian lives were considered riskier for coverage. In 1870, the first company to charge same premium for both Indian and non-Indian lives was, The Bombay Mutual Life Insurance Society. The life insurance regulation formally began in India in 1912 after the passage of The Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912.
The Government of India liberalised the insurance sector in March 2000, with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill. This act lifted all entry barriers for private and foreign companies to enter the Indian market. Two legislations, which govern this sector, are: The Insurance Act - 1938, and the IRDA Act - 1999. This paper produces an overview of present position of Life Insurance Sector in India and study various economic indicators related to all Life Insurance Companies operating in India.
Keywords: Life Insurance, IRDA Act- 1999, Indian Life Insurance Sector
JEL Classification: G22
Suggested Citation: Suggested Citation