Insurance Companies in India - Detailed Notes | MODULE C: INDIAN FINANCIAL ARCHITECTURE
Insurance Companies in India - Detailed Descriptive Notes History and Development of Insurance The concept of insurance is as old as civilization itself, with informal systems used in ancient India, Greece, and Rome. Modern insurance in India began with the Oriental Life Insurance Company in 1818 in Kolkata. Later, other companies emerged, such as Bombay Mutual and Bharat Insurance Company. The Indian Life Assurance Companies Act, 1912, was the first statutory measure. Post-independence, the Government nationalized the life insurance sector in 1956, forming Life Insurance Corporation (LIC). General insurance was also nationalized in 1972 into the General Insurance Corporation (GIC). Privatization and Foreign Direct Investment (FDI) in Insurance Sector With economic liberalization in the 1990s, the Malhotra Committee (1993) recommended the opening of the insurance sector to private and foreign investment. This led to the establishment of the Insura...