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THOUGHTS OF THE DAY

Submitted To:DR.S. A. SENTHIL KUMAR Associate professor & placement coordinator Pondicherry University
HISTORY OF GENERAL INSURANCE INDUSTRY

Submitted By:Kamil Roll no. - 17 MBA (IM) Ist Year Pondicherry University

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Introduction The pioneers

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4. 5.

General insurance
The evolution and growth of general insurance Milestones in the general insurance industry in India

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Development in 1970
General Insurance business Name of General Insurance Companies

HISTORY OF GENERAL INSURANCE INDUSTRY

Insurance is a device by means of which the risks of two or more person or firms combined through actual promised contribution to a fund out of which claimants are paid.

HISTORY OF GENERAL INSURANCE INDUSTRY

General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata.

Marine insurance was being practiced in India from the beginning of 19th century

Offices were established in Kolkata which was the centre for

East India Company Fire insurance followed in 1825 at Madras Swadeshi movement also had its impact on Insurance and first Indian Company was formed in 1907 Indian Mercantile Insurance Company Need to control insurance business was felt by the British government which introduced the Insurance Act in 1938 and Insurance Rules in 1939
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Insurance has been known to exist in some form or other since then 3000 BC. The Chinese traders, would distribute their goods among several vessel sailing over the river rapids. The Great Fire of London in 1666, in which more than 13000 houses were lost, gave a boost to insurance and the first Fire Insurance Company, called the Fire Office was started in 1680.

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of 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 and the Tariff Advisory Committee set up.
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1972 The General Insurance Business (Nationalization) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973.107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
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Life Insurance business was nationalised in India in the year 1956 General Insurance business was being done by 106 companies including LIC (GI)

On May 13th 1971 an ordinance was promulgated taking state control of general insurance business with custodians in charge
In 1972 GI Nationalisation act was passed allowing the formation of GIC as the holding company and with 4 subsidiaries each having its Head Office at one metro
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1st Jan 1973 GIC and 4 companies were formed taking in them 106 companies and the 4 PSUs were taking care of the general insurance business in the country till 2000 totally. GIC on its own was also writing aviation and crop business besides becoming the National & Asian Reinsurer

The objective of nationalisation was to spread insurance to nook and corner of the country and to utilise peoples money for the peoples good thus uplifting the socio economic condition of the country
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Year 1974 1975 1976 1990 2000 2006 2007

Business (in Crores) 219.99 253.75 286.51 2174.43 10272 crores More than 20000 crores More than 24000 crores
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Name of General Insurance Companies Public sector Name of the company

New India Assurance Company Limited National Insurance Company Limited The Oriental Insurance Co. Ltd.

Year
23.07.1919 05.12.1906 12.09.1947

United India Insurance Co. Ltd.

Agriculture Insurance Company of India Ltd. Export Credit Gurantee Corporation

18.02.1938.
20.12.2000 30.07.1983
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Name of the company Bajaj Allianz General Insurance Co. Ltd. ICICI Lombard General Insurance Co. Ltd. IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Ltd. Royal Sundaram Alliance Insurance Co. Ltd TATA AIG General Insurance Co. Ltd. Cholamandalam General Insurance Co. Ltd. HDFC ERGO General Insurance Co. Ltd. Star Health Allied Insurance Co. Ltd. Apollo DKV Insurance Co.Ltd

Year
02.05.2001 03.08.2001 04.12.2000 23.10.2000 23.10.2000 22.01.2001 15.07.2002 27.08.2002 17.08.2006 03.08.2007
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Shriram General Insurance Company Limited SBI General Insurance Company Limited Max Bupa Health Insurance Company Limited Future Generali India Insurance Co.Ltd. Universal Sompo General Insurance Co.Ltd. Bharti AXA General Insurance Co.Ltd

08.05.2008 27.09.2010 11.08.1947 04.09.2007 16.11.2007 27.06.2008

Raheja QBE General Insurance Company Ltd

L&T General Insurance Company Limited

15.12.2008
02.03.2000 15. 07. 2000 2012 1912

Religare Health Insurance Company Limited

Magma HDI General Insurance Company Ltd Liberty Videocon General Insurance Company Limited.

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REFERENCES:IRDA.GOV.IN WWW.Insurance Institute of india.com

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