Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same. Introduction The Indian food processing industry has a wide variety of The Govern Government e- Marketplace GeM With swift rise of digitalisation, governments worldwide are incorpo Enjoy FREE subscriptions downloads, updates and more.
Already a member? Please enable Javascript for full functionality. General insurance industry to grow at 7 to 9 pc in GIC, created in , intervened on the market as a national reinsurer and shareholder of the four direct companies. The government will not reopen the doors of the Indian insurance market to the private sector until the early s. The entry into activity in of the Insurance Regulatory and Development Authority IRDAI marked the end of State monopoly and the opening of the market to private and foreign investment.
Read also India: Economic indicators. FR EN. Create an account Login. Last update: November 11, 17h Insurance history in India. Indian insurance dates back to the days of ancient India legislation. It was then designed to pool national resources in order to deal with the occurrence of calamities such as fires, floods, famines and epidemics.
The first traces of insurance were found in the form of maritime loans and carrier contracts. The highlights of Indian insurance. From to Endowed with British capital, the company ceased operations in Creation of Triton Insurance Company; the first non-life insurance company set up by the British. Creation of Indian Mercantile Insurance, the first company to market all non life classes of business.
Enactment of the Indian Insurance Companies Act, a law that authorizes the government to collect statistical data on the life, non-life and pension transactions of Indian and foreign insurers. The key objectives of the IRDAI include promotion of competition so as to enhance customer satisfaction through increased consumer choice and fair premiums, while ensuring the financial security of the Insurance market. It provides the powers to IRDAI to frame regulations which lay down the regulatory framework for supervision of the entities operating in the sector.
Further, there are certain other Acts which govern specific lines of Insurance business and functions such as Marine Insurance Act, and Public Liability Insurance Act, General Insurance Companies - Both public and private sector Companies. Among them, there are some standalone Health Insurance Companies which offer health Insurance policies.
The Authority has issued regulations and circulars on various aspects of operations of the Insurance companies and other entities covering:. All the rules, regulations, guidelines that are applicable to the industry are hosted on the website of the supervisor and are available in the public domain.
These include the following:. In order to monitor and control solvency requirements, it has been made mandatory to the insurers to submit solvency report on quarterly basis. In case of any deviation, the Supervisor initiates necessary and suitable steps so as to ensure that the Insurer takes immediate corrective action to restore the solvency position at the minimum statutory level. Computation of solvency margin takes into account the inherent risk that respective line of business poses to the insurer.
Higher requirements are placed for risky lines of business compared to others posing less risk to the insurers. Under Asset-Liability Management reporting, Insurer must provide the year wise projected cash flows, in respect of both assets and liabilities. Insurers must maintain mismatching reserves in case of any mismatch between assets and liabilities as a part of the global reserves.
Further, Life insurers are required to submit a report on sensitivity and scenario testing exercise in the prescribed format. In order to ensure a minimum level of security of investments in line with Insurance Act Provisions, the regulations prescribe certain percentages of the funds to be invested in government securities and in approved securities.
Investment Regulations lay down the framework for the management of investments. The exposure limits are also prescribed in the Regulations. The Investment Regulations require a proper methodology to be adopted by the insurer for matching of assets and liabilities.
In the initial days, Indians had to pay an extremely high premium than compared to the British residents. It was the Bombay Life Assurance Company, which became the first insurance company established by an Indian that started insuring Indians without charging extra premiums. During the initial year of this century, the industry was highly unregulated. This Act structured insurance and made it mandatory for premiums and company valuations to be certified by an actuary.
By , there were around insurance companies in India with the total business valuing around Rs. It was around the same time that the Insurance Act of was passed. This was the first piece of legislation covering both life insurance and general insurance.
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