Insurance Sector

The insurance sector a growing area of financial services in India. Insurance Policy and Life Insurance Corporation Of India are two major institutions that offer insurance in India. Learn more about the Indian insurance sector, Indian insurance industry, Indian insurance companies, and various types of insurance in India.

There are a number of major players in the Indian insurance landscape, which have benefited from India’s insurance reforms and grown dramatically as a result.

Generally defined, insurance is a system of providing protection against monetary loss caused by unforeseen events. Insurance policies provide safeguards to ease risks associated with unexpected accidents, damages or the loss of personal property.

The history of the Indian insurance sector dates back to the year 1818, when the Oriental Life Insurance Company was formed in Kolkata. The Life Insurance Act of 1912 marked the beginning of a new era in the Indian insurance sector.

The Indian Insurance Companies Act was passed in the year 1928. This act empowered the government of India to gather necessary information about the life insurance and non-life insurance organizations operating in Indian financial markets.

The Triton Insurance Company Ltd. formed in 1850 and was the first of its kind in the general insurance sector in India. The Indian Mercantile Insurance Limited was established in 1907, and was the company in India to handle all classes of insurance.

Reform in the Indian Insurance Sector

Reform in the Indian insurance sector was initiated with the formation of the Malhotra Committee in 1993. It was named after R.N. Malhotra, the then Finance Secretary and RBI Governor, who headed the committee.

The aim of the Malhotra Committee was to assess the functionality of the Indian insurance sector. This committee was also in charge of recommending the future path of insurance in India.

The Malhotra Committee attempted to improve various aspects of the financial sector, making them more appropriate and effective for the Indian market.
The recommendations of the committee put stress on offering operational autonomy to the insurance service providers and also suggested forming an independent regulatory body.

The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial policy changes in the insurance sector of India. The IRDA Act in was followed by the formation of the Insurance Regulatory and Development Authority (IRDA) 2000.

The goals of the IRDA are to safeguard the interests of insurance policyholders, as well as initiate different policy measures to help sustain growth in the Indian insurance sector.

Insurance Policies in India at a Glance

Life insurance policies in India come in many different forms. The Indian insurance sector is as comprehensive as any other country's insurance sector. In India, the most common types include: term life policies, endowment policies, joint life policies, whole life policies, loan cover term assurance policies, unit-linked insurance plans, group insurance policies, pension plans, and annuities. General insurance plans are also available to cover motors insurance, home insurance, travel insurance and health insurance.
Top Indian Insurance Companies

Due to the growing demand of insurance, more and more insurance companies are now emerging in the Indian insurance sector. Some of the preferred life insurance service providers in India are:

ICICI Prudential
Life Insurance Corporation of India
Metlife India Insurance
Aviva Life Insurance
Reliance Life Insurance
Bajaj Allianz
HDFC Standard Life Insurance
SBI Life Insurance
ING Vysya