https://indianpedia.org/index.php?action=history&feed=atom&title=Insurance_in_IndiaInsurance in India - Revision history2026-07-30T06:15:18ZRevision history for this page on the wikiMediaWiki 1.45.4https://indianpedia.org/index.php?title=Insurance_in_India&diff=388042&oldid=prev2405:201:800B:684F:D28:BE63:81DD:7FFA at 01:18, 4 February 20222022-02-04T01:18:01Z<p></p>
<p><b>New page</b></p><div>{{Short description|Market for insurance in India}}<br />
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[[Insurance]] in [[India]] covers both the public and private sector organisations. It is listed in the [[Constitution of India]] in the Seventh Schedule as a [[Union List]] subject, meaning it can only be legislated by the [[Central government of India|Central Government]] only.<br />
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The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment. India allowed private companies in insurance sector in 2000, setting a limit on [[Foreign direct investment|FDI]] to 26%, which was increased to 49% in 2014,<ref>{{cite web|url=http://news.biharprabha.com/2014/07/fdi-limit-in-insurance-sector-increased-from-26-to-49/|title=FDI Limit in Insurance sector increased from 26% to 49%|work=IANS|publisher=news.biharprabha.com|access-date=10 July 2014}}</ref> and further increased to 74% in May 2021.<ref>{{cite news|url=https://www.thehindu.com/business/Economy/new-insurance-fdi-rules-a-mixed-bag-for-foreign-investors/article34613401.ece|title=FDI Limit in Insurance sector increased from 49% to 74%|work=IANS|publisher=thehindu.com|access-date=21 May 2021|last1=Dhoot |first1=Vikas }}</ref> <br />
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== History ==<br />
when ''Oriental Life Insurance Company''<ref>The Oriental Insurance Company Ltd was incorporated at Bombay on 12 September 1947 "{{cite web |url=http://www.orientalinsurance.org.in/about-oriental-insurance.jsp |title=Best General Insurance Company of India-The Oriental Insurance Company Ltd |access-date=2013-09-02 |url-status=dead |archive-url=https://web.archive.org/web/20130917080852/http://www.orientalinsurance.org.in/about-oriental-insurance.jsp |archive-date=17 September 2013 |df=dmy-all }}"</ref> was started by Anita Bhavsar in [[Kolkata]] to cater to the needs of European community.<br />
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The LIC had monopoly until the late 90s when the Insurance sector was reopened to the private sector. But, now there are 23 private life insurance companies in India.<ref>{{Cite web|last=Billawria|first=Atul Singh|title=What Is Life Insurance And How Does It Work|url=https://insurancesekho.com/what-is-life-insurance-and-how-does-it-work/|access-date=2020-08-30|website=Insurance Sekho.com|language=en-US}}</ref> <br />
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== Industry structure ==<br />
By 2020 Indian Insurance is a US$280&nbsp;billion industry. However, only 500 million people (36.23% of the total population of 1&nbsp;billion) are covered under Mediclaim.<ref>{{cite web | url=https://www.statista.com/statistics/657244/number-of-people-with-health-insurance-india/#:~:text=In%20the%20fiscal%20year%20of,the%20lowest%20number%20of%20people | title=India: People with health insurance 2021 }}</ref> With more and more private companies in the sector, this situation is expected to grow more. ECGC, ESIC and AIC provide insurance services for niche markets. So, their scope is limited by legislation but enjoy some special powers. <br />
The majority of Western Countries have state run medical systems so have less need for medical insurance. In the UK, for example, the corporate cover of employees, when added to the individual purchase of coverage gives approximately 11–12% of the population on cover<ref>http://www.euro.who.int/__data/assets/pdf_file/0007/98422/Private_Medical_Insurance_UK.pdf {{Bare URL PDF}}</ref> due largely to usage of the state financed National Health Service (NHS), whereas in developed nations with a more limited state system, like USA, about 92%<ref>{{cite web | url=https://www.census.gov/library/publications/2020/demo/p60-271.html | title=Health Insurance Coverage in the United States: 2019 }}</ref> of the total population are covered under same insurance scheme.<br />
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== Legal structure ==<br />
{{See also|Insurance Regulatory and Development Authority}}<br />
The Insurance Act of 1938<ref>http://www.irdaindia.org/regulations/TheInsuranceAct1938er126042004.doc {{Webarchive|url=https://web.archive.org/web/20160701095438/http://www.irdaindia.org/regulations/TheInsuranceAct1938er126042004.doc }} here</ref> was the first legislation governing all forms of insurance to provide strict state control over insurance business. Life insurance in India was completely nationalised on 19 January 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the [[Life Insurance Corporation of India]].<br />
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=== Authorities ===<br />
The primary regulator for insurance in India is the [[Insurance Regulatory and Development Authority of India]] (IRDAI) which was established in 1999 under the government legislation called the ''Insurance Regulatory and Development Authority Act, 1999''.<ref name="act">{{cite web |last=GOI |title=IRDA ACT 1999 |url=http://india.gov.in/outerwin.php?id=http://indiacode.nic.in/fullact1.asp?tfnm=199941 |publisher=GOI |access-date=19 June 2012}}</ref><ref>{{cite web |last=GOI |title=IRDA ACT 1999 |url=http://financialservices.gov.in/Insurance/Acts/IRDA_ACT_1999.pdf |publisher=Department of Financial Services, GOI |access-date=19 June 2012}}</ref><br />
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==See also==<br />
* [[List of insurance companies in India]]<br />
* [[Life insurance in India]]<br />
* [[Agricultural insurance in India]]<br />
* [[Rashtriya Swasthya Bima Yojana]]<br />
* [[Aam Aadmi Bima Yojana]]<br />
* [[Pradhan Mantri Suraksha Bima Yojana]]<br />
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==References==<br />
{{Reflist|2}} <br />
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{{Insurance in India}}<br />
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[[Category:Insurance in India| ]]</div>2405:201:800B:684F:D28:BE63:81DD:7FFA