Insurance - Contents Growth Of Insurance In India in recent past Growth Of Insurance In India in recent past Acts governing Insurance Acts governing Insurance WTO and Insurance WTO and Insurance The Road Ahead The Road Ahead

Growth Of Insurance In India in recent past Growth Of Insurance In India in recent past

INSURANCE

India has come a long way in the last six years

Factors influencing growth  Exploring new markets  Innovative product line  Improved customer service  Improved distribution channel  Change in legislation

Growth Of Insurance In India in recent past Growth Of Insurance In India in recent past Acts governing Insurance Acts governing Insurance

No regulation till 1866 No regulation till 1866 Indian Companies Act (1866). Indian Companies Act (1866). the Indian Life Assurance Companies Act (1912) the Indian Life Assurance Companies Act (1912) the Provident Insurance Societies Act (1912) the Provident Insurance Societies Act (1912) Indian Insurance Companies Act (1928) Indian Insurance Companies Act (1928)

first comprehensive legislation first comprehensive legislation Covered both life & non life Covered both life & non life Regulated Regulated –Investment pattern –Commission of agents –Directors appointed –supervision of insurance companies etc.

Setting up of Tariff committee in 1950 Setting up of Tariff committee in 1950 Life insurance was nationalized in 1956 – formation of LIC Life insurance was nationalized in 1956 – formation of LIC general insurance in 1972 – GIC general insurance in 1972 – GIC Setting up of Malhotra Committee in 1993 Setting up of Malhotra Committee in 1993 Setting up of (interim) Insurance Regulatory Authority (IRA) in Setting up of (interim) Insurance Regulatory Authority (IRA) in 1996.

previous Acts proved to be obstacles in growth previous Acts proved to be obstacles in growth Rising cost Rising cost Subsidiaries of GIC acted as cartel Subsidiaries of GIC acted as cartel the goal of “efficient customer service” remained elusive the goal of “efficient customer service” remained elusive

Creation of IRDA Creation of IRDA private sector should be allowed to enter insurance private sector should be allowed to enter insurance foreign players allowed foreign players allowed

Regulated appointment of actuaries Regulated appointment of actuaries requirements for an agent requirements for an agent solvency margin requirements solvency margin requirements Registration of Indian Insurance Companies Registration of Indian Insurance Companies Obligations of Insurers to Rural Social Sectors Obligations of Insurers to Rural Social Sectors

Capital of LIC raised Capital of LIC raised Capital of GIC to be increased Capital of GIC to be increased Minimum paid up capital requirements Minimum paid up capital requirements Promoters holding Promoters holding Security deposit Security deposit Failure to fulfill social obligations would attract a fine Failure to fulfill social obligations would attract a fine

Growth Of Insurance In India in recent past Growth Of Insurance In India in recent past Acts governing Insurance Acts governing Insurance WTO and Insurance WTO and Insurance

FDI limit FDI limit Domestic regulation Domestic regulation Auxiliary services Auxiliary services Choice of commercial presence Choice of commercial presence Request to developed countries Request to developed countries

Growth Of Insurance In India in recent past Growth Of Insurance In India in recent past Acts governing Insurance Acts governing Insurance WTO and Insurance WTO and Insurance The Road Ahead The Road Ahead