Insurance Notes- 2 For LIC AAO 2016

• In 1818, the first life insurance company “Oriental Life Insurance Company” started functioning on Indian soil.

• In 1870, first Indian life insurancecompany “Bombay Mutual Life Assurance Society” started its business.

• In 1907, The Indian Mercantile Insurance Ltd. was settled up as the first company to transact all classes of general insurance business.

• In 1912, The Indian Life Assurance Companies Act came into existence as the first statute to regulate thelife insurance industry.

• In 1928, The Indian Insurance Companies Act enabled the government to collect statistical information about both life and non-life insurance businesses In India.

• In 1938, the legislations made earlier were consolidated and amended by the Insurance Act with an objective to protect the interests of the insuring public. 

• In 1956, A major initiation by theGovernment of India to amalgamate245 Indian and foreign insurers and provident societies and nationalized. LIC (Life Insurance Corporation) was formed by an Act of Parliament namely LIC Act,1956, with a capital contribution of Rs. 5 crores from the Government of India. 

• In 1957,, Insurance Association of India started a wing namely General Insurance Council to frame a code of conduct for ensuring sound business practices and fair conduct.

• In 1968, Amendments are made inThe Insurance Act to regulate investments and set minimum solvency margins and the Tariff Advisory Committee was also set up.

• In 1972, the general insurance business in India was nationalized under the General Insurance Business Act, 1972 with effect from1st January 1973. 

• In 1972, the Formation of 4 major pillars in Insurance industry viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd as a result of an amalgamation of 107 insurers.GIC incorporated as a company.

Note: The General insurance business in India can relate its roots to the first general insurance company “Triton Insurance Company Ltd.”, established in the year 1850 in Calcutta by the British.