History of Life Insurance

Introduced by the British Raj, the concept of life insurance in India dates back to the year 1818. The British Raj established the Oriental Life Insurance Company as an initiative to insure themselves. Life insurance policies were made available to Indians much later. Let’s look back at the other achievements and milestones:

1912: The Indian Life Assurance Act was introduced for efficient management of life insurance in India.

1928: The Indian Insurance Companies Act was formulated to empower the Government to secure and maintain a database of insurance companies specializing in the life as well as non-life insurance sector.

1938: The Indian Act was amended to align the insurance laws to the public interest.

1956: The LIC Act was passed, leading to the establishment of the Life Insurance Corporation of India (LIC), the first major step towards the nationalization of the life insurance industry in India.

1971: General Insurance Corporation of India or GIC was, incorporated nationalizing the non-life insurance in India.

1993: The Malhotra Committee came into force.

1999: Insurance Regulatory and Development Authority (IRDA), was formed as an autonomous body to regulate and develop the insurance industry.

1997: General Insurance Corporation, Life Insurance Corporation of India, and its subsidiaries are declared autonomous from the Government. This independence ensured them the flexibility to formulate their own policies and set their security standards.

Status of Life Insurance in India Today: As on 2018, there are 24 life insurance companies operating in the life insurance business in India, as per IRDAI (Insurance regulatory and Development Authority of India) records. Life Insurance Corporation of India (LIC) is a Central Government-owned body, while the others are private life insurance companies.