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PROJECT On insurance - 4 Weeks AgoSECTION I: KNOWLEDGE OF THEINSURANCE INDUSTRYINTRODUCTIONInsurance industry has always been a growth-oriented industry globally. On the Indian scene too,the insurance industry has always recordednoticeable growth vis-à-vis other Indian industries.The Triton General Insurance Co. Ltd. was the firstgeneral insurance company to be established in Indiain 1850, which was a wholly British-ownedcompany. The first general insurance company to beset up by an Indian was Indian Mercantile InsuranceCo. Ltd., which was established in 1907. Thereemerged many a player on the Indian scenethereafter.The general insurance business was nationalisedafter the promulgation of General InsuranceBusiness (Nationalisation) Act, 1972. The post-

nationalisation general insurance business wasundertaken by the General Insurance Corporation of India (GIC) and its 4 subsidiaries:1. Oriental Insurance Company Limited;2. New India Assurance Company Limited;3. National Insurance Company Limited; and4. United India Insurance Company Limited.Towards the end of 2000, the relation ceased to existand the four companies are, at present, operating asindependent companies.The Life Insurance Corporation (LIC) wasestablished on 01.09.1956 and had been the solecorporation to write the life insurance business inIndia.The Indian insurance industry saw a new sun whenthe Insurance Regulatory & Development Authority(IRDA) invited the applications for registration asinsurers in August, 2000. With the liberalisation andopening up of the sector to private players, theindustry has presented promising prospects for thecoming future. The transition has also resulted intointroduction of ample opportunities for the

professionals including Chartered Accountants.The Indian Insurance industry is featured by theattributes:

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Low market penetration;

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Ever-growing middle class component in population.

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Growth of consumer movement with anincreasing demand for better insurance products;

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Inadequate application of information technologyfor business.

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Adequate fillip from the Government in the formof tax incentives to the insured, etc.The industry formations need to keep vigil on thesecharacteristics of the Indian market and formulatetheir strategies to entail maximum contribution tothe output of the sector.The Indian life and non-life insurance businessaccounted for merely 0.42 percent of the world's lifeand non-life business in 1997. The figures of the basic parameters of the industry's performance viz.Insurance Density and Insurance Penetration also are