Role of Life Insurance Corporation in Insurance Sector of IndiaByDhruva RavaniStudentMBA Semester IIIR.D. Gardi Department of Business ManagementRajkot
It is worth interesting to note that the origin of the concept of insurance is very old anddates back almost 4500 years ago in the ancient empire of Babylonia. This concept prevailed and developed during the medieval period in Europe. The emphasis of insurance was on traders' merchants and seafarers in marine industries at that time to provide them safety in terms of money against certain unseen risks including death. Theconcept of insurance has its origin in Indian scriptures. The Vedas give the idea of 'Yougkshema' means a promise to provide community insurance to the risk bearers as back as around 1000 B.C., which was practised by the Aryans.In 1956 a radical step was taken by the central govt. regarding nationalization of insurance industries which emerged as the Life Insurance of India the major objective of this corporation was to give maximum benefits to maximum citizens of India by providing them wide range of benefits against a number of risks. The details of Lick's business during last 5 years are given in the paper, which are self – explanatory.
Almost 4500 years ago, in the ancient Land of Babylonia, traders used to bear risk of thecaravan trade by giving loans that had to be later repaid with interest when the goodsarrived safely. In 2100 B.C. the code of Hammurabi granted legal status to the practice.That perhaps, was how insurance made its beginning.Life insurance had its origins in ancient Rome, Where citizens formed burial clubs thatwould meet the funeral expenses of its members as well as help survivors by makingsome payments.In 1347, in Genoa, European maritime nations entered into the earliest known insuranceand decided to accept marine insurance as a practice. Back to the 17th century, in 1693,astronomer Edmond Halley constructed the first mortality and compound interest. In1756, Joseph Dodson reworked the table, linking premium rate to age. The 19th centurysaw huge developments in the field of insurance, with newer products being devised tomeet the growing needs of urbanization and industrialization.
LIFE INSURANCE IN INDIA
Insurance in India can be traced back to the Vedas. For instance, Yougkshema, the nameof Life Insurance Corporation of India's corporate headquarters, is derived from the RigVeda. The term suggests that a form of 'community insurance' was prevalent around 1000BC and practised by the Aryans.Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in