The

se
wer
e
sub
sidi
arie
s of
the
Gen
eral
Insu
ranc
e
Co
mpa
ny
(GI
C).
KE
Y
MI
LE
ST
ON
ES
191
2: T
he
Indi
an
Life
Ass
uran
ce
Co
mpa
nies
Act
ena
cted
as
the
first
stat
ute
to
regu
late
the
life
insu
ranc
e
busi
nes
s.
192
8: T
he
Indi
an
Insu
ranc
e
Co
mpa
nies
Act
ena
cted
to
ena
ble
the
gov
ern
men
t to
coll
ect
stati
stic
al
infor
mati
on
abo
ut
both
life
and
non-
life
insu
ranc
e
busi
nes
ses.
193
8: E
arlie
r
legi
slati
on
con
soli
date
d
and
ame
nde
d by
the
Insu
ranc
e
Act
with
the
obje
ctiv
e of
prot
ecti
ng
the
inter
ests
of
the
insu
ring
publ
ic.
195
6: 2
45
Indi
an
and
forei
gn
insu
rers
alon
g
with
prov
iden
t
soci
etie
s
wer
e
take
n
over
by
the
cent
ral
gov
ern
men
t
and
nati
onal
ized
.
LIC
was
form
ed
by
an
Act
of
Parli
ame
nt-
LIC
Act1
956-
with
a
capi
tal
cont
ribut
ion
of
Rs.
5
cror
e
from
the
Gov
ern
men
t of
Indi
a.
12
IN
DU
ST
RY 
RE
FO
RM
S
Ref
orm
s in
the
Insu
ranc
e
sect
or
wer
e
initi
ated
with
thep
ass
age
of
the
IRD
A
Bill
in
Parl
iam
ent
in
Dec
emb
er
199
9.T
he
IRD
A
sinc
e its
inco
rpor
atio
n as
a
stat
utor
y
bod
y
inA
pril
200
0
has
fasti
diou
sly
stuc
k to
its
sch
edul
e of
fra
min
gre
gula
tion
s
and
regi
steri
ng
the
priv
ate
sect
or
insu
ranc
eco
mpa
nies
.
Sinc
e
bein
g
set
up
as
an
inde
pen
dent
stat
utor
y
bod
y
the
IRD
A
has
put
in a
fra
me
wor
k of
glob
ally
com
pati
ble
reg
ulati
ons.
The
othe
r
deci
sion
take
n
sim
ulta
neo
usly
to
prov
ide
thes
upp
ortin
g
syst
ems
to
the
insu
ranc
e
sect
or
and
inpa
rticu
lar
the
life
insu
ranc
e
com
pani
es
was
the
laun
ch
ofth
e
IRD
A
onli
ne
serv
ice
for
issu
e
and
ren
ewa
l of
lice
nse
s
toag
ents
.
The
app
rova
l of
insti
tutio
ns
for
imp
artin
g
train
ingt
o
age
nts
has
also
ens
ure
d
that
the
insu
ranc
e
com
pani
es
13
wou
ld
hav
ea
train
ed
wor
kfor
ce
of
insu
ranc
e
age
nts
in
plac
e to
sell
their
pro
duct
s.
PRE
SEN
T
SCE
NARI
O-
LIFE
INSU
RAN
CE
IND
UST
RY I
N
INDI
A
The
life
insur
ance
indus
try in
India
grew
by an
impre
ssive
47.38
%,
withp
remiu
m
inco
me at
Rs.
1560.
41
billion
durin
g the
fiscal
year
2006-
2007.
Thou
gh
the
total
volu
me of
LIC's
busin
ess
incre
ased
in the
last
fiscal
year(
2006-
2007)
comp
ared
to the
previ
ous
one,
its
mark
et
share
came
down
from8
5.75
% to
81.91
%.
The
17
privat
e
insur
ers
incre
ased
their
mark
et
share
from
about
15%
toabo
ut
19%
in a
year'
s
time.
The
figure
s for
the
first
two
mont
hs of
the
fiscal
year
2007-
08
also
spea
k of
the
growi
ng
share
of the
privat
e
insur
ers.
Thes
hare
of
LIC
for
this
perio
d has
furthe
r
come
down
to 75
perce
nt,
while
thepri
vate
playe
rs
have
grabb
ed
over
24
perce
nt.
With
the
openi
ng up
of the
insur
ance
indus
try in
India
many
foreig
n
playe
rshav
e
enter
ed
the
mark
et.
The
restri
ction
on
these
comp
anies
is
that
they
areno
t
allow
ed to
have
more
than
a
26%
stake
in a
comp
any’s
owne
rship.
Since
the
openi
ng up
of the
insur
ance
secto
r in
1999,
foreig
n
inves
tment
s
ofRs.
8.7
billion
have
poure
d into
the
India
n
mark
et
and
19
privat
e
lifeins
uranc
e
comp
anies
have
been
grant
ed
licens
es.
14
Innov
ative
produ
cts,
smart
mark
eting,
and
aggre
ssive
distri
butio
n
have
enabl
ed
fledgl
ing
privat
e
insur
ance
comp
anies
to
sign
up
India
n
custo
mersf
aster
than
anyo
ne
expe
cted.
India
ns,
who
had
alway
s
seen
life
insur
ance
asa
tax
savin
g
devic
e, are
now
sudd
enly
turnin
g to
the
privat
e
secto
r
ands
nappi
ng up
the
new
innov
ative
produ
cts
on
offer.
Som
e of
these
produ
ctsinc
lude
inves
tment
plans
with
insur
ance
and
good
retur
ns
(unit
linke
d
plans
),mult
i –
purpo
se
insur
ance
plans
,
pensi
on
plans
,
child
plans
and
mone
y
back
plans
.
(www
.wikip
edia.
com)