Insurance Industry in India
Insurance companies are institutions that provide financial protection for the lives and property of individuals. Insurance industry includes two sectors - Life Insurance and General Insurance. The indian insurance sector has 60 insurance companies of which 33 are in non-life insurance business, 26 in life insurance and one Reinsurance company. Insurance sector is listed in the seventh schedule of the Constitution. It can only be legislated by the central government. The Oriental Life Insurance Company, which was started by the British in Kolkata in 1818, was the first life insurance company in India. However, this company was started mainly for foreigners in India. It charged a high premium to provide insurance protection to the locals. Triton Insurance Company started by British in 1850 was the first general insurance company in India. The first to provide insurance protection to Indians at a normal premium was the Bombay Mutual Life Assurance Society, which was started in Mumbai in 1870. The Mutual Life Assurance Society was also the first insurance company for Indians. Life Insurance Companies Act and the Provident Fund Act was implemented in 1912 to regulate the insurance business. On January 19, 1956, the life insurance sector in India was nationalized. Then, on June 19, 1956, the Parliament passed the Life Insurance Corporation Act. Accordingly, the Life Insurance Corporation of India came into existence on September 1, 1956. LIC, which is headquartered in Mumbai, is today the largest insurance company in India. Nationalisation of General Insurance is based on General Insurance Business Act 1972. Union Cabinet in July 2014 approved a proposal to relax Foreign Direct Investment (FDI) limit in the domestic insurance sector to 49 percent from the previous 26 percent to bring capital and investment. Currently, 100% FDI is allowed in the insurance sector.
Insurance Regulatory and Development Authority of India (IRDAI)
The Insurance Regulatory and Development Authority of India (IRDAI), was established on April 19, 2000. Its headquarters is at Hyderabad. IRDAI Act came into effect on the basis of Malhothra Committee. IRDAI was established in place of Insurance Regulatory Authority. IRDAI protect the interest of the insurance policy holders and regulate, promote and ensure orderly growth of the Insurance Industry. Insurance companies operating in the private sector operate under IRDAI. Life Insurance, Non Life Insurance and Reinsurance are the insurances regulated by IRDAI. Following is the list of insurance companies in India which have been approved by the Insurance Regulatory and Development Authority of India (IRDAI)
Nationalized (Government) Insurance Companies
1. Life Insurance Corporation of India
Life insurance companies are institutions that provide financial protection for the life and property of individuals. The largest state-owned life insurance company in India is Life Insurance Corporation of India and also the country's largest investor. It was set up in September 1, 1956. It's headquarters is at Mumbai. Life Insurance Corporation of India is the largest insurance company in the world in terms of number of policies covered. The company has about 36 crore policies.
2. General Insurance Corporation of India
General insurance provides any type of coverage other than life. General insurance provides protection for immovable and movable assets such as houses, agricultural crops, vehicles, commercial establishments, livestock, and jobs. General Insurance Corporation of India (GIC) is the sole reinsurance company in the Indian insurance market. It was formed on 22nd November 1972 and nationalised on January 1, 1973. It is headquartered in Mumbai. The general insurance sector in India was nationalized through the General Insurance Business Act of 1972. It came into effect on January 1, 1973. 107 insurers were grouped and amalgamated into four Companies. These four companies became General Insurance Corporation of India's subsidiaries. These four public sector general insurance companies are,
1. National India Assurance Company Limited
2. The New India Assurance Company Limited
3. The United India Insurance Company Limited
4. The Oriental India Insurance Company Limited
With effect from 2000 December, these subsidiaries delinked from the parent company and were set up as independent insurance companies.
3. New India Assurance Company Limited
New India Assurance Company Limited was founded by Sir Dorabji Tata in 1919. It was nationalised in 1973. The company provides insurance coverage to the customers for over 170 products catering to almost all types of general insurance business.
4. National Insurance Company Limited
National Insurance Company Limited is the oldest existing insurance company in india which is still in business. National Insurance Company Limited was established in 1906 based in Mumbai and was nationalised in 1972. After nationalization the company was merged with 21 foreign and 11 native companies to form the National Insurance Company Ltd. The company provides insurance coverage to the customers catering to almost all types of general insurance business.
5. The Oriental Insurance Company Limited
Oriental Insurance Company Limited is incorporated at Bombay on 12th September 1947. The company was a subsidiary of life insurance corporation of india from 1956 to 1973 till the General Insurance Business was nationalized in the country. In 2003 all the shares of this general insurance company that was held by the General Insurance Corporation of India were transferred to the Indian Government. The company provides insurance coverage to the customers catering to almost all types of general insurance business.
6. United India Insurance Company Limited
United India Insurance Company Limited was founded in 1938. Its Headquarters is at Chennai. After the nationalization of General Insurance business in the country, 12 native insurance Companies, 4 cooperative insurance societies, 5 foreign indian insurers and general insurance operations of southern region of LIC of india were merged with United India Insurance Company Limited. The company provides insurance coverage to the customers catering to almost all types of general insurance business.
7. Agriculture Insurance Company of India
Agriculture Insurance Company of India Limited (AICIL) was founded in 20th December 2002. Its aim is to cater the insurance needs of the individuals working in agriculture and allied fields in India. General Insurance Corporation of India (GIC), National Bank for Agriculture and Rural Development (NABARD) and other four public sector general insurance companies have contributed towards the share capital of the Company. The Agriculture Insurance Company received approval from Insurance Regulatory and Development Authority of India (IRDAI) and started its business operations from 1st April, 2003. It's headquarters is in New Delhi.
Life Insurance Companies in India
1. Life Insurance Corporation of India
2. Acko Life Insurance Limited
3. Aditya Birla Sun Life Insurance Co. Ltd.
4. Ageas Federal Life Insurance Co. Ltd.
5. Aviva Life Insurance Company India Ltd.
6. Axis Max Life Insurance Co. Ltd.
7. Bajaj Allianz Life Insurance Co. Ltd.
8. Bandhan Life Insurance Co. Ltd.
9. Bharti AXA Life Insurance Co. Ltd.
10. Canara HSBC Life Insurance Co. Ltd.
11. Credit Access Life Insurance limited
12. Edelweiss Life Insurance Co. Ltd.
13. Future Generali India Life Insurance Co. Ltd.
14. Go Digit Life Insurance Limited
15. HDFC Life Insurance Co. Ltd.
16. ICICI Prudential Life Insurance Co. Ltd.
17. IndiaFirst Life Insurance Co. Ltd.
18. Kotak Life Insurance Co. Ltd.
19. PNB MetLife India Insurance Co. Ltd.
20. Pramerica Life Insurance Co. Ltd.
21. Reliance Nippon Life Insurance Company
22. Sahara India Life Insurance Co. Ltd.
23. SBI Life Insurance Co. Ltd.
24. Shriram Life Insurance Co. Ltd.
25. Star Union Dai-ichi Life Insurance
26. TATA AIA Life Insurance Co. Ltd.
Non Life Insurance Companies in India
1. Acko General Insurance
2. Aditya Birla Health Insurance
3. Agriculture Insurance Company of India
4. Bajaj Allianz General Insurance
5. Care Health Insurance Ltd
6. Cholamandalam MS General Insurance
7. ECGC Limited
8. Future Generali India Insurance
9. Galaxy Health Insurance Co Ltd
10. Go Digit Insurance
11. HDFC ERGO General Insurance Company
12. ICICI Lombard
13. IFFCO TOKIO General Insurance
14. Kshema General Insurance Limited
15. Liberty General Insurance
16. Magma General Insurance
17. Manipal Cigna Health Insurance Company Limited
18. National Insurance Company
19. Navi General Insurance Limited
20. New India Assurance
21. Niva Bupa Health Insurance
22. Raheja QBE General Insurance
23. Reliance General Insurance
24. Royal Sundaram General Insurance
25. SBI General Insurance
26. Shriram General Insurance
27. Star Health and Allied Insurance
28. Tata AIG General Insurance
29. The Oriental Insurance Company
30. United India Insurance Company
31. Universal Sompo General Insurance Company
32. Zuno General Insurance
33. Zurich Kotak General Insurance
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