The Oriental Life Insurance Company, India’s first insurance company, was started in 1818 by Europeans in Kolkata. The purpose of this company was to meet the needs of the European Community. There was discrimination in the lives of Europeans and Indians in the pre-independent era in India. Higher premiums were charged for the lives of Indians than for the lives of foreigners. Later in 1870 Bombay Mutual Life Assurance Society, the first company for Indians was established which covered Indian life at normal rates.
As the twentieth century began, companies in the region began to grow as mushrooms. The insurance business was first regulated as the Life Insurance Companies Act in 1912, and the Provident Fund Act was passed in that year. As per the earlier Act, 1912, it has become necessary that premium rate tables and periodic valuations of companies be certified by an Act.
The National Insurance Company Limited, established in 1906, is still in existence and trading today. There were only two types of insurance. Jeevan i.e. LIC and General i.e. GIC.
The General Insurance Company had four subsidiaries. Since December 2000, these subsidiaries have been delisted from the parent company and formed as independent companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.
Insurance in India is still a growing sector with great potential. The region in India has gone through many phases and changes, especially in recent years when the government. In 1999, India opened the sector by allowing insurance to private companies and allowing FDI up to 26%. Since then, the Indian insurance sector is considered a fast growing market with every other global company in the region seeking a lion’s share. Currently, the largest life insurance company in India is still owned by the government.