Insurance Sector In India


 
 
Concept Explanation
 

Insurance Sector in India

Insurance is a means of protection from any financial loss. Under an insurance contract; a insurer indemnifies the other insured party against specific amount of loss, occurring from specified eventualities within a specific period, provided a fee called premium is paid.Since the inception of the insurance sector, the number of participants in the insurance industry has gone up from 7 insurers in 2000 to 60 insurers as on 30th Sep, 2015.

Insurance Sector in India

  • Insurance industry includes two sectors, i.e. life insurance and general insurance. Life insurance relates to the life of the policy holder. General insurance deals with everything else. This type of insurance typically covers' Losses caused by theft or damage.
  • Health and property insurance come under general insurance. Life insurance in India was introduced by Britishers. A British firm in 1818, established the Oriental Life Insurance Company at Calcutta (now Kolkata).
  • General Insurance Corporation

  • In 1972, the government nationalized the 107 private sector companies in the general insurance segment and a government company called the General Insurance Corporation of India (GIC). It was formed in 1972.
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