General Knowledge

HISTORY OF INSURANCE IN INDIA (INTRODUCTION)

Insurance in India refers to the market for insurance in India which covers both the public and private sector organisations. It is listed in the Constitution of India in the Seventh Schedule as a Union List subject, meaning it can only be legislated by the Central government.

The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment. India allowed private companies in insurance sector in 2000, setting a limit on FDI to 49% in 2014.

Since the privatisation in 2001, the largest life-insurance company in India, Life Insurance Corporation of India  has seen its market share slowly slipping to private giants like Exide Life Insurance, ICICI Prudential Life Insurance and SBI Life Insurance Company.