Insurance is the method of transferring, distributing and sharing risk.  Insurance is primarily collective cooperation to share a particular risk.  It is basically a sharing device. The losses to assets or human asset resulting from natural calamities like, Fire, Flood, Earthquake, Accidents or Natural death are met out of the common pool contributed by a large number of persons who are exposed to similar risks.  This contribution of many is used to pay the losses suffered by unfortunate few.  The basic principle is that loss should occur as a result of natural calamities or unexpected events which are beyond human control.  Moreover, the insured person shall not think of undue gains out of insurance.  It is primarily collective cooperation to share a particular risk.

The concept is as old as the dawn of human civilization. Marine insurance is considered to be the oldest branch of insurance for providing protection against loss &/or damage in sea voyages.  The Insurance in its modern form came to India from England in 1818 with the formation of Oriental Life Insurance Company in Calcutta mainly by Europeans to help widows of their kin.  By 1868 there were 285 companies doing Life Insurance in India and these companies were insuring Europeans lives only, Indians were treated Sub-Standard lives and were offered life insurance with an extra premium of 15% to 20%

Bombay Life Assurance was the first Indian Company started in the year 1870 that started insuring Indian lives at Standard rates.  Oriental Life Insurance was established in 1874 and became a leading Indian Company.  There were more than 350 companies transacting Life & General Insurance business in India by December 1955.

Life Insurance business in India was Nationalized by an Ordinance on 19^th January 1956 and L.I.C. Act was passed in July 1956.  Life Business of 245 companies which were merged with L.I.C. of India which started its operation on 1^st September 1956.

Likewise, General Insurance Industry was nationalized in the year 1972 by merging 107 General Insurance Companies and with effect from 1^st January 1973 General Insurance Corporation (G.I.C. of India) and its four subsidiaries – namely New India Assurance Co. Ltd; Oriental Insurance Company Co. Ltd;  National Insurance Co. Ltd; and United India Insurance Company Ltd., started operations in General Insurance Business.  G.I.C (Re)  is the only Re-Insurance Indian Company.

Later on, with the passing of IRDA Act in 1999, the insurance sector was opened up and private Insurance Companies were allowed to enter in Life Insurance as well as General Insurance with the participation of Foreign partner as well with 49% percentage Share maximum.

The I.R.D.A. was established to regulate, promote and ensure orderly growth of Life and General Insurance Industry in India.  The Authority consists of following members.

• A Chairperson
• Not more than five whole-time members.
• Not more than four part time members.

The members would be appointed by the Central Government.  The IRDA is a Corporate Body.

It is advised by an Insurance Advisory Committee consisting of not more than 25 members representing industry, commerce, transport and consumer forum etc.,

Presently there are 24 Life Insurance Companies,  25 General Insurance Companies and 6 Health Insurance Companies doing business in India as detailed below:-

Life Insurance Companies are:-

Name of the General Insurance Companies :-

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