History of Life Insurance

You switch on the television whether for a daily soap, news or sports, there is always that one advertisement explaining the significance of insurance policies. Whether you are residing in the city, a town or the quintessential metro capital, you will always come across the hoardings emphasizing on your need to purchase insurance policies. But, did you know from where did it all start?

Well, the inception of the insurance or the need of insurance started as early as mythological era. There has been enough evidence in the ‘Shastras’ which instigate towards pooling of resources which could be used to face unavoidable circumstances.

  1. However, if you are to indicate a clearer ingress of the insurance policies, it is the year 1818 which experienced the start of life insurance in India. It was via the fabrication of the Oriental Life insurance company in Calcutta.
  2. In 1829, Madras Equitable started the process in the Madras Presidency.
  3. 1870 witnessed the enactment of the British Insurance Act.
  4. In the Bombay residency this led to the start of Bombay Mutual in 1871, followed by Oriental in 1874, and finally by Empire of India in 1897.
  5. And, then came the year 1914, where in the Government of India initiated publishing returns of Insurance Companies in India.
  6. The pioneer act to regulate the same was The Indian Life Assurance Companies Act, 1912.
  7. The year 1938 witnessed an improved and effective version of the Insurance Act 1938. This act ensured an effective control over the activities of insurers.
  8. It was in the year 1950 that the Government of India decides to nationalize the entire insurance business. The acumen behind this was some allegation of utilization of black hat methods in trade practices.
  9. Finally, in the year 1956, January 19th nationalization of Life insurance sector and Life Insurance Corporation came into existence. It is in here that LIC absorbed154 Indian, 75 provident societies along with 16 non Indian insurers.
  10. Today it is witnessed that there are other private companies too. However, it was till late 90s that only LIC leaded the regime.