Archive for September, 2009
Oriental Life Insurance Company, the first insurance company of India, was started by Europeans in Kolkata in 1818. The purpose of this company was to cater to the needs of European community. There was discrimination among the life of Europeans and that of Indians in the pre-independent era in India. Higher premiums were charged for lives of Indians in comparison with the lives of foreigners. Later in 1870 Bombay Mutual Life Assurance Society, the first company for Indians was established who covered Indian lives at normal rates.
The Life Insurance market in India is an underdeveloped one that was tapped by the state-owned LIC until the entry of private players in the market. Insurance products reached only 19 percent of the 400 million of the insurable population. The state owned Life Insurance Corporation sold insurance only as a tax instrument and not as a product that gave protection. Most customers were under-insured with no transparency in the products. With the coming of the private insurers the rules of the game has changed. |