An overview of life insurance business in India

Insurance is a co-operative device to spread the loss caused by a particular risk over a number of persons. In India, the concept of insurance was prevalent even during ancient times. In fact, there are references of insurance in the Vedas. For instance, Yogakshema, the name of Life Insurance Corporation of India's corporate head quarters, stems from the Rig Veda. The concept of insurance as understood today come to exist in the England in the 17^th century at the Lloyd's coffee house in London. Life insurance in its modern form came to India from England in the year 1818. It was only after 1840, that life insurance really bloomed in a big way. The oriental life Insurance company started by Europeans in Calcutta was the first Life insurance company on Indian soil. However, it was much later on the 19^th of January 1956 that life insurance in India was nationalized. In 1993, Govt. of India, with a view to make life insurance industry more competitive and efficient passed a bill which after discussion and debate become an Act known as Insurance Regulatory and Development Authority (IRDA) Act, 1999. Liberalization of the insurance sector has also contributed towards the economic development of the country.