PAST AND FUTURE INCEPTION OF INDIAN INSURANCE INDUSTRY

Abstract

The origin of insurance practice is probably lost forever in the mists of antiquity and till today remains a mystery. Similar practices to insurance are found in the ancient Indian texts of Rigveda as it refers to the concept of “Yogakshema” - loosely meaning ‘prosperity, well-being and security of people. India is a developing country and moving ahead towards becoming one of the super powers of the world, Insurance business playing a vital role in the country’s development. In India from 2003-04 to 2013-14 new insurance policies issued by life insurers and non-life insurers difference is very huge. Through review literature it found that, from 2003-04, the value of new policies issued by public sector life insurance companies increased from 269.68 lakhs to 345.12 lakhs in 2013-14. Similarly from 2003-04, the value of new policies issued by public sector non-insurance increased from 384.27 lakhs to 600.06 lakhs in 2013-14 almost double. The study also found that India is a huge market its rural area is untapped from the insurance industry which needs to be covered. So India is an emerging market and heading towards to becoming one of the top players in the insurance industry. The study tried to give exposure about insurance growth in both the segment i.e. life insurance and non-life insurance through various secondary sources and found that industry have a better potential to excel the business in the urban as well as rural area especially.