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The company secretaries have a very important role to play in the insurance sector. A company secretary works as a compliance officer in a particular insurance company and makes sure that regulatory and supervisory issues are being solved.

The insurance industry in India has established back in the time when businesses were tightly regulated into the hands if only a few public sectors insurers. Insurance is that which describes the act of guarding against any risk. An insured is a party who will seek to obtain an insurance policy while an insurer is the party that shares the risk for a paid price called an insurance premium.

Re-insurance is the word that is used when the insurance company guards themselves against the risk if loss. There has been a notice of increase in the entry of inter national insurance during a new era of insurance development. By the mid of 2004 the number of insurers in India have been increased by the entry if new private sector employees to a total of 28. There has been a launch of a plethora of new products to cater to the different segments of the market whereas on the other hand the traditional agents were supplemented by other channels like banks and internet these developments increase the business growth, in real terms, of 19% in life premium and a 11.1% in non-life premiums between 1999 and 2003.

The objectives of this report are to explore the development and regulation of India’s insurance business and to enumerate and explore the challenges present in this vast business.


India’s share in the global insurance market was 1.92% during 2018.however, in 2018 the total insurance premium in India increased to a total of 9.23 percent. Oihn life insurance businesses, India is ranked the 10th place among 88 countries, for which the data is given by Swiss Re

At the end of 2003, the Indian insurance market was the 19th largest in the world

Projection of life and non-life insurance premiums from 2007 to 2011

The dynamic growth of the insurance buying is also partly affected by the income elasticity of the insurance demand. It has been shown and proven that the insurance penetration and the per capita income have a very strong non-linear relationship.

The Indian insurance market or business has bagged the 10th position globally and has ranked the 5th place in Asia after Japan, South Korea, china and Taiwan.

Foreign market share is defined as the premium share that is being collected by the foreign majority owned insurers which consists of the subsidiaries and the branches.

Non-life business:

The non-life business in India is very similar to the other developing economies of the world. The motor and the fire acts as a backbone of the non-life business in India. The non-life business has also contributed to the overall premium growth. There has always been an upward growth in the sales of motor vehicles.

Life insurance business:

The growth of the life insurance business only seen due to the focus and increase in individual business. There are a few life insurances which are provided to the employees by the companies which are highly beneficial.

History of insurance development in India.

The insurance business has been one of the most fast growing sectors in India since the independence. The nationlisation of business sector started in the year 1956 and all the business relating to insurance was taken over by the central government. The life insurance corporation act was enacted in the year 1956 with an exclusive business of the life insurance.

Life insurers:

Public sector- Life Insurance Corporation of India (LIC)

Private sector- Allianz Bajaj Life Insurance Company Limited, Birla Sun Life Insurance Company Limited, HDFC Standard Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, Max New York Life Insurance Company Limited, MetLife Insurance Company Limited, SBI Life Insurance Company Limited, Tata AIG Life Insurance Company Limited, Aviva Life Insurance Company Pvt Limited, Sahara India Life Insurance Company Limited Non-life insurers.

Non-life insurers:

Public sector - National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited, United India Insurance Company Limited, Export Credit Guarantee Corporation, Agriculture Insurance Company of India Limited.

Private sector- Royal Sundaram Alliance Insurance Company Limited, Tata AIG General Insurance Company Limited, Cholamandalam General Insurance Company Limited.

In 1870 the Bombay Mutual Life Assurance Society, was the first Indian life insurance company that started its business.

Modern day insurance:

The modern form of life insurance came into effect to India from England in the year 1818. The Oriental Life Insurance Company started by the Europeans in Calcutta was the first one in the Indian Territory.

The purpose of those life insurances at that time was brought up with the motive of serving the needs of the European community. In the year 1912, the life insurance company’s act along with the provident fund act was passed. The insurance companies act ensured that the premium rates and periodical valuations of the companies on many accounts put the Indian companies at a disadvantage.

Insurance act of 1938:

In order to protect the interests of the Indian insurance companies, the above act was amended and the insurance act, 1938 came into force. It comprises of the provisions for the effective control over the activities of the insurers or insurance organizations.

Life and health insurance

Life insurance

Life insurance can be termed s n agreement between the policy owner nd the insurer, where the insurer agrees to pay sum of money upon the occurrence of the insured individual’s or individual’s death or any illness or the maturity of the policy.

Reasons to have life insurance:

  • Tax relief

  • Liquidity

  • Money when required

  • Protection

Term life insurance: the sum that is assured is payable only in the event of death during the term and in case of survival, the contract comes to an end.

Level term insurance: the sum that is assured throughout the term of the policy does not change. Renewable term life insurance: in this, the insurance automatically allows to renew our coverage after the term of the policy is over.

The functions of health insurance programme are to have access to healthcare and to protect the households from high medical expenses during the time of illness.

The average medical expenses of an Indian household are 6.5 per cent of the annual income.

Health insurance in India:

The health insurance premium has registered a compounded annual growth rate (CAGR) of 32 per cent for the past eight financial years. Over 300 million people or more than 25 per cent of India’s population, gained access to some from health insurance by 2010 and up to 55 million in 2003-04.

Principles of health insurance:

  • Good faith.

  • Insurable interest.

  • Principles of indemnity.

  • Principles of Subrogation.

  • Principles of loss minimisation.

Travel insurance

Travel insurance is the insurance that is intended to cover the medical expenses, trip cancellation, flight accident, and other such losses that are incurred during travelling, either intentionally or within one’s own country.

Types of travel insurance

  • International insurance

  • Student travel insurance

  • Individual travel insurance

  • Domestic travel insurance

  • Corporate travel insurance

  • Senior citizen travel insurance

  • Family travel insurance

  • Single trip insurance

  • Multi-trip travel insurance

Non-life insurance

Its also known as the general insurance. It is a form of insurance mainly concerned with protecting the policyholder from loss or damage caused by specific risks.

  • Agricultural: farmers use crop insurance to reduce or manage various risks associated with the growing of crops.

  • Aviation: insurers against hull(main body of the plane), spares, etc.

  • Car insurance: primarily to provide protection to car owners against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

  • Engineering: insurance is on an ‘all-risks’ basis and in particular includes fire, lighting, explosion, aircraft damage, riot, strike, malicious acts, faults in erection, human errors, negligence.


India is one among the most promising insurance markets in the world. Yet in india there is no balance between the investment flexibility and the insurance solvency. But there is always a belief that we will overcome this in the near future. Private insurers have an important role to play in serving the large number of informal sector workers. Finally the insurance company should be promising and have to show long-term commitment to the sector.


Name: Siri K Reddy

College name: St. Joseph’s College of Law, Karnataka

Year of study: 2nd year

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