The Concept Of Insurance And Analysis Of Insurance Industry In India

Introduction

“Insurance business deals with the protection of economic values of wealth”. Every human has a tendency to rescues them from dangers or future events insurance is a type of savings where people try to convince themselves. Against future risks or uncertainties it is assured against risks or events or losses. People can save memory in assets such as gold, property or banking in the form their earnings insurance. All the savings of the people of the country are done for total local savings. In India, Though the savings rate is high, but people prefer to invest in gold or fixed assets so that they earn money from them. Hence the insurance sectors are still unexpected in India. When IRDA is established, life insurance companies have taken its real shape in India in the 2000 and in life, the right to a monopoly business of LIC insurance is over. The Malhotra committee has suggested for the improvement of insurance sector for the co-existence of both the public company and private companies both side and life insurance Corporation of India is now in competition with private life insurance companies in India, rapid growth the industry has crested one. Comparative analysis of public sector and private operations after the recovery time, the insurer’s will be useful in the analysis impact on general insurance industries in India. The comparison is four public sector insurance companies have been among the companies.

Public sector insurance are:

1. National Insurance Co. Ltd,(1906)
2. New India Assurance Co. Ltd,(1919)
3. United India Insurance Co. Ltd(1938)
4. Oriental Insurance Co. Ltd(1947)

Private sector insures are:

Royal Sundaram Alliance Insurance Co. Ltd. (23. 10. 2000)

1. Reliance General Insurance Co. Ltd. (23. 10. 2000)
2. IFFCO Tokio General Insurance Co. Ltd. (04. 12. 2000)
3. TATA AIG General Insurance Co. Ltd. (22. 01. 2001)
4. Bajaj Allianz General Insurance Co. Ltd. (02. 05. 2001)
5. ICICI Lombard General Insurance Co. Ltd. (03. 08. 2001)

The justification for taking up only six private sector companies out of 15 is that these companies had started business in India during the early part of reforms. They also enjoy a remarkable market share. Other companies who not selected is relatively new and it would be unfair to compare in the early years, a business done by them with older companies also, if all private companies are selected, then the result of techniques like data development analysis and honour Whitney test can be misleading. However for general development and rural and social sector liabilities, all existing public and private general information insurance companies are used in the study. The post improvement period shows the period starting in 2000 comparative performance analysis of public and private sector general insurance during the period 2020, the post reform period. 2003 to 2009-2010 not update periods private sectors general insurance is considered for a period of analysis selected companies for study have just started working in India and so on comparison of their performance in the public sector in the initial years general insurance companies are not sutitable.

Concept of Insurance

Life has always been a precarious thing. Always be protected against unpopular possibilities. There is a resources and television in man’s part. To pray or pay protection is the spirit to pray to god for protection from ancient times in modern times, insurance companies want to pay them protection and safety insurance man says “God helps those who help themselves”; maybe it’s true.

Many people in this country are not employed. And works for a long time. Guaranteed income security some millions of part-time is part-time, self-employed and low earnings. Employers living in hazardous situations where there in no securities cover against risk. Next risk of economics policy and near-life cycle a new source of insecurity. Family life, divorce and changing of dependents are awkward society risk is cantered in someone’s life. It is in this backgrounds life insurance policy covering policies covering various risks by insurance. Life insurance coverage is in the case of inactivity or in the case of death of the insured, financially support for dependents. It is the social security criteria for the life insured for the livelihood. Dependents have the right to make this life’s meaningful, proper life and livelihood right. What is the meaning of maintenances? So, it goes on to say that the right life insurance policy social security is one of the ability to pay and the insurance’s premium paying media. Action is taken under the Indian constitution. Therefore, the right to social security, defence family, poor and disadvantaged people are an integral part of economic empowerment. The person’s life and dignity guaranteed in the constitution. The man finds himself in his own security (money), which makes him capable of food, clothing, and shelter and shopping. Other needs of life the person has to earn income not only for himself, but also for him. Dependents, such as wives and children. They have to be legally required to prove for their family needs, and so have them. To keep something regular for a rainy day and old age. The basic requirement for self and dependents proves to be the mother of the organization’s research of life insurance.

What Is Insurance?

Insurance is a tool through which small casualties are exempt from funding (premium payment) collected from plenty. Insurance is the protection against indefinite events that may be happens in the future. It is an arrangement where the loss experienced by a few is expanded open to many dangers. It protects against economics emergencies unexpected event is going to happen. Insurance companies collect premiums received companies have a proposal from which are filled to give details of the required insurance. Depending on the answer in insurance companies evaluate the risk and make a decision on the premium. Insurance companies are risky. They overwrite the risks in return for insurance premiums. A the work of insurance is to provide protection, prevent damage, capital formation etc. Insurance can be defined as a tool whereby the sum paid by the insured and premium understanding the risk of paying a large sum of the insurer. It can also be defined and agreement in which a party agrees to pay another party or its beneficiary, the exact amount of insurance that is required for a given contingency. Insurance industry order large funds by selling insurance product to a large number of customers and commit yourself to compensate for losses policyholder at a future date. It plays an important role in the process of capital formation.

History of Insurance Indudtry in India

In the last century, the insurance industry has made major changes in India. In this India industry shows a 360 degree turn. 360 degree turn means that it started with being made in India open competitive market for nationalization and return to the liberal market again. In India the insurance industry started as a complete private system without any full restriction foreign partnership in the nineteenth century. Before independence, a few Britishers companies dominated. Life insurance was started in India by the british in 1818, the company was called oriental life insurance company, followed by Bombay a sure company in 1823 and the madras equal able life insurance society in 1829 these companies are operated in India but do not insure the lives of Indians. They were there life insurance for European people living in India. Some companies started later provide insurance for Indians. But, they were treated as “upset” and so they had to pay 20% or more extra premium the first company to have policies can be bought Indians with “air value “were the Bombay mutual life insurance society, which started in 1841. The first general insurance company, triton insurance company ltd, was established in 1850. It was managed and managed by the British. The first general insurance company was Indian mercantile insurance company limited was established in Bombay in 1907. By 1938, insurance market about 176 companies in India after independence, the industry went to the second extreme. It become state owned monopoly. There is a problem of fraud in this industry. There were so many rules to reduce and control problems in the industry. Then what were the insurance in 1956, the then finance minister S. K. Deshmukh announced nationalization life insurances business and then general insurance business nationalization was done in 1972. Only private insurance companies have been allowed to return to the insurance business in 1999 with maximum 26% foreign holding.