The history of general insurance can be traced back to the Triton Insurance Company Ltd. of Calcutta (1850) which is the first general insurance company to be established in India. In 1907, the Indian Mercantile Insurance Ltd, the first company to transact all classes of general insurance business. In 1972, the General Insurance Business (Nationalization Act) was passed and this nationalized general insurance business in India.
In 1973, 107 insurers amalgamated and grouped into 4 companies: National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company
In 1993, Malhotra Committee was formed to evaluate the Indian insurance industry and create an efficient and competitive financial system. Among the many recommendations chief are :
- Government stake in the insurance companies to be brought down to 50%
- Greater freedom should be given to insurance companies
- Private companies with paid up capital of Rs 1 billion should be allowed to enter the industry.
- Foreign companies can enter the industry but only through collaboration with domestic ones.
- No company should deal with both general and life insurance through the same entity.
- In each state, only one state level life insurance company can operate.
- Endowment policy
- Whole Life Policy
- Term Life Policy
- Money-back Policy
- Joint Life Policy
- Group Insurance Policy
- Loan Cover Term Assurance Policy
- Pension Plans
- Unit Linked Insurance Plan
General insurance provides protection against accidents, illness, fire, burglary, etc. Major insurance policies covered under this are:
- Home Insurance- Policies Broadly cover building structure and contents inside home.
- Health Insurance- covers for expensive treatments, cashless hospitalization, critical illness
- Motor Insurance- covers against loss and damage of vehicles, protection against legal liabilities
- Travel Insurance- gives security to travels abroad, unforeseen expenses while travelling.
