Overview of General Insurance In India
General insurance in India is a union subject which means that an insurance business can only be set up under the guidelines of the central government of India. Unlike many other businesses that could be set up under the guidelines of the particular state where the business is being set up, an insurance business can only be established under the guidelines of the union government of India.Although the history of insurance in India dates back to as far as1818 the industry has a long way to go in India, in order to develop and evolve to the levels of its counterparts in the west. But the potential of this industry is massive in a country of India’s size especially when we consider the fact that a small country like the UK has over 800 insurance companies doing profitable business in that country.
With the near double digit growth of the Indian economy resulting from deregulation of vital sectors there is a growing demand to allow further increases in the equity of foreign companies from the present 26 %. In fact the 26 % equity holding for foreign companies was considered to be a major breakthrough in deregulation in 1999 when the government finally broke the siege of the domestic interest groups represented mainly by the unions.
Nearly everything with a financial value and a probability of getting lost, stolen or damaged can be covered through a general insurance policy. General insurance provides much-needed protection against unforeseen events such as accidents, illness, fire and burglary. General Insurance does not offer cash returns but is a protection against contingencies, quite unlike life insurance.
Presently general insurance in India covers just:
Home Insurance
This type of insurance broadly covers:- Building structure
- Contents inside the house
Health Insurance
This type of insurance covers the cost of healthcare to the extent of the sum insured.
