In 2000, Indian insurance market size was $21.71 billion.

Between 2000 and 2007, it had an increase of 120% and

reached $47.89 billion. Between 2000 and 2007, total
premiums maintained an average growth rate of 11.96%.
It was one of the most consistent growth patterns
noticed in any other emerging economies in Asian as
well as Global markets. At present the market size is
more than $ 60 billion.
The aim of insurance is to make provisions against the
risks arising from uncertain events in individual’s life
and business.

The basic principle of insurance is to spread over the

future loss likely to be caused by an uncertain event
over a large number of persons who are also exposed
to the same type of risks and insure themselves
against such future risks.
InsuranceAct,1938

The Life Insurance Business was nationalized in 1956 and Life

Insurance Corporation of India was set up under the
provisions of the LIC Act, 1956.

The General Insurance Business (fire, marine and

miscellaneous insurance) was nationalized under General
Insurance Business (Nationalization) Act, 1972.
The following were operating under control & supervision
of General Insurance Corporation of India (GIC)

(i) The New India Assurance Co. Ltd

(ii) The United India Fire & General Insurance Co. Ltd

(iii) The Oriental Fire & General Insurance Co. Ltd &

(iv) The National Insurance Co. Ltd

 Insurance Regulatory & Development
Authority Act, 1999
Between year 2000 and 2009 total 36 new
insurance companies were granted license by the
IRDA. The FDI up to 26% in the Insurance sector is
allowed on the automatic route subject to obtaining
licence from Insurance Regulatory & Development
Authority (IRDA)
 Main Insurance Companies in India

Life Insurance Companies (In Year 2010)

(i) LIC (Market share 64% dropped from 74% a year back )
(ii) ICICI Prudential Life Insurance Co. Ltd (8.93%)
(iii) Birla Sun Life Insurance Co Ltd (2.11%)
(iv) Bajaj Allianz Life Insurance Co Ltd (6.98%)
(v) SBI Life Insurance Co Ltd
(vi) Reliance Life Insurance Co Ltd (2.96%)
(vii) HDFC Standard Life Insurance Co Ltd (2.88%)
(viii) Max New York Life Insurance Co. Ltd
(ix) Kotak Mahindra Life Insurance Co Ltd
(x) Aviva Life Insurance Co Ltd
General Insurance Companies

(i) New India Assurance Co Ltd

(ii) National Insurance Co Ltd
(iii) Oriental Fire & General Insurance Co Ltd
(iv) United India Fire & General Insurance Co Ltd
(v) ICICI Lombard
(vi) Bajaj Allianz General Insurance
(vii) Reliance General Insurance Co Ltd
(viii) Iffco Tokio General Insurance
(ix) Tata AIG General Insurance
(x) Cholamandalam
(xi) HDFC General Insurance Co Ltd