India is the largest democracy in the world having a population more than one billion. It is 5th largest in the world in terms of purchasing power parity (PPP). India GDP growth rate is over 6 percent per year on average for the last decade and saving rate is around 26 percent of GDP.

Through India's economic development, it becomes the most lucrative insurance markets in the world. Before the year 1999 there were monopoly of state run Life Insurance Corporation of India (LIC) in life insurance sector and General Insurance Corporation of India (GIC) with its four subsidiaries in general sector. In the wake of reform process and passing Insurance Regulatory Development Act (IRDA) through Indian Parliament in 1999, Indian Insurance was opened for private companies.

History

Insurance industries in India have a long history. Life insurance in existing form came in India from UK in 1818 with Oriental Life Insurance Company. The Indian life Assurance companies Act, 1912 was the first measure to regulate life Insurance business. Later in 1928 the Indian Insurance Companies act was enacted, which was amended in 1938. Finally this act was amended by Government of India in 1950.

Life Insurance corporation of India was formed in September 1956 by passing LIC Act, 1956 in Indian parliament.

The first general insurance company, Triton Insurance Company Ltd. was established in Calcutta in 1850. In 1957 the General Insurance Council a wing of Insurance Association of India formed a code of conduct. In 1961 an insurance act was passed to form General Insurance Company Ltd. which was amended in 1968. General Insurance business was nationalised with effect from 1.1.73 by the General Insurance Business Act. from 1973, The General Insurance Company (GIC) as a holding company divided in four subsidiaries as: National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and The United Assurance Company Ltd.

What is Insurance?
Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party happening of a certain event.

Insurance is a protection against a financial loss arising on the happening of an unexpected event. Insurance Companies collect premium to provide for this protection. A loss is paid out of this premium collected from the insuring public. The insurance Company act as a trustee to the amount collected through premium.

Insurance is generally classified in three main categories, (i) Life Insurance, (ii) Health insurance and (iii) General Insurance

To get insurance an individual or an organisation can approach to an insurance Company directly, through Insurance Agent of the concerned company or through Intermediaries.

Benefits of Insurance
Insurance is the instrument of Security, saving and peace of mind. It provide several benefits by paying a small amount of premium to an insurance company as:

	Safeguards oneself and one's family for future requirements.
	Peace of mind-in case of financial loss.
	Encourage saving.
	Tax rebate.
	Protection from the claim made by creditors.
	Security against a personal loan, housing loan or other types of loan.
	Provide a protection cover to industries, agriculture, women and child.

Insurance Regulatory Authority:
On the recommendation of Malhotra Committee, an Insurance Regulatory Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim is to activate an insurance regulatory apparatus essential for proper monitoring and control of the Insurance industry. Due to this Act several Indian private companies have entered into the insurance market, and some companies have joined with foreign partners.

In this economic reform process the Insurance Companies will boost the socio-economic development process. The huge amount of funds that will be at the disposal of Insurance Companies will be directed as desired avenues like housing, safe drinking water, electricity, primary education and infrastructure. The growth of the debt market will also get a boost. Above all the policyholders will get better pricing of products from competitive insurance companies.