In India, the concept of insurance was never a given a serious thought, as compared to other countries. People still are under insured. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.
A Brief History Of The Insurance Sector
Unti recently, India continued to be one of the few remaining countries of the world to remain insulated from the direct foreign investment in its insurance sector.However, things are changing now with the passage of Insurance Regulatory Development Act(IRDA) through Indian Parliament in late 1999. A much awaited and much debated act, it met with strong resistance from the political institutions of India and took almost six years to see daylight. Though first recommended by Malhotra Committee on Insurance Reforms in 1994, what emerges is a diluted from of the original recommendations.