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Indian insurance is a main and important subject which is prevailing in Indian economy and has a perpetuating history since 1818. the main insurance types in India are Life and General insurance as these two insurance form the main economic growth of India as the overall Life insurance policy premiums will amount to 2.5%GDP of India. The general insurance sector is earning around 0.65% of India’s GDP and is going on well. The Indian insurance sector has drastically changed, particularly when the insurance laws were eased by the government of India in the year 1999 which allowed the foreign investors to come into India and establish their insurance companies and soon they are catering the best services to the customers in the insurance field. Now presently the growth in FDI (foreign Direct Investment) has been hiked to 26% in the economy of India.
The main aim of all the insurance companies whether they are Indian or foreign is to compensate the consumer against loss which arise from a variety of risks, which he/she can anticipate in time to his/her property , health and life insurance and also in some cases auto insurance too.

Indian Insurance is mainly two types-

  1. Life insurance
  2. General insurance

General insurance includes in its wings marine insurance, assorted insurance, auto insurance and fire insurance. The diverse insurance also includes the minute things such as theft, fidelity guarantee, insurance for employees who work for private or public companies and the insurance for livestock and crops which leads to farming industry which is the main source on income for the Indian Economy.

The Indian insurance act of 1972 and the general insurance act of 1972, shield fire and marine insurance in India. Indian Insurance Act of 1972 is also made to cement Marine insurance in the Indian Country. These laws are implemented for the better use of the insurance and also for the insurance consumers in India. All the insurance businesses in India are nationalized under one roof by the Indian Insurance acts.

Now it can be termed in simple words that Indian insurance is a contract between the consumer and the insurance provider, and in case if there is any life loss in any unfortunate happening the insurance provider compensate the life with a lump sum amount of money. This is in the case of life insurance. In the case of general insurance the i.e. auto, live stock insurance and health the insurance providing company will look after the losses incurred and will estimate the losses and will compensate with a respectable amount.

Indian Insurance policies prevailing in India are-

  1. Indian Re- insurance and double insurance
  1. Indian fire Insurance
  1. Motor Car Insurance
  1. Personnel accident insurance of India
  1. Indian marine Insurance
  1. Other insurance

Re- insurance and double insurance

Every insurer has a risk undertaken restriction. In case of a profitable risk, the insurer will go beyond his risk taking capacity and will repay for the risk. Then in altering the risk and spreading the risk to other insurers, the insurance provider will spread the risk capacity evenly with other companies. This type of spreading the risk capacity to the other insurance providers, from one insurance provider is called Re- Insurance. The re- insures are agreeable to pay the amount to the original insurer, if the original insurer has paid the insure has paid the total risk sum.
When the insured goes for the re- insurance and spreads the insures risk to the other independent insurers, and in case if the total sum exceeds the value of the fixed subject matter, then it can be termed as the insured getting Double Insurance. Both the double insurance and the over insurance are justified according to the law books of India, unless there is an illegality taking place from the side of the insured.

Fire Insurance in India

Fire insurance can be termed as the contract made between the insurer and the insured for any destruction of or any damage to the insured property, his/her goods and services and also the main aim is between a specified periods. The contract will clearly state the maximum amount which is agreed by the both parties at the time of contract, which the insured can claim in the case of loss.

Steps to be taken while going for a fire insurance claim

  • It is strictly the duty of the insured, or any other related person on His/her behalf, to give immediate valid notice of the fire accident to the fire insurance provider, so that they can safeguard their interest in the cause and the nature of the fire accident and can also justify accordingly and totally estimate the movable and immovable loss.
  • Failure in doing so may avoid the claim from being met.
  • The insured should and must prepare and submit the cause and the nature of the accident and also the total loss incurred during the fire accident and will have to also submit the address proof of residence if required.
  • The submission of the full details to the fire insurance company is to claim and recover the fire accident loss.

Motor car insurance

This policy of motor car insurance is bought in respect of cars and auto vehicles which are used for private and professional purposes.

Personnel accident insurance policy

This policy covers the insurer the specified amount, if the insured fetches any bodily injuries which are a result of a accident or any kind of external source and also includes visible and non – visible injuries.

Marine insurance

This policy covers the insured from the any kind of loss incurred by a marine accident during a voyage risk and will estimate and compensate the loss financially.

Other insurance

The other insurance include health insurance, life insurance and home insurance. Recently pet insurance has also started from the past 4 years.

Acts pertaining to insurance

The insurance sector in India has metamorphoses drastically from the past 30 years and has been regulated completely. The total insurable act is derived by the Indian Insurance act of, 1938.

Insurance act, 1938

The Indian insurance act of 1938 was the first of its king\d in the insurance history of India and today also has the hold over all the varieties of insurance and controls them as a parent law, over the insurance sector of business.

General insurance act of 1972- nationalized

The Indian general Insurance act of 1972 was strictly carved to be nationalized the 114 general insurance companies India. All the insurance companies were merged and the product has been 4 insurance companies.

  1. National insurance
  1. New India assurance
  1. Oriental Insurance
  1. United India Insurance

The four companies have been headquartered in four national metro cities of India- Calcutta, Mumbai, Bengal and Delhi.

Insurance regulatory and development authority Act of 1999.

Till the year 1999, there were no insurance companies which were privately owned in India. The government of India after making a fine resolution has made a act named insurance regulatory and development authority act in the year 1999 which regulated the present four Indian insurance companies and allowed the private investors in investing in the insurance business of India. This brought a profit of 26% to the insurance capita of India by the foreign investments.

Few Insurance companies which offer insurance policies in India

  • Tata AIG Insurance
  • Reliance Insurance of India
  • LIC Insurance
  • Oriental Insurance
  • New India Assurance Company Limited
  • National Insurance Company Limited
  • United India Insurance Limited
  • State Bank of Insurance which offers health, life and also property insurance.
  • Bajaj alliance insurance
  • ICICI insurance
  • CITI group insurance Company