Page 86 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
nd
th
form of aquatic business mortgages and 1956 nationalizing the Life Insurance sector and
shippers’ bonds. Insurance in India has grown Life Insurance Corporation came into being in
over time drawing from other countries, the similar year. The LIC attracted 154 Indian,
England in particular. 16 non-Indian insurers as also 75 provident
societies-245 Indian and foreign insurers in all.
Modern insurance can be tracked in the past to
The LIC had domination till the late 90s when
the city's Great Fire of London, which appeared the Insurance sector was resurrected to the
in 1666. When it demolished thirty thousand private sector.
households, a dude identified Nicholas Barbon
set up a structure of insurance company. He Parent of Insurance Sector --- IRDA
later launched the city's first fire insurance This is the mission (IRDAI, n.d.) of IRDA
corporation.
To protect the interest of and secure fair
In India, life insurance has been a fundamental treatment to policyholders.
element of most individuals' life cycles. For a
Ø to bring about speedy and orderly growth
few, it is a financing opportunity while others
refer to it as a security net to support for their of the insurance industry (including
people's up comings in case of unfortunate annuity and superannuation payments),
for the benefit of the common man,
demise.
and to provide long term funds for
The Indian Life Assurance Companies Act, accelerating growth of the economy.Ø
1912 was the first statutory measure to regulate to set, promote, monitor, and enforce
life business. In 1928, the Indian Insurance high standards of integrity, financial
Companies Act was enacted to enable the soundness, fair dealing, and competence
Government to collect statistical information of those it regulates.
about both life and non-life business transacted
Ø to ensure speedy settlement of genuine
in India by Indian and foreign insurers
including provident insurance societies. (DNA, claims, to prevent insurance frauds and
2011). other malpractices and put in place
effective grievance redressal machinery.
As per the suggestions of the Malhotra
Committee report, in 1999, the Insurance Ø to promote fairness, transparency and
Regulatory and Development Authority orderly conduct in financial markets
dealing with insurance and build a
(IRDA) was instituted as a self-governing
body to standardize and expand the insurance reliable management information system
to enforce high standards of financial
business. The IRDA was integrated as a legal
body in April 2000. The basic aims of the IRDA soundness amongst market players.
comprise campaign of competition to boost Ø to take action where such standards are
customer gratification because of enhanced inadequate or ineffectively enforced.
consumer preference and smaller premiums,
while safeguarding the financial insurance of Ø to bring about optimum amount of
the market. self-regulation in day-to-day working
of the industry consistent with the
An Ordinance was released on 19th January requirements of prudential regulation.

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