Page 14 - Ebook health insurance IC27

The Insurance Times

nearly 200 years. The process of re-opening of the sector had begun in the early
1990s to increase the penetration of insurance, to improve customer service, to
enhance the efficiency of the insurance industry and to bring down costs through
competition.

In 1993, the Government set up a committee under the chairmanship of Shri R N
Malhotra to propose recommendations for reforms in the insurance sector. The
Committee submitted its report in 1994 wherein, among other things, it recommended
that the private sector be permitted to enter the insurance industry.

It also stated that foreign companies be allowed to enter by floating Indian companies,
preferably through joint venture with Indian partners.

Following therecommendations of the MalhotraCommittee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body
to regulate and develop the insurance industry.

The IRDA opened up the market in August 2000 and so far, 16 life insurance companies
and 17 general insurance companies, including two stand alone health insurance
companies, the ECGC and Agriculture Insurance Company of India, are operating in
the country.

Evolution of Health Insurance in India

(If the question is for 12 marks then evolution of health insurance as mentioned
below would be covered fully. If it is asked in the form of a short note for say
Employees State Insurance scheme you can answer as per the points mentioned
below)

1 8 Guide for Health Insurance