I NSURANCE Life is full of uncertainties. The chances of occurrence of an event causing losses are quite uncertain. There are risks of Indian Insurance Sector It is a well-known fact that the Indian economy has been amongst the fastest growing economies of the world. It is triggered by better performances of all the three sectors i.e., agriculture, industry and services.
With an increase in manufacturing and service sector activities, a directly proportional higher insurance penetration is the need of the hour. With the initiation of financial sector reforms, the Indian insurance sector which was till now under the government control has to set open for competition to meet the global challenge. The first step taken by the government was to establish IRDA Act with the objective of streamlining the development process. The Indian insurance market is a mega market with a huge potential.
Since the opening of the insurance sector in December the insurance industry is changing rapidly. Today companies operate in the life and in non-life segment. LIC of India has dominated the life segment for over four decades although only per cent of the insurable population was insured. From the year onwards IRDA started granting licenses to private players.
Thus general insurance sector has seen considerable expansion over the past few years. The premium income has recorded a growth rate of per cent. A department wise split shows that in the year - , per cent of business is derived from fire, per cent from marine insurance, per cent from motor insurance, per cent from health schemes, per cent from re-engineering and remaining per cent from other miscellaneous insurances. Amongst the fastest growing companies are the National Insurance, Bajaj Allianz, Tata-AIG and ICICI Lombard.
Currently, over per cent of the business underwritten (fire, marine, motor and engineering) is subject to tariff controls. death and disability for human life; fire and burglary risk for property; perils of the sea for shipment of goods and, so on. If any of these takes place, the individuals and/or,