Insurance in India refers to the market for insurance in India which covers both the public and private sector organisations. It is listed in the Constitution of India in the Seventh Schedule as a Union List subject, meaning it can only be legislated by the Central Government only.

The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment. India allowed private companies in insurance sector in 2000, setting a limit on FDI to 26%, which was increased to 49% in 2014.[1] Since the privatisation in 2001, the largest life-insurance company in India, Life Insurance Corporation of India has seen its market share slowly slipping to private giants like HDFC LifeICICI Prudential Life Insurance and SBI Life Insurance Company,Postal Life Insurance.

Insurance in this current form has its history dating back to 1818[citation needed], when Oriental Life Insurance Company[2] was started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India saw discrimination between the lives of foreigners (English) and Indians with higher premiums being charged for the latter.[citation needed] In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer.[citation needed]

At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparity still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company, which was founded in 1906, and is still in business.

The Government of India issued an Ordinance on 19 January 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers and also 75 provident societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1 January 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commenced business on 1 January 1973.

The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. But, now there are 23 private life insurance companies in India.[3] Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC). GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies: Oriental Insurance Company LimitedNew India Assurance Company LimitedNational Insurance Company Limited and United India Insurance Company.

The primary regulator for insurance in India is the Insurance Regulatory and Development Authority of India (IRDAI) which was established in 1999 under the government legislation called the Insurance Regulatory and Development Authority Act, 1999.[6][7]

The industry recognises examinations conducted by the IAI (for 280 actuaries), III (for 2.2 million retail agents, 490 brokers, 175 bancassurers, 125 corporate agents and 29 third-party administrators) and IIISLA (for 8,200 surveyors and loss assessors). There are 9 licensed web aggregators. TAC is the sole data repository for the non-life industry. IBAI gives voice to brokers while GI Council and LI Council are platforms for insurers. AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and NFIFWI cater to the employees of the insurers. In addition, there are a dozen Ombudsman offices to address client grievances.

1Acko General InsurancePrivateMumbai2016
2Aditya Birla Health InsurancePrivateMumbai2015
3Agriculture Insurance Company of IndiaGovt.New Delhi2002
4Apollo Munich Health InsurancePrivateGurgaon2007
5Bajaj Allianz General InsurancePrivatePune2001
6Bharti AXA General InsurancePrivateMumbai2008
7Cholamandalam MS General InsurancePrivateChennai2001
8Cigna TTKPrivateMumbai1918
9DHFL General InsurancePrivateMumbai2016
10Digit InsurancePrivatePune2017
11Edelweiss General InsurancePrivateMumbai2017
12Export Credit Guarantee Corporation of IndiaGovt.Mumbai1957
13Future Generali India InsurancePrivateMumbai2007
14HDFC ERGO General Insurance CompanyPrivateMumbai2002
15ICICI LombardPrivateMumbai2001
16IFFCO TOKIO General InsurancePrivateGurugram2000
17Kotak Mahindra General InsurancePrivateMumbai2015
18Liberty General InsurancePrivateMumbai2013
19Magma HDI General InsurancePrivateMumbai2009
20Max Bupa Health InsurancePrivateNew Delhi2008
21National Insurance CompanyGovt.Kolkata1906
22New India AssuranceGovt.Mumbai1919
23Raheja QBE General InsurancePrivateMumbai2007
24Reliance General InsurancePrivateMumbai2000
25Reliance Health InsurancePrivateMumbai2017
26Religare Health Insurance Company LimitedPrivateGurgaon2012
27Royal Sundaram General InsurancePrivateChennai2000
28SBI General InsurancePrivateMumbai2010
29Shriram General InsurancePrivateJaipur2008
30Star Health and Allied InsurancePrivateChennai2006
31Tata AIG General InsurancePrivateMumbai2001
32The Oriental Insurance CompanyGovt.New Delhi1947
33United India Insurance CompanyGovt.Chennai1938
34Universal Sompo General Insurance CompanyPrivateMumbai2007

Generally Insurance is of two types Life & Non-Life.

Life Insurance includes:-

i.    Term Policies

ii.   Regular Investment Plans

iii.  Traditional Plans

Non-Life Insurance:-

i.    Moter Vehicle

ii.   Health Insurance

iii.  Home Insurance

iv.  Shopkeeper Policy

v.    Hull Insurance

vi.   Fire policy

vii.  Burglary Insurance

viii. Business Insurance

ix.   Personal Insurance

x.    Travel Insurance