In terms of insurance premium collection, India presently
stands fifth in Asia, with Japan having 40 times more premium
collection than India. The gross domestic premium income
of general insurance business in India has increased to
Rs. 9,522 cr in the year 2000 from Rs.184 cr in 1973. This
speaks about the volume of growth in non-life insurance
business in the country.
The idea of insurance was first conceptualized in the 14th
century. At that time, it was used more as a tool for protection
against financial loss of seafarers involved in foreign
trade. Since then, this concept has undergone several changes.
It is basically the unforeseen contingencies of human life
that has given a very new look to the insurance industry.
Gradually, as competition increased, the benefits given
by the industry to its customers improved by leaps and bounds.
With the growth of industry, trade and commerce, insurance
also grew over a period of time and gained maturity. In
terms of insurance premium collection, presently, India
stands fifth in Asia, with Japan having 40 times more premium
collection than India. Despite a double digit growth in
the last two years, the ratio of insurance premium to GDP
has remained low in China and India.
Currently, only 70 million people are insured in India
out of the overall population of over one billion. On the
other hand, the non-life insurance business has a vital
role to play to safeguard the nation's property. The gross
domestic premium income of general insurance business in
India has increased to Rs. 9,522 cr in the year 2000 from
Rs.184 cr in 1973. This speaks about the volume of growth
in non-life insurance business in the country (See Table
1).
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