Mobilisation of Funds in Insurance Industry
Chapter - 1
INSURANCE INDUSTRY AN OVERVIEW
1.1. BACKGROUND OF INSURANCE INDUSTRY
It has been established that village co-operatives insured against loss of profit in an industry in the early days of the Aryan Civilization. There were contacts safeguarding risks of transport by sea or land. Further these well renowned joint-family system rendered services similar to those of present life assurances. However expecting the system of joint family all other gradually waned and insurance in the modern sense appeared in the late eighteenth and early nineteenth centuries by the established of seven Marine Insurance companies in Calcutta-then the centre of trade and commerce in India. This was followed in due course by the opening of branches and or agencies in India by many British offices, and some continental and colonial insurers. Even the American offices did not lag behind.
The successful operation of the foreign insurers encouraged the formation of life offices in India in the late nineteenth century such as Bombay Mutual in 1871 and the oriental in 1874 and Hindustan cooperative in 1907 other life offices followed. The swadeshi movement at the beginning of the present century was responsible for the establishment of various insurers with Indian capital. Thus in 1907 the Indian Mercantile was the first Indian general insurance company followed later on by New India in 1919 and six other insurers. The year 1922 and 1923 were very critical for these young general insurers in as much as they had to compete with 150 foreign offices that had not only the experience of actual organization but also a tradition of general insurance business behind them. On the top of this the exchange banks provided impediments in one-way or the other. However patriotism of the Indian public saw the general insurers through this difficult period and national agitation insisting for legislative protection compelled the government of India to investigate into the matter.
As a
INSURANCE INDUSTRY AN OVERVIEW
1.1. BACKGROUND OF INSURANCE INDUSTRY
It has been established that village co-operatives insured against loss of profit in an industry in the early days of the Aryan Civilization. There were contacts safeguarding risks of transport by sea or land. Further these well renowned joint-family system rendered services similar to those of present life assurances. However expecting the system of joint family all other gradually waned and insurance in the modern sense appeared in the late eighteenth and early nineteenth centuries by the established of seven Marine Insurance companies in Calcutta-then the centre of trade and commerce in India. This was followed in due course by the opening of branches and or agencies in India by many British offices, and some continental and colonial insurers. Even the American offices did not lag behind.
The successful operation of the foreign insurers encouraged the formation of life offices in India in the late nineteenth century such as Bombay Mutual in 1871 and the oriental in 1874 and Hindustan cooperative in 1907 other life offices followed. The swadeshi movement at the beginning of the present century was responsible for the establishment of various insurers with Indian capital. Thus in 1907 the Indian Mercantile was the first Indian general insurance company followed later on by New India in 1919 and six other insurers. The year 1922 and 1923 were very critical for these young general insurers in as much as they had to compete with 150 foreign offices that had not only the experience of actual organization but also a tradition of general insurance business behind them. On the top of this the exchange banks provided impediments in one-way or the other. However patriotism of the Indian public saw the general insurers through this difficult period and national agitation insisting for legislative protection compelled the government of India to investigate into the matter.
As a