Acts
The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. It is governed by a number of acts.
The Insurance Act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business.
Life insurance in India was completely nationalized on January 19, 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India.
The General Insurance Business Act of 1972 was enacted to nationalise the about 100 general insurance companies then and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance and United India Insurance, which were headquartered in each of the four metropolitan cities.
Until 1999, there were no private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed and capped at 51% holding in the Indian insurance companies.
In 2006, the Actuaries Act was passed by parliament to give the profession statutory status on par with Chartered Accountants, Notaries, Cost & Works Accountants, Advocates, Architects and Company Secretaries.
A minimum capital of US$80 million(Rs.400 Crore) is required by legislation to set up an insurance business.
Read more about this topic: Insurance In India
Famous quotes containing the word acts:
“To make our idea of morality centre on forbidden acts is to defile the imagination and to introduce into our judgments of our fellow-men a secret element of gusto.”
—Robert Louis Stevenson (1850–1894)
“A man’s real and deep feelings are surely those which he acts upon when challenged, not those which, mellow-eyed and soft-voiced, he spouts in easy times.”
—Sarah Patton Boyle, U.S. civil rights activist and author. The Desegregated Heart, part 2, ch. 13 (1962)
“It is not enough to ask, ‘Will my act harm other people?’ Even if the answer is No, my act may still be wrong, because of its effects on other people. I should ask, ‘Will my act be one of a set of acts that will together harm other people?’ The answer may be Yes. And the harm to others may be great. If this is so, I may be acting very wrongly, like the Harmless Torturers.”
—Derek Parfit (b. 1943)