Chapter II

The Origin and- growth

of Insurance in the
Indian Con text
 CHAPTER -H

THE ORIGIN AND GROWTH OF INSURANCE

IN THE INDIAN CONTEXT

This chapter deals with the history of insurance. It explains the origin

and growth of insurance business in the Indian context. The concept of

insurance has been prevalent in India since ancient times amongst Hindus.

Overseas traders practiced a system of marine insurance. The joint family

system, peculiar to India, was a method of social insurance of every member of

the family on his life. The law relating to insurance has gradually developed,

undergoing several phases from nationalization of the insurance industry to the

recent reforms permitting entry of private players and foreign investment in the

insurance industry.

History of insurance:

Insurance probably made a beginning in the ancient land of Babylonia in

the 18th century B.C., Babylonia king Hammurabi developed a code of law,

known as the Code of Hammurabi, which codified many specific rules

governing the practices of early risk-sharing activities. For instance, the code

dictated that traders had to repay merchants who financed trading voyages

unless thieves stole goods in transit, in which case debts would be cancelled.

This was similar to the system of insurance known as bottomry which

existed in Phoenicia in 1200 B. C. In this system, backers loaned money to

56
merchants to finance voyage. Merchants offered their ships (the hull was

known as the ship's bottom') as collateral for such loans. When a trip

succeeded, the merchant would pay the trip's backer the original loan plus

interest, the equivalent of a premium. If a ship went down on its voyage, the

trip's backer would cancel the merchant's loan.

The Greeks and Romans developed the earliest systems of life

insurance. They formed societies which paid dues that went toward paying for

the burial of members. Sometimes these societies also paid for the living

expenses of deceased members' of the families. During the Middle Ages (5th to

15th centuries A. D.), workers joined together for helping the families in the

group in the event of death or illness of the group members.

Insurance as we know it today took its shape in 17th century England.

The policy of life of William Gybbons on June 18, 1633 was the first recorded

evidence. There was a place called Lloyd's Coffee House in London, owned by

Edward Lloyd, where merchants, ship-owners and underwriters met to discuss

and transact business. In 1871, Lloyd's Act was passed incorporating the

members of the association into a single corporate body with perpetual

succession and corporate seal. It extended from marine insurance to other

insurance and guarantee business. Today, Lloyd's has become the world's best

known insurance brand. It is commonly misunderstood that Lloyd's is an

insurance company. Actually, it is a society of members, known as

underwriters', both corporate and individual, who underwrite in syndicates on

57
whose behalf professional underwriters accept risk. Thus, supporting capital is

provided by investment institutions, specialist investors, international insurance

companies and individual.

History of India's Insurance Business:

In "Rigiveda" we find the term "Yogakshema Bahamayam" which is

more or less akin to the well being and security of people. This makes it clear

that the traces of sharing the future losses were available even in ancient India'.

This suggests that a form of "community insurance" was prevalent around

1000 BC and practiced by the Aryans.

Life insurance was first set up in India through a British company called

the Oriental Life Insurance company in 1818 followed by the Bombay

Assurance company in 1823, the Madras Equitable Life Insurance Society in

1829, the Bombay Mutual Life Assurance Society 1871 and the Oriental Life

Assurance Company in 1874. All of these companies operated in India but did

not insure the lives of Indians. They were insuring the lives of Europeans living

in India.

The first General Insurance Company viz., Triton Insurance Co. Ltd.,

was established in Calcutta in 1850 whose shares were held mainly by the

Britishers2. Insurance business was conducted in India without any specific

regulation for the insurance business. They were subject to Indian companies

Actl 866. After the start of the "Be Indian Buy Indian Movement" (called

Swadeshi Movement) in 1905, indigenous enterprises sprang up in many

58
industries. Not surprisingly, the Movement also touched the insurance industry

leading to the formation of dozens of life insurance companies along with

provident fund companies (provident fund companies are pension funds). The

first indigenous general insurance company was the Indian Mercantile

Insurance company Limited set up in Bombay in 1907.

In 1912, two sets of legislation were passed: 1) The Indian Life

Assurance Companies Act and 2) The Provident Insurance Societies Act. The

features of the legislation:

(a) They were the first legislations in India that particularly targeted the

insurance sector.

(b) They left general insurance business out of it. The Government did not

feel the necessity to regulate general insurance.

(c) They restricted activities of the Indian insurers even though the model

used was the British Act of 1909.

The birth of the Insurance Act 1938:

In 1937, the Government of India set up a consultative committee.

Mr. Sushil C. Sen, a well known solicitor of Calcutta, was appointed the chair

of the committee. He consulted a wide range of interested parties including the

industry. It was debated in the Legislative Assembly. Finally, in 1938, the

Insurance Act was passed. This piece of legislation was the first comprehensive

one in India. It covered both life and general insurance companies. It clearly

defined what would come under the life insurance business, the fire insurance

business and so on. It covered deposits, supervision of insurance companies,

59
investments, commissions of agents, directors appointed by the policyholders

among others. General insurance business is defined to mean fire, marine and

miscellaneous insurance business whether carried on singly or in combination

with one/more of them3. To implement the 1938 Act, an insurance department

was first set up in the Ministry of Commerce by the Government of India.

Later, it was transferred to the Ministry of Finance.

Nationalization of Insurance in India:

After India became independent in 1947, National Planning modeled

after the Soviet Union was implemented. The genesis of nationalization of life

insurance came from a document produced by Mr. H. D. Malaviya called

"Insurance business in India" on behalf of the Indian National congress. The

Finance Minster C. D. Deshmukh announced nationalization of the life

insurance business in 1956. Life insurance business was nationalized on 19th

January 19564. The Government brought together life insurers under one

nationalized monopoly corporation and Life Insurance Corporation of India

was born.

At that time there were 154 Indian life insurance companies. In addition

there were 16 non-Indian companies and 75 provident societies issuing life

insurance policies. Most of these companies were centered in the metropolitan

areas like Bombay, Calcutta, Delhi and Madras.

The reasons behind the nationalization of life insurance were (1) the

government wanted to channel more resources to national development

programmers. (2) it sought to increase insurance market penetration through

60
nationalization. (3) the government found the number of failures of insurance

companies to be unacceptable The government argued that the failures were the

result of mismanagement and nationalization would help to better protect

policyholders.

General insurance was not nationalized in 1956 along with the life

insurance. The reason was addressed by the then Finance Minister

C.D.Deshmukh, in his budget speech of 1956.

"I would also like to explain briefly why we decided not to bring in

general insurance into the public sector. The consideration which influenced us

most is the basic fact that general insurance is a part and parcel of the private

sector of trade and industry and functions on a year to year basis. Errors and

omissions in the conduct of its business do not directly affect the individual

citizen. Life insurance business, by contrast, directly concerns the individual

citizen whose savings, so vitally needed for economic development, may be

affected by any acts of folly or misfeasance on the part of those in control or be

retarded by their lack of imaginative policy".

Nationalization of General Insurance Business:

Sixteen years later, in 1972, non-life insurance was finally nationalized

(with effect from 1st January 1973). At that time there were 107 general

insurance companies. They were mainly large city-oriented, operating at

different levels of sophistication. Upon nationalization, these businesses were

assigned to the four subsidiaries (roughly of equal size) of the General

61
Insurance Corporation of India (GIC). The General Insurance Business

(Nationalization) Act 1972 provides that the Central Government shall form a

Government company in accordance with the provisions of the companies Act

1956, to be known as General Insurance Corporation of India for the purpose of

superintending, controlling and carrying on the business of general insurance.

The authorized capital of Z 75 crores of the Corporation, out of which

Z 5 crores is the subscribed capital wholly contributed by the Central

Government.5

The General Insurance Corporation was incorporated as a holding

company in November1972 and it commenced business on January 1, 1973. It

had four subsidiaries: (1) the National Insurance Company, (2) the New India

Assurance Company, (3) the Oriental Insurance Company, and (4) the United

India Insurance Company with head offices in Calcutta (now Kolkata),

Bombay (now Mumbai), New Delhi and Madras (now Chennai) respectively.

Collectively these subsidiaries are known as the NOUN for their initials. All

the five entities are government companies registered under the Indian

Companies Act, 1956.6

Here were several goals in setting up this structure: (1) The subsidiary

companies were expected to set up standards of conduct, sound practices and

provision of efficient customer service in general insurance business. (2) The

GIC was to help control the expenses of the subsidiaries. (3) It was to help with

the investment of funds for its four subsidiaries. (4) It was to bring general

insurance to the rural areas of the country, by distributing business to the four

62
subsidiaries, each operating in different areas in India. (5) The GIC was also

designated the national reinsurer. By law, all domestic insurers were to cede

20% of the gross direct premium in India to the GIC under the section 101A of

the Insurance Act of 1938. The idea was to retain as much risk as possible

domestically. This was in turn motivated by the desire to minimize the

expenditure on foreign exchange. (6) All the four subsidiaries were supposed to

compete with one another.

Insurance Sector Reforms:

In 1993, Malhotra committee, headed by former Finance Secretary and

RBI Governor R.N.Malhotra, was formed to evaluate the Indian insurance

industry and recommended its future direction. The Malhotra Committee

Report strongly recommended that the General Insurance Corporation should

cease to be the holding company and concentrate on reinsurance business only.

The four subsidiaries should become independent companies. The report also

noted that the subsidiaries were overstaffed.7

In 1994, the committee submitted the report and suggested some of the

key recommendations.

(1) Structure

> Government's stake in the insurance companies to be brought down to

50%

> Government should take over the holdings of GIC and its subsidiaries so

that these subsidiaries can act as independent corporations

> All the insurance companies should be given greater freedom to operate.

63
(2) Competition

> Private companies with a minimum paid up capital of Z 1 billion should

be allowed to enter the industry.

> No company should deal in both life and general insurance through a

single entity.

> Foreign companies may be allowed to enter the industry in collaboration

with the domestic companies.

> Postal Life Insurance should be allowed to operate in the rural market.

> One State Level Life Insurance Company should be allowed to operate

in each state.

(3) Regulatory body

> Insurance Act should be changed.

> An Insurance Regulatory body should be set up.

> Controller of Insurance (currently a part from the Finance Ministry)

should be made independent.

(4) Investments

> Mandatory Investments of LIC Life Fund in government securities to be

reduced from 75% to 50%.

> GIC and its subsidiaries are not to hold more than 5% in any company

(Their current holdings to be brought down to this level over a period of

time).

64
(5) Customer service

> LIC should pay interest on delays in payments beyond 30 days.

> Insurance companies must be encouraged to set up unit linked pension

plans.

> Computerization of operations and updating of technology to be carried

out in the insurance industry.

After the report of the Malhotra Committee, changes in the insurance

industry appeared imminent. Unfortunately, instability of the Central

Government in power slowed down the process. The dramatic climax came in

1999. On March 16, 1999, the Indian Cabinet approved an Insurance

Regulatory Authority (IRA) Bill designed to liberalize the insurance sector.

The government fell in April 1999 just on the eve of the passage of the Bill.

The deregulation was put on hold once again. On December 7, 1999, the new

government passed the Insurance Regulatory and Development Authority Act.

This act repealed the monopoly conferred to the Life Insurance Corporation in

1956 and to the General Insurance Corporation in 1972. The authority created

by the Act is now called the Insurance Regulatory and Development Authority.

New licenses are being given to private companies. The Insurance

Regulatory and Development authority has separated out life, non-life and

reinsurance insurance businesses. Therefore, a company has to have separate

licenses for each line of business.

65
 The Insurance Regulatory and Development Act 1999 was set up. "To

provide for the establishment of an authority to protect the interests of holders

of insurance policies, to regulate, promote and ensure orderly growth of the

insurance industry and for matters connected therewith or incidental thereto

and further to amend the Insurance Act, 1938, the Life Insurance Corporation

Act, 1956, and the General Insurance Business (Nationalization) Act, 1972."

With the General Insurance Business (Nationalization) Amendment Act

2002 coming into effect from March 21.2002, GIC of India ceased to be a

holding company of its subsidiaries, their ownership was vested with the

Government of India. The GIC was doing only reinsurance business in India.

The effect of the US economic meltdown was not felt in the Banking and

Insurance Sectors in India because majority of them were with the governments

The following table shows the number of life and non-life insurance

companies in India.

TABLE 2.1

Number of Insurance Companies in India

Type of Life General Re-

others Total
insurance insurance insurance insurance

Public Sector
1 4 1 2 8
Companies

Private sector
23 18 - - 41
Companies

Total 24 22 1 2 49
Source: Website.

66
 Life Insurance Companies in India9

1.Life Insurance Corporation of India 13 .Reliance Life Insurance Company

(Public Sector) Limited - Formerly known as
AMP Sanmar LIC

2. MetLife India Life Insurance 14. ING Vysya Life Insurance

3. ICICI Prudential 15. Shriram Life Insurance

4. Bajaj Allianz Life Insurance 16. Bharti AXA Life Insurance Co Ltd

5. Max New York Life Insurance 17.Future General Life Insurance Co

Ltd

6. Sahara Life Insurance 18. IDBI Fortis Life Insurance

7. TATA AIG Life Insurance 19.AEGON Religare Life Insurance

8. HDFC Standard Life 20. DLF Pramerica Life Insurance

9. Birla Sunlife 21. CANARA HSBC Oriental Bank of

Commerce LIFE INSURANCE

10.SBI Life Insurance Company 22. Star Union Dai-ichi Life Insurance
Limited Co. Ltd.

11.Kotak Life Insurance 23. India First Life Insurance Company

12.Aviva Life Insurance 24. Edelweiss Tokio Life Insurance Co.Ltd

67
General Insurance Companies in India:

1)New India Assurance Co Ltd 11) Tata AIG General

(Public Sector)

2) United India Insurance Co Ltd 12) Cholamandalam MS

(Public Sector)

3) Oriental Insurance Co Ltd (Public 13) Shriram General Insurance

Sector)

4) National Insurance Co Ltd (Public 14) Future Generali

Sector)

5) ICICI Lombard 15) Bharti AXA

6) Bajaj Allianz 16) Universal Sompo

7) Reliance General Insurance 17) Raheja QBE General

8) IFFCO Tokio 18) SBI General Insurance

9) HDFC ERGO 19) L & T General Insurance

10) Royal Sundaram

Standalone Health Insurance Companies:

20) Star Health Insurance

21) Apollo Munich Health Insurance

22) Max Bupa Health Insurance

Export Credit Guarantee Insurance:

23) Export Credit Insurance (Public Sector)

68
Agriculture Insurance Company:

24) Agriculture Insurance (AIC) (Public Sector)

Re-Insurance:

GIC-Re (Re-Insurer) (Public Sector)

REGULATORY AUTHORITIES:

1. The Insurance Regulatory and Development Authority (IRDA)

Reforms were initiated with the passage of Insurance Regulatory and

Development Authority (IRDA) Bill in 1999. IRDA was set up as an

independent regulatory authority, which has put in place regulations in line

with global norms. IRDA has been framing regulations and registering the

private sector insurance companies. It launched of the IRDA online service for

issue and renewal of licenses to agents. Anyone income of the Insurance

Regulatory and Development Authority established under the relevant Act

1999 is fully exempt from the A. Y.2001-200210 .

Powers, Duties and Functions of IRDA

The IRDA Act, 1999 lays down the duties, powers and functions of

IRDA. The Authority shall have the duty to regulate, promote and ensure

orderly growth of the insurance business and re-insurance business. The

powers and functions of the Authority shall include,

Issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration

69
> Protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable interest,

settlement of insurance claim, surrender value of policy and other terms

and conditions of contracts of insurance

> Specifying requisite qualifications, code of conduct and practical

training for intermediary of insurance intermediaries and agents

> Specifying the code of conduct for surveyors and loss assessors

> Promoting efficiency in the conduct of insurance business

> Promoting and regulating professional organizations connected with the

insurance and re-insurance business

> Levying fees and other charges

> Calling for information from, undertaking inspection of, conducting

enquiries and investigations including, audit of the insurers,

intermediaries, insurance intermediaries and other organizations

connected with the insurance business

> Control and regulation of the rates, advantages, terms and conditions

that mar be regulated by the Tariff Advisory Committee

> Specifying the form and manner in which books of account shall be

maintained and settlement of accounts shall be rendered by insurers and

other insurance intermediaries

> Regulating investment of funds by insurance companies

> Regulating maintenance of margin of solvency

> Adjudication of disputes between insurers and intermediaries or

insurance intermediaries

70
 Supervising the tunctionmg of the Tariff Advisory Committee

Specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organizations

engaged in insurance and reinsurance business

Specifying the percentage of the life insurance and general insurance

business to be undertaken by the insurer in the rural or social sector, and

Exercising such other powers as may be prescribed

2. Tariff Advisory Committee"

The Tariff Advisory committee is a body corporate, which controls and

regulates the rates, advantages, terms and conditions offered by insurers in the

general insurance business. The Advisory committee has the authority to

require any insurer to supply such information or statements necessary for

discharge of its functions. Any insurer failing to comply with such provisions

shall be deemed to have contravened the provisions of the Insurance Act. Every

insurer is required to make an annual payment of fees to the Advisory

Committee of an amount not exceeding in case of reinsurance business in

India, one percent of the total premiums in respect of facultative insurance

accepted by him in India, and in case of any other insurance business, one

percent of the total gross premium written direct by him in India.

71
3. Insurance Association of India, Councils and Committees

All insurers and provident societies incorporated or domiciled in India

are members of the Insurance Association of India and all insurers and

provident societies incorporated or domiciled elsewhere than in India are

associate members of the Insurance Association. There are two councils of the

Insurance Association, namely the Life Insurance Council and the General

Insurance Council. The Life Insurance Council, through its Executive

Committee, conducts examinations for individuals wishing to qualify

themselves as insurance agents. It also fixes the limits for actual expenses by

which the insurer carrying of life insurance business or any group of insurers

can exceed from the prescribed limits under the Insurance Act. Similarly, the

General Insurance Council, through its Executive Committee, may fix the

limits by which the actual expenses of management incurred by an insurer

carrying on general insurance business may exceed the limits as prescribed in

the Insurance Act.

4. Ombudsman12

The Ombudsman are appointed in accordance with the Redressal of

Public Grievances Rules, 1998, to resolve all complaints relating to settlement

of claims on the part of insurance companies in a cost-effective, efficient and

effective manner. Any person who has a grievance against an insurer may

make a complaint to an Ombudsman within his jurisdiction, in the manner

specified.

72
 The Ombudsman act as a counselor and mediator and make

recommendations to both parties in the event, that the complaint is settled by

agreement between both the parties. However, if the complaint is not settled by

agreement, the Ombudsman may pass an award of compensation within three

months of the complaint, which shall not be in excess of which is necessary to

cover the loss suffered by the complainant as a direct consequence of the

insured peril, or for an amount not exceeding rupees two million, whichever is

lower.

Territorial Jurisdiction of Ombudsman13

The governing body has pointed twelve Ombudsman across the country

allotting them different geographical areas as their areas of jurisdiction. The

Ombudsman may hold sitting at various places within their area of jurisdiction

in order to expedite disposal of complaints. The offices of the twelve insurance

Ombudsmen are located at (1) Bhopal, (2) Bhubaneswar, (3) Cochin,

(4) Guwahati, (5) Chandigarh, (6) New Delhi, (7) Chennai, (8) Kolkata,

(9) Ahmedabad, (10) Lucknow, (11) Mumbai, and (12) Hyderabad.

Legislative and regulatory matters:

The Insurance Act, 1938 was brought into force from 1st July, 1938 as

"an Act to consider and amend the law relating to the business of insurance" It

applies to both life and general insurance business.

73
 The Act has been amended a number of times notably by the passing of

the Insurance Regulatory and Development Authority Act, 1999. The various

laws which have a direct or indirect bearing a practice of insurance are:

1.Marine Insurance Act, 1963. 14. The Workmen's Compensation

2. The Carriage of Goods by Sea Act, 1925. Act, 1923.

15. Employee's State Insurance Act,

3. The Merchant Shipping Act, 1958
1948.
4. The Bill of Lading Act, 1855.
16. Sale of Goods Act, 1930.
5. The Indian Ports (Major Ports) Act, 1963.
17. The Indian Stamp Act, 1899.
6. The Carriers Act, 1965.
18. Exchange Control Regulations
7. Indian Railways Act, 1989.
19. Consumer Protection Act, 1986.
8. The Indian Post Office Act, 1898.

9. The Carriage By Air Act, 1972.

10.Multi-Modal Transportation Act, 1993.

11.The Motor Vehicles Act, 1988.

12.The Inland Stem-Vessels (Amendment) Act, 1977.

13. Public Liability Insurance Act, 1991.

Investments: it

1. Life Insurance Business:

Every insurer is required to invest and keep investe certain amount as

determined under the Insurance Act. The funds of the polic, "iolders cannot be

invested (directly or indirectly) outside India. An insurer 'Ilvolved in the

business of life insurance is required to invest and keep inve, al at all times,

assets, the value of which is not less than the sum of the amount of its liabilities

74
to holders of life insurance policies in India on account of matured claims and

the amount required to meet the liability on policies of life insurance maturing

for payments in India. The following table shows the Investment regulations of

life insurance business in India.

TABLE 2.2

Investment Regulations of Life Insurance Business

Type of Investment Percentage

Government Securities At least 25%

Government Securities or other approved securities Not less than

including the aforesaid 50%

Approved investments
(a) Infrastructure and social sector Not less than
(b) Others to be governed by exposure/prudential income 15%
20 %

Other than in approved investments to be governed by

15%
exposure/prudential norms
Source: Gazette of India Extraordinary Part III Section 4. IRDA (Investment) Regulations, 2000

2. General Insurance Business:

An insurer carrying on general insurance business is required to invest

and keep at all times his total assets in approved securities in the following

manner. The investment should be made not less than 20% on Central

government securities and 30% on State government securities. On Housing

and loans to Statement government not less than 5%, on investment in

approved investments not less than 40% and not less than 25% on other than in

approved investments.

75
 TABLE 2.3

Investment Regulations of Non- life Insurance Business

Type of investments Percentage

Central government securities Not less than 20%

State government securities and other

guaranteed securities including the Not less than 30%
aforesaid

Housing and loans to state government for

Not less than 5%
housing and firefighting equipment

Investments in approved investments

(a) Infrastructure and social sector Not less than 10%
(b)Others to be governed exposure / Not exceeding 30%
prudential norms

Other than in approved investments to be

Not exceeding25%
governed by exposure/prudential norms

Source: Gazette of India Extraordinary Part III Section 4. IRDA (Investment) Regulations, 2000.

Important events in the History of Indian Insurance Industry:

1912 - First piece of insurance regulation promulgated Indian Life

Insurance Company Act, 1912

1928 - Promulgation of the Indian Insurance Companies Act

1938 - Insurance Act 1938 introduced, the first comprehensive

legislation to regulate insurance business in India

1956 - Nationalization of life insurance business in India

76
1972 - Nationalization of general insurance business in India

1993 - Setting-up of the Malhotra committee

1994 - Recommendations of Malhotra Committee released

1995 - Setting-up of Mukherjee committee

1996 - Setting-up of an (interim) Insurance Regulatory Authority (IRA)

1997 - Mukherjee committee Report submitted but not made public

1997 - The government gives greater autonomy to LIC, GIC and its

subsidiaries with regard to the restructuring of boards and

flexibility in investment norms aimed at channeling funds to the

infrastructure sector

1998 - The cabinet decides to allow 40% foreign equity in private sector

companies - 26% to foreign companies and 14% to non-resident

Indians, overseas corporate Bodies and foreign institutional

investors

1999 - The standing committee headed by Murali Deora decides that

foreign equity in private insurance should be limited to 26%. The

IRA Act was renamed the Insurance Regulatory and

Development Authority (IRDA) Act

1999 - Cabinet clears IRDA Act

2000 - President gives assent to the IRDA Act

2002 - Delinking of four Public Sector General Insurance companies

from the holding Company General Insurance Corporation of

India.

2007 - Detariffication

77
END NOTE

1. ha. S. M., Services Marketing, Himalaya Publishing House, Mumbai,

(2003) P-161.

2. Sajid Ali, Mohammad, Masharique Ahmad, Insurance in India, Regal

Publications, New Delhi (2007) P-64.

3. Khan. M. Y., "Insurance Services", Financial Services, Tata McGraw-Hill

Publishing Co. Ltd., New Delhi, (2003) P-.9.4.

4. Kapoor. N. D., Elements of Mercantile Law, Sultan Chand & Company,

New Delhi, 21st edition P-426.

5. Periasamy. P, "General Insurance", Principles and Practice of Insurance,

Himalaya Publishing House Mumbai, (2003) P-66.

6. Palande. P. S., Shah. R. S., Lunawat M. L., Insurance in India, Response

Books, New Delhi, (2008) P-39.

7. Malhotra, 1994, Chapter XII, P-88-89.

8. THE HINDU, Thiruchirapalli, Monday, Feb.16, 2009 P-10.

9. www.wikipedia.org

10.Reddy. T. S. and Hariprasad Reddy. Y, Income Tax Theory, Law &

Practice, Margham Publication, Chennai, (2011), P-4.13.

11."Insurance Law Regulations in India", Research Paper, Nishith Desai

Associates, Mumbai, (2002) p-3.

12.www. nishithdesai.com.

13.www. irda. gov. in.

78