Insurance Law - An Indian Perspective

In simple terms, insurance allows an individual who suffers a loss or accident to be compensated for the effects of their misfortune. It allows you to protect yourself against everyday risks to your wellbeing, home and financial situation.

Insurance in India started without any regulation in the Nineteenth Century. It absolutely was a normal story of a colonial epoch: few British insurance companies dominating the market serving mostly large urban centers. After the independence, it took a theatrical turn. Insurance was nationalized. General Liability Insurance First, the life span insurance companies were nationalized in 1956, and then your general insurance business was nationalized in 1972. It was just in 1999 that the private insurance companies have been allowed back into the company of insurance with a maximum of 26% of foreign holding.

"The insurance industry is enormous and can be quite intimidating. Insurance is being sold for most situations and everything you can imagine. Determining what's right for you may be an extremely daunting task."

Concepts of insurance have been extended beyond the coverage of tangible asset. Now the chance of losses as a result of sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages may also be covered.

But when a person thoughtfully invests in insurance for his property prior to any unexpected contingency then he will be suitably compensated for his loss when the extent of damage is ascertained.

The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. The collective experience of one other countries in Asia has recently deregulated their markets and has allowed foreign companies to participate. If the experience of one other countries is any guide, the dominance of the Life Insurance Corporation and the General Insurance Corporation isn't likely to disappear any time soon.

The goal of insurance is to compensate the dog owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is mainly of two types: life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance for employer's liability, and insurance of motor vehicles, livestock and crops.