Insurance Sector
Insurance Sector – Complete GK for Railway Exams
1. Overview
Insurance = risk-transfer mechanism regulated by IRDAI (1999). India=14th largest market (global share ≈1.7 %; Swiss Re 2023).
2. Quick-Fact Table
| Parameter | Figure (FY 2022-23) |
|---|---|
| Total premium (life + non-life) | ₹10.8 lakh crore |
| Life density | ₹2,299 per capita |
| Non-life density | ₹1,071 per capita |
| Penetration (total) | 4.0 % of GDP |
| No. of insurers | 68 (24 life, 28 general, 16 health-exclusive) |
| FDI limit | 74 % (automatic; 2021) |
3. Milestones & Dates
| Year | Event |
|---|---|
| 1818 | 1st Indian life policy—Oriental Life Insurance Co. (Anita Bhavsar) |
| 1870 | Bombay Mutual (1st Indian insurer) |
| 1912 | Indian Life Assurance Companies Act |
| 1956 | LIC nationalised (1 Sep); 245 companies merged |
| 1971 | General insurance nationalisation (GIBC formed) |
| 1972 | GIC incorporated (1 Jan 1973) |
| 1993 | Malhotra Committee ⇒ liberalisation |
| 1999 | IRDA Act passed (29 Dec) |
| 2000 | IRDAI notified (19 Apr); private entry (ICICI Prudential 1st) |
| 2012 | LIC IPO announced (Budget 2021-22); listed 17 May 2022 |
| 2021 | FDI cap 74 % (Insurance Amendment Act) |
| 2023 | Bima Sugam—proposed national digital platform |
4. Regulators & Bodies
| Body | Headquarters | Chairman (as on 01-01-2024) |
|---|---|---|
| IRDAI | Hyderabad | Shri Debasish Panda |
| LIC | Mumbai | Shri Siddhartha Mohanty |
| GIC Re | Mumbai | Shri Ramaswamy Athappan |
| NIACL | Mumbai | Shri T. C. Suseel Kumar |
5. Public-Sector Insurers (Non-life)
| Company | Abbrev. | Founded | Slogan |
|---|---|---|---|
| New India Assurance | NIACL | 1919 | “India’s premier general insurer” |
| Oriental Insurance | OICL | 1947 | “Prithvi, Agni, Jal, Akash – Hum Hain Na” |
| National Insurance | NICL | 1906 | “India’s 1st general insurer” |
| United India Insurance | UIICL | 1938 | “Rest Assured with United India” |
6. Market-Share Snapshot (FY 22)
| Segment | Leader | Share |
|---|---|---|
| Life | LIC | 63 % |
| Private life | SBI Life | 9 % |
| Non-life | NIACL (public) | 14 % |
| Private non-life | ICICI Lombard | 9 % |
7. Government Schemes
| Scheme | Launch | Premium | Benefit |
|---|---|---|---|
| PMJJBY | 9 May 2015 | ₹330/yr | ₹2 lakh life cover |
| PMSBY | 9 May 2015 | ₹12/yr | ₹2 lakh accidental death |
| Ayushman Bharat | 23 Sep 2018 | — | ₹5 lakh health/family |
| PMFBY | 2016 | 1.5-2 % crop premium | Full claim |
8. One-Liner Revision Bullets
- Insurance penetration = premium/GDP; density = premium/population.
- “Uberrimae fidei” = utmost good faith principle.
- Bancassurance = banks sell insurance (1st in India–2002, SBI-Life).
- Reinsurance = insurance for insurers; GIC Re (1972) sole national reinsurer.
- Lloyd’s of London ≠ company; it is a market.
- Solvency ratio norm in India = 1.5 (IRDAI).
- Crop insurance renamed “PM Fasal Bima Yojana” in 2016.
- India’s 1st standalone health insurer—Star Health (2006).
- ECGC = Export Credit Guarantee Corporation (1957) for exporters.
- Insurance Samadhan—IRDAI’s online grievance portal.
15+ MCQs (Railway Pattern)
1. Which year was LIC nationalised?
Ans. 1956
2. Headquarters of IRDAI is located at?
Ans. Hyderabad
3. Present FDI limit in Indian insurance companies is?
Ans. 74 %
4. Who chaired the committee that recommended insurance liberalisation?
Ans. R. N. Malhotra
5. India’s oldest existing general insurer is?
Ans. National Insurance Company (1906)
6. Premium under PMSBY for accidental death cover is?
Ans. ₹12 per annum
7. The sole national reinsurer of India is?
Ans. GIC Re
8. In FY 22, market share of LIC in new business premium was approximately?
Ans. 63 %
9. Which act governs insurance companies in India?
Ans. Insurance Act, 1938 (amended 2021)
10. First private life insurer to start operations after 2000?
Ans. ICICI Prudential Life
11. Minimum solvency ratio prescribed by IRDAI is?
Ans. 1.5
12. The tagline “Rest Assured with United India” belongs to?
Ans. United India Insurance
13. Insurance density is measured as?
Ans. Premium per capita (population)
14. PMJJBY provides risk coverage of?
Ans. ₹2 lakh on death
15. Which PSU general insurer was founded in 1919?
Ans. New India Assurance
16. The digital platform “Bima Sugam” is proposed by?
Ans. IRDAI
17. Export credit insurance is provided by?
Ans. ECGC
Revision Shortcuts (Last-Minute)
- 1818 → Oriental Life (1st policy)
- 1956 → LIC born (1 Sep)
- 1999 → IRDA Act
- 2000 → Private insurers enter
- 74 % → FDI cap (2021)
- ₹330 → PMJJBY; ₹12 → PMSBY
- 1.5 → Solvency norm
- Hyderabad → IRDAI HQ
- GIC Re → Reinsurer
- Penetration 4 %; Density ₹3,370 (life+non-life)
BETA
