insurance.doc

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History of insurance in India

Ref: IRDA/GEN/06/2007 Date: 12-07-2007

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ),Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine.This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliesttraces of insurance in the form of marine trade loans and carriers contracts. Insurance in India hasevolved over time heavily drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the Oriental LifeInsurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable hadbegun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of theBritish Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871),Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, wasdominated by foreign insurance offices which did good business in India, namely Albert Life Assurance,Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hardcompetition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India. TheIndian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statisticalinformation about both life and non-life business transacted in India by Indian and foreign insurersincluding provident insurance societies. In 1938, with a view to protecting the interest of the Insurancepublic, the earlier legislation was consolidated and amended by the Insurance Act, 1938 withcomprehensive provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a largenumber of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19 th January, 1956 nationalising the Life Insurance sector and LifeInsurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian

insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly tillthe late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and theconsequent growth of sea-faring trade and commerce in the 17 th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton InsuranceCompany Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd,was set up. This was the first company to transact all classes of general insurance business.1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of India.The General Insurance Council framed a code of conduct for ensuring fair conduct and sound businesspractices.

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins.The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurancebusiness was nationalized with effect from 1 st January, 1973. 107 insurers were amalgamated andgrouped into four companies, namely National Insurance Company Ltd., the New India AssuranceCompany Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. TheGeneral Insurance Corporation of India was incorporated as a company in 1971 and it commencebusiness on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. Theprocess of re-opening of the sector had begun in the early 1990s and the last decade and more hasseen it been opened up substantially. In 1993, the Government set up a committee under the


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chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in theinsurance sector.The objective was to complement the reforms initiated in the financial sector. Thecommittee submitted its report in 1994 wherein , among other things, it recommended that the privatesector be permitted to enter the insurance industry. They stated that foreign companies be allowed toenter by floating Indian companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatoryand Development Authority (IRDA) was constituted as an autonomous body to regulate and develop theinsurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increasedconsumer choice and lower premiums, while ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for registrations.Foreign companies were allowed ownership of up to 26%. The Authority has the power to frameregulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed variousregulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured asindependent companies and at the same time GIC was converted into a national re-insurer. Parliamentpassed a bill de-linking the four subsidiaries from GIC in July, 2002.

Today there are 24 general insurance companies including the ECGC and Agriculture InsuranceCorporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together withbanking services, insurance services add about 7% to the countrys GDP. A well-developed and evolvedinsurance sector is a boon for economic development as it provides long- term funds for infrastructuredevelopment at the same time strengthening the risk taking ability of the country.


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Mission

Ref: -- Date: 01-07-2010

MISSION STATEMENT OF THE AUTHORITY

To protect the interest of and secure fair treatment to policyholders;

To bring about speedy and orderly growth of the insurance industry(including annuity and superannuation payments), for the benefit of thecommon man, and to provide long term funds for accelerating growthof the economy;

To set, promote, monitor and enforce high standards of integrity,financial soundness, fair dealing and competence of those it regulates;

To ensure speedy settlement of genuine claims, to prevent insurancefrauds and other malpractices and put in place effective grievanceredressal machinery;

To promote fairness, transparency and orderly conduct in financialmarkets dealing with insurance and build a reliable managementinformation system to enforce high standards of financial soundnessamongst market players;

To take action where such standards are inadequate or ineffectivelyenforced;

To bring about optimum amount of self-regulation in day-to-day workingof the industry consistent with the requirements of prudentialregulation.


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Composition of AuthorityRef: IRDA/GEN/02/2007 Date: 02-01-2007

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA,which was constituted by an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

(a) a Chairman;(b) five whole-time members;(c) four part-time members,

(all appointed by the Government of India)


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Duties, powers and functions of irda

Ref: IRDA/GEN/03/2007 Date: 02-01-2007

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have

the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurancebusiness.

Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functionsof the Authority shall include, -

issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel suchregistration;protection of the interests of the policy holders in matters concerning assigning of policy, nomination bypolicy holders, insurable interest, settlement of insurance claim, surrender value of policy and other termsand conditions of contracts of insurance;specifying requisite qualifications, code of conduct and practical training for intermediary or insuranceintermediaries and agents

specifying the code of conduct for surveyors and loss assessors;promoting efficiency in the conduct of insurance business;promoting and regulating professional organisations connected with the insurance and re-insurancebusiness;levying fees and other charges for carrying out the purposes of this Act;calling for information from, undertaking inspection of, conducting enquiries and investigations includingaudit of the insurers, intermediaries, insurance intermediaries and other organisations connected with theinsurance business;

control and regulation of the rates, advantages, terms and conditions that may be offered by insurers inrespect of general insurance business not so controlled and regulated by the Tariff Advisory Committeeunder section 64U of the Insurance Act, 1938 (4 of 1938);specifying the form and manner in which books of account shall be maintained and statement of accountsshall 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;supervising the functioning of the Tariff Advisory Committee;specifying the percentage of premium income of the insurer to finance schemes for promoting andregulating professional organisations referred to in clause (f);specifying the percentage of life insurance business and general insurance business to be undertaken bythe insurer in the rural or social sector; andexercising such other powers as may be prescribed


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PROFILES OF TOP MANAGEMENT

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Profile of Mr.T S Vijayan

Ref: Mr.T.S.Vijayan Date: 27-02-2013

Chairman, IRDA

T S Vijayan, Chairman

Mr. T S Vijayan took charge as Chairman of Insurance Regulatory & Development Authority of India on 21 st February 2013. Before assuming charge as Chairman, IRDA, Mr. Vijayan worked in variouscapacities in the Life Insurance Corporation of India and took over as its Chairmanin 2006. He took charge as Chairman of LIC when competition was at its peak uponopening of insurance sector in 2001. He steered LIC deftly through the changingscenario and with him at the helm of affairs, LIC has grown from strength tostrength. His career in Life Insurance Corporation of India (LIC) started as a Direct RecruitOfficer in the year 1977 and some of the important assignments held by him wereManaging Director of LIC, Executive Director (IT & BPR), Director & Chief Executiveof LICHFL Carehomes. His specialization includes Information Technology, HR &
http://__dopostback%28%27lbtnprint%27%2C%27%27%29/http://__dopostback%28%27lbtnprint%27%2C%27%27%29/http://__dopostback%28%27lbtnprint%27%2C%27%27%29/http://__dopostback%28%27lbtnprint%27%2C%27%27%29/


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Marketing. As the first Director & Chief Executive of LICHFL Carehomes, asubsidiary of LIC, he was instrumental in designing systems for a new venture of community living centres for senior citizens. He was the architect of the concept of Satellite Offices in LIC which brought about a revolution in customer service. He attended several national and international seminars in the areas of InformationTechnology, Strategic Management, Corporate Governance, Financial Management,Value creation in Service industry etc. He has received extensive training inBusiness Schools like Indian School of Business and apex training institutes likeNIA, MDC etc. He is on the board of many Financial Institutions in the country. Mr. T S Vijayan pursued his education in Kerala and holds a special graduate degreefrom Kerala University. He also holds a Diploma in Management. He has a passion for enhancing insurance awareness and making insuranceaffordable to all sections of the population. Mr. Thai Salas Vijayan was born on 25 th February 1953 at Kalliyoor, Kerala to Mr.

Salas and Mrs. Loise Thai. His spouses name is Mrs. Gladis Vijayan and they have adaughter and a son.


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Profiles of Top Management

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Profile

Ref: Member (Life) Date: 01-05-2012

Mr. Sudhin Roy Chowdhury Member (Life)

Mr. Sudhin Roy Chowdhury joined Insurance Regulatory and Development Authority (IRDA) as a whole-time Member (Life), on 28 thMarch, 2012. Prior to joining IRDA, he was Executive Director (Mktg), LICof India; and was in charge of all activities associated with marketing in the life insurance behemoth. Mr. Roy Chowdhury joined Life Insurance Corporation as a direct recruit officer in 1977 and has workingexperience in marketing as well as servicing in both India and abroad. He served in different capacities inLIC and was instrumental in opening up of the insurance sector to people of all nationalities in theKingdom of Bahrain as well as other GCC Countries. He was a visiting faculty at several traininginstitutes; and was instrumental in several training activities of personnel in LIC; and had a big role incomputerization of several branches. He has also served as Executive Director (Personnel/HRD/OD/OIC),Central Office, Mumbai before taking over as CEO & MD of LIC (International) B.S.C. Bahrain, andalso in charge of life insurance operations in all the GCC Countries.

He did his Bachelors in Physics (Hons) and also completed Masters in Business Administration. Shri RoyChowdhury has attended various national as well as international training sessions organized by IndianInstitute of Management Kolkata; Asian Institute of Management, Manila (Philippines); InsuranceTraining Institute Falia, Japan; and the Indian School of Business in Hyderabad. He has to his creditextensive participation/presentations at several domestic and international seminars. He was aspokesperson at the World Economic Forum at Bahrain on the topic of life insurance. He is committed for excellence in work and delivering results. He was awarded the Rajiv Gandhi Sadbhavana Award for beingthe best Life Insurance Executive for the year 2010.

Mr. Roy Chowdhury has been a great reader of books at every stage of his life. He loves to play TableTennis, Football and Cricket; and takes a keen interest in music across all genres, although he has aspecial liking to Rabindra Sangeet.


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Profile of Mr. M Ramaprasad,Member(Non-Life)

Ref: Member (Non-Life) Date: 11-10-2010

Member (Non-Life)

Mr. M Ramaprasad joined as Member (Non-Life), Insurance Regulatory and Development Authority (IRDA) on October 11, 2010. Earlier, he was General Manager in General InsuranceCorporation of India (GIC Re), in-charge of reinsurance arrangements both for domestic andforeign inward businesses emanating from markets other than the countries where GIC Re hasits branches.

Mr.Ramaprasad joined general insurance industry as Direct Recruit Officer in 1978 and after completion of one year training in the College of Insurance, Mumbai, was attached to NationalInsurance Company. He served National Insurance Co., in operational areas serving in variouscapacities till 1997. He served in the head office of National Insurance Co., as the in-charge of

underwriting and claims particularly in the property and casualty insurance. He also looked after reinsurance requirements of the company during this period.

Mr. Ramaprasad is a Post Graduate in Statistics from the University of Madras and also an Associate of Insurance Institute of India. He has served as a technical member in Fire andEngineering sub-committees of TAC. He has been a visiting faculty in NationalInsurance

Academy, Pune; and Insurance Institute of India, Mumbai.

He is an avid reader of books and a great music lover. His interest in music is across all forms;

he is, however, particularly interested in South Indian classical music.


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Profile

Ref: Member ( F & I ) Date: 26-03

Mr.Radhakrishnan Nair, Member ( F & I )

Mr. Radhakrishnan NairSri Radhakrishnan Nair joined as Member (F&I), Insurance Regulatory and Development Authority (IRDA) on March 18, 2010. Earlier,he was Executive Director, Securities and Exchange Board of India (SEBI), In-charge of Investment Management Department, CorporateDebt Department, Research Department, Office of the Investor Assistance & Education, SEBI Board Matters and General ServicesDepartment. His previous responsibilities include Integrated Surveillance Department, Chief Vigilance Officer, Chief Public InformationOfficer, Information Technology Department and Human Resources Development Department.

A career banker, Mr. Nair joined Corporation Bank as Officer Trainee in 1976 and rose up to being General Manager of RecoveryManagement Division, Credit Risk Management Division, Priority Sector Lending Department, Legal Affairs Department etc, in 2003. Hisother important assignments were Managing Director, Corp Bank Securities Limited; Dy. General Manager, Investments and InternationalBanking Division; Regional Manager, Mumbai, Kerala and Chief Manager, Bandra (W); Ahmedabad Main Branch, Gandhi Nagar. He haswide experience in core banking operations, development banking, treasure operations (money, debt, equity, foreign exchange andcommodities markets).

Mr. Nair is a keen trainer and Faculty on the topic of Development of Money and Debt Markets in India; Role of Primary Dealers inMarket Development and Managing Public Debt. He delivered several lectures at National Institute of Bank Management (NIBM),Pune; National Insurance Academy (NIA), Pune; Bankers Training College (BTC), Reserve Bank of India, Mumbai; Bombay Stock Exchange (BSE) Training Centre, Mumbai; UTI Institute of Capital Markets, Mumbai; JNIDB, Hyderabad; National Academy of Auditand Accounts, Shimla etc.

Mr. Nair served in various international and national committees including the IOSCO Committee on Investment Management, PrivateEquity, Investor Compensation & Protection, Public Debt Office, Development of South Asian Bond Market and Infrastructure FinancingMunicipal Bond Markets. The new regulations for Disclosure & Issue of Debt Securities, Securitized Debt, Implementation of report of theHigh Level Expert Committee on Corporate Bonds; and Securitization and Operationalizing the Investor Education & Protection Fund


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were among his significant contribution to the development of Capital Market.

Mr. Nair is a Post Graduate in Science, Law and Management; and has a diploma in securities laws from the Government Law College,Mumbai.

Mr. Nair is a keen wild life activist and is associated with Bombay Natural History Society, Mumbai. He is an avid reader and has aninterest in Chinese Astrology and Cricket.

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Addresses of Offices of IRDA

Ref: Date: 02-01-2007

Addresses of Offices of IRDA

Head Office :

Insurance Regulatory and Development Authority3rd Floor, Parisrama Bhavan, Basheer Bagh HYDERABAD 500 004Andhra Pradesh (INDIA )

Ph: (040) 23381100Fax: (040) 6682 3334

Delhi Office:

Insurance Regulatory and Development AuthorityDelhi Office Gate No. 3Jeevan Tara Building, First Floor Sansad Marg, New Delhi-110001

Ph: (011) 2374 7648Fax: (011) 2374 3397

For Policy Holder Grievances please refer the following link:

Contact information
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Home >> About us >> Contact us >> Directory of employeesVisitors Count:20835

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To all

Ref: --- Date: 30-03-2012

Directory of employees


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S.No. Name Designation Remarks

1 SRIRAM TARANIKANTI I.A.S ED (Admin)

JOINT DIRECTORS (Sr.JDs)

2 SURESH MATHUR Sr. JD

3 M. PULLA RAO Sr. JD

JOINT DIRECTORS (JDs)

4 MUKESH SHARMA JD

5 RAKESH K BAJAJ JD

6 RANDIP SINGH JAGPAL JD

7 S N JAYASIMHAN JD

8 A R NITHIAYANANTHAM JD

9 MAMTA SURI JD

10 SANJEEV KUMAR JAIN JD

11 J MEENA KUMARI JD

12 T S NAIK JD

13 Y PRIYA BHARAT JD

14 RAMANA RAO ADDANKI JD

15 V JAYANTH KUMAR JD

16 H ANANTHA KRISHNAN JD

DEPUTY DIRECTORS (DDs)

17 RAJ KUMAR SHARMA DD

18 DEEPAK KHANNA DD

19 D V S RAMESH DD

20 KGPL RAMA DEVI DD

21 DEEPAK KUMAR GAIKWAD DD

22 SANJAY KUMAR VERMA DD 23 R KUMAR DD

24 SUDIPTA BHATTACHARYA DD

25 G R SURYA KUMAR DD

26 J ANITA DD

27 P K MAITI DD

28 S P CHAKRABORTY DD

29 A V RAO DD

30 K MAHIPAL REDDY DD

31 SUDHA RAMANUJAM DD

32 TV RAO DD 33 JAYA KUMAR DD

34 NILAMADHAB BEHERA DD

35 N S K PRABHAKAR DD

36 PANKAJ KUMAR TEWARI DD

37 PRASSAD RAO KALAYRU DD

38 C. SRINIVASA KUMAR DD

39 AMMU VENKATA RAMANA DD


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