INSURANCE
In India, insurance has a deep-rooted history with Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ) mentioning about it. They talk of pooling resources in good times to make for the adversities and vagaries of nature like fire, floods, epidemics and famine. Earliest traces of insurance in the form of marine trade loans and carriers’ contracts were also avai
lable. The insurance sector is colossal and is growing at a fast pace of 15-20%. Banking and insurance services together add about 7% to the country’s GDP. A developed and evolved insurance sector is an imperative for economic growth of a nation since long- term funds would be at hand for infrastructure development simultaneously absorbing the risk taking ability of the country. In the first phase of the free pricing regime against fears of de-growth, insurance sector has recorded a 12% growth. With customised policies and removal of floor rates in 2008 the industry entered second phase promising a larger growth potential.
