Category: Insurance Law

Indian General Insurance Industry and its Scope in ASEAN FTAs

General insurance is typically defined as any insurance that is not determined to be life insurance. General Insurance comprises of insurance of property against fire, burglary etc., personal insurance such as Accident and Health Insurance and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. General Insurance acts as aegis to the financial causalities and alongside it also acts an economical back-up for a nation’s economy. Insurance allied up with banking sector dispenses up to 7% of India’s total GDP. The general insurance entered into show in the Indian Market in 17th century due to the Industrial revolution and the persistent escalation in sea trade for import and exports of goods and services. It can be said that the notion of Indian General Insurance has a legacy from British Occupation. In the year 1973 the whole business on General Insurance was nationalized with the enactment of General Insurance Business (Nationalization), Act. Till date we have observed foreign insurance companies engaging into Indian markets and having share of 24% of FDI being allowed in the Indian market it has not become an Eye-candy for the foreign market and secondly the major general insurance market be it EU or USA is diminishing and long term expenditure in the EU market isn’t feasible and has now come to the situation of saturation and if India does not enter into foreign markets the time is not far away when the general insurance market would not have much improvement.