INTRODUCTION
Non-life insurance, also called property and casualty insurance, is a type of coverage that is very common and covers businesses and individuals. It protects them, monetarily, from disaster by providing money in the event of a financial loss. Before you purchase this type of insurance or if you already own any kind of non-life insurance, you should understand what it is.The insurance industry in India has come a long way since the time when businesses were tightly regulated and concentrated in the hands of a few public sector insurers. Following the passage oft he Insurance Regulatory and Development Authority Act in 1999, India abandoned public sector exclusivity in the insurance industry in favour of market-driven competition. This shift has brought about major changes to the industry. The inauguration of a new era of insurance development has seen the entry of international insurers, the proliferation of innovative products and distribution channels, and the raising of supervisory standards. Non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance.
DISCUSSION
Now a days non life insurance has changed a lot and its also showing growth.General insurance plans are available to cover motor insurance, home insurance, travel insurance and health insurance.
Due to the growing demand for insurance, more and more insurance companies are now emerging in the Indian insurance sector. With the opening up of the economy, several international leaders in the insurance sector are trying to venture into the India insurance industry.The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial policy changes in the insurance sector of India. It led to the formation of the Insurance Regulatory and Development Authority (IRDA) in 2000.India’s non-life insurance industry received gross premiums of INR 161 billion in 2003, which represented a five-fold increase from INR 28 billion in 1990 and an average 6% growth in real terms over the period (Figure 7.1). Nonetheless, non-life insurance penetration, measured as premiums asa share of GDP, remained at a stable low level of 0.6%. In comparison, penetration has increased at afar brisker pace in China, from 0.4% in 1998 to 0.7% in 2002. It is estimated that 90% of theIndian population are not covered by non-life insurance, which points to significant untapped growth potential.
CONCLUSION
India is among the most promising emerging insurance markets in the world. Its current premium volume of USD 18 billion has the potential to increase to USD 90 billion within the next decade. In bparticular, life insurance, which currently makes up 80% of premiums, is widely tipped to lead the growth. The major drivers include sound economic fundamentals, a rising middle-income class,an improving regulatory framework and rising risk awareness.A key challange for indias non life insurance sector will be to reform the existing tariff structure refrom a pricing perspective,the indian non life segment is still heavily regulated.Some 75% of premiums are generated under the tariff system, which means that they are often below market clearing levels.
Fair Attempt!!!!!
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