Legal barriers for the Indian insurance industry: An overview

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Life Insurance is the fastest growing sector in India since 2000 as the Indian Government allowed private players and FDI up to 26%.

In 1993, the Government of Republic of India appointed R N Malhotra Committee to lay down a road map for privatization of the life insurance sector. While the committee submitted its report in 1994, it took another six years before the enabling legislation was passed in the year 2000. Legislation amending the Insurance Act of 1938 was introduced and the Insurance Regulatory and Development Authority (IRDA) Act of 2000 was legislated in 2000. In the same year the newly appointed insurance regulator started IRDA issuing licenses to private life insurers. In 2003, the Indian insurance market ranked 19th globally and was the fifth largest in Asia.

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.

This study given as overview the various government regulations enacted from time to time for the growth and monitoring of the life insurance industry in India.