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BANKING TRADE AND COMMERCE
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INSURANCE
The origin of 'Life Insurance' business in India could be
traced to 1870. In Amravati district insurance business was believed to have been started at a time when the Government Security Life Assurance Company, Ltd., had expanded its business throughout India. A marked expansion could be seen in the insurance business in the district after the Swadeshi Movement of 1905. Life insurance had remained till then in the hands of foreign companies. A further spurt in the formation of new companies was witnessed during the Second World War when inflationary pressure tended to swell the volume of business in the country. With a view to establishing; a closer watch in the matters of management, investment of funds and expenditure of insurers, Government established the Department of Insurance under the authority of the Controller of Insurance and enacted the Insurance Act of 1938. The Act was extensively amended in 1950, when further controls in the interest of the policy-holders were exercised.
By the Life Insurance Ordinance of 1950 the business of life insurance passed from private hands to the Life Insurance Corporation. The Corporation entertains proposals for assurance where the object of assurance is family protection, provision for old age, or provision for payment of Estate Duty. In exceptional cases, the object of insurance is to provide security to educational trusts in respect of loans advanced for educational purposes or to provide donations to charitable institutions.
The Life Insurance Corporation was constituted by an Act in 1956. Since its establishment the Indian and foreign insurers and provident fund societies ceased to carry on life insurance business in India. However, the general insurance representing fire, marine, accident and other insurance business is kept open for private enterprise.
Under the new organisational and administrative set-up of the Life Insurance Corporation, Amravati district, was placed under the territorial jurisdiction of the Nagpur district. The total number of agents in the district was 667 on December 1956. It was 748 in 1957, 1,042 in 1958, and 663 in December 1959, The
total business proposed and completed during this period was as
under:
Period |
Number of proposals |
Proposed |
Completed |
Sum proposed |
Number of policies |
Sum assured |
(1) |
(2) |
(3) |
(4) |
(5) | |
-- |
-- |
Rs. |
-- |
Rs. | |
From 1-9-56 to 31-12-56 |
435 |
14,19,000 |
240 |
7,62,600 | |
1957 |
3,072 |
1,07,34,750 |
2,062 |
77,47,750 | |
1958 |
3,370 |
1,21,57,250 |
3,017 |
1,00,67,000 | |
1959 |
3,454 |
1,35,22,000 |
2,510 |
1,12,88,250 | |
1960 |
-- |
-- |
-- |
-- | |
January |
38 |
1,25,000 |
1 |
5,000 | |
February |
227 |
7,08,500 |
31 |
1,23,000 | |
March |
177 |
8,05,000 |
123 |
6,39,500 | |
April |
242 |
9,08,500 |
128 |
4,45,000 | |
Total |
684 |
25,47,000 |
283 |
12,12,500 |
*These figures indicate the totals for 1960 for the months from January to April.
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