Life Insurance and welfare of the nation

Life Insurance and welfare of the nation always go together
Awareness about Life Insurance
The first life policy was a temporary life insurance cover way back in 1583AD. In this policy, the sum assured is payable only on the death of the person insured during the policy period. The purpose behind this is if any untoward incident occurred for the person insured, his family should not be economically affected.
Later, Amicable society came into being in the 18th century. Mortality tables were prepared to calculate premiums for different plans and different age groups. Life insurance started acquiring a scientific character. Equitable society dawned in 1762
Life Insurance in India
The first Life insurance company was started in 1870 by Bombay mutual assurance society. Then Oriental, Bharat and Empire of India were started. During this period, (ie. Later part of 19th century) swedhishi movement got intensified. It gave impetus to the formation of more companies. Then Hindustan co-operative, United India, Bombay Life, National Etc. came into being. Freedom movement was in full swing. New India, Jupitar, Lakshmi followed.
Life Insurance companies act 1912 was the first legislation for regulating insurance in India and to exercise control over the functioning of life insurance companies. The insurance act 1938 was the first comprehensive legislation governing not only life, but non life insurance business also. The post of controller of insurance was created to govern the life and non life insurance business.
Life insurance companies and PF societies numbering about 20 were in existence in 1950. All these companies were owned by private parties. There was no guarantee. Trusteeship was lacking. They were not bothered about the customer’s interest. There emerged many malpractices. The promoters of the company is diverted the funds for their personal and family interest with least concern for customers. Hence, such of these companies could not survive for long. The result was some companies, went into liquidation.
The Life insurance business was popular only in urban centers. It was felt that life insurance, the business of long term security deserved to be organized in a better manner. The then prim minister pundit Jawaharlal Nehru Decided to Nationalize Life Insurance. The business of nearly 250 private and foreign insurance companies was taken over by LIC of India, through enactment of Life Insurance Act 1956. On this memorable occasion the then Finance Minister Shri.C.D.Deshmuck spoke thus “The misuse of Power, Position, Privilege that we have reason to believe occurs under existing conditions, is one of the most compelling reason, that have influence us in deciding to Nationalize Life Insurance” . In his memorable words and assertion “The nationalization of Life Insurance will be another mile ston on the road the country has chosen in order to reach the goal of socialist pattern of society. In the implementation of the five year plan, It is bound to give material assistance into the lives of millions in rural areas, It will introduce a new sense of awareness of building for the future, of calm confidence, which insurance alone cane give. It is a measure conceived in a genuine spirit of service to the people. It will be for the people to respond, confound the doubters and make it a resounding success.
The persons who have insured their lives with LIC (the only insurer ) are not only providing economic securities for their families, but also contributing immensely to the growth and development of country in all spears of activity.