An Analytical Study on Market Potential of Mediclaim Insurance in Solapur City

Abstract

Insurance is a social device which helps to distribute loss of few with number of other participants to a scheme of Insurance. Life Insurance and General Insurance are two main branches of Insurance. Mediclaim Insurance / Health Insurance as an independent scheme is covered under General Insurance. No doubt, some Life Insurance policies offered are with medical benefits and accident benefits, but they have restrictions as to the amount of claim since these are being offered as add-on benefits to the policyholders. The history of general insurance dates back to the Industrial Revolution in the western countries and the resultant growth of sea-faring trade and commerce in the 17th century. It came to India with Brithshers entry to India. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd. in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd. was set up. Indian Mercantile Insurance Ltd. was the first company to transact all classes of general insurance business. In 1957 the General Insurance Council was formed as a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices.In 1968, the Insurance Act was amended with the objective to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance business was nationalized with effect from 1st January, 1973 by establishing the General Insurance Corporation of India.In all 107 insurers were amalgamated and grouped into four companies, which were established as subsidiaries of General Insurance Corporation of India, namely - (i) National Insurance Company Ltd. (ii) The New India Assurance Company Ltd. newline(iii) The Oriental Insurance Company Ltd. (iv) The United India Insurance Company Ltd. In 1993, the Government of India set up a committee under the chairmans