Discuss the salient points of the insurance act, 1938
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To regulate the activities of these Insurance Companies, and prevent them from becoming speculative, and force them to act on sound Actuarial principles, the Life Insurance Companies Act was passed in 1912. But this Act discriminated between Indian Companies and the foreign Companies.
The Indian Companies were required to make deposits with the Government while the foreign companies were exempted. Thus resentment grew among the Indian insurance companies and the independence movement, the non-cooperation movement of Mahatma Gandhi added strength to the Indian Insurance Companies.
Indian Insurance Companies became a symbol of Swadeshi Movement – ‘Be Indian Buy Indian’. The total insurance business which was Rs 22.44 crore in 1914 grew to Rs 298 crore by 1938 and the number of insurance companies grew from 44 to 176 during the same period. Many of these companies failed soon after.
The Indian Companies were required to make deposits with the Government while the foreign companies were exempted. Thus resentment grew among the Indian insurance companies and the independence movement, the non-cooperation movement of Mahatma Gandhi added strength to the Indian Insurance Companies.
Indian Insurance Companies became a symbol of Swadeshi Movement – ‘Be Indian Buy Indian’. The total insurance business which was Rs 22.44 crore in 1914 grew to Rs 298 crore by 1938 and the number of insurance companies grew from 44 to 176 during the same period. Many of these companies failed soon after.
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