GuideUpdated Nov 2026 · 1 min read
Nationalisation of Insurance in India
From private to state-owned, and back to competition.
Life insurance was nationalised in 1956, when LIC was set up under the LIC Act. General insurance was nationalised under the General Insurance Business (Nationalisation) Act, 1972. Private insurers returned after the IRDA Act, 1999, following the Malhotra Committee's recommendations.
Key Milestones
1938Insurance Act
1956Life insurance nationalised, LIC formed
1972General insurance nationalised
1999IRDA Act opens the sector
| Year | Event |
|---|---|
| 1938 | Insurance Act |
| 1956 | Life insurance nationalised, LIC formed |
| 1972 | General insurance nationalised |
| 1999 | IRDA Act opens the sector |
FAQs
When was LIC formed?expand_more
In 1956.
Which committee recommended opening the sector?expand_more
The Malhotra Committee.
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