Instituted in 1837 by the East India Company, the Order of Merit as it was originally known was awarded for gallantry in battle displayed by members of the Indian Army. With the Introduction of the Order of Merit in 1902, the original award was renamed to be the Indian Order of Merit.
There were three grades but the 1st Class was abolished in 1912 when Indian personnel became eligible to receive the VC in October 1911.