Impact of Privatization Policy and FDI on Life Insurance Corporation Vis-à-vis Insurance Regulatory Authority of India

Book excerpt: Insurance business in India had taken step first in open competitive market then to nationalization. For almost four decades LIC has been the sole player with virtual monopoly in the Life Insurance Sector, it was in 1990,s government of India ventured into policy of liberalization and privatization and once again the insurance sector is back to privatize and liberalized market. Hence today most of the private players are giving competition to the public sector company, As private players entered in the market the market is booming in insurance sector with various products for attracting the attention of customer consequently by the year 2000-2001 , 12 players entered the life insurance sector .which will effect the performance of life insurance corporation .Thus the LIC had never faced any competition and at the same time had monopoly in the market, now has to compete with the private players,. It is therefore important to study the performance of Life Insurance Corporation after the entry of the private players and after adapting liberalize policy by the government therefore it becomes imperative to evaluate the performance of life insurance Corporation of India. The entry of private players in the market after adapting privatization by the government had effected in the performance of the life insurance sector, which is the key sector in the financial system Hence there is primary need to evaluate the performance of LIC and to study the need of privatization in Life Insurance Sector at the same time to study impact of private entrants in Insurance Sector, especially with regard to performance of life Insurance Corporation of India The broader objective of this study is to evaluate the role of privatization on the performance of LIC. Following are the specific objectives of this study; 1. To evaluate the performance of LIC 2. To study the need of privatization in Life Insurance Sector 3. To study impact of private entrants in Insurance Sector, Specially with regard to performance of life Insurance Corporation of India The suggestion and criticism for the improvement in the research are welcome.