Growth of LIC of India During Post Privatisation Period

Abstract

Many a people associate life insurance product with death and not as a tool of investment. Insurance sector was opened to publicise insurance product as a sign of investment. Around 1993, the Government of India decided to undertake structural changes in the insurance sector and took steps to open up this sector for private participation. Consequently, on December 7, 1999 parliament passed the Insurance Regulatory and Development Authority (IRDA) Act which paved the way for granting licences to private sector insurance companies. After privatisation of the insurance sector more than twenty life insurance companies have entered the business. Therefore, monopoly of LIC of India has come to an end and the Corporation has to perform in a competitive environment. The present study is an attempt to examine the growth of LIC of India in the competitive scenario.