Professional Documents
Culture Documents
PROJECT
ON
SUBMITTED BY
EXAM NO.
GUIDED BY
To list who all have helped me is difficult because they are so numerous and the depth is
so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I take this opportunity to thank our Coordinator Dr. Suvarna T. Rawal, for her moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide Ms.
NEELAM PATILwhose guidance and care made the project successful.
I would like to thank my CollegeNirlon Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me
in the completion of the project especially my Parents and Peers who supported me
throughout my project.
INDEX
2 HISTORY OF LIC
3 LIC PROFILE
4 PRIVATE INSURANCE
COMPANY PROFILE
5 AWARD AND REWARD
6 COMPARTIVE ANALYSIS
7 CONCLUSION AND
REFFERNCE
ABSTRACT
Since 1991, Indian economy and industry has moved away from a state controlled to a
competitive market with integrated financial services to the global economy. The
financial sector, particularly, the Insurance has opened up to all competition. A revamp in
tightly regulated and monopolis insurance sector was brought about by the passage of the
Insurance Regulatory and Development Authority Act (IRDA) in 1999. The present
paper analysis the performance of public and private life insurance companies in India.
As per the total premium income, in FY 201 4-15, LIC with 73% of business share still
holds a significant market share. 24 private insurance companies have established
footholds in the market leading to intense competition. Private Insurance companies have
a higher growth rate as compared to public sector. Today, Insurance penetration is better.
The Insurance companies are competing in terms of policies sold, collection of premium
income and other
The first two decades of the twentieth century saw lot of growth in insurance business.
From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176
companies with total business-in-force as Rs.298 crore in 1938unsound concerns were
also floated which failed miserably. The Insurance Act 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state control
over insurance business. The demand for nationalization of life insurance industry was
made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the
Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was
much later on the 19th of January, 1956, that life insurance in India was nationalized.
About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization was accomplished in two
stages; initially the management of the companies was taken over by means of an
Ordinance, and later, the ownership too by means of a comprehensive bill. The
Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956,
and the Life Insurance Corporation of India was created on 1st September, 1956, with the
objective of spreading life insurance much more widely and in particular to the rural
areas with a view to reach all insurable persons in the country, providing them adequate
financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term contracts
and during the currency of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district headquarter.
Re-organization of LIC took place and large numbers of new branch offices were opened.
As a result of re-organization servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the performance of the
corporation. It may be seen that from about 200.00 crores of New Business in 1957 the
corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years
for LIC to cross 2000.00 crore mark of new business. But with re-organization happening
in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on
new policies.
Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices,
8 zonal offices, 1381 satelite offices and the Corporate office. LICs Wide Area Network
covers 113divisional offices and connects all the branches through a Metro Area
Network. LIC has tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities. LICs ECS and ATM premium payment
facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS,
Info Centre have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing
easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices.
The satellite offices are smaller, leaner and closer to the customer. The digitalized records
of the satellite offices will facilitate anywhere servicing and many other conveniences in
the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records.
LIC has issued over one crore policies during the current year. It has crossed the
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire us
at LIC to take this message of protection to light the lamps of security in as many homes
as possible and to help the people in providing security to their families.
INTRODUCTION
are tormenting the society Risk has become central to one's life. It is within this
background life insurance policyhas been introduced by the insurance companies
covering risks at various levels. Lifeinsurance coverage is against disablement or in the
event of death of the insured economic support for the dependents. It is a measure of
social security to live hoodfor the insured or dependents. This is to make the right to life
meaningful, worthliving and right to livelihood a means for sustenance. Therefore, it goes
without saying that an appropriate life insurance policy within the paying capacity and
meansof the insured to pay premium is one of the social security measures envisaged
underthe Indian Constitution. Hence, right to social security, protection of the family
economic empowerment to the poor and disadvantaged are integral part of the right tolife
and dignity of the person guaranteed in the constitution Man finds his security in income
(money) which enables him to buy food, clothing shelter and other necessities of life.
OUR PRODUCT
At the end of the financial year 2015-16 we have 10 plans for sale under individual
business.The product satisfy the different needs of various segments of society.The plans
are Endowment type. Money Back type, Heath, pension type plans etc.
Different Plans
IN BSFI
4.HINDUSTAN TIMES MUMBAI
(HOT 50)
THE BIRTH OF INDIAN INSURERS
LaxmiInsurance Co. Similarly, Andhra Insurance was started in Masulipatnam, with the
initiative of stalwarts like Dr. PattabhiSitaramaiah. From political platforms also, national
leaderssupported this cause. It is duty to every Indian to support only Indian Insurance.
The keynoteof our Swaraj is in placing all our insurance with our Indian companies", said
MahatmaGandhi in his message. "I hope Indians will realize the importance of patriotism
only throughIndian insurance institution", stated Pandit Jawaharlal Nehru. Thus, the
cause of Indianinsurance became a national issue. The pursuit to boost Indian insurance
represented acrusade to extricate the Indian economy from foreign domination.
The growth of Life Insurance in concrete terms could be said to being during the first
twodecades of twentieth century when most of the major companies were founded. They
grew in terms of rise in the number of With the advent of the 20th century, the glorious
renaissance of swadeshi days dawned. Atthe same time, well- to do Indians realized the
potentiality of Indian Insurance business. TheSwadeshi movement of 1905-1907 gave
rise to more insurance companies. The United Indian Madras, National Indian and
National Insurance in Calcutta and the Co-operativeAssurance at Lahore were established
in 1906. In 1907, Hindustan Co-operative InsuranceCompany took its birth in one of the
rooms of the Jorasanko House of the great poetRabindranath Tagore, in Calcutta. The
Indian Mercantile (1907) was started in Bombay,
General Assurance (1908) at Ajmer and the Swadeshi Life (Later Bombay Life) in
Bombayin 1908.The end of the First World War (1914-18) witnessed an influx of
insurance companies inIndia. Famous Indian business houses started new insurance
companies. Industrial andPrudential Bombay, Western India, Satara, were floated before
the war, but by 1919,companies like Jupiter General, New India, Vulcan Insurance
Company etc. came into being.PanditK.Santhanam with blessing of LalaLajpatRai and
PanditMotilal Nehru start companies, in terms of number of policies and sum assured
aswell as total life fund. Indian Insurance Year Book, published for the first time in 1914,
givesthe figure of the total business-in -force as 22.44 crore which grew to Rs. 298 crore
in 1938.In 1914, there were only 44companies transacting insurance business in India,
and during thenext 25 years their number rose to 176. The total progress on all the
primary heads, viz. lifefund (Rs. 50.50 crore), premium income (Rs. 10.50 crore) and
new business (Rs. 43.30 crore)indicate that Indian Insurance Business had been making a
definite headway during thisyears. The inter-war -years thus saw rapid growth life
insurance in India.The promotion of new life insurance companies continued to be almost
a craze and insurancecompanies mushroomed. In this period, 176 insurance companies
were formed and many of them failed. Thus unhealthy growth was harmful to the interest
of the policy holders andinsurance business in India.
(1) STRUCTURE
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
COMPETETION
Private Companies with minimum paid up capital of Rs.1 bn should be allowed toenter
the industry.
No Company should deal in both Life and General Insurance through a single entry.
Only one State Level Life Insurance Company should be allowed to operate in eachstate.
GIC and its subsidiaries are not to hold more than 5% in any company (There
currentholdings to be brought down to this level over a period of time).
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill
inParliament in December 1999. The IRDA since its incorporation as a statutorybody in
April 2000 has fastidiously stuck to its schedule of framing regulations andregistering the
private sector insurance companies The other decision taken simultaneously to provide
the supporting systems to theinsurance sector and in particular the life insurance
companies was the launch of the IRDA's online service for issue and renewal of licenses
to agents The approval of institutions for imparting training to agents has also ensured
thatthe insurance companies would have a trained workforce of insurance agents inplace
to sell their products, which are expected to be introduced by early next year Since being
set up as an independent statutory body the IRDA has put in aframework of globally
compatible regulations. In the private sector 14 lifeinsurance companies have been
registered.
ENTRY OF PRIVATE COMPANIES
Under the IRDA Act, private companies can now operate in India's insuranceindustry.
However, they must obtain a license from the IRDA before being permitted to write
business To have its license application considered, a domestic private company must
beregistered in accordance with the Companies Act of 1956 and have approximatelyUS$
20 million of investment capital. The specific licensing requirements thatPrivate Indian
Companies must fulfill are set forth in the Registration on IndianInsurance Companies
Regulations, published by the IRDA 2000.
The IRDA Act also lifts certain barriers to foreign direct investment in Indianinsurance
industry Global insurers are now permitted to set up and register a domestic company
inorder to write business in India. However, regulations stipulate that they have a capital
base of at least US $ 20 million, and their investment in such company iscapped at 26
percent. Thus, to participate in the market, they must form a jointventure with an Indian
partner that is able to invest the remaining funds The equity investments limit is the same
for global reinsures seeking to writebusiness in India, but they are required to put up a
capital of approximately US$ 45million in order to establish a domestic company.
Since the IRDA first enacted these rules, 13 new life insurance companies haveentered the market On
the other hand, no global reinsurer has established a domestic company.Instead, most of
the top international reinsurance companies operate from theiroverseas offices by sharing
the reinsurance risks picked up by the GIC. A recentproposal has been put forward to
increase foreign direct investment to 49 percent.In addition, global companies are
pushing for the right to establish branch officesin India. These changes are likely to
substantially increase the presence of international insurers, reinsurers, and brokers in
India.The IRDA Insurance Brokers Act in India 2002 permitted overseas insurance
andreinsurance brokers to enter the market, but with the same equity cap as thatgoverning
the operations of foreign insurers and reinsurers. Thus, foreign brokersmust also form a
joint venture with an Indian partner in order to establish an Indianbroking house.The
2002 IRDA legion established four broker categories, one of whichbrokers must select
when applying for a license:1.Category 1A : Direct General Insurance
Broker2.Category 1B : Direct Life Insurance Broker3 . C a t e g o r y 2
: R e i n s u r a n c e B r o k e r 4 . C a t e g o r y 3 : C o m p o s i t e B r o k e r 5.Category4:
Others, for example Insurance Consultants and Risk Management
Consultants.Each category has different solvency margins and capital adequacy ratios,
and allcategories need to carry professional indemnity insurance at different
minimumlevels.In the years since market liberalization was initiated, the insurance sector
haswitnessed some impressive changes. The needs of insurance and reinsurancebuyers
have grown; the market is introducing new products to address these needsand the
services of brokers are now seen as critical to making informed insuranceand reinsurance
decisions.
NAME OF PRIVATE INSURANCE COMPANIES
1 Aviva life ins. Co. India Pvt.Ltd: It offers GrameenSuraksha for the over income
groups.
6] Birla Sun life ins. Co. LTD: The Birla insurance has introduced some life insurance
products like
9] DLFPramerica Life InsuranceCo. Ltd. It offers a single micro insurance policy called
DLFPramericaSarv-Suraksha.
10] ICICI Prudential Life Insurance Co. Ltd; The company provides insurance known as
ICICI Prud. Sarv Jana Suraksha
11] IDBI Fortis Life Insurance Co.Ltd: The name of the product is IDBI Fortis
Group Micro in-surance Plan
12] Vysya Life Insurance Co.Ltd: It also provides a single policy called ING
VysyaSaralSuraksha
14] LIC'sJeevanMangal.
15] Met Life India; The single policy of the Met Life is Met Vishwas
16] Sahara India Life Insurance Co. Ltd; The Sahara Sahayog (Micro Endowment
Insurance without profit plan) is one innovative policy of the company.
17] SBI Life Insurance Co. Ltd.: The SBI Life Gramin Shakti and SBI Life Grameen
Super Su-raksha are the two products offered by SBI.
18] Shriram Life Insurance Co. Ltd: the two policies are Shriram life insurance
are ShriSahay and Sri Sahay (AP).
19] Star Union Dai-ichiLifeInsurance Co. Ltd.: The product offered by the
company is SUD Life ParasparSuraksha Plan.
20] TATA AIG Life Insurance Co.Ltd: There are four policies offered by TATA.
They are;
AyushmanYojana.
NavkalyanYojana.
SampoornBimaYojana.
Tata AIG SumangalBimaYoja
So at present there are 24 insurance companies who provide micro insurance products to
the low income group people. All these companies are registered under the IRDA Act
1999.
Private companies that are in life insurance sector are as under
reports of LIC. Secondary data were collected from annual reports of IRDA, IRDA
journal and Life Insurance Today.
Besides, a few websites have also been consulted. For the analysis of data, statistical
tools like percentages, ratios, growth
rates and coefficient of variation were used.
The study aimed to examine the financial performance of Indian life insurance companies
through analyzing the determinantsof their profitability. Measuring the performance of
insurance companies has gained the relevance because they are not the mechanism of
saving money and transferring risk but also helps to channel funds in an appropriate way
from
surplus economic units to deficit economic units so as to support the investment activities
in the economy. Performance of
companies can affect economy as a whole and therefore it requires empirical analysis to
judge the performance. For
measuring financial performance, financial ratios such as current ratio, solvency ratio,
return on assets ratio and insurance
OVERVIEW OF THE CURRENT INSURANCE MARKET
In the years since the IRDA Act initiated market reforms, the insurance sector
hasexperienced some remarkable changes.The entry of a large number of Indian and
Foreign private companies in life insurance business has to lead greater choice in terms of
products and services.Increased consumer awareness of the benefits and importance of
insurance andreinsurance has generated many more buyers; and new distribution
channels_among them brokers, bank assurance, the Internet, and corporate agents_
haveprovided additional ways of getting products and services to customers.
The mechanism of insurance is very simple. People who are exposed to the same risks
cometogether and agree that, if any one of them suffers a loss, the others will share the
loss andmake good to the person who lost. All people who send goods by ship are
exposed to thesame risks, which are related to water damage, ship sinking, piracy, etc.
Those owningfactories are not exposed to these risks, but they are exposed to different
kinds of risks like,fire, hailstorms, earthquake, lightning, burglary, etc. Like this, different
kinds of risks can beidentified and separate groups made, including those exposed to such
risks. By this method,the heavy loss that any one of them may suffer (all of them may not
suffer such losses at thesame time) is divided into bearable small losses by all. In other
words, the risk is spreadamong the community and the likely big impact on one is
reduced to smaller manageableimpacts on all.If a Jumbo Jet with more than 350
passengers crashes, the loss would run into several croresof rupees. No airline would be
able to bear such a loss. It is unlikely that many Jumbo Jetswill crash at same time. If 100
airline companies flying Jumbo Jets, come together into aninsurance pool, whenever one
of the Jumbo Jets in the pool crashes, the loss to be borne byeach airline would come
down to a few lakhs of rupees. Thus, insurance is a business of sharing.
.There are certain principles, which make it possible for insurance to remain a
fairarrangement. The first is that it is difficult for any one individual to bear the
consequences of the risks that he is exposed to. It will become bearable when the
community shares theburden. The second is that the perils should occur in an accidental
manner. Nobody should bein a position to make the risk happen. In other words, none in
the group should set fire to hisassets and ask others to share the costs of damage. This
would be taking unfair advantage of an arrangement put into place to protect people from
risks they are exposed to. Theoccurrence has to be random, accidental, and not the
deliberate creation of the insured person.The manner in which the loss is to be shared can
be determined before-hand. It may beproportional to the risk that each person is exposed
to. This would be indicative of the benefit the would receive if the peril befell him. The
share could be collected from the members afterthe loss has occurred or the likely shares
may be collected in advance, at the time of admission to the group. Insurance companies
collect in advance and create a fund from whichthe losses are paid.The collection to be
made from each person in advance is determined on assumptions. Whileit may not be
possible to tell beforehand, which person will suffer, it may be possible to tell,on the
basis of past experiences, how many persons, on an average, may suffer losses.
Thefollowing two examples explain the above concept of insurance:
Example 1In a village, there are 400 houses, each valued at Rs. 20000. Each year, on the
average, 4houses get burnt, resulting into a total loss of Rs. 80000. If all the 400 owners
come together rand contribute Rs. 200 each, the common fund would be Rs. 80000. this
is enough to pay Rs.20000 to each of the 4 owners whose houses got burnt. Thus, the risk
of 4 owners is spreadover 400 house-owners of the village.Example 2There are 1000
persons who are all aged 50 and are healthy. It is expected that of these, 10persons may
die during the year. If the economic value of the loss suffered by the family of each dying
person is taken to be Rs. 20000, the total loss would work out to Rs. 200000. If each
person in a group contributed Rs. 200 a year, the common fund would be Rs.
200000.This would be enough to par Rs. 20000 to the family of each of the ten persons
who die.Thus, the risks in the case of 10 person, are shared by 1000 persons.
s manual labour, professional skills andbusiness acumen are the assets. This asset also
can be lost through unexpectedly early deathor through sickness and disabilities caused
by accidents. Accidents may or may not happen.Death will happen, but the timing is
uncertain. If it happens around the time of one
retirement, when it could be expected that the income will normally cease, the
personconcerned could have made some other arrangements to meet the continuing
needs. But if ithappens much earlier when the alternate arrangements are not in place,
there can be losses tothe person and dependents. Insurance is necessary to help those
dependent on the income.A person, who may have made arrangements for his needs after
his retirement, also wouldneed insurance. This is because the arrangements would have
been made on the basis of someexpectations like, likely to live for another 15 years, or
that children will look after him. If any of these expectations do not become true, the
original arrangement would becomeinadequate and there could be difficulties. Living too
long can be as much a problem as dyingtoo young. Both are risks, which need to be
safeguarded against. Insurance takes care.
Role of Insurance in Economic Development
For economic development, investments are necessary. Investments are made out of
savings.A life insurance company is a major instrument for the mobilization of savings of
people,particularly from the middle and lower income groups. These savings are
channeled intoinvestments for economic growth.As on 31.3.2002, the total investments
of the LIC exceeded Rs. 245000 crores, of which morethan Rs. 130000 crores were
directly in Government (both State and Centre) relatedsecurities, more than Rs. 12000
crores in the State Electricity Boards, nearly Rs. 20000 croresin housing loans and Rs.
4000 crores in water supply and sewerage systems. Otherinvestments included road
transport, setting up industrial estates and directly financingindustry. Investmentsin the
corporate sector (shares, debentures and term loans) exceededRs. 30000 crores. These
directly affect the lives of the people and their economic well-being.A life insurance
company will have large funds. These amounts are collected by way of premiums. Every
premium represents a risk that is covered by that premium. In effect,therefore, these vast
amounts represent pooling of risks. The funds are collected and held interest for the
benefit of the policyholders. The management of life insurance companies arerequired to
keep this aspects in mind and make all its decisions in ways that benefit thecommunity.
This applies also to its investments. That is why successful insurance companieswould
not be found investing in speculative ventures. Their investments, as in the case of
theLIC, benefit the society at large.Apart from investments, business and trade benefit
through insurance.
RESEARCH METHODOLOGY
RESEARCH OBJECTIVES:
1.To compare the performance of LIC and private insurance companies in
India.2.To find out the performances of LIC and private insurance companies
in eachcategory (size. growth, productivity and efficiency)3.To compare grievance
management of LIC and private insurance companies.
RESEARCH DESIGN :
a.Type of research design : Analytical Researchb . D a t a c o l l e c t i o n : S e c o n
d a r y S o u r c e s c . S t a t i s t i c a l T o o l s : R a t i o A n a l ys i s Bar Graph
RESEARCH PROCESS
In this research my research objective was to compare the performance of LIC and
Privateinsurance companies. For this purpose I decided the four broad categories under
which I havecompared the LIC and Private insurance companies. These are:
Total Premium
Total Income
Growth in Premium
Growth in Income
LIC is the giant of the insurance sector. The overall size of LIC is much more thanthat of
all private insurance companies. Private insurers are in expansion mode andare
increasing their size but are still much behind LIC. Total premium deposits inLIC is
much higher than the private insurance companies. Total premium of LIC inFY 07-08
was 149789 crores which three times more than that of private insurancecompanies.
Income of LIC is much greater than private insurance companies. Last year totalincome from
investments of LIC was 48244.14 crores which was nearly equal to thetotal income of the
all private insurance companies. By this we can imagine how bigthe LIC is.
Size of balance sheet of private insurance companies are lagging much behind
LIC.Balance sheet of LIC is seven times bigger than that of private insurance companies.
If we see the total number of policies issued by LIC and private insurance companies,we
find that there is a huge gap between them. No doubt that LIC is a well establishedplayer in the field
of insurance and many private companies have just started theirbusiness. Hence it is
obvious that LIC is having large number of policyholders.
We see that due to excellent service quality and attractive offers private
insurancecompanies have started getting a number of customers. They are growing
rapidly.Though LIC is also increasing its customer base but private insurance companies
aremoving at a fast pace.
Though the income of private insurance companies is negligible when compared but
then also the pace with which they are increasing their income is tremendousPrivate
insurance companies are expanding their business and will certainly going togive a tough
competition to LIC in the coming days.
LIC is certainly having a large customer base. Private insurance companies are nothaving
that much number of customer base but they are increasing it rapidly. Theyhave registered a
decent growth of 104.64 % in number of new policies in the year2006-07. Last year also their growth rate
was 67.4 %.
LIC, being the oldest player in the existing insurance market, has the biggest marketshare
of 73.9 % which was 87.3% five years earlier. We see that private insurancecompanies are
penetrating in the customer base of LIC.
Overall we can see that private insurance companies are giving a toughcompetition
to the LIC and will certainly create a good business for them selves the coming days.
There are many new entrants in this sector. There are many private insurancecompanies
who have reported loss in this and previous years. This is the main reasonwhy private
insurance companies lag behind LIC in case of business per branch.There is a big
difference between them.
Same is the case when it comes to income per branch. LIC is much ahead of
privateinsurance companies in this field. They are undoubted champions in insurance
when itcomes to profit earning.
New business is increasingly going towards private insurance companies but still
thecustomer base of LIC is very strong. In issuing new policies per branch also, they
areahead of private insurance companies though not by very large margin.
Customer base of LIC is very strong and still business per branch, profit perbranch
or premium per branch, they are leading much ahead of privateinsurance
companies.
LIC has not shown their good concern when the matter of grievance handling
comes.Private insurance companies are far ahead in this matter. LIC has just resolved
25%cases in the last five years while private insurance companies have resolved
nearly70% cases. This is a matter from where customer shift starts. We have seen the
rapidincrease in customer base of private insurance companies which can be very
muchaffected by this factor.
Overall we have seen that still LIC is very famous but private insurance companies
aregrowing at exceptionally fast pace. Private companies show due concern in
grievancemanagement and brings innovative schemes to attract the cu
Review of literature
In order to find out the gaps in research, the literature already available pertaining to
theproblem is to be reviewed. The literature on general Insurance Corporation in India
includes books, compendia, study reports and articles published by academicians and
researchers in different periodicals. The review of this literature gives an idea to
concentrate on the unexplored area and to make the present study more distinct from
other studies. The available is presented below:
1) Dr. S.M. TarjaqZafar ,Ms. RitikaAggarwal (March 2013) in their article on
financial performance of Indian General Insurance Companies in pre-recession
Period this particular paper analyze their qualitative and quantitative performance and
comparatively analyze insurance companies efficiency and profitability position.
2 Srivastava, D.C. and Srivastava, S (2001) in his article on Indian insurance industry-
transition and prospects discuss analytically the financial significance of insurance
industry, its contribution to Indian economy and also the transitory prospects and
challenges of insurance i
ndustry due to liberalization and the opening up of the sector to private players.
3 Dr. SonalNena (Dec 2013) in her Paper titled Performance Evaluation of LIC of
India has reviewed the importance, working, Operating Efficiency and Growth of LIC
of India.
Company analysis
In December 1999, a bill was passed in the parliament with the passage of Insurance
Regulatory and Development Authority for its reform process. However with the setting
up of IRDA, the government has once again deregulated the sector by opening it for the
private players. Life Insurance Corporation of India (L.I.C.I) dominated the Indian Life
Insurance market. But the situation drastically changed since the beginning of the year
2000. With the development of the IRDA Act in 1999, private players started entering
into the life insurance market. At the end of March 2015, there are 53 insurance
companies operating in India; of which 24 are in the life insurance business including
one public sector company (L.I.C. of India) and 28 are in non-life insurance business. On
the basis of total premium income, the market share of LIC decreased from 75.39 per
cent in 2013-14 to 73.05 per cent in 2014-15. The market share of private insurers has
increased from 24.61 per cent in 2013-14 to 26.95 per cent in 2014-15. So, we can say
that the state-owned Life Insurance Corporation (LIC) still holds a significant majority of
market share, though, other companies have established footholds.
REFERENCES
2.Ifran Ahmed, (2008), "Indian Insurance Industry: Challenges and Prospects", Monthly
Public Opinion Surveys, January.
3, No. 3.