The document discusses the history and development of the insurance sector in India. It notes that insurance was initially nationalized and state-owned companies dominated the market. Liberalization in the 1990s allowed private companies to enter the sector. Now there are many private life, health, and general insurance companies operating alongside state-owned insurers, increasing competition and improving customer choice, services and products. However, some risks remain, such as companies prioritizing profits over customers.

1. Prof. Isha Jaiswal

2.  Insurance has always been a politically sensitive
subject in India. Within less than 10 years of
independence, the Indian government nationalized
private insurance companies in 1956 to bring this
vital sector under government control
to raise much needed development funds.
 Since then, state-owned insurance companies have
grown into monoliths, lumbering and often
inefficient but the only alternative. They have been
criticized for their huge bureaucracies, but still
have millions of policy holders as there is no
alternative.

3.  LIC of India was formed in 1956 to take over
the insurance business in India.
 GIC was formed in 1972.

4. The Narasimha Rao government (1991-96) which unleashed liberal changes
in India's rigid economic structure could not handle this political hot potato.
Ironically, it is the coalition government in power today which has declared
its intention of opening up insurance to the private sector. Ironical because
this government is at the mercy of support from the left groups which have
been the most vociferous opponents of any such move.
All segments of the financial sector had been opened to private players with
better product, services & social objective
International players are eyeing the vast
potential of the Indian market and are
already making plans to come in.

5. 1. AEGON Religare Life Insurance
2. Aviva Life Insurance Company India Limited
3. Bajaj Allianz Life Insurance
4. Bharti AXA Life Insurance Company Ltd.
5. Birla Sun Life Insurance Co. Ltd
6. Canara HSBC Oriental Bank of Commerce Life Insurance Company
Ltd.
7. DHFL Pramerica Life Insurance Co. Ltd.
8. Edelweiss Tokio Life Insurance Co. Ltd.
9. Exide Life Insurance
10. Future Generali India Life Insurance Company Limited
11. HDFC Standard Life Insurance Company Limited
12. ICICI Prudential Life Insurance Co. Ltd
13. IDBI Federal Life Insurance Company Ltd
14. IndiaFirst Life Insurance Company Limited
15. Kotak Mahindra Old Mutual Life Insurance Limited

6. 16. Max Life Insurance Co. Ltd
17. PNB Metlife India Insurance Co. Ltd.
18. Alimchandani Life Insurance Company Limited
19. Sahara India Life Insurance Co, Ltd.
20. SBI Life Insurance Co. Ltd
21. Shriram Life Insurance Co, Ltd.
22. Subrin Map Life Insurance Co, Ltd.
23. Star Union Dai-ichi Life Insurance
24. Tata AIA Life Insurance Company Limited

7. 1. Agriculture Insurance Co. of India Ltd.
2. Apollo Munich Health Insurance Co. Ltd.
3. Bajaj Allianz General Insurance Co. Ltd.
4. Bharti Axa General Insurance Co. Ltd.
5. Cholamandalam MS General Insurance Co. Ltd.
6. Cigna TTK Health Insurance Co. Ltd.
7. Export Credit Guarantee Corporation of India Ltd.
8. Future Generali India Insurance Co. Ltd.
9. HDFC ERGO General Insurance Co. Ltd.
10. ICICI Lombard General Insurance Co. Ltd.
11. IFFCO Tokio General Insurance Co. Ltd.
12. L&T General Insurance Co. Ltd.
13. Liberty Videocon General Insurance Co. Ltd.
14. Magma HDI General Insurance Co. Ltd.

8. 15. Max Bupa Health Insurance Co. Ltd.
16. National Insurance Co. Ltd.
17. The New India Assurance Co. Ltd.
18. The Oriental Insurance Co. Ltd.
19. Raheja QBE General Insurance Co. Ltd.
20. Reliance General Insurance Co. Ltd.
21. Religare Health Insurance Co. Ltd.
22. Royal Sundaram Alliance Insurance Co. Ltd.
23. SBI General Insurance Co. Ltd.
24. Shriram General Insurance Co. Ltd.
25. Star Health and Allied Insurance Co. Ltd.
26. Tata AIG General Insurance Co. Ltd.
27. United India Insurance Co. Ltd.
28. Universal Sompo General Insurance Co. Ltd.

9.  To develop the competition in the business of insurance
and to make both the private and public sector to work
efficiently in the insurance business.
 To create more option on the side of customers to
purchase the policies.
 To attract more and more people towards the insurance
business.
 To earn foreign exchange form the non-resident
Indians by getting them involved in assuring them.
 To raise the capital investment of the people and which
can result in improving the economic development of
the country.
 To create more chances of employment in the
insurance business sector.

10.  Privatization of Insurance eliminated the
monopolistic business of Life Insurance
Corporation of India. It helps to introduce new
range of products which covered wide range of
risks.
 It resulted in better customer services and help
improve the variety and price of insurance
products.
 The entry of new player has speed up the spread of
both life and general insurance.

11.  Entry of private players will ensure the
mobilization of funds that can be utilized for the
purpose of infrastructure development.
 The participation of commercial banks into
insurance business helped to mobilization of funds
from the rural areas because of the availability of
vast branches of the banks.
 Employment opportunities were created in the
field of insurance.
 The world’s best insurance companies will come
forward to involve in insurance business using the
global technologies.

12.  The private companies try to convince the people much
more but it happens that the insured may not have a
capacity to pay the premium after some years and
hence the customers have to loose the interest benefits
on their investments.
 Due to competitions among the insurance companies
the companies adopt strategies which may lead to
making the customers fools in investing in the
insurance.
 Company may relieve the employees who are unable to
put in getting the minimum target of their expectations.
Thus this will create danger against the employee,
actually imparting their services in insurance
companies.

13.  It is possible that the foreign insurance
company may transfer the profit margins to
their own country and hence our country will
not be benefited by the investment of our
people.
 People have no trust in non-government
companies and hence there seems to be less
chances for the development of private
insurance business.