A Comparative Study of Public and Private Insurance Companies in Thane District

Abstract

Insurance is one of the important financial instruments that can mitigate damages arising in era of economic and social turbulences. With growing uncertainties, an individual is compelled to look for a protective device that will provide a cushion against all adversities that an individual is exposed to. Hence, an insurance product provides psychological support that lifts the spirit of the life. Human tendency to protect itself from all hazards is natural and it has evolved with the advancements in human civilization. Therefore, insurance in some or other form has been the part of human civilization for immortal times and it will remain so in future as well. Insurance in common parlance, is an arrangement in which a large number of people agree to contribute or compensate loss suffered by one or some of the persons who have agreed to do so through the contribution in the form of insurance premium. The term insurance has evolved and progressed with the advancement of civilization and therefore it is defined in variety of ways. newlineThe researcher has selected Life Insurance segment for this research work. Life insurance business in India was a monopoly of public sector life insurer Life Insurance Corporation of India in post-independence period. In economic liberalization policy of 1999, life insurance industry was opened for the private sector as the insurance penetration during that period was low. On opening of the insurance for private sector, 23 companies were incorporated particularly by leading Indian corporate houses. Among the private life insurance companies HDFC, Bajaj, ICICI, SBI, Tata are the major players to jump into the newly opened insurance industry. The liberalization policy also allowed Indian corporates to start insurance business in collaboration with the foreign insurance companies. As a result, many private insurers collaborated with the foreign insurers. This newlineIV newlinearrangement was a win-win situation for both foreign insurers and newly incorporated private sector insurers. newlineCorporate Social Respon