The Performance of Life Insurance Corporation of India A Macro Study

Abstract

Life Insurance Corporation of India is one of the most significant public sectors which plays excellent job in selling its products. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. Insurance sector in India have grown tremendously in the last decade and is taking a giant shape after privatization of insurance industry. After the nationalisation of life insurance sector in 1956, so many changes have happened in the Indian life insurance sector. Even though Liberalisation of entire service sector in India occurred in 1991 as a part of New economic Policy, Liberalisation of Insurance sector implemented in 1999 and hence the Era of Liberalisation has been divided in to Two phases namely Pre-Liberalisation (up to 1999) and Post-liberalisation (after 1999). The study revealed that Life Insurance corporation of India was the single player in the insurance market till the entry of Private players in the Insurance industry as a result of the implementation of Dr.R.V Malhothra committee report in 1999. Since 1999, LIC started facing the challenges from the private insurance companies since those companies introduced many innovative insurance products for the benefits of policyholders. The government of India has notified the foreign direct investment in insurance to the extent of 49 percent on 21st February 2015.This may result in increased competition for LIC India with other private and foreign players in the industry. The study has undertaken to know the financial and operating performance of LIC with a rationale of knowing the source of income and other expenses of LIC. The period of study will be for 10 years from 2006-07 to 2015-16. newline