THE IMPACT OF PRIVATIZATION ON THE LIFE INSURANCE CORPORATION OF INDIA

The Insurance industries in India now have been shaped in a big way especially after privatization and introduction of Insurance Regulatory & Development Authority (IRDA). Life Insurance Corporation of India is the most significant public sector which sells its product in significant way. But since last few years it is facing tremendous competition as many private players have entered. Before 1999, it remained a monopoly, Government of India decided to adopt structural changes in the insurance industry and took steps to allow this sector for private comings. Finally December 7, 1999, a new legislation came into effect which brought a change in the insurance industry structure, parliament passed the Insurance Regulatory and Development Authority (IRDA) Act which opened the way for granting licences to private insurance companies. After privatization, monopoly of LIC has come to an end and it has to perform in a competitive market. This study is an attempt to throw light on the performance of LIC of India in such a competitive scenario.