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http://www.scribd.

com/doc/30072211/Privatisation-in-Insurance-Sector Abstract The entry of private players helps in spreading and deepening the operations in the Indian insurance sector which in turn results in restructuring and revitaliz ing of public sector companies. The article looks at the business strategies of private insurance companies and the future expectations of the insurance industr y.

Description The Government of India liberalized the insurance sector in March 2000, which li fted the entry restrictions for private insurance players, allowing foreign play ers to enter into the Indian market and start their operations in India. Each fo reign company needs to have a 26% equity capital to enter into the Indian insura nce market. Many foreign companies have joined their hands with the Indian compa nies and started their operations in early 2001. Now there is a proposal to incr ease the equity capital to 49%. Currently, 15 life insurance and 11 non-life insurance companies are operating i n the private sector. However, overall private insurance companies have three ti mes more products than the public companies. Previously, n a product ccording to t insurance insurance was considered as a savings instrument in India rather tha which offers protection and security to the person who is insured. A a LIC survey in 1996, more than 40% of the insurance buyers felt tha is a means of savings. Risk coverage is only a secondary objective.