WELCOME

PRIVATIZATION OF INSURANCE SECTOR IN

INDIA

LAL BAHADUR SHASTRI INSTITUTE OF

MANAGEMENT AND TECHNOLOGY ,
BAREILLY

RUCHIKA SAXENA
PGDM
CONTENTS
WHAT IS PRIVATIZATION?

INSURANCE SECTOR

HISTORY

PRIVATISATION IN INSURANCE

OBJECTIVES

GROWN UP INSURANCE SECTOR

TYPES OF INSURANCE
INTRODUCTION: Privatization means the
process
of transferring an enterprise or industry
from the public sector to the private sector.
INSURANCE SECTOR
• made up of companies that offer risk management in the form of insurance
contracts.

• Insurance = Protection against Risk

• Insurance industry , earlier comprised of only two states insurer.

Life Insurance Corporation of India (LIC)
General Insurance Corporation of India (GIC)

• It covers both Public and Private Sector.

 HISTORY
In India, began in 1818 with English Company, the oriental life insurance co. ltd.

Nationlization of life insurance business was in year 1956.

LIC formed on 1st September 1956.

In 1972 all the private companies merged into 4 companies under GIC.

Govt. took over these 4 companies in 2002 with mandatory 51% shares in each.

General Insurance Bussiness (Nationalisation) Ammendment Bill 2021.

PRIVATIZATION IN INSURANCE

All segments of the financial sector had been opened to private players
with better product, services & social objective…

In order to enhance insurance penetration and social protection.

To contribute to faster growth of economy.

TYPES OF INSURANCE
Privatization has brought in lot of surprises for insurance sector.
In India , insurance sector is at the booming stage as 40%of the
population is insured. Private organizations are striving hard to
develop the sector.

Various
Accidental
Government is also supporting the insurance sector totypes of
increase
insurance insurance
the GDP Ratio from the sector which is now about 1.4% only.
polices
Medical Vehicle
Family-
insurance insurance
Health
insurance
 OBJECTIVES
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 chances of employment in the insurance business

sector.

To raise the capital investment of the people and which can result in
improving the economic development of the country.
GROWN UP INSURANCE
SECTOR
The insurance industry has grown by 83 % since the opening up of the
sector……………...
-C S Rao, chairman (IRDA)

 Insurance premium income has risen to Rs 82,415 crore in 2003-04,

against 45,000 crore in 2000-01.

 The health insurance sector is expected to grow by 10-15 per cent.

 Foreign direct investment is increased to 49 per cent from the current 26

per cent ,the industry can expect greater entry of players.
THANK YOU !