LIC a Successful Company in Insurance Sector

Insurance in India is still a growing sector with huge potential. This sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up this sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global company in this sector wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government

Almost all Banks like SBI, Indian Bank, ICICI Bank, HDFC Bank and Big Business Houses like Tata, Birla, and Bajaj etc. entered into this new type of business to provide new service to Indian population.

Keeping in mind the peculiarities of Indian Economy, to give it boost, and also set aside evil effects of foreign capital, the Indian Government allowed limited partnership to foreign players and Indian Banks or Business houses were the main contributors in respect of Capital, Manpower, Distribution, Service etc. What was expected was introduction of new products tested worldwide, using experience and expertise of international insurance companies and providing wider option of alternatives to Indian citizens?

Basically the Monopoly of Government owned life Insurance Company- Life Insurance Corporation of India is broken and challenged in the process. Entry of very experienced, intelligent, customer-caring foreign players in the field compelled LIC to change its stance drastically. Foreseeing the immense competition from the foreign players, it had to amend its ways, concentrate on customer service, and improve upon its way of working and delivery system. That was the great advantage to the Indian population of these changed circumstances.

Insurance Regulatory and Development Authority (IRDA) shows the fall in the life insurance sector in the forth quarter. The down has been noted in the collection of life insurance premium about 6%.
The major player in the sector Life Insurance Corporation (LIC) whose share was about 60% to 63% has gone about 10% down. According to the officials it is being said that sale of new policies and collection of old policies premium has gone tremendously down this year.

Get Here some LIC Popular Policies and Plans.