Download this Paper Open PDF in Browser

The Impact of LPG on Life Insurance Corporation of India (LIC)

Asia Pacific Journal of Finance and Banking Research, Vol. 3, No. 3, July 2009

12 Pages Posted: 19 Jan 2010  

R. Rajendran

Annamalai University

B. Natarajan

Annamalai University

Date Written: July 31, 2009

Abstract

The Indian life insurance industry has its own origin and history, since its inception. It has passed through many obstacles, hindrances to attain the present status. The income earning capacity of an individual citizen of a nation and the eagerness and awareness of the general public are the two key determinants of the growth of any insurance industry. For that they should provide wider and mass-employment opportunities and sound educational system. More over, the general public must be inculcated with more knowledge, awareness and importance about life insurance, and these steps help to boost the growth of insurance industries. In this Indian context, the insurance habit among the general public during the independence decade was quite rare and in the following decades, it slowly got increased. There was a remarkable improvement in the Indian insurance industry soon after the acceptance and adaptation of Liberalization, Privatization, and Globalization (LPG) in the year 1991. After 1991 the Indian life insurance industry has geared up in all respects, as well as it is being forced to face a lot of healthy competition from many national as well as international private insurance players. The fall in the savings rate and increased competition in the primary market and particularly the aggressive mobilization by the Mutual Fund posed serious challenges before LIC.

Keywords: life insurance, LPG, Liberalization, Privatization, and Globalization, savings rate

JEL Classification: G22

Suggested Citation

Rajendran, R. and Natarajan, B., The Impact of LPG on Life Insurance Corporation of India (LIC) (July 31, 2009). Asia Pacific Journal of Finance and Banking Research, Vol. 3, No. 3, July 2009. Available at SSRN: https://ssrn.com/abstract=1536067

R. Rajendran (Contact Author)

Annamalai University ( email )

Annamalainagar
Chidambaram, Tamil Nadu 608002
India

B. Natarajan

Annamalai University ( email )

Annamalainagar
Chidambaram, Tamil Nadu 608002
India

Paper statistics

Downloads
553
Rank
40,460
Abstract Views
2,832