| Insurance is a colossal sector
in India that is growing at a speedy rate of 15-20%. The
insurance sector is approximately 450 billion yet 80 percent of
the population in India is not insured. This gives you a peek
into the huge growth opportunity that exists for this segment.
The insurance business in India mainly consists of two main
players, the Life Insurance Corporation (LIC) and General
Insurance Corporation (GIC). Almost 100 divisional offices and
2000 branch offices are functional for LIC. As LIC caters to
life insurance, health insurance, property and accident
insurance it needs an increasing number of employees.
|
|
Thus insurance companies in India are growing vertically and
horizontally bringing growth and employment opportunities.
The other player GIC undertakes motor, marine, personal accident
and fire insurance. Moreover it has four subsidiaries a)
Oriental Insurance, b) United India Insurance, c) New India
Assurance, and d) National Insurance.
Insurance companies in India have a deep-rooted history. It all
began in 1818 when Oriental Life Insurance Company in Calcutta
was established. From then on insurance was scattered across the
country. It was an unorganized sector. Then in 1950, the entire
insurance segment was nationalized. After achieving freedom, the
insurance sector gained momentum. In 1956 the government of
India consolidated 240 private life insurers and provident
societies and this was how LIC came to life. The justification
to the nationalization of the life insurers was that the
government would reap the necessary funds that were required for
industrialization. The general insurance industry still remained
in the hands of the private sector till 1972 and was then
nationalized.
LIC adds about 7 percent to the country’s GDP. With IRDA’s
regulation not less than 15 percent of funds from the insurance
companies are said to fill the coffers of infrastructure and
social sectors. Thus proving vital funds to the country’s
growth. Infrastructure of the country bears risks that are of a
long-term character. They include political instability,
geological hindrances, gestation period and illiteracy. The long
tem funds provided by Life Insurance of India not only cover
these risks but also help securing a brighter future for the
country. Besides infrastructure the insurance companies in India are
vital for one’s saving purpose. In the beginning insurance was
looked at as a ‘tax-benefit’ investment. Slowly, however the
mindset of the common man is changing. Life insurance is now
looked on as investment vehicle. With the introduction of
private players in the sector there has been more transparency
and flexibility in the sector. Private players have procured
almost 9 percent of the insurance segment even though the
coveted policies like endowment and money back still lay with
the government.
Better services, individual attention and pure transparency have
given the private sector an upper hand. But with a huge
unorganized market in India yet to tap the insurance companies
in India have a voluminous market to explore. ~
A guide to India Insurance is Authored
by M. Hemdev. data is Copyright © 2004 .Indianchild.com
related articles :
Crop insurance
medical insurance in india |
