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The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation
Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population
and the untapped market area of this population Insurance happens to be a very big opportunity
in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together
with banking services, it adds about 7 per cent to the country¶s GDP .In spite of all this growth
the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian
populations are without Life insurance cover and the Health insurance. This is an indicator that
growth potential for the insurance sector is immense in India. It was due to this immense growth
that the regulations were introduced in the insurance sector and in continuation ³ 



'was constituted by the government in 1993 to examine the various aspects of the
industry. The key element of the reform process was Participation of overseas insurance
companies with 26% capital. Creating a more efficient and competitive financial system suitable
for the requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The competition LIC
started facing from these companies were threatening to the existence of LIC .since the
liberalization of the industry the insurance industry has never looked back and today stand as the
one of the most competitive and exploring industry in India. The entry of the private players and
the increased use of the new distribution are in the limelight today. The use of new distribution
techniques and the IT tools has increased the scope of the industry in the longer run.

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XV To examine the current status, volume of competitions and challenges faced by the Life Insurance
Corporation of India.

XV To know the performance of the private life insurance players against lic.

XV To analyze the life insurance services of LIC as well as private life insurance players.

XV To know the market potential of lic against private life insurance.

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Rao (2007) reported, ³Insurance is a vital economic activity and there is an excellent scope for
its growth in the emerging markets. The opening up of the insurance sector has raised high hopes
among people both in India and abroad.

Sabera (2007) indicated, ³The Government of India liberalized the insurance sector in March
2000, which lifted the entry restrictions for private insurance players, allowing foreign players to
enter into the market and start their operations in India. The entry of private players helps in
spreading and keeping the operation in the Indian insurance sector which in turn results in
Restructuring and revitalizing of public sector companies³.

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To collect the primary data for the analysis of the performance of LIC due to entry of the private
life insurance players. And also data analysis has been done from the secondary data available
from the internet, books and magazines1

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It is assumed that the entry of the private life insurance players affect the performance of the
LIC.

It is assumed that the entry of the private life insurance players affect adversely to the LIC.


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Primary data through questionnaire

Secondary data through internet, books & magazines.

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60 DAYS.


 
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Types of research: Exploratory research.

Modes of data: Primary data.

Data collection tool: Questionnaire

Sample size: 200

Sampling plan:




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1.1 Industry Profile

1.2 About the Topic

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XV This study helps to enhance the knowledge to readers about the impact of private life
insurance players on LIC
XV It helps to know the reasons for the LIC for losing its market share.