Nationalisation vs privatization of insurance in India?

Answer 1

f

In India, Life Insurance Corporation of India stated functioning on 1st September, 1956. After liberalization of insurance sector, about 23 private insurance companies are acting in both life and general insurance sector. Except the SBI Life Insurance, all the other private companies are incurring huge loss.With their glossy office and robotic field staffs, they are siphoning off business both in life and general insurance casting doubt over their maturity payment. The Life Insurance Corporation of India is still occupying 78% of life insurance market share,instilling confidence among common people. With the UPA Government plan to open insurance sector upto 49% to foreign and private insurance companies,the outcome is awaited with interest, though the watch dog IRDA is very much vigilant about their each and every activity, to protect the interests of common people. It has been seen that the nationalized insurance cos. are to adhere to some social responsibilities imposed on them by the government, where they are to continue with unlucrative insurance products, whereas the private cos. go scot free.They mainly prefer unit linked policies and are unwilling to open branches at rural areas,for rendering service to underprivileged sector of the society.