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Full Length Research Paper
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The impact of
liberalization, privatization, and globalization (LPG) on
life insurance corporation of India (LIC)
R. Rajendran* and B.
Natarajan
Department
of Business Administration, Annamalai University, New Delhi,
India.
*Corresponding author. E-mail:
k_puspakaran@yahoo.com.
Accepted 19 April, 2010 |
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Abstract |
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The Indian life insurance industry has its own origin and
history. Since its inception, it has passed through many
obstacles, hindrances to attain its 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. As a
result, wider mass-employment opportunities and sound
educational system should be made available. In addition, the
general public must be kept abreast of more knowledge and
importance of life insurance, as these steps help to boost the
growth of insurance industries. In this Indian context,
insurance habit among the general public during the independence
decade was quite rare and in the following decades, it increased
slowly. 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 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 to LIC.
Key words: Life insurance, liberalization, globalization. |
