On 1st September 2018 my following friends came to congratulate me on the birth anniversary of Life Insurance Corporation of India, one of the mighty financial organizations of our country, India. They are my friends who were thoroughly introduced through my post “Friend and Friendship” already published on 28.03.2018.

Sl. No.             Pet Name                        Good Name

  1.                   Atku Singh                       Akhand Pratap Singh
  2.                   Latku Singh                      Lakshyadhari Singh
  3.                   Bhatku Singh                   Bhupendra Singh
  4.                   Khatku Singh                   Khadgeshwar Singh
  5.                   Guga Singh Guru            Gyaneshwar Singhji

It is my good luck that I have been working in LIC since 1984. I have seen and experienced many things in the insurance industry for more than three decades. My working experiences are mostly on  marketing, administration, finance and training. I have worked in different parts of the country and also in the Central office i.e. our Corporate HQ at Mumbai.

My above five friends came to request me to start blogging on Economics and Insurance related topics. In this endeavour all the above friends will help and Guru Gyaneshwarji who is knowledgeable and is like a Guru will help me the most. Guruji is very much knowledgeable and can speak on  any topic under the sun. With the collaboration of my brilliant five friends I will be blogging on economics and insurance. I have full confidence that all my above friends will add value and this new journey will be interesting.

Why to wait further? Let me start something within the first week of September when LIC observes its Insurance Week. The topic to be taken by me may be any topic under the sun related to Economics and insurance. The presentation of the subjects may be in Question answer form or may be in the form of a research oriented topic. It can also be in form of an interview/ lectures etc. Also the classes can be through video shows or any other creative medium.

 I am always impressed by my friends. I know they will do justice to whatever assignment given to them or they take up of their own. Again I say that I have full confidence in them. I will be depending a lot on Guru Gyaneshwarji and he will be my main force behind this.

Let me start the ball rolling ……..

Let us understand what is life insurance?

Ans: Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person or maturity claim on survival as per the policy condition.


        There are 24 Life Insurance companies operating in our country. Life Insurance Corporation of India is the only Government undertaking and all others are private insurance companies. The insurance sector was opened up in the year 2000 with the recommendation of Malhotra committee. At the beginning 26% Foreign Direct Investment was allowed to the foreign partner for collaboration with Indian companies. Now FDI has been increased to 49%. To start a Life Insurance company in India the minimum paid up capital required is Rs. 100crore.

Simultaneously Government of India started a regulator named IRDA subsequently on 30th December 2014 renamed as IRDAI  (Insurance Regulatory Development Authority of India) to regulate and develop insurance and reinsurance business in India.

As far as nonlife insurance companies are concerned, there are 28 companies in India. Out of this 4 companies are subsidiaries of GIC under Government of India. Thus there are 52(24+28) life and nonlife insurance companies in India. GIC -Re is the sole reinsurance company in India with head quarter at Mumbai.

Life Insurance penetration in terms of premium as percentage of GDP is 2.60% in India as compared to world average of 3.4%.

Even after 18 years of opening up this insurance sector LIC continue to be the market leader with 69.40 % of market share in terms of first year premium at the end of 31st March 2018 and in terms of no of policies the market share is 75.67%. LIC could garner over 21 million new policies as on 31.03.2018.

India’s insurable population is anticipated to touch 750 million in 2020 with life expectancy reaching 74 years. Life Insurance is projected to comprise 35 % of total savings by the end of this decade (2020) as against 26% of last decade (2010).

Life insurance scenario in India is at an interesting stage. The private life insurance companies have become more competitive. There is also more awareness created by IRDAI and various insurance companies for the customers. Innovative products are also being brought out as per the need of the customer. Really, we are in a very interesting stage of competition. Ultimately the gainer will be the customer.


Ratikanta singh