Life insurance corporation of India: A critical analysis

Safety and security has become the prime concern of everybody in the society. India has considerably developed economy and a section of people still feel unsafe and insecure. Insurance has come up as an important financial service in most part of the world. In fact, insurance is considered as one of the important segments in the economy for its growth and development. Life insurance is an important form of social safety and security. The insurance industry has witnessed many phases of a giant shape after privatisation of insurance industry. The result of foreign direct investment of 49 per cent in insurance has increased competition for the Life Insurance Corporation of India. In the recent years, the public has made criticism on the performance of LIC of India at it has failed to achieve the objectives for which it came into being. The criticism is due to the advent of many insurance schemes like-linked bank deposit, postal insurance and high rate of interest in the money market.