Associate Professor, DAV Institute of Management, NIT, NH – 3, Faridabad, Haryana
Online published on 7 May, 2014.
On December 7, 1999, the new BJP government passed the Insurance Regulatory and Development Authority (IRDA) Act. This Act repealed the monopoly conferred to the Life Insurance Corporation in 1956 and to the General Insurance Corporation in 1972.
The authority created by the Act is now called IRDA. It has ten members. New licenses were given to private companies. IRDA has separated out life, non-life and reinsurance businesses therefore, a company has to have separate license for each line of business. Every life insurance company, private as well as public offers variety of products catering to the need and demand of the customers. This paper reveals the marketing strategies followed by the life insurers to create a niche in the market. Also the performance evaluation of life insurance companies on various parameters has been done in the paper on the following basis viz. No. of Life Insurance Offices, Total Life Insurance Premium, Distribution of Offices Of Life Insurers as on end March 2013.
These companies offer different plans with one or the other of the following benefits:
Investments along with critical illness benefits which provide good returns, long term saving and protection in case of a medical emergency
Investment plans with accidental coverage
Children's education planning
Specialized retirement income plans for homemakers to provide a secure and financial future.
The paper brings about the performance results of the private life insurers. It was rightly said at the time of liberalization that the insurance cake in India is too big(due to large population) such that all the new players will get the share. The relative share of each insurance player anyway is the result of their efforts and marketing strategies.
