Economic Reforms on LIC – A Case Study

Insurance is a success story in India. In its infancy it was voluntary and co-operative. It is a very popular economic device of swapping a small certain cost against a large uncertain loss. It is a form of co-operation, through which all those who are subject to certain risks and losses pool their resources to compensate those who actually suffer losses. There are innumerable ways through which insurance mechanism helps the human society. By way of premium, the insurance process collects large amount of funds, which are gainfully employed in the development of the country. Mainly there are three types of insurance marine, fire and life. Among these life insurance is the most popular. It is a business of effecting contract of insurance upon human life. The contract assures payment of money to the dependent on the death of the insured person. The main aim of life insurance is to provide protection against the risks of human life.