In India, life insurance is generally considered as a financial saving or tax-saving device. The life insurance business equally relates to the availability of money for financial savings and the insurable population and to an extent the micro economic indicators. The first element in the above equation is availability of money with the households for financial savings. India's gross financial savings are nearly 12 per cent of GDP in 2000–01. The second element of the equation is the insurable population. Only 21 per cent of the total insurable population of India was covered under various life insurance schemes till 2000–01. The last element of the equation remains with micro economics like supply, consumption and competition. In India, the above equation is unique due to asymmetric distribution of money, burgeoning population, rural urban divide and unbalanced regional development. Hence, this paper attempts to study dynamics of such elements of business equation of life insurance sector in India following its liberalization.
Life Insurance, incurable population
