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Life Insurance in India
Last Updated on 05-03-2010
Growth Of Indian Life Insurance Sector
The life insurance sector of India has added up to 4.1% of the GDP in 2009, a considerable growth was recorded since the time the sector was opened for the private companies. The contribution in FDI by the life insurance segment was recorded at US $ 1.3 billion, even though the government is likely to increase the FDI cap limit from 26% to 49%, a bill of which is pending at the Rajya Sabha.
The year 2009-10 also saw private sector insurance company, Aviva Life Insurance establishing nine unit-linked plans, in line with the recent IRDA guidelines featuring enhanced and higher internal rate of return (IRRs).
As per the data provided by the IRDA, the businesses of the life insurance companies had a growth of 22% at US$ 12 billion in April-November 2009-10, in comparison to the US$ 9.8 billion during the same period last year. Such a huge sale of single premium policies led the industry to record a raise of 53.25% in November 2009 alone.
With the registration of IndiaFirst Life Insurance Company Limited, a joint stake life insurance company encouraged by Bank of Baroda and Andhra Bank of India and Legal & General Middle East Limited, UK, the total number of of life insurers registration with the Insurance Regulatory Development Authority (IRDA) has increased to 23.
According to industry body, Life Insurance Council, The life insurance industry had earlier been anticipated to grow by 15% in the year 2009 - 10 and surpass the US$ 54.1 billion mark in total premium income by March-end. This growth in premium income includes new business as well as renewals, driven by increasing awareness on the value of getting insured.
The US$ 41-billion Indian insurance industry made a grand return with better performances in the April-November 2009 period. Life insurance in India recorded the first year premium (inclusive of Single Premium) segment accounting to US$ 24 billion.
FDI Policy in Indian Life Insurance Industry
The FDI limit in the insurance sector has been capped at 26% for the foreign marketeers but the government is thinking to increase it to 49% and a bill of this offer is pending at the Rajya Sabha. The LIC is still the major company in the life insurance sector but with such an emergence of the private companies, providing a range of moneymaking policies and investment chances for people from all walks of life the situation is fast changing. The Unit Linked Investment Plans (ULIP) offering life cover as well as scope for savings and investment deserves extra acknowledgement in this issue. Furthermore, with minimum lock-in period of three years such plans are subjected to avoid miss usage of important tax benefits.
Major Indian Life Insurance Companies
In the public sector of the India life insurance, the Life Insurance Company of India functions solely. Some of the private companies operating in the life Insurance Sector are:
India Life Insurance industry came into being with the establishment of Life Insurance Corporation (LIC)in India in 1956. Till the time Insurance Regulatory and Development Authority(IRDA) Act was implemented in the year 1999, private companies were controlled by the LIC of India. Since 1999 onwards the market was opened for operations of private companies also in the insurance sector.
The life insurance sector of India has added up to 4.1% of the GDP in 2009, a considerable growth was recorded since the time the sector was opened for the private companies. The contribution in FDI by the life insurance segment was recorded at US $ 1.3 billion, even though the government is likely to increase the FDI cap limit from 26% to 49%, a bill of which is pending at the Rajya Sabha.
The year 2009-10 also saw private sector insurance company, Aviva Life Insurance establishing nine unit-linked plans, in line with the recent IRDA guidelines featuring enhanced and higher internal rate of return (IRRs).
As per the data provided by the IRDA, the businesses of the life insurance companies had a growth of 22% at US$ 12 billion in April-November 2009-10, in comparison to the US$ 9.8 billion during the same period last year. Such a huge sale of single premium policies led the industry to record a raise of 53.25% in November 2009 alone.
With the registration of IndiaFirst Life Insurance Company Limited, a joint stake life insurance company encouraged by Bank of Baroda and Andhra Bank of India and Legal & General Middle East Limited, UK, the total number of of life insurers registration with the Insurance Regulatory Development Authority (IRDA) has increased to 23.
According to industry body, Life Insurance Council, The life insurance industry had earlier been anticipated to grow by 15% in the year 2009 - 10 and surpass the US$ 54.1 billion mark in total premium income by March-end. This growth in premium income includes new business as well as renewals, driven by increasing awareness on the value of getting insured.
The US$ 41-billion Indian insurance industry made a grand return with better performances in the April-November 2009 period. Life insurance in India recorded the first year premium (inclusive of Single Premium) segment accounting to US$ 24 billion.
FDI Policy in Indian Life Insurance Industry
The FDI limit in the insurance sector has been capped at 26% for the foreign marketeers but the government is thinking to increase it to 49% and a bill of this offer is pending at the Rajya Sabha. The LIC is still the major company in the life insurance sector but with such an emergence of the private companies, providing a range of moneymaking policies and investment chances for people from all walks of life the situation is fast changing. The Unit Linked Investment Plans (ULIP) offering life cover as well as scope for savings and investment deserves extra acknowledgement in this issue. Furthermore, with minimum lock-in period of three years such plans are subjected to avoid miss usage of important tax benefits.
Major Indian Life Insurance Companies
In the public sector of the India life insurance, the Life Insurance Company of India functions solely. Some of the private companies operating in the life Insurance Sector are:
- ICICI Prudential Life Insurance
- Birla Sun Life
- SBI Life
- Tata AIG Life
- Aviva Life Insurance
- Kotak Mahindra Life Insurance
- Bajaj Allianz Life
- Ing Vyasya Life Insurance
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