Privatization of Insurance in India

MOHAK AGARWAL
BBA BATCH 2020-23
LAL BAHADUR SHASTRI INSTITUTE OF
MANAGEMENT AND TECHNOLOGY ,BAREILLY
Introduction

Insurance is a contract, represented by a policy, in which an

individual or entity receives financial protection or reimbursement
against losses from an insurance company.
OBJECTIVES

 Granting security to people

Minimization of losses
 Reduce Anxiety and risk
COUNTRY WISE INSURANCE PENETRATION
AND INSURANCE DENSITY IN $
Origin of Insurance in India
Insurance Sector
Why Privatization

The transfer of ownership, property or business from the

government to the private sector
 Privatization is part of government strategic agenda
types of Insurance

Life Insurance
Property Insurance
Fire Insurance
Marine Insurance
IMPORTANCE OF INSURANCE
 Financial Support
 Medical Support
Facilitates International Trade
Source of Employment
FUNCTIONS OF INSURANCE
 Provide Protection
 Sharing of risk
 Prevention of risk
 Improves Efficiency
NATURE OF INSURANCE
 Contract
 Lawful Consideration
 Risk Evaluation
 Large number of Insured person
SCOPE OF INSURANCE
 Higher disposable income
 Changing demographics
Growth of GDP
Need of privatization in Insurance

 Major area are privatized , so insurance sector may also get wide
choice of the competition in terms of price and services
 insurance awareness is very low
 Indian insurance sector is far behind the international standard