• ARUN KUMAR
• Shikha Tripathi

Insurance occupies an important place in the complex modern world since risk has increased enormously and every individual is exposed to it in his daily life. Risk is an uncertainty concerning occurrence of loss and insurance is most practical way for handling the risk. Life insurance is generally considered as a means of protecting one’s family against the unforeseen circumstance of the loss of life of an earning member. It gives a sense of confidence and security to the insured individual in the event of an unfortunate incident. Every human life has got some economic value which depends on his present earnings and future earning capacity. Life insurance is considered as a device by means of which an individual can project his income for an indefinite period beyond his death. Insurance business is one of the fast emerging financial services mainly in developing countries. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development and at the same time strengthens the risk taking ability of a nation. The life insurance sector in a nation plays a vital role in achieving the goals of social security and welfare which are essential requirements of social justice. In India the insurance sector is a colossal one and contributes the major chunk of financial services. As noted by Insurance Regulatory and Development Authority of India insurance sector is growing at a speedy rate of 15-20% and together with banking sector contributes about 7% to the country’s GDP. Indian insurance industry has undergone tremendous changes over last century. It began with a fully privatised system with no restriction on foreign participation during British rule in India. After the independence, the life insurance industry was nationalised in 1956 with formation of Life Insurance Corporation of India and thus became a state owned monopoly to extend the life insurance coverage in country. After nationalisation, the life insurance sector ii had shown growth in terms of issuance of policies, premium underwritten, extensive network of offices and branches. At the end of 20th century India was passing through an economic crisis due to serious problems of trade balance. India signed General Agreement on Tariff and Trade (GATT) in 1991 and became the member of WTO. The Indian government implemented the new industrial policy under which the economy was liberalised and thus opened for foreign investment. The effect of globalisation phase of Indian economy also transcended to the insurance market and affected the monopolistic structure of insurance sector in India. This led the policymakers to review policies governing insurance industry in India. With a view to examine the role of insurance sector in the light of the economic reforms and potential of providing insurance services, The Government of India appointed Malhotra committee to recommend reforms in the insurance sector in April 1993. The Committee recommended the opening of insurance sector for private companies to provide a better insurance coverage to people and to enhance the flow of long-term financial resources. On the recommendation of Malhotra Committee in 1999, a new legislation, IRDA Act came into effect signalling a change in Indian insurance industry structure. The insurance sector in India was liberalized and Insurance Regulatory Development Authority of India (IRDAI) was established to regulate the insurance business in India. Privatization witnessed dynamic changes in insurance industry as it lifted the entry restrictions for private insurance companies and thus allowed the foreign players to enter into the Indian insurance market. In the initial years of privatization the life insurance penetration and density has grown impressively but later it started declining.

Index Terms: Insurance, Insurance industry, Insurance product, Regulatory and development authority act, Insurance service, uttar Pradesh life insurance scenario.

"A study of life insurance sector in selected districts of Uttar Pradesh", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.7, Issue 5, page no.518-531, May-2020, Available :http://www.jetir.org/papers/JETIR2005213.pdf

"A study of life insurance sector in selected districts of Uttar Pradesh", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.7, Issue 5, page no. pp518-531, May-2020, Available at : http://www.jetir.org/papers/JETIR2005213.pdf