PROSPECTUS OF INSURANCE
Prospects of insurance during second millennium have been forecasted as very bright because people accept it as essential cover of life. Privatisation of insurance brings additional technique of business. It has been assessed in the present chapter and succeeding chapter. "Privatisation of Insurance". The prospectys of life insurance and general insurance have been analyzed based on their performances during last decade, i.e.. 1991 -2000.
LIFE INSURANCE
Life insurance business is analyzed under new business individual insurance, rural new business, development of new products, new business projects under group insurance, new business projects under group superannuation schems, business in force, individual and group schemes, lapsation of policies, valuation, working results, investment operations, number of active agents and their business, and social responsibilities.
NEW BUSINESS INDIVIDUAL INSURANCE
New business of the Life Insurance Corporatioon of India has increased rapidly after decentralisation of its functions in 1985-86. The impact has been clearly observed in 1990-91 when the total number of life policies has crossed 80 lakh of policies assuring more than Rs.25,000 crores. During five years (1990-91 to 1994-95). The new business has additional increment of about 20 lakh policies of Rs.25,000 crores. It reveals that the end of the century will witness total new business of Rs.80,000 crores under 150 lakh of policies. LIC should reach to the level of Rs. 1,01,000 crore new business under 176 lakh of poloicies in 2004-2005. with the presence of foreign insurance business in India, it has to compete hard. The existing normal servicing has to be improved to get its outstanding place in insurance business. Business outside India has increased slowly. It is not very satisfactoryas the number of policies per year has not increased more than 9 thousand. Sum assured increased by about Rs. 30 crores only per annum.
It is to be seen how much insurance business outside india would increase after entry of foreign insurers. LIC has to strike outside India as foreign insurers plan to acheive maximum business which was untapped by LIC. Challenges before LIC would be greater in the coming years. It is expected that life insurance business would take new turn during the years as people would be fully aware of insurance as a result of massive advertising and sophisticated services. Many consumers goods have increased their market share as foreign companies have resorted to massive advertising. Coming years would be more materialistic and full of uncertainties. Science and technology would reach to comman man. They would not spare any opportunities untapped. If income and uncertained have increased, insurance desire would convert into insurance-craze.
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