PRIVATISATION OF INSURANCE INDUSTRY IN INDIA

Abstract

As a result of the General Agreement on Tariff and Trade (GAIT), many nations are to open up the market and financial services, one of the vital segments include insurance industry. The days of the controlled economy are over and the dawn of open market is being heralded all over the world. The global trend takes in its sweep the liberalisation of the economic activities allowing free market access and the forces of open market to prevail. Thus,India too has to go with the rest of the world market and free itself from four decades of socialist economy. Inevitably, the public sector industries have to be privatised so as to integrate the country's trade and business with the world trade. While it is the logical development, it is equally essential to appreciate the historical perspective of the Insurance Industry in India over the years to ensure effective privatisation.