Liberalisation action of insurance sector in india was based on the recommendation of
Answers
The world has become a global village. The Liberalisation, Privatization and Globalisation (LPG) wave has sweeped across the global economies. The two pillars of India’s economic policy before 1991 have been protection and public sector.
Thus the New Economic Policy 1991 was a departure from the regulated planned economic tradition to that of LPG movement. After nearly a decade of intense debate a consensus developed in India for ending the public sector monopoly in insurance and opens the industry to private sector participants subject to suitable prudential regulation.
Today, to the credit of combined efforts of both the regulator and industry players, benefits of insurance are widely acknowledged, public confidence in the industry has been very much restored and the industry has become more dynamic. Following the recent reform in the insurance sector, Indian insurance industry is moving ahead.