Question

The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment. Earlier the industry consisted of only two state insurers LIC and GIC. It enjoyed monopoly for many years till late 90s, when the insurance sector was reopened to the private sector. Earlier GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company.
In the context of the above case:
Briefly explain any two points highlighting the role envisioned for public sector at the time of Independence.
‘The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment.’ In the light of this statement describe the government policy towards the public sector since 1991.​

Answer 1

Answer:

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