Life insurance is a contract between an insurance policy and an insurer, under which the insurer agrees to pay a certain and fixed amount in the event of the death of the insured. Depending on the contract, various other events, such as an incurable disease or critical illness, can also lead to payment. The insurer must pay the premium in several installments or one payment.

Sometimes other expenses, such as funeral expenses, are included in the premium.

The main advantage for the insured – “peace of mind”, knowing that the death of the insured will not lead to financial difficulties for relatives.

Life insurance policies are legal contracts and the limits of insurance cases are described under contracts. However, specific exceptions are often not described because of the insurer’s liability limit. Some common examples related to claims, such as suicide, fraud, war, rioting, civil unrest, etc., are not covered by life insurance.

Life insurance has been the fastest growing sector in India since 2000. The Government of India has given private entities and FDI a share of up to 26 per cent in the insurance sector. Life insurance in India was nationalized with the establishment of LIC in 1956. At that time, all private life insurance companies were acquired and managed by LIC.

The Government of the Republic of India established the R. N. Malhotra Committee in 1993 to produce a roadmap that would lead to the privatization of the life insurance industry in India.

Although the commission submitted its report in 1994, it took another six years to pass the law in 2000. In the same year, the new insurance regulator, IRDA, began issuing private life insurance licenses.

Some of the private sector life insurance companies are listed below:

SBI Life

Metlife India

ICICI Prudential

Bajaj Allianz

Max New York

Life in the Sahara

Tata AIG

HDFC Standard

Birla Sunlife



ยท Trust

ING Youss


Bharti AHA Life

Future Generali

IDBI Fedaral

AEGON Religare

DLF Pramerica

CANARA Eastern Commercial Bank HSBC

India First_

Star Alliance Dia-Ichi

Edelweiss Tokyo

Under current standards of foreign direct investment, foreign participation in an insurance company is limited to 26% of capital. Insurance regulators have determined that foreign investment in Indian insurance companies should be limited to 26% of total capital released through investments, also include foreign insurance companies due to regulatory changes to increase the FDI limit by 49%.

The Government of India had agreed to an increase in the FDI limit, which would require amendments to the insurance law. The Union’s budget for fiscal year 2005 assumed that the ceiling for foreign participation could be increased to 49%.

To amend the Insurance Act, the law must be passed by both houses of Parliament. The Indian government submitted the bill to the Senate in August 2010.

In Angel Broking financial consultants not only explain all the nuances of life insurance, but also help the investor to choose a suitable insurance policy.

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