An Overview of the Insurance Sector in India

Despite all familiarity, insurance is still being regarded as a game of financially able class having some surplus income while originally it was devised to manage the risk of financial vulnerable class of tradesmen having higher risks attached to human life. From that count insurance is a necessity for the financially insecure groups of population. Due to lack of financial aptitude most of us do not consider insurance a necessary part of financial planning. To use this cooperative device as tool of risk management a customer should have an overview of the market, the players involved in it and their role in the game along with the effects of their interplay in the market. This article aims to discuss briefly the importance of insurance in financial planning of an individual, its potential in terms of national economy and infrastructure. Besides, it highlights the significant roles played by different regulatory authorities, intermediaries and the agencies which play pivotal role in actual realisation of the benefits of the device vis-a-vis the functioning of grievance redressal agencies and claim settlement procedure. The object of the article is therefore, to enhance the basic awareness of the customer regarding market which can be helpful for effective use of insurance device towards financial planning of an individual.