Performance of selected life insurance companies in rural and social sectors-A study Dr. Rao S. Kamaleshwar*, Rao K. Hanumantha** *Professor, Department of Commerce and Business Management, Kakatiya University, Warangal, Telangana **Research Scholar, Department of Commerce and Business Management, Kakatiya University, Warangal, Telangana Online published on 24 October, 2019. Abstract The Indian life insurance sector is the tenth largest life insurance market in the world and the fifth largest in Asia in terms of total premiums. Life insurance is bought lesser in India by rural population. The tendency is to defer the purchase decision. The possibility of death is ignored by the rural people; however there is more possibility of such misfortune for people living in rural areas. The rural people never believe that they can succumb to destiny and they think they will live a long and healthy life. The rural population in India is without life insurance cover and this part of the population is also subject to weak social security and pension systems with hardly any old age income security. Every insurer has to follow the rules regarding rural and social obligations from time to time. The present study is to examine the business done in the rural sector and social sector by the life insurance companies namely LIC, SBI Life Insurance Co. Ltd and ICICI Pru Life Co. Ltd and also the population covered under insurance. Tests like correlation, chisquare, t-test and ANOVA have been applied. It has been found that the overall coverage of the population by the life insurance industry was skimpy. All the three companies have maintained the required percentage of policies to be issued in rural areas of their respective businesses during the study period as per IRDA norms but not even two percent of the rural population has been covered in any of the years under study on total. During some years the lives covered under social sector are less than the targets. The reasons might be due to lack and low awareness of the people about life insurance, low affordability and low purchasing power. These can be trounced by using social media, TV and radio, campaigns and developing trust among the rural people by providing quality service. Top Keywords GDP, IRDA, Population, Rural Sector, Social Sector. Top |