Disinvestment of LIC: a strategic move of Indian government
Keywords:
disinvestment, insurance premium, lic, life insurance, liquidity, market capitalizationAbstract
LIC is known for its trust and secure life. The well-known punch line “ZindagiKeSaathBhi, ZindagiKeBaadBhi” now has a question mark? The main question arises why the government is making disinvestment of LIC. The simple answer is that Government wants funds. The present paper is an effort and an attempt to find out the reasons behind the disinvestment of LIC. The main objective of the study is to critically analyze the Disinvestment of LIC. The first part of the paper will cover the introduction and journey of LIC in India, objectives, review of literature, and research methodology. The second part will consist of a critical Analysis of LIC & its success and future projections after the disinvestment. The last part of the paper highlighted the limitations, findings, suggestions & recommendations, and conclusion.
References
Agarwal Raj. (2002). Business Environment, Excel Books, New Delhi, Second Edition.
Agnihotri, P. (2014). The Impact of Privatization On Life Insurance Corporation of India. AltiusShodh Journal of Management & Commerce, 1(1), 1-9.
Agrawal Raj & Diwan. (2000). Parag, Business Environment, First Edition, Excel Books, Delhi.
Aitken, M., & Comerton-Forde, C. (2003). How should liquidity be measured?. Pacific-Basin Finance Journal, 11(1), 45-59. https://doi.org/10.1016/S0927-538X(02)00093-8
Bhole L. M. (2003). Financial Institutions & Markets, Tata Mc Graw – Hill Limited, New Delhi, Third Edition.
Bodla B. S., Garg M. C., Singh K. P. (2003). Insurance – Fundamentals, Environment & Procedures, Deep & Deep Publications Pvt. Ltd., Rajouri Garden, New Delhi, First Edition.
Chidambaram K. & Alagappan V. (1999). Business Environment, Vikas Publishing House Pvt. Ltd., New Delhi.
Colinvaux Raoul. (1979). The Law of Insurance, Sweet & Maxwell Ltd., London, 1979, Fourth Edition.
Crawford M. L. (1998). Life & Health Insurance Law, Mc Graw Hill, Irwin, 1998. Current Scenario of Performance Evaluation of Life Insurance Corporation (LIC) of India
Cummins, J. D., Tennyson, S., & Weiss, M. A. (1999). Consolidation and efficiency in the US life insurance industry. Journal of banking & Finance, 23(2-4), 325-357. https://doi.org/10.1016/S0378-4266(98)00089-2
Dahl, M. (2004). Stochastic mortality in life insurance: market reserves and mortality-linked insurance contracts. Insurance: mathematics and economics, 35(1), 113-136. https://doi.org/10.1016/j.insmatheco.2004.05.003
Dermine, J., & Lajeri, F. (2001). Credit risk and the deposit insurance premium: a note. Journal of Economics and Business, 53(5), 497-508. https://doi.org/10.1016/S0148-6195(01)00045-5
Ewing, B. T., & Thompson, M. A. (2016). The role of reserves and production in the market capitalization of oil and gas companies. Energy Policy, 98, 576-581. https://doi.org/10.1016/j.enpol.2016.09.036
Grosen, A., & Jørgensen, P. L. (2000). Fair valuation of life insurance liabilities: the impact of interest rate guarantees, surrender options, and bonus policies. Insurance: Mathematics and Economics, 26(1), 37-57. https://doi.org/10.1016/S0167-6687(99)00041-4
Kadam, D. (2012). Life Insurance Corporation of India: A Giant in India's Insurance Sector. IJPSS, 2(6), 316- 325.
Landsman, Z., & Sherris, M. (2001). Risk measures and insurance premium principles. Insurance: Mathematics and Economics, 29(1), 103-115. https://doi.org/10.1016/S0167-6687(01)00076-2
Magnac, T., & Robin, J. M. (1996). Occupational choice and liquidity constraints. Ricerche Economiche, 50(2), 105-133. https://doi.org/10.1006/reco.1996.0008
Martini, L. K. B., Suardana, I. B. R., & Astawa, I. N. D. (2018). Dimension Effect of Tangibles, Reliability, Responsiveness, Assurance, Empathy, Leadership towards Employee Satisfaction. International Research Journal of Management, IT and Social Sciences, 5(2), 210-215.
Mathew M. J. (1998). Insurance Theory & Practice, RBSA Publisher, SMS Highway, Jaipur (India), First Edition.
Narayan, P. K., Mishra, S., & Narayan, S. (2011). Do market capitalization and stocks traded converge? New global evidence. Journal of banking & finance, 35(10), 2771-2781. https://doi.org/10.1016/j.jbankfin.2011.03.010
Nena, D. (2013). Performance Evaluation of Life Insurance Corporation of India. International Journal of Advanced Research in Computer Science and Management Studies, 1(7), 113-118.
Pliska, S. R., & Ye, J. (2007). Optimal life insurance purchase and consumption/investment under uncertain lifetime. Journal of Banking & Finance, 31(5), 1307-1319. https://doi.org/10.1016/j.jbankfin.2006.10.015
Ramanathan, D. (2014). A Study on the Cost Control Effciency of LIC of India. Asia Pacific Journal of Research, 1(14), 172-179.
Sari, I. A. G. D. M., & Sedana, I. B. P. (2020). Profitability and liquidity on firm value and capital structure as intervening variable. International Research Journal of Management, IT and Social Sciences, 7(1), 116-127.
Published
How to Cite
Issue
Section
Copyright (c) 2021 Sarika Makol
This work is licensed under a Creative Commons Attribution 4.0 International License.
Allows users to: distribute and copy the article; create extracts, abstracts, and other revised versions, adaptations or derivative works of or from an article (such as a translation); include in a collective work (such as an anthology); and text or data mine the article. These uses are permitted even for commercial purposes, provided the user: gives appropriate credit to the author(s) (with a link to the formal publication through the relevant URL ID); includes a link to the license; indicates if changes were made; and does not represent the author(s) as endorsing the adaptation of the article or modify the article in such a way as to damage the authors' honor or reputation. CC BY
