Introduction
The government appointed A committee in April 1993 under the chairmanship of Shri R N Malhotra ex governor of The Reserve Bank of India this committee on reforms of the Insurance sector submitted its report on 7th January 1994 to the then Union finance minister recommending many changes including its privatisation.
The most important recommendation are listed below
First Recommendation of the entry of private entities into the Insurance sector to introduce healthy competition between the new private insurance and the existing monopolistic .
Second Recommendation of gradual withdrawal of government capital in the existing public sector monopolistic entities.
