Life Insurance Corporation of India and General Insurance Corporation along with its subsidiaries were sole players in Insurance business in India; it was only after privatisation the public sector insurance company faced competition in Insurance business. Opening up of the financial sector is one of the financial reforms which the government was to implement as an integral part of structural reforms and stabilization process of the economy. Insurance has a very important role in this reform process. The opening of the insurance market to private players and a conversion of a monopolistic market to a liberalized one has transferred the insurance industry in India totally. The insurance industry in India is now facing tremendous competition when many of the private sector insurance companies have entered in the insurance business. In these circumstances an attempt has been made to study the impact of privatization on insurance industry in India. The present study evaluates the current situation of general insurance sector in India. This study is basically intended to analyse the growth of insurance sector in India during the post privatisation period. Meanwhile the study focuses on financial performance of private and public insurers before and after privatisation, to draw conclusion and make suggestions for enhancing the present status of insurance companies in India. The study is basically descriptive in nature and it is based on secondary data collected from the reports published by IRDA, LIC, GIC and other journals and articles