The insurance sector has witnessed many structural transformations and significant positive changes after liberalisation in the year 2000. Earlier insurance meant just the Life Insurance Corporation (LIC), the only company to serve the entire Indian life insurance market. But now today, people having the alternative and opportunity to select need based products from a variety of policies offered by different private life insurance companies. As a move to it, the government has increased its spending in the insurance sector aiming at an inclusive and long-term development of the economy. In this context, the present paper focuses to study the impact of union budget 2017 in uplifting the general insurance sector and to trace the challenges faced by potential insurance base in India. This paper also portrays the insurance penetration and density in India along with identifying the important aspects boosting the insurance sector. In India, although the savings rate is high, people prefer to invest either in gold or fixed assets in the hope of appreciating by paying premium to an insurance company. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool. Both LIC and Private life insurers are regularly updating their products, improved insurance services to lure and retain customers and expanding distribution channels with an aim to spread insurance benefits to each and every corner of the country. In this context, the present study has been undertaken to understand the role of salaried person and their extent to which risk perception affects the policy purchasing decision.

Keywords: General Insurance; Premium; Indemnity; Insurance Penetration.