JMGT_V4_N4_RP6 R. Amuthan A. Ramachandran Journal on Management 2230 – 715X 4 4 63 69 Gross Domestic Product, Single Premium, Non Single Premium, New Business Premium Income, Financial Potential, Claims Ratio, Expense Ratio, Unit Linked Insurance Policies This study is focusing on the comparison of private and public life insurance companies with respect to their capacity in performing life insurance business. The potential has been checked based on three criteria namely premium income, capital base and profit or loss in the past two years recession time. The finding is that Public sector insurance companies namely Life insurance Corporation of India and SBI are faring better than other private sector companies. The above mentioned insurance companies are more competitive in terms of low premium charge and high claims ratio. March - May 2010 Copyright © 2010 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=1163