The present report on “A comparative study of Performance Evaluation of Selected Private Life Insurance companies and their Role in Economic Development of India(2001-10)”, gives an overview on the role performed by Life Insurance Corporation of India and its performance in nation building activities. Financial liberlisation which took place abroad in late 80’s and in the country in the beginning of the millennium was accepted with a great debate with regard to its implication in the country. However in 2000 the country witnessed the dawn of Liberlisation, Privatisation and Globalisation which paved way to the entry of private life insurers into the Indian Economy and the entire landscape of the insurance market in the country changed into 360 degree. The private life insurance companies bought with them a host of changes in terms of products and services rendered. In order to evaluate their performances the present report has made an attempt to highlight the differences among the insurers for over a decade from 2001-2010. Liberlisation of the industry not only brought about a change in the insurance market but it served to provide useful economic activities which is measured through the insurance penetration and density which acts as a measure to determine the strength of the insurance market and an indicator which reflects the number of people having covered by insurance cover .Moreover liberlisation has been a route for the generation of increased savings in the country which helps in capital formation and lastly the funds generated by the private life insurers through premiums and shareholders and their utilization for the development of the country has been analysed.