SUMMARY
nsurance sector competes by innovating and developing the core competencies of their human resources. The human resource system can be made effective by having a valid appraisal system that also acts as a true motivator. In order to ensure that the right number of staff with the right capacities is available at the right time and for the right places, appraisal is one of the key factors of organizational ability which is the focus of this study. The purpose of the paper is to know the impact of performance appraisal on the reward, motivation, job satisfaction, superior- subordinate relationship which will finally lead to customer satisfaction and better performance by the insurance sector.As we know that performance appraisal is one of the most widely used methods for measuring the value of employee performance. The success of performance appraisal depends on how effectively it is implemented. It also depends on how well the employees have understood the performance appraisal system and how positively they are oriented towards their system.