The main purpose of this study is to measure the intellectual capital performance of insurance sector for the period 2006-2010 using both Value Added (VA) and Value Added Intellectual Coefficient (VAIC) model TM and observe intellectual capital performance’s impact on financial returns of both life and non-life insurance sector. Using panel data the study analyzes the empirical relationship of Value Added (VA), VAIC and its TM performance components with performance indicators of insurance sector. The results of the study reveal the existence of positive relationship between the two approaches, VA and VAIC and financial performance TM indicators. As far as the existence of relationship between the performance components of VAIC and financial TM performance indicators is concerned, earning per share (EPS) is positively related to human capital efficiency (HCE). There emerges a negative relationship between capital employed efficiency (CEE) and returns on investment (ROI).