LIC performance needs to be toned up

Only days after it was revealed that private players are performing much better than four public-sector companies engaged in General Insurance, now Life Insurance industry has also shown just 5.7 percent growth as compared to 22-percent growth witnessed by public-sector LIC. Sincere efforts need to be made for retaining lion-share of public-sector LIC of India in Life Insurance Industry in larger public-interest. Private insurance-companies dominate consumers against consumer-interests after they are trapped in their hands through gimmick offers and extra large work-force for public dealing.

LIC should total overhaul its working by imposing responsibility on LIC-chairman to ensure that LIC growth-rate may not be less than that of private insurance-companies. LIC should also best utilise its resources by cutting unnecessary overheads by merging nearing branches where even a single building houses multiple numbers of LIC units ensuring after-sale service of all policies from any LIC branch irrespective of branch issuing policy.

With LIC now having controlling share-holding in public-sector IDBI Bank, largest public-sector company in General Insurance can also be put under LIC so that LIC may be able to provide single-window premium-service for all banking and insurance needs including general insurance. Suggested public-sector General Insurance to be put under LIC should be different to provide premium privileged service differently from rest other three public-sector companies in General Insurance in a manner public-sector IDBI Bank is different from rest other public-sector banks.

Every branch of IDBI Bank should serve as a unit of LIC and suggested public-sector company for general insurance to be put under LIC. Rest three public-sector companies engaged in General Insurance then can be merged to sharply reduce unnecessary overhead by merging post-merger nearing branches.

-Subhash Chandra Agarwal, Delhi