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Arun Jaitley: Economic growth can help deepen insurance coverage

The finance minister said LIC which started off as a monopoly organisation has dominated the insurance business even after the sector was opened for private players 16 years ago.

arun jaitley, jaitley, finance minister arun jaitley, insurance coverage india, india growth, gdp india, growth rate india, 7 pay commission, 7th pay commission, seventh pay commission, business news, india news, indian economy news Union Finance Minister Arun Jaitley. (PTI Photo)

Union Finance minister Arun Jaitley Thursday said both government and private insurance firms are likely to see a spurt in growth once Indians decide to become a pensioned and insured society.

“Indians are yet to realise the benefits of a pensioned and insured society. Two of our recent initiatives (proposal to tax EPF and a provision in the 7th Pay Commission to deduct money for pension of government employees) had to be rolled back due to opposition. But I am hopeful that India will become a fully insured and socially secured nation as economic expansion gathers momentum over the years, “ said Jaitley who was speaking at an event organised to celebrate the Diamond Jubilee of Life Insurance Corporation of India (LIC).

The finance minister said LIC which started off as a monopoly organisation has dominated the insurance business even after the sector was opened for private players 16 years ago.

“If you (LIC) were a company that is listed on stock exchange perhaps you would be the most valuable company in the Indian market and the most formidable in the world,” said Jaitley. “ LIC stands as a shining example of an organisation which has been a market leader even in a competitive environment,” he added.

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According to LIC, the total assets of the insurer as on March 31 is in excess of Rs 22.10 lakh crore. The insurance company also controls 76.99 percent market share in policies and 73.67 per cent market share in premiums.

Jaitley also said the Health Ministry is working on a plan to offer a health cover of Rs 1 lakh to the poor who form one-third of the population. Meanwhile, LIC on its Diamond Jubilee Celebration launched Bima Diamond Plan and also announced that insurer will pay a one-time special bonus to policyholders over and above the annual payout of its profit sharing.

First published on: 02-09-2016 at 02:23:55 am
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