RITUAL OF CELEBRATING LIC-DAY
Bureau,Odishabarta
DELHI:LIC of India every year fulfills ritual of celebrating 1st September as LIC-day in commemoration of formation of public-sector Life Insurance corporation of India in the year 1956 by nationalizing and merger of 245 private insurance-companies. But gradually life-insurance business is being captured by later constituted private insurance-companies many of which are promoted by private banks. These private banks and their promoted insurance-companies always work in alliance to promote their insurance-business in addition to banking-business.
But surprisingly and shockingly, several public-sector banks are collaborating with private insurance-companies rather than promoting public-sector LIC of India. It is neither in interest of public-sector nor in interest of people where many private insurance-companies offer gimmick schemes to befool people through their agents paid heavy commission for bringing business by hiding hidden facts of apparently good-looking insurance-plans.
Banking and insurance divisions of Department of Financial Services (Government of India) should jointly plan a system whereby every branch of each public-sector bank may be attached to some nearing unit of LIC of India apart from a unit of some public-sector General-Insurance company. All insurance-formalities for loans etc must be only through attached units of LIC of India and General Insurance. Healthy competition can be developed by giving appreciation-points to branch-managers bringing more insurance-business in public-sector. Big branches can even set up special insurance-counters. All this will promote public-sector, save people from gimmick and befooling insurance-plans of private-sector companies, and provide a single-window facility for all banking and insurance needs. Profits of public-sector Insurance companies will be increased by saving on commission paid to agents which can and should be reduced especially when insurance-agents pay back heavy portion of their commission to their clients. Pay-back is as high as 2.5 percent in single-premium LIC pension-plan Jeevan Akshay.
Input;Ms.Madhu
