"LIC PROPOSES TO MAINTAIN
THE LEADERSHIP..."
Says O P Dubey, Zonal
Manager (EZO), Life Insurance Corporation of India
How do you view
the Indian Insurance sector's significant progress since Independence?
After independence first
the life Insurance and then the General Insurance sector were nationalised
in the year 1956 and 1972 respectively. Prior to nationalisation there
were large number of Private Companies operating life and General insurance
sectors. But growth after nationalisation can be divided into three phases.
Post nationalisation stage
Consolidation stage
Growth stage
In all the three put
together, in life Insurance sector we have been able to grow as follows:
LIFE FUND in - 1958-250
crores (Approx.)
1999 - 1,27,389.06 Crores
2000 - 1,54,043.73 Crores
How do you look at
the future of the Indian Insurance Sector?
While significant growth
has been achieved in Insurance sector it is true that the contribution
to GDP has remained more or less static between 1.2% to 1.5%. While in
the developed countries it is around 4% to 6% to GDP. India is in the threshold
of modern economy and we can develop ourselves to the international standard
in the next 5 to 6 years. We there fore feel that the insurance market
in India will grow in geometrical progression in the next decade.
Where does India
Insurance Sector stand compared to International Insurance Sector?
As already stated above
besides adequate coverage we still need highly sophisticated technology
and superior products to provide packaged risk cover system. This is where
we have worked on to compare ourselves to international standard.
What do you think
are the major problem of Insurance sector in India?
Superior technology
laid on professional marketing systems and beaurocratic hurdles in implementing
various new systems are the main problem of Insurance Sector in India.
Can you mention
some measures, which are required to remove the difficulties faced by the
insurance sector in India?
The competitive yet
regulated environment set up by Insurance Industry will remove the present
difficulties faced by Insurance sector.
What is your opinion
of the Indian Insurance sector being opened to the private sector?
Competition will bring
the best for the customer initiated insurance provisions and international
products to cover all kind of risks. However the regulatory body of insurers
will not only ensure the level playing but also deter unhygienic competition
to safeguard the interest of the customer.
What has been
the operational performance of LIC, especially in Eastern Region?
| Growth% |
|
|
|
|
97-98 |
98-99 |
99-2000 |
| Policy |
13.09 |
13.30 |
19.77 |
| Sum Assured |
14.45 |
20.56 |
27.10 |
FPI
(First Premium Income) |
20.22 |
36.13 |
32.98 |
What are you doing
about improving the service of LIC?
The following steps
will be taken for improving the service of LIC
Induction of latest technology.
Creating marketskilled employee.
Process reengineering to
the customer orientation, corporate Identity and Competition sensitivity.
What will be the
future strategy of LIC?
LIC Proposes to maintain
the leadership of life Insurance sector by improving its product, servicing
by induction of technology and return to the customer by restructuring
its investment.
Any comments on
Government Policy?
Now that we have been
put in a globalised scenario in the insurance matters, we feel that our
new products would match and compete the International standards and we
would certainly do better in the competitive market.
Have you any observation
on any other issues?
In India Insurance sector
has to develop more sophisticated ways and means for assessing the strength
and weaknesses of insurance industry to develop customer awareness about
customer needs and develop a suitable marketing organisation to improve
the customer servicing. We hope that the next decade will see the changes
in this direction.
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