The Hindu Business Line : Govt guarantee on LIC policies

This refers to `Govt guarantee on LIC policies may go' (Business Line, March 1). The news need not create any panic or confusion among the policy-holders or the corporation. In the backdrop of entry of private insurers, it is logical and right that the regulator takes such a decision to ensure realistic and fair competition. LIC of India has already stepped up its entire machinery towards the goal of ensuring good customer service.

The professionalism in LIC, already at a fairly high level, will have to gear up further if its present profits are to be sustained and, perhaps, improved through wise investments at the right time with the sole target of profit combined with the safety of funds so deployed.

The trust and goodwill so far created by the corporation will have to be maintained. As the credit offload pattern in the country is under heavy strain and competition, the corporation will have to evolve new and innovative strategies to bring in more viable and safe takers for its multi-crore schemes.

Periodic strategic investments in the stock market also have to be stepped up, ensuring surveillance of the market. It is certain that the future of LIC of India will definitely `shine' even if the government decides to withdraw the guarantee on its policies.

C. P. Velayudhan Nair

Kochi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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