LIC focusing on clean corporate governance
Life Insurance Corporation of India (LIC) is focusing on 'clean corporate governance' in accordance with the Prime Minister Narendra Modi's crisp two points: to ensure fruits of life insurance reach the lowest strata of society; and that maximum digital insurance is carried out in this regard, LIC Chairman V K Sharma told the media here on Monday. Describing LIC as India's largest and most stable insurer, he said it would be setting a new trend by announcing its quarterly results regularly while also hoping that March 2017 would prove to be the starter for closing at Rs 35,000 crore in New Premiums.
"This year, we are subdued in equity investments as our primary duty is to protect the hard-earned income of investors. LIC wanted to buy public sector stocks and had applied for 60 per cent as this market is becoming deeper, but it will not play trader in the market as +security+ of investment remains the prime focus of LIC, and next is returns," he said.
To a question about 'Digital Initiative," he said LIC has created a 'mission' with a specific 'timeline' to provide solutions to all customers in a "cost-friendly' way and around 6.5 crore transactions were happening in digital mode, while a robust 'Mobile App" will be brought out by LIC soon. "Our total trading business is maximum and we have remained a market leader even on Monday — despite the global economic scenario — as we discovered that customers come back for traditional insurance."
"Demonetization had no effect on LIC's functioning," Sharma said, while pointing out that LIC had about 40,000 collection centres — more than the banks -- and over 50 per cent collection was in cash though there was a shortfall in 25 per cent of the collections. "We had visualized falling interest rates and could push pension products. Our expectation is next year the Indian economy will do better as the insurance industry is on a growth curve and will grow by double digits where LIC is outperforming the industry."
Noting that LIC Housing Finance is doing well, he said "We intend taking out another Fund, but this depends on the rules. Our Gross NPA is five-point- something but our losses are coming from the power sector. We are very sensitive to protecting policy holders."
Earlier, he highlighted LIC's audited figures for nine months — ending December 2016 — with robust growth of 12.43 per cent in total premium income at Rs 1,45,031 crores (against Rs 1,29,001 crores previous year).