Life Insurance Corporation (LIC) of India, country’s largest insurance service provider, is not concerned about increased foreign direct investment (FDI) in insurance sector. LIC chairman D K Mehrotra said recently that the company is market leader in insurance sector and the FDI won’t affect them.
Mehrotra said that FDI in insurance is good but it is also important that dividend earned by such firms should be reinvested in the country. “If the dividends got out then what’s the point,” Mehrotra said. He was in the city to lay foundation stone for construction of a state-of-art complex for LIC.
The complex will house the LIC divisional office, official quarters, residence for senior officials and several other facilities. It will come up on 9,500 square feet area at the cost of about Rs 8 crores.
“We have drawn Vision 2020 under which we want to see LIC policy in hands of insurable population. We must have 80 crore LIC policy holders by 2020 to achieve the target,” he said during the function. He also stressed that despite the recession, LIC has done well and has gained 8 to 10 per cent market share in last few years.