New Delhi: President A P J Abdul Kalam on Thursday laid down some 'sutras' or rules that he suggested life insurance leader LIC should follow to increase its market share, which has been under threat since the entry of private players.
"LIC may consider increasing the total policy holders of the corporation from the existing 190 million to 380 million within the next five years by large scale penetration into the rural and unorganised sector," he said after launching a micro-insurance product of LIC on its golden jubilee celebrations in New Delhi.
Paperless scheme for policy documents, called dematerialisation, will enable easy storage of policies by the policyholders, the President said.
"There may be a need for the change of certain provisions in the Insurance Act, both at the Centre and the state. I am sure the Government may consider implementation of such changes for introducing dematerialised policies," he said.
It is time that LIC considered provision of demat policies in electronic form to the policy holders, Kalam said.
LIC Chairman T S Vijayan said he would examine the legalese of the suggestion since policy document is a legal document.
The President also suggested that LIC set up an Institute of Insurance Management, take up leadership role in PURA projects, establish Village Knowledge Centres and expand its services to more than two crore PIOs by opening more branches overseas.
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