Economic growth can help deepen insurance coverage: Jaitley

Mumbai, Sep 1 (PTI) Finance Minister Arun Jaitley todayexpressed the hope that India will become a fully insured andsocially secured nation as economic expansion gathers momentumover the years. "As the economy grows faster, I hope we will become afully insured and socially secured nation over the years, andI am sure LIC can play a very big role in achieving this,"Jaitley said, launching the Diamond Jubilee celebrations ofthe nation’s largest financial powerhouse here. Taking a potshot at central trade unions that have calledfor a national strike tomorrow to protest against labourreforms, among other things, he rued that his Budget proposalfor contributory social security net had to be withdrawn dueto opposition from all around. He also recalled that how trade unions opposed the SeventhPay Commission proposal to have a contributory social cover. "But I have no doubt that one day we will realise thevalue of social security and insurance and we will one daybecome a fully socially secured nation," he said. Lauding Life Insurance Corporation of India (LIC) forremaining the market leader with over 70 per cent market evenafter competition was allowed 16 years ago, Jaitley said: "Iam glad that very few monopolistic institutions of the statehave prospered in a competitive market environment and stillcontinues to remain the market leader as LIC has done over theyears." Normally state monopolies find it difficult to survive ina competitive environment, as the private sector devoid ofbureaucratic hurdles can take market-oriented decisionsfaster in such climate and thus thrive, "but LIC has been ableto do so even after the liberalisation", he noted. To retain its leadership, Jaitley asked the Corporation tobe more and more innovative in its product offerings as wellas nation building efforts so that it can continue to serveand achieve the objectives for which it was created way backin 1956. Recalling the contribution of the Corporation to nation-building, Jaitley noted that LIC is the largest investor inour nation’s growth story with over Rs 4 trillion (Rs 4 lakhcrore) in investments into key sectors of the economy. The Finance Minister also said, his counterpart at theHealth Ministry is working on a plan to offer a health coverof Rs 1 lakh to the poor who form one-third of the population. Meanwhile, outgoing LIC chairman SK Roy handed over acheque of Rs 2,502 crore for last fiscal year, up from Rs1,803 crore given in the previous year, to the FinanceMinister as part of sharing its surplus with its owner. MOREPTI BEN NRBSAJMF