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The Finance Minister, Mr Pranab Mukherjee, has directed the Life Insurance Corporation to design a life insurance scheme — a Kisan Bima Yojana — for farmers. This scheme should be on the lines of the Janashree Bima Yojana, a social security scheme, where cover can extend up to 65-70 years.
The additional premium could be borne by the farmers covered under the scheme, he suggested. Mr Mukherjee's advice to LIC came during his meeting with the chief executives of public sector insurance companies here on Wednesday.
The additional premium could be borne by the farmers covered under the scheme, he suggested. Mr Mukherjee's advice to LIC came during his meeting with the chief executives of public sector insurance companies here on Wednesday.
‘Marginalised group'
On the coverage of farmers under agricultural insurance, Mr Mukherjee noted that the number of non-loanee farmers has been coming down over the years. Agricultural Insurance Company of India Limited should work towards bringing not only all loanee farmers under cover but also as many non-loanee farmers as possible, he said.
“I feel this is the most marginalised group requiring agriculture insurance and should be covered on priority”, he said.
The Finance Minister congratulated LIC for being the trust factor among the people. In the life insurance sector, LIC continues to be the market leader.
It enjoyed a market share of around 81 per cent in terms of new business policies and 71.3 per cent in terms of new business premium during 2011-12.
Meanwhile, the LIC Chairman, Mr D.K. Mehrotra, told Business Line here that the insurance behemoth had no plans to reduce equity investments this fiscal in the wake of a slowdown in the economy.
“I feel this is the most marginalised group requiring agriculture insurance and should be covered on priority”, he said.
The Finance Minister congratulated LIC for being the trust factor among the people. In the life insurance sector, LIC continues to be the market leader.
It enjoyed a market share of around 81 per cent in terms of new business policies and 71.3 per cent in terms of new business premium during 2011-12.
Meanwhile, the LIC Chairman, Mr D.K. Mehrotra, told Business Line here that the insurance behemoth had no plans to reduce equity investments this fiscal in the wake of a slowdown in the economy.
LIC's investments
“We will maintain the tempo of investments seen in recent years”, he said, when asked if LIC would lower its level of equity investments this fiscal.
LIC is understood to have invested about Rs 45,000 crore in equities in each of the last two financial years.
The Indian economy grew 6.5 per cent in 2011-12, lower than the advance estimate of 6.9 per cent put out by the Central Statistics Office in February this year.
The recent moderation in economic growth, coupled with the policy paralysis at the Centre, has raised doubts about the India growth story.
Sluggish industrial output growth has worsened the situation for policymakers.
With there being no room for any proactive fiscal policy, policymakers are looking to the Reserve Bank of India to do the rescue act by further cutting policy rates.
On its part, India Inc has been clamouring for policy rate cuts by the central bank in the upcoming policy review on June 18.
krsrivats@thehindu.co.in
LIC is understood to have invested about Rs 45,000 crore in equities in each of the last two financial years.
The Indian economy grew 6.5 per cent in 2011-12, lower than the advance estimate of 6.9 per cent put out by the Central Statistics Office in February this year.
The recent moderation in economic growth, coupled with the policy paralysis at the Centre, has raised doubts about the India growth story.
Sluggish industrial output growth has worsened the situation for policymakers.
With there being no room for any proactive fiscal policy, policymakers are looking to the Reserve Bank of India to do the rescue act by further cutting policy rates.
On its part, India Inc has been clamouring for policy rate cuts by the central bank in the upcoming policy review on June 18.
krsrivats@thehindu.co.in
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