Like banking, insuance sectorparticularly Life insurance segment is also dominated by the Public sector LIC plays almost a monopolistic role as it has the backing of the Government.The private sector has not captured the market significantly despite their aggressive marketing and advanced technology just because of the fact that it is neither transparent nor accountable to the policy holders and the role played by the IRDA unlike the RBI in the Banking side has either not been convincing or effective to attract the confidence of investors in insurance. The feeling that the investor is taken for a ride by the private players is very much prevalent among those who have tried their hand in Private insurance. They are after
profit at the front end itself and the investors are left high and dry once they part with the money. Either their approach is wrong or their motive is not very convincing is a fact which IRDA cannot ignore for long if insurance business has to spread fast and wide,
(This comment appeared in Business Line in response to an Article on LIC )
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