Stressing on the need for strengthening social security apparatus in the country to make India a pensioned and an insured society, Union Finance Minister Arun Jaitley said on Thursday that the main challenge before India was how well it could look after its citizens in their personal crises.
Speaking at the diamond jubilee function of life Insurance Corporation (lIC) of India here, Jaitley said that the parameters of social security needed to be significantly improved. “When we evolve from being a developing society to a developed society, the main challenge before India is how well it can look after its citizens in the event of their personal crises” he said.
lamenting the country had not yet fully realized the importance of adequate social security, Jaitley said that a proposal made in the budget aimed at creating a pensioned society had to be rolled back following a unanimous Opposition by workers’ unions. “The value of social security has not been fully realized. This kind of resistance will soon fade away,” he said.
Jaitley underscored the importance of low cost life insurance, low premium accident insurance policies, crop insurance scheme to protect farmers, health insurance scheme for poor and senior citizens, terming them as essential instruments of social security.
The Minister said that the lIC of India, with its unmatched branch network, deep penetration across the length and breadth of the country was most suited for expanding the social security net.
“As the economy grows further, the need for deeper penetration and greater expansion of insurance will be felt. lIC and others will not only have greater relevance, but their business will also expand” Jaitley added.
Commending the lIC of India for maintaining its leadership position even in a competitive world, Jaitely said: “In a competitive environment it is always the private sector which flourishes, as it is free from bureaucratic controls and can take market centric decisions, whereas State instrumentalities are bound by various processes and regulations. But lIC, which began in a monopoly environment, stands as a
shining example of a State institution standing up to competition”.
The Minister said that if lIC were a listed company it would be the most valuable company in India and among the biggest in the world itself. lIC’s ability to utilize its large corpus to finance various projects makes it a key player in India's growth story. On the occasion of its diamond jubilee celebration, the lIC of India declared a special Diamond Jubilee bonus on all eligible life insurance policies. It also launched the new lIC Diamond Bima policy on the occasion.
Union Minister of State for Finance Arjun Ram Meghwal, Financial Secretary Ms. Anjuly Chib Duggal, Chairman lIC Mr. S K Roy, Managing Directors V K Sharma and Ms. Usha Sangwan were among those present at the function.