Dear Comrades,
Life Insurance Corporation of India is in favour of having a
distribution tie-up with the Indian Postal Department, which has plans
of its own in the insurance space.
The Government has launched an initiative to pave the way for over 1.5
lakh post offices in the country to offer full-fledged banking and
insurance services. Postal Life Insurance is also setting up a
full-fledged investment division for generating optimal returns.
“They (the postal department) have a huge network. It will be prudent to
have some kind of distribution synergy between the department and LIC.
We are in favour of such a synergy,” LIC Chairman D. K. Mehrotra told Business Line on the sidelines of the inauguration of the All-India LIC Games here on Monday.
A tie-up of this nature could change the insurance landscape in India as
LIC controls nearly 80 per cent of the domestic life insurance market,
while the postal department has a stronger rural network.
