Move to rural areas: President tells LIC

New Delhi, Sep 28 (UNI) President A P J Kalam today said the focus of Life Insurance Corporation (LIC) needs to move further towards rural areas and unorganised sectors, even as it continues to garner a larger chunk of the urban market through quality improvement in its service delivery.

The President, who gave a seven point agenda, to improve the performance of LIC, was speaking at the launch of 'Jeevan Madhur' on the occassion of the Golden Jubilee Celeberations of LIC.

'Jeevan Madhur,' a Micro Finance Policy aimed at economically less privileged in urban and rural areas, is a simple to understand and administer plan. This can be sold by Non-Governmental Organisations, Self Help Groups or Micro Financial Institutions.

Finance Minister P Chidambaram, who spoke on the occassion, described LIC as the ''best known brand in the world'' and ''World's largest company.'' Saying that LIC has been a partner in rural development, Dr Kalam asked the corporation to design a unique product for rural areas.

The President commended the corporation for providing a yeomen service in providing financial security and said the emphasis should now be towards rural areas.

The seven point action plan suggested by the President to give a new thrust to LIC includes doubling the number of LIC policies from 1.90 crores to 3.8 croes de-mutualisation or paperless policies, establishing an Institute of Insurance Education Management on the lines of IIMs LIC to take lead in the development of PURA villages -- village development aimed at inter-connectivity, setting up of village knowledge centres by the corporation, involvment of the LIC in a greater measure for development of infrastructure, and working out an aggressive marketing strategy to tap the resources of 20 million Indians settled abroad and bring more foreigners under the cover of LIC.

The President was of the view that the thrust of growth of LIC can only be maintained by 'creative leadership,' a concept which needs to be spread to other walks of life-- polity, society and other sectors of the economy.

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