The Investment Policy Of The Corporation Essay

814 Words 4 Pages
The Estimate Committee (1960)1 of the Lok Sabha concluded that the renewal expense ratio had been coming down but had not reached the level of the best–managed insurers. The Committee also hoped that with improved management, the Corporation would not only catch up with but also improve on the renewal expense ratio attained by the erstwhile leading insurance companies in India.
Mohsin (1966)2 suggested that the requirements of the financial system in India and the interest of the policyholders called for a modification in the investment policy of the LIC. The
study also highlighted that insurers abroad with more or less similar liabilities and characteristics had been constantly re-shifting and re-aligning their investment portfolio to earn highest possible return on their investment along with the safety of capital due to changing economic conditions.
Bhide (1969)3 highlighted the investment policy of the Corporation. The study concluded that the investment policy of the Corporation safeguarded the interest of the policyholders and the community and also helped in removing regional disparities. There was a large increase in rural investment through subscriptions to central and mortgage banks, debentures and bonds, and loans to electricity boards. Also, considerable efforts were being made to implement the social and economic policies of the government in regard to housing, water supply, land development, rural electrification and growth of small and medium scale…

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