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LIC will look only at good scrips: Mehrotra

Last updated on: December 15, 2012 20:53 IST

LIC will look only at good scrips: Mehrotra

M Saraswathy in Mumbai

Life Insurance Corporation of India (LIC), which has invested in offer for sale (OFS) of NMDC and Hindustan Copper. will invest in only in good scrips that come up for disinvestment, said D K Mehrotra, chairman of the firm.

Speaking on the sidelines of a conclave organised by ASEAN Institute of Insurance and Risk Management, Mehrotra said that LIC had invested Rs 16,000 crore (Rs 160 billion) in equity till October 2012. "We will look at a scrip (coming for disinvestment), only if it has a good potential," he said.

On the issue of finding right talent, Mehrotra reiterated that their is a lack of appropriate talent in the market. Further, he said that there is a dearth of good talent in the sector and adding to this is the problem of insecurity of job and career.

In the conclave organised for setting up an Insurance University, LIC has also pledged support to the initiative. The university is proposed to be dedicated to the study and research of insurance and insurance products. It would be set up at a cost of Rs 65 crore (Rs 650 million) and companies who invest the venture would be given a certain percentage of stake in the institution.

Insurers including LIC, General Insurance Corporation of India (GIC Re), Export Credit Guarantee Corporation of India (ECGC), New India Assurance, United India Assurance, Tata AIG General Insurance and Agriculture Insurance Company of India have pledged their support to the setting up of the university.

GIC Re to go aggressive on overseas expansion from 2013-14.

Indian reinsurer General Insurance Corporation of India (GIC Re) will be going aggressive on expanding overseas from the next financial year. Speaking on the sidelines of a summit, A K Roy, chairman and managing director of the company said that the company had faced some crisis on finances and will be looking to grow in international locations from next year onwards.

Roy further said that they had faced about Rs 3000 crore (Rs 30 billion) in the last three  to four years due to the obligatory cession. This loss was faced as GIC Re has to partake 10 per cent of the loss faced by insurers in policies. Since the underwritten policies on segments like motor insurance have been facing losses, this has been passed on to GIC Re. According to law, a primary insurer has to place 10 per cent risk with the national reinsurer, GIC Re.