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IRDA licences

Yugal Kishore Sharma, Faridabad

This regards the editorial ``Private, again'' (Business Line, October 26) and two letters, `insurance ventures' and `difficult business'. With the issuance of the licences by IRDA, the private insurers have geared up to attract consumers. The conversion of the monolithic nature of insurance business into a multifaceted one will bring about an insurance revolution in the industry.

In the era of Internet services, the consumers hope to receive door-to-door services. Apart from the economic assurance of indemnity of life and tax-exemptions, they need safe return of invented monies with interest. The aggressive campaigning by private companies will force the corporations to adopt the new strategy.

A section of the media and staunch supporters of privatisation have started uttering (as also said by Mr Murli Deora, the Chairman of the Standing Committee of Parliament) the removal of foreign equity ceiling of 26 per cent. And for sake of downsizing t he corporations, the white elephants can be shown the doors by VRS.

It will be worthwhile to quote from the above-referred editorial that the public sector is going to face the pressure, especially as its managerial capability has been stultified by years of bureaucratic control, and its capacity to take new initiatives has been eroded in the absence of longer tenure for top management positions and archaic wage policies.