Central government should merge all public-sector companies for General Insurance into one unified company to reduce unnecessary overheads. If one single public-sector Life Insurance Corporation of India (LIC) provides life-insurance cover under so many plans effectively, then one General Insurance Corporation of India can also be formed by merging all public-sector Insurance-companies engaged in General Insurance.
Such unified company will be able to compete more effectively with private-sector companies engaged in General Insurance in the manner that no private Insurance-company is presently able to compete with public-sector Life Insurance Corporation of India. Such unified General Insurance Company then should work in modernised way with attractive insurance-plans introduced to compete private insurance-companies. Each public-sector bank should be linked with some unit of such unified public-sector company to handle General Insurance. Linking of public-sector banks with private sector insurance-companies is not proper.
MADHU AGRAWAL