NEW DELHI(PTI): Entry of foreign and private insurance companies to make the multimillion Indian insurance business more competitive is being considered by the federal government to tone up its functioning as part of the ongoing economic reforms in the country. A final view would however be taken after the committee headed by former Reserve Bank of India governor R.N.Malhotra, submits its report on the insurance sector reforms,
The committee set up in April this year is expected to submit its report latest by December.
The government has already taken number of initiatives covering the banking sector and the capital markets to create 8 more efficient and competitive financial system. Official sources said the financial sector reforms in the country were not as rapid as in the other sectors, The sources said new approach had to be adopted to ensure that the industry became more efficient and competitive. The Malhotra committee would go into strengths and weaknesses: Of the industry and examine how to provide a wide reach to insurance Service by improving its efficiency and customer service.
Article extracted from this publication >> October 29, 1993
