ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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From 50 Years Ago (21 January 2006)

channelling all available savings through life FROM 50 YEARS AGO utilisation for nation-building activities.

source of private savings and hampers their channelling all available savings through life


utilisation for nation-building activities.”… insurance, funds will not be diverted to the

That is not it. Insurance has been public sector “to a greater degree than under nationalised because the whole mechanism present arrangements”. Does it mean thatof finance of which it forms a part has to be investment of life insurance funds will follow fitted increasingly into the pattern of devel-the present pattern and that the same percent-

Vol VIII, Nos 3, 4 and 5, January 21, 1956 opment that the Government now visualises age will still go to industries in the privatefor the economy. The Taxation Commission sector, though naturally according to thehas shown the way. It proceeded on the as-priorities assigned under the Plan?...


sumption that in order to establish a social-The final test, needless to say, would be theof Life Insurance istic pattern of society, recipients of income Government’s response to the challenge which (Editorial) are not to be left with disposable savings; it has so sportingly accepted, of developing an

whatever savings take place, should be either organisation which would be flexible, effi-

Concluding the section on Nationalisation in the public sector or they will be channelled cient, and tailored to the job. Those who are in the series of articles in the AICC Economic through institutional investments. entrusted with the running of the nationalised Review on ‘Insurance Business in India’ which So, State insurance will enter the field, insurance, we are assured, will have the disimmediately preceded the promulgation of the hand in hand with the State Bank of India, cretion and freedom of action necessary to Ordinance by which the Government of India for more effective mobilisation of the people’s enable them to secure maximum efficiency. took over the management of life insurance savings. Let us hope that a virgin field will be The Government has not given any earnest of companies, Shri H D Malaviya had said: waiting for it and that it will be there in time its ability or even willingness of acting up to

“The considerations which point to nation-to collect what little savings accumulate through these professions in any of the undertakings alisation of insurance business are not in the the development of agriculture and small-scale in the public sector. The public will be better least political or ideological. They are based and village industries, so that these savings assured if in support of its good intentions,on hard facts, serious business considerations, can be ploughed back into development... it took them into confidence and told them and a public interest in insurance under private This is the long and short of it. But the about the practical steps by which this manaenterprise (which?) inhibits a vast potential Finance Minister has also promised that while gerial revolution is being brought about.

Economic and Political Weekly January 21, 2006

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