Indian Postal Insurance Likely to be Split Off

The Indian Post Office is likely to hive off its postal life insurance business into a separate entity by next year, following which it could come under Insurance Regulatory and Development Authority purview.

This will enable it to come up with more life products as well as avail of the investment opportunities offered to regular insurance companies.

While the modalities are being worked out, an investment committee has been formed to look for a fund manager for deploying the funds collected from postal life and rural postal insurance schemes into various avenues for investment.

“There are various amendments being brought about in the Postal Act and changes are likely to be introduced in the next session of the Parliament” said Shakeel Ahmad, minister of state for communication and information technology, said.

Indian Post will also metamorphose to a full-fledged bank called Post Bank of India in a few years.