Monday, November 21, 2011

Life Insurance Corp may invest in Kingfisher Airlines

Life Insurance Corporation of India which is a state run company has shown interest in investing in Kingfisher Airlines. The Government has endorsed and forwarded a proposal to LIC regarding a possible deal.

After all the brouhaha regarding Kingfisher Airlines in the media, the Government has decided to help the airlines out. Not directly but the Government has its ways of making sure Kingfisher Airlines gets the funds it needs.

The Insurance company LIC has from time to time made huge investments in various industries in the market.

The Government has already pumped huge sums into Indian Airlines time and again. The Airline is still making losses. Almost all the airlines in India are making losses. Vijay Mallya who has already received a media trial in the last few weeks, has denied approaching the Government or the LIC for funds.

LIC, if the proposal is approved may invest upto Rs. 1.20 billion in the airlines. With most investors staying away from this loss making industry, LIC is ready to take the risk. Also the future prospects of Kingfisher Airlines looks bleak as it is. Hence a Government agency investing into such a company does come as a surprise to most.

LIC has also made major investments in tobacco companies and now its Kingfisher Airlines.Seems like we have some interesting times coming up.

But if you guys are still afraid your flight might get cancelled or run out of fuel mid flight, get yourself travel insurance and life insurance right now ! Give us a call on our toll free number 1800-103-922 and leave all the paperwork and running around to us.

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