With the intention to strengthen the volatile bourses, the public sector insurer Life Insurance Corporation (LIC) has decided to pump in an additional over Rs 4,000 crore in the stock markets by March 2009.

Mr. T.S. Vijayan, the LIC Chairman said, “We have made investment of Rs 31,000 crore till December and it may cross Rs 35,000 crore (by the end of March).”

But, even the huge amount of fund infusion in 2009 is fairly less by the standards set by LIC itself.

Mr. Vijayan said that it would be 15% less than Rs 41,000 crore, which it invested in equity during the last financial.

Accordingly, the cumulative investment in equities by March 2009 must be touching Rs 2,00,000 crore mark, he said.

Mr. Vijayan also said, “Yes it (exposure to equities) is continuously growing. I believe, of all the listed companies' market capitalisation, there may be around 4 per cent with us. It is huge money.”

“We have a responsibility and responsible to policy holders. Whether the company is performing or not or we have to take investment decision, whether to continue with the company or get out of it,” he added.

LIC is inserting more funds in the securities market at a time when it is trying to resolve the matters, which followed a 10% equity cap declared by insurance regulator IRDA in August 2008.

“If they are changing the goal posts, we are asking them (IRDA) to teach us how to score goals next time,” he said.

Moreover, LIC has also announced that it would employ 11 lakh more agents by March 2011 to double its field workforce.

During the existing year, LIC recruited about two lakh insurance agents across the country.

At present, LIC has about 24,000 development officers in India.

It is learnt that private life insurers are also enrolling agents to compete with LIC, and to expand their businesses and reach, but the numbers are much less than the largest player.