LIC set to cut its wage bill

 Chairman S B Mathur said the exercise is expected to take three to four years with a focus on reducing cost of collection and containing the wage bill. The management cost ratio stood at 7 per cent-plus as of March 2003.

 Since it cannot reduce commissions owing to competition, LIC intends to contain management expenses.

 The cost reduction comes at a time when LIC has to look after its bottomline since sales growth has taken a hit and investment income is falling owing to declining interest rates.