The Hindu Business Line : LIC reclaims market share from private players

Mr S.B. Mathur (left), Chariman, Life Insurance Corporation of India, with Mr K. Cherian Varghese, Chairman & Managing Director, Corporation Bank, after inaugurating the premium payment facility through Corporation Bank ATMs, in Mumbai on Saturday. — Shashi Ashiwal

Mumbai , Dec. 20

THE Life Insurance Corporation of India has regained lost ground in terms of market share from private sector insurance players in the last couple of months.

According to Mr S.B. Mathur, Chairman, LIC, the insurer's market share that had dipped to around 88 per cent has been brought back to 92.07 per cent levels through aggressive marketing initiatives in the last 2-3 months.

Speaking at the launch of, `Anytime Premium,' LIC's premium payment facility which is to be offered through Corporation Bank ATMs, Mr Mathur said LIC's total asset base has crossed Rs 3,23,865 crore, for the period up to November 30, 2003. Of this, 60 per cent is invested in government securities and the balance in corporate bonds, equities, projects, etc.

On new business in the recent months, he said for the period up to November 30, 2003, LIC has sold 1.18 crore individual assurance policies, for a sum assured of Rs 86,922.29 crore. From this a first premium income of Rs 2,827.41 crore has been earned.

During this period, 35,738 single premium policies were sold for a sum assured of Rs 283.70 crore, and a premium income of Rs 209.17 crore. Mr Mathur said there was roughly an 82 per cent decline in the growth of this segment, on a year-on-year basis, due to the withdrawal of some tax sops by the Government.

"We have lost 1,72,000 policies in this segment as a result of the withdrawal of some tax benefits. We have taken up the issue with the Government," he said.

Under the Varishtha Bima pension scheme, for the period up to December 15, 2003, as many as 2.11 lakh policies have been sold for an amount of Rs 3,762 crore. "We expect this figure to cross Rs 5,000 crore by the end of this fiscal," said Mr Mathur.

For the period up to December 15, 2003, under the pension and group schemes, 14.38 lakh lives have been covered for a premium income of Rs 16.22.50 crore.

Talking about LIC's upcoming business plans, Mr Mathur said the corporation is all set to launch operations in Oman on December 24. On international expansion plans, he said that various options were being examined but nothing else has crystallised at present.

Premium payment through ATMs

LIC on Saturday launched `Anytime Premium,' a facility for the payment of premium through Corporation Bank's ATMs, for policyholders who are depositors in the bank.

Mr Cherian Verghese, Chairman and Managing Director, Corporation Bank Ltd, said, at present the bank has 584 ATMs across the country, through which this facility will be available. By the end of this financial year the bank will have 1,000 ATMs and the facility will be extended to the rest.

LIC and Corporation Bank signed a memorandum of understanding on June 6, 2001, when the insurer picked up an additional 14.68 per cent stake in the bank, taking its total holding to 27 per cent.

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