The Hindu Business Line : LIC hopes for record growth<br> Credit card foray options still being weighed; health insurance joint venture likely

Life Insurance Corporation of India (LIC) expects to end the current financial year with a record performance. As of February 15, the corporation had sold 24.6 per cent more number of policies. The corporation's best growth ever has been 27.50 per cent.

The LIC Chairman, Mr A.K. Shukla, hopes a new record to be set this year.

New premium income has increased over 70 per cent to Rs 11,674 crore, till February 15, Mr Shukla said at a press conference here.

Asked if sovereign guarantee for LIC would be withdrawn, he said he had no official information on the Government's thinking on that. But he said LIC was a strong company and had never had to invoke the guarantee. Observing that "we are okay either way," he added that one should, however, take into account the signals that would be sent into the market with the Government withdrawing its guarantee.

On the proposed foray into credit cards, Mr Shukla said the corporation had formed a committee to study the option even as its consultants, KPMG, were looking at whether or not the corporation should enter the business and if it should, on what business model.

On getting into health insurance business, Mr Shukla said the LIC Act did not prohibit the corporation from entering the segment, but LIC was nevertheless waiting for the guidelines that the Insurance Regulatory and Development Authority would come out with. He said that in the absence of a health regulator it would be difficult for a health insurer to price the products properly and hinted that LIC may enter the segment with a joint venture partner.

Mr Shukla said the corporation spent around Rs 130 crore in advertisements and brand promotion in the current year. Next year, the corporation would spend about the same or "may be Rs 10 crore more," he said.

On the cards is a plan to contract the corporation's name to just LIC and a brand promotion blitz that could include advertisements in trains, sponsorships of sports events and may be even a `Bollywood night.