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— Bijoy Ghosh

New product: Mr T.S. Vijayan, Chairman, LIC of India (right), and Mr V.K. Sharma, Executive Director, at the launch of ‘Group Critical Illness Rider’ policy in Chennai on Thursday.

Our Bureau

Chennai, Oct 25 Life Insurance Corporation of India set itself a target of Rs 52,000-crore for first premium income for the current year, compared with Rs 39,541 crore in 2006-07.

The corporation’s Chairman, Mr T.S. Vijayan, said at a press conference here today that customer preference continued to be for unit-linked policies. Up to August, over 90 per cent of new premium (of Rs 15,126 crore) came from such policies, he said.

“We are agnostic about it. We give whatever the customers wants,” he said.

LIC, which is also into property development, is open to building townships too, Mr Vijayan hinted today.

Answering a question about the need for a property consultant, Mr Vijayan said that such a consultant may be needed when the corporation forays into township development, he said. However, he added that there was no ‘township project’ on the anvil at the moment.

Answering another question, Mr Vijayan said that LIC was not interested in taking over IFCI, the development financial institution in which LIC has 8.4 per cent stake and optionally convertible debentures.

Mr Vijayan said that development finance was not LIC’s core business and the corporation was inclined to view its stake in IFCI as a financial investment.

He agreed that LIC’s 2.2-crore-strong client base offered the Corporation huge scope for cross-selling products, noting that the Corporation was looking at various options.

Answering another question, Mr Vijayan said that “various options are being considered” to grow the mutual funds subsidiary, LIC Mutual. Asked if there could be a strategic partner, he said all options were under consideration.

Mr Vijayan was here in connection with the launch of a new rider for its group insurance policies, for critical illness. The rider has been developed to cover eight major critical illnesses — cancer, coronary artery bypass surgery, heart attack, stroke, kidney failure, surgery of aorta, heart valve replacement and major burns.

The premium for the CI rider can be paid by the employer or the employees. The group CI rider sum assured shall be minimum of 20 per cent basic sum assured and a maximum of 100 per cent with upper ceiling on the rider sum assured of Rs 20 lakh for each member. It is available for employees between 18 and 64 years. Pre-existing diseases are excluded.

The rider can be attached to any of the existing group insurance policies under employer-employee group. “A striking feature of this rider is that the benefit is payable upon detection of the major critical illness. Unlike mediclaim, the proof of expenditure is not required,” says a press release from LIC.

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