The Hindu Business Line : LIC campaigns to revive policies

LIFE Insurance Corporation of India is gearing up to increase its market share and is betting on a range of unit-linked products, including its Bima Plus plan, launched in 2001.

The corporation is also embarking on a massive campaign to `recycle' the matured policy money into fresh policies and also encourage revival of lapsed ones.

The corporation has undertaken a nation-wide campaign for the Bima Plus plan backed by a comprehensive training programme for its distribution channels to understand the endowment type-linked product and special incentive schemes to encourage them to promote it.

Talking to reporters here on Monday, Mr Ravishanker Prasad, Senior Divisional Manager, said the campaign has already started to give results with the Ernakulam office raking in Rs 26 lakh on the product since March this year and the Surat office raking in Rs 20 crore on the same.

In Gujarat, Goa and Maharashtra, sale of the policy has shot up sharply from the 6,000 sold in the entire last fiscal to 54,000 sold in the first five months of the current fiscal, he said.

In the Pune region itself, efforts to motivate the 17,000-strong distribution channel to promote the Bima Plus are bearing fruit with over 4,500 policies being sold in the first five months of the current fiscal as against the 565 of sold in the entire last fiscal. A total of Rs 6.77 crore in premium has been collected in this period as against the Rs 97 lakh collected in the last fiscal.

The region has also put in action a comprehensive programme to bring in at least 20 per cent of the total claims paid back to the LIC gambit by "recycling'' their matured amounts to the corporation which paid up Rs 254 crore in claims last fiscal. "This fiscal, the claims maturity amount is estimated at Rs 284 and we expect that at least 20 per cent of this will come back to us as fresh business'', he said. The Pune region has some 1,40,000 lapsed policies of which, 70,000 are recent cases. "We hope to convince at least 50 per cent of the holders to revive their policies."

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