The Hindu Business Line : LIC targets 31% rise in new biz premium

Mumbai, Sept 14 Life Insurance Corporation of India (LIC) has set itself a target of 31 per cent growth in new business premium for the current fiscal.

This would be significant, considering our large base, said Mr T.S. Vijayan, Chairman, LIC

In 2006-07, the corporation had seen a phenomenal growth of 118 per cent, reporting first premium income of Rs 39,541 crore .

This fiscal, the public sector life insurance company has raked in first premium income of Rs 15,126 crore as on August 31, 31 per cent higher than in the same year-ago period. It has issued 1.40 crore policies, which is 80 per cent higher than last year.

Mr Vijayan said that although Unit Linked Insurance Plans (ULIPs) contributed 80 per cent of the premium this fiscal, the corporation planned to give a strong push to its traditional plans.

Fine-tuning product

LIC will launch its first health insurance policy by January, 2008. “We are still working on the product, he said.

The Chairman said that senior citizens would also be covered under the health insurance policy. (Currently, very few insurers offer coverage for senior citizens).

The corporation will also introduce several customer-friendly technology initiatives this year, including the facility of paying premium through mobile phones.

Overseas expansion

In terms of overseas expansion, LIC will, for the first time, be setting up representative offices abroad.

“The Insurance Regulatory and Development Authority has now given insurers permission to set up representative offices. So, with the requisite permission from the regulator and the government, we hope to set up representative offices in the US, Australia and Singapore, and target the non resident Indian population there,” said Mr Vijayan.

The life insurer currently has branch offices in Mauritius, Fiji and the United Kingdom and has joint ventures in Bahrain, Nepal, Sri Lanka and Saudi Arabia.

IFCI stake

The Chairman also said that LIC was not in the race for picking up 26 per cent stake in Industrial Finance Corporation of India. “We are comfortable with the existing 8 per cent stake we have in IFCI and may not increase it further,” he said.

More Stories on : Life Insurance | General Insurance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Banks find it attractive to lend to farm sector

Ministry not averse to credit enhancement cos

Forex reserves rise $1.5 b

Rupee tad weaker

LIC targets 31% rise in new biz premium

Policy steps helped rein in inflation: RBI

BoI launches schemes for traders in Kerala

Call rates close lower

IOB in talks for tie-up with another bank

Intermediate holding co critical for growth: IBA