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Sahara may enter life insurance

Our Bureau

Mumbai, Feb. 21

THE Lucknow-based Sahara India group is planning to enter into the life insurance business. Sahara India Life Insurance Corporation Ltd (SILIC) has applied to the Insurance Regulatory Development Authority (IRDA) for commencing life insurance business an d issue of life policies.

The group has decided that its focus for insurance distribution will be predominantly rural India, where most of its workforce and depositors are situated.

SILIC, part of over Rs 12,000-crore Sahara India group, with interests in parabanking, aviation, television channel, real estate and consumer goods, has decided to go it alone in the insurance business unlike many others who have joined with some foreign partners. Reliance Industries has also decided to enter insurance business on its own without any tie up with a foreign entity.

``As a policy, we decided to go it alone in insurance business,'' the Sahara India group Managing Worker and Chairman, Mr Subrata Roy, said. The group has a practice of giving designations of worker. Managing Worker is equivalent to Managing Director.

SILIC has also roped in former Life Insurance Corporation of India (LIC) actuary, Mr Liaquat Khan, who will spearhead the group's insurance foray.

SILIC plans to utilise the strength of the group which has over six lakh karmyogis in Sahara parlance (agents in common usage) to market their insurance products in the country. ``Our karmyogis are well-trained over years in retail deposit mobilisations for whom insurance distribution will be additional income avenue,'' Mr Roy said.

In addition, the group plans to market its insurance products to captive depositors' base of over 2.5 crore investors. ``The group will have cash break-even in early operations as it can begin with the in-house army of over six lakh workers and huge depo sitors' base,'' Mr Roy said.