LIC to restructure, expand overseas operations

By Our Special Correspondent

MUMBAI, APRIL 23. The Life Insurance Corporation of India (LIC) is planning to restructure and expand its international operations.

Addressing a press conference here today, Mr. G. N. Bajpai, Chairman, said a couple of days ago, the corporation received licence to start operations in Nepal. LIC has set up a joint venture with Vishal group of Nepal to sell life insurance policies in that country. The corporation has 55 per cent stake in the Rs. 20 crore (Nepal currency) venture. Mr. Bajpai said the venture would start selling policies within 45 to 60 days.

LIC's wholly-owned subsidiary in Mauritius, LIC Mauritius Offshore, is also set to go on stream. Through the company, LIC proposes to set up ventures in about eight African countries. It has hired a consultant, Multiconsultant, to scout for suitable partners in the target countries. The target countries are mainly those with a sizable population of people of Indian origin. LIC also has a good presence in the West-Asian life insurance market and its incremental sales overseas in the past year has been around 25,000 policies.

The corporation is planning to restructure its London operations and is on the look-out for a partner. Mr. Bajpai said even though the London office was doing profitable business, the growth was not as per expectations. A strategic partner would increase growth prospects and also help expand operations to other parts of Europe at a later stage. LIC would not need separate clearances as European Union laws allow a company to operate anywhere in Europe with one single licence.

During 2000-01, LIC sold 20 million new individual policies (including pension plans) which registered a growth rate of 16.29 per cent over the previous year. The sum insured under new policies crossed the Rs. 100,000 crore mark to touch Rs. 129,754.24 crores registering a growth rate of 37.53 per cent, a new record. The first premium income, which showed an all time high growth of 64.98 per cent amounted to Rs. 6,262.39 crores.

In the pension and group business, 8,122 new schemes were sold, covering 12.50 lakh new lives and generating a premium income of Rs. 696.37 crores, up by 16 per cent. Mr. Bajpai said technological upgradation, further improvement in customer servicing and aggressive marketing contributed to the tremendous spurt in business.

Send this article to Friends by E-Mail

Section  : Business
Previous : Bullion rates
Next     : New norms for banks' market exposure next month