Andhra Pradesh - Visakhapatnam

LIC nets lion’s share despite competition

LIC Managing Director A.K. Dasgupta

VISAKHAPATNAM: The challenge thrown due to opening of insurance sector to private and foreign players notwithstanding, Life Insurance Corporation is able to get close to 90 per cent of India’s total premium income, according to its Managing Director A.K. Dasgupta.

“We are gearing up to maintain our hold by retaining our image as a giant company committed to people’s money for people’s welfare,” he told reporters here on Sunday.

He said LIC had the reach in rural areas where private players were reluctant to launch their operations.

Mr. Dasgupta, who earlier presented Rs.10 lakhs as part of corporate social responsibility to Shankar Eye Hospital for construction of an operation theatre, said LIC was giving thrust to customer service and new initiatives and admitted that whatever they did , there was always space for improvement . He said they were the only company to achieve 97 per cent settlement of maturity claims by dispatching the cheques in advance.

On new service initiatives, he said they had tied up with HDFC, ICICI and five other banks and service providers for accepting online premium payments in selected cities. Electronic clearance system was also extended to all the places without surcharge.

He said premiums could also be paid through ATMs of two banks for the convenience of its account holders. Corporation Bank account holders were given the facility to pay on SMS mode. Such customer-centric facilities were being extended to all the places in phases, he added.

Admitting that they were covered by guidelines issued by Insurance Regulatory Development Authority, he said they were holding talks with the Government and IRDA to safeguard the original character of LIC. “We have to find ways in putting our money for the welfare activities taken up by companies like NTPC so as to meet our objectives,” he stated.

As per the Insurance Act, 1938 and guidelines issued by the Government and IRDA, they were investing not less than 50 per cent in Government securities or other approved investments, minimum 15 per cent in infrastructure and social sector and not exceeding 35 per cent in other sectors to be governed by prudent exposure norms.

Mr. Dasgupta said LIC, with total assets of 8,03,820 crores, got an income of Rs.2,06,363 crores, premium income of Rs.1,49,706 crores and claim payment of Rs.57,623 crores and total life fund of Rs.6,86,616 crores during 2007-08.

LIC Zonal Manager D.D. Singh, Senior Divisional Manager N. Prabhakar Rao and General Manager K. Ganesh were also present.

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