Life Insurance Corporation of India (LIC) has set a target of just 11 per cent increase in its total premium "� new business plus renewal "� in 2006-07 to touch the Rs 1,00,000 crore mark. | |
| Of the target, Rs 28,000 crore of premium income will come from new business and Rs 72,000 crore from renewals. LIC's total premium in 2005-06 was Rs 90,759 crore. |
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| Despite a high growth in new business premium income, the increase in total premium income will not be higher, as 55 per cent of the new business premium income in 2005-06 was from single-premium policies. |
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| Till December 2006, LIC earned Rs 18,000 crore from new business premium income of individual policies and Rs 5,900 crore from new group policies sold. |
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| LIC has achieved a total new business premium (individual and group) of Rs 23,900 crore in the first three quarters of 2006-07. From April to December 2006, LIC's renewal premium was Rs 20,671 crore. |
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| Speaking to reporters after announcing a tie-up with Dena Bank, offering a group mortgage redemption assurance scheme called Dena Grihaswami Suraksha Yojana for the bank's housing loan borrowers, T S Vijayan, chairman of LIC, said, "Our target in group business was Rs 4,000 crore, which has already been achieved." |
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| "All housing loan borrowers, including staff housing loan borrowers of Dena Bank in the age group of 18-60 years, would be eligible to join Dena Grihaswami Suraksha Yojana," Vijayan said. |
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| If the borrower is below 45 years of age and his loan is up to Rs 10 lakh, he will not be required to undergo a medical examination. But, if he is above 45 years and his loan amount exceeds Rs 10 lakh, a medical examination will be required. |
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| The premium will be collected and remitted by Dena Bank. LIC has arrangements with 12 other banks for home loan cover and has already collected a premium of Rs 58 crore. |
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