LIC targets Rs 3,550-crore collection

Life Insurance Corporation of India (LIC) aims to achieve a premium collection of Rs 3550 crore in 2009-10 in the eastern central zone comprising the states of Orissa, Bihar and Jharkhand.

The premium collection target of Rs 3550 crore is 35.71 per cent higher than Rs 2660 crore which the state owned insurer had achieved in the zone in the previous fiscal.

Addressing media persons here, Basavaraju, zonal manager of LIC's eastern central zone said, “We have already collected premium worth Rs 2100 crore till January this year and expect to achieve a premium collection of Rs 3550 crore by the end of the current financial year.”

In the Orissa market, LIC is aiming at a premium collection of around Rs 1000 crore this fiscal of which Rs 168.5 crore would come from the Bhubaneswar division.

LIC has already posted premium collection of Rs 606 crore and we have sold more than eight lakh new policies in Orissa till the end of January 2010, said Rabinarayan Mishra, senior divisional manager of LIC's Bhubaneswar division. LIC has a network of 1.5 lakh agents in the eastern central zone which includes 41,000 agents in Orissa. LIC on Tuesday rolled out its latest product called 'Wealth Plus' in the city. The insurance giant aims to mop up a pan-India premium of Rs 20,000-25,000 crore through this new product which is expected to open for the customers for three months.

Asked if LIC had plans to launch more products this fiscal, Basavaraju said there are no plans to launch any new product before the end of this fiscal.

He denied to comment on LIC's upcoming insurance products.

LIC's Wealth Plus is a unit linked insurance plan that safeguards investment from the market fluctuations to ensure that the investments are protected in financially volatile times.

In this product, there is a guarantee of the highest Net Asset Value (NAV) recorded on a daily basis in the first seven years of the policy subject to a minimum of Rs 10. This means that the payment at the end of the policy term will be based on the highest NAV recorded over the first seven years of the policy or the NAV as applicable at the end of the policy term, whichever is higher. The premium can be paid either a lump sum or for three years regularly at yearly, half-yearly, quarterly or monthly intervals. The minimum premium amount for three years premium payment is Rs 20,000 whereas for single premium payment, it is Rs 40000 per annum. A unique feature of this plan is the extended life cover for two years after the completion of the policy term of eight years.