Lic To Review Full Product Portfolio

The Life Insurance Corporation of India (LIC) is gearing up to improve its growth rate from the existing 20 per cent to 25 per cent by 2005 by focussing on the rural areas and technology upgradation.

"We have witnessed a growth of 20 per cent during the last several years and I see LIC raising this to 25 per cent by 2005," Mathur said.

On strategic tie-ups with banks, he said: "We are in talks with two more banks. But I would not like to name them at this moment. We do not have any plans to enter the banking sector, but we will sell our products through banks."

He also said LIC will review the entire product portfolio and study all guaranteed return products afresh to revise them.

"We will do away with 'New Bima Nivesh' and 'New Jeevan Shree' in their existing form on September 16 this year. We will launch upgraded versions of these products later during the fiscal. We will launch the products according to the needs of the market and situation," Mathur said.

On pension products, particularly for those who are below poverty line, Mathur said LIC was in talks with state governments. "We have finalised a product in this line in Goa. The problem is that the states do not have money to invest. I wanted to talk in this regard with the government of Madhya Pradesh but due to some unavoidable reasons I could not meet the state's top brass," he said.

The pension scheme, if planned for any state, would be for underprivileged people such as distressed senior citizens, destitute women and physically disabled.

"And we will see some thing happening in social security in October." The corporation is also planing to relaunch the Children Money Back policy, Jeevan Sneha and few more policies for women.

Mathur said the corporation's subsidiary, LIC Housing is planning an 'Old Care' scheme under which the company will set up, construct or build old age homes for those who are senior citizens and have none to look after. This will be done with private partnership.