The move will result in speeding up the process of issuing insurance policies as also expand its branch network from the present level of 2,048.
LIC has over 19,000 development officers who report to these branches. The new powers will be in addition to the green channel system where policies can be issued on the spot, LIC executives said.
At present, a form filled up by a proposer is sent to a branch which in turn sends it to the new business department. This department then processes the proposal and forwards it to the underwriting department.
The underwriting department then sends the proposal back to the new business division which then issues the first premium receipt. An insurance policy comes into force on the date the first premium receipt is issued.
LIC executives said that the entire process could take anywhere between a week to a month.
The new decision could help in reducing the time lag between the time a proposal is submitted to LIC
