LIC eyes Rs 1 lakh cr income

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.

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.

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.

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.

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."

"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.

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.

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.