Lic Braces To Take On Global Majors

Private and foreign players in the insurance sector will face prohibitive competition from the state monopoly due to the low rates of insurance premiums charged in the country. The new entrants will have to concentrate on new areas and market new products, said R N Tripathi, executive director, marketing, Life Insurance Corporation of India (LIC).

Nevertheless, LIC is gearing up to provide better consumer service so that when new players come in, the corporation will be able to market a better image, he said. The corporation has identified three thrust areas with focus on technological upgradation. The front-end operations of about 400 branches of the corporation have been automated while another 300 branches will go hi-tech soon.

 

LIC will also concentrate on strengthening its market research and training operations. Efforts will be made to optimise operational efficiency and greater attention will be paid to human resource development, Tripathi said. Besides, the range of products offered by the corporation will also be expanded, he said.

Tripathi also outlined several steps taken to improve customer service, including:

Enhancement of ceiling on double accident benefits to Rs 5 lakh from the existing Rs 2 lakh

Raising the ceiling on non-medical benefits. Improvement in underwriting standards; and Elimination of occupational xtras.

Tripathi was satisfied with the present functioning of the corporation as only 3 per cent of the claims remained be settled. About 69 per cent of claims have been settled before the date of maturity, he said.

Many claims have been settled on an ex-gratia basis using the discretion of the corporation, he said adding, in some cases, claims have been paid for unconcluded contracts.