Lic In Rs 200cr Tech Upgrade Plan

The Life Insurance Corporation of India (LIC) has earmarked over Rs 200 crore for a complete technological upgradation of the communication system, especially the metro area network and interactive voice response system.

The insurance giant, which is gearing up to meet private competition, both in-house and foreign, is also planning a number of instrument s in the health insurance and pension plans.

The LIC has begun sending feelers to various commercial banks, non-banking finance companies and corporates for utilising them as distribution channels for its products in areas where it does not have a reach.

Also waiting in the wings is a new broking community which would be selling insurance products of various new and old companies to customers. According to LIC's eastern zonal manager O P Dubey, the IRDA is putting finishing touches to these plans.

 

"The modalities, such as fidelity guarantee, fees and the penal provisions, are being worked out by the Insurance Regulatory Development Authority (IRDA)," said Dubey.

Dubey said the company was gearing up to meet private competition and there was a vast market in the country for insurance players. Out of a total population of 100 crore, around 28 crore persons need insurance coverage. LIC presently provides coverage to 8 crore Indians. leaving the remaining 20 crore uncovered, said the zonal manager.

In order to keep the `high net worth individuals' within its fold and not lose them to foreign competitors, the LIC is hammering out the modalities for providing specialised services to them.

"The company is planning some sort of a green channel for them, as 70 to 75 per cent of total income of LIC comes from these entities," Dubey pointed out.

The company will also be strengthening its services vis a vis its vast field force of 6.28 lakh persons.