Riding on the initial success of micro insurance scheme, state-run LIC is aiming to nearly triple its business by selling over 40 lakh policies in the current fiscal.
“We aim to sell about 42 lakh policies to the financially weaker section of society during the current fiscal against 15.4 lakh sold last fiscal,” LIC Zonal Manager (North) Vinay Kumar Sinha told PTI.
Till August, LIC sold 4.16 lakh micro insurance policies while on the launch of Jeevan Mangal, the second micro insurance product, the largest life insurer sold over one lakh policies.
On the first day, Mr. Sinha said, LIC sold about 1.21 lakh schemes that has low ticket size and easy payment options.
LIC launched its second micro insurance product Jeevan Mangal customized to cater to the distinct needs of the most vulnerable low income sections of society, earlier this month.
With the establishment of a technology platform and tie-ups with NGOs, micro-finance institutions and the Self Help Groups the penetration of such products are growing, he said.
Jeevan Mangal- a term assurance plan with return of premium on maturity, provides a assured sum (risk cover) from a minimum of Rs 10,000 to a maximum of Rs 50,000.
It comes with an optional accident benefit rider providing for total death benefit equal to double the sum assured on death due to accident.
Flexible modes of premium payment have been provided ranging from weekly, fortnightly, monthly, quarterly, half-yearly, annually and a single premium payment option has also been provided, Mr. Sinha said.
The first micro insurance product Jeevan Madhur gave 2.5 per cent bonus in the second year itself, he said, adding, the bonus would go up with the increase in length of the scheme.
Jeevan Madhur, an Endowment Assurance plan, launched in September 2006.
Talking about the premium garnered from micro insurance scheme, Mr. Sinha said, during 2008-09 LIC collected Rs 31.2 crore first year premium compared to Rs 16.21 crore in the previous fiscal.
At the same time, LIC collected Rs 9.9 crore by mid-September, he said, adding, premium collection is not the core motive of LIC but providing life cover at affordable rate to poorest section of the society is the prime objective.
