LIC to push for conventional policies

Staff Reporter

MADURAI: The Life Insurance Corporation of India, is concerned about the declining number of takers for conventional policies and excess preference for market-linked plans.

A meeting of all LIC Senior Divisional Managers in the country held in Mumbai recently decided to push more for conventional policies and reduce the high dependence on unit-linked insurance plans (ULIP).

The public sector major has instructed all its divisions to keep the ratio between ULIPs and conventional policies at 70:30 at the national level.

The Senior Divisional Manager of Madurai Division, S. Chandrasekar, who presented the division figures at the Mumbai meet cited that of the total premium amount collected last fiscal, 93 per cent was through ULIPs while only seven per cent was through its conventional policies.

“Even though Madurai division sells just four unit-linked plans and 41 conventional insurance products, the four ULIPs constituted the maximum premium amount collection,” he told The Hindu here on Saturday.

These issues were discussed by the LIC top brass and hence a new strategy to rejuvenate the traditional insurance policies was contemplated, Mr. Chandrasekar said.

Of the Rs.659 crore collected as fresh premium last fiscal, Rs.633 crore was through ULIPs.

In Madurai division, of the five lakh policies sold, 65 per cent were ULIPs, he said.

Gain through stock markets

“While we do want to capitalise on the growing stock markets, we want to ensure traditional policies also stay in the reckoning.”

The Madurai division was targeting 50 per cent growth for every quarter in the current fiscal.

It hoped to raise Rs. 765 crore in terms of fresh premium collected and achieve sales of 5.49 lakh policies, he said.

The six southern districts of Madurai, Dindigul, Sivaganga, Ramanathapuram, Theni and Virudhunagar come under the Madurai division.

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