By Jagdish Jhaveri, Senior Journalist
During 2016-2017 how has LIC fared businesswise?
Life Insurance Corporation of India celebrated its 60th anniversary (Diamond Jubilee Year) last year after it was formed in 1956. It achieved Total Premium Budget in February 2017.
During 2016-2017 LIC has done well selling 1,48,78,660 policies and collecting First Premium Income of Rs. 31,089 crores as on February 27, 2017 which represents growth of 67%.
Ahmedabad Division too created history with Total Premium Budget as on December 15, 2016 collecting First Premium Income (FPI) of Rs 532 crores and on February 27, 2017 had collected First Premium Income (FPI) of Rs 623 crores and sold 1,69,784 policies, showing growth of 117% on account of First Premium Income (FPI).
Regarding investment-oriented new products, how many were introduced in Gujarat?
Recently our Bima Diamond (Plan no. 841) was introduced which is our anniversary product that provides risk, periodical returns, extended risk cover among other benefits. We also have attractive products that guarantee regular life-long payments such as the New Jeevan Akshay – VI Pension Plan. Jeevan Labh provides benefit of short term premium with risk coverage which is more than premium paying term.
What is the premium collection of new Life Insurance policies?
As on today, Ahmedabad Division collected First Premium Income (FPI) of Rs 623 crores through sale of new policies in 2016-17.
How much LIC collected in Single Premium Policies?
Ahmedabad Division collected Rs 487 crores by way of sale of Single Premium Policies. Ahmedabad Division procured Rs 398 crores of First Premium Income (FPI) towards sale of popular plan viz. Jeevan Akshay-VI in current year.
Life Insurance industry has become more competitive due to entry of several national and international life insurance companies through joint venture with Indian companies. What are your comments.
There is stiff competition prevailing in the Insurance Sector. However, LIC has its brand image and continues to perform exceedingly well.
Ahmedabad Division showed growth of 117% on First Premium Income as on February 2017 and already achieved its annual premium target of Rs 532 crores on December 15, 2016. LIC has market share of 71% on First Premium Count as on January 31, 2017 which has improved from last year.
Which new plans were introduced to attract more business?
Being our Diamond Jubilee Year, we have introduced a very attractive anniversary product i.e. LIC’s Bima Diamond (Plan No. 841) which provides multiple benefits like Risk Cover, Loyalty Addition, Auto Cover, Extended Cover, Money Back, Maturity Value etc.
To what extent LIC has simplified the claim settlement process?
LIC has always remained customer-friendly as far as Claim settlement process is concerned. We are the Number One Insurance Company in the world having settled more than 99% of the claims and with lowest outstanding claims ratio. We keep educating customers by advertisements and personal contacts to update their bank details so that payouts go directly into bank accounts. During mishaps, we settle claims waiving many requirements.
What is the total target of new business – Number of Policies and amount
The target of new business for 2016-17 for Ahmedabad Division is 3,68,000 policies and Total First Premium Income (TFPI) of Rs 532 crores.