The Life Insurance Company (LIC) has introduced its Metro Area Network (MAN) connecting 27 branches and two divisional offices and Interactive Voice Response System (IVRS) in Bangalore. This is the third city in India to have these facilities after Mumbai and Chennai.

LIC is also planning to restructure all its departments in order to overhaul the system and tap the potential in the life insurance sector. Primarily it will restructure the marketing department and reorient the sales force apart from adapting to suitable technology to improve customer service.

Broadbasing the TAC

The government has proposed to broadbase the composition of the Tariff Advisory Committee. This step is expected to rationalise the general insurance premium structure. The reconstituted TAC will have representatives from consumer fora, chartered accountants, industry associations and state governments. At present, the TAC is packed with representatives from the insurance companiesalone and hence is not able to dispassionately address the concerns of various players.

IRA proposal on deposits

The Insurance Regulatory Authority (IRA) proposes to ask insurers to place a deposit to the tune of Rs 20 crore with the RBI to utilise the money in case of defaults and failure to meet claims payment obligations. This money will be used only as a last resort in case a company fails on all aspects. The initial capital requirement of Rs 100 crore would be a sufficient deterrent for non-serious companies hoping to achieve short-term gains.

--(Source: Insurance Today)