The eastern zone of the Life Insurance Corp of India (LIC) is looking for a 27% growth in first premium income in the current fiscal despite the economic slowdown. The insurance behemoth achieved a growth of 20% in first premium income last fiscal.
“We achieved a first premium collection of Rs 3,334 crore during April 1, 2008 to February 12, 2009. We hope to achieve targets for the fiscal by laying stress on policies such as Jeevan Anand, Jeevan Tarang and Jeevan Varsha,” said zonal manager RR Dash.
The zone was looking for a 34% growth in first premium income this fiscal, but lowered its target after the slowdown hit India . It earned Rs 4,102 crore as first premium income in 2007-08, while total premium income was Rs 13,000 crore.
“Our aim is to earn Rs 16,000 crore as total premium income in 2008-09,” said Dash, who was present at the launch here of Jeevan Varsha, a close-ended money-back plan with guaranteed additions that offers customers policy terms of nine and 12 years. The premium-paying term is nine years in each case. This has been done keeping in view the preference of the people for short duration policies.
The zone hopes to earn 60% of its first premium income this fiscal from unit-linked policies. “Unit linked insurance policies will contribute more than half of the first premium income with products such as Jeevan Aastha taking off,” Dash said. Jeevan Aastha is a close-ended, single-premium product that offers guaranteed benefits to customers.
