LIC Eyes Group Cover In North

New Delhi: | Updated: Nov 10 2003, 05:30am hrs
The Life Insurance Corpora-tions (LIC) Northern zone has empanelled 25 brokers a new line of intermediaries that has entered the insurance sector. These, zonal manager MM Mukherjee told FE recently, are expected to bring in more of the group insurance business that had seen significant growth during the current fiscal so far. While brokers can offer a wide range of products to customers, it is expected that they would initially rake in group insurance business for the life insurance behemoth.

During the period up to October 15 of this fiscal, group insurance business registered a growth of a staggering 242 per cent in terms of new premia (Rs 33.56 crore) and an increase of 170 per cent as per the number of lives covered (1,60,426 against only 59,317 during the corresponding period last fiscal). This is 51.8 per cent of the target set by the zone for itself, Mr Mukherjee adds.

The corporation also propos-es to make a major push in the social security sector, aiming to cover below-poverty-line grou-ps in Punjab, Rajasthan and Ja-mmu & Kashmir. The North zone comprises Punjab, Harya-na, Rajasthan, J&K and Himac-hal as well as Chandigarh and the National Capital Region.

In terms of absolute volumes, up to October 31, the zone clocked a 14.19 per cent growth in policies 13,63,008 against 11,93,637 during the same period last year. The sum assured rose 25.79 per cent to Rs 10,898 crore against Rs 8,664 crore, while the first premium income came to Rs 373.04 crore, an increase of 18 per cent against a decline of 8.47 per cent during the April-October period last year.

The North zone has a number of credits to its account, including the largest number of policies by any LIC division, which is in Karnal 1,92,799. Moreover, a very large percentage of non-resident Indians and people of Indian origin have their roots in this region. It covers some pockets containing the most affluent population Chandigarh, for instance, play-ed host to the Mercedes agency for the North, he points out.

The maximum number of policies on state level has originated from Rajasthan, accoun-ting for nearly 31 per cent of the zones sales. He conceded that there had been some disconnect in premium payments last year in that state owing to the drought, but that had been covered this year. Interestingly, the countrys largest individual policy with a sum assured of over Rs 51 crore emanated from the Bikaner division.

Celebrity-studded Delhi accounts for another 30 per cent, though the biggest branch in terms of premium is located in Ludhiana.