Home
/ Insuremagic Exclusives
Interview of Mr. TS Vijayan,
Life Insurance Corporation of India
(Date: 19th September 2006)
LIC has reported a growth of 217% in new business
premium in Q1, what reasons would you attribute to this
tremendous growth?
If I have to reply to this question in two words, I would
say “Customer Preference”. Only a satisfied customer can
give you more business. Of course, this satisfaction can
be attributed to our superior product designing, focused
publicity and determined efforts of our dedicated Agents
and Development Officers. They were ably supported by seamless
servicing provided by our committed employees and officers.
Secondly, the alternate distribution channel too has chipped
in with good first premium. In fact, contribution from this
channel is now firming up.
While initiatives like customer portal and online payment
of premium have given us a technological edge in providing
satisfactory service, an initiative like satellite office
is taking us nearer to our customers. Other initiatives
like Agents’ portal and excellent training that is being
provided to our Agents and Development Officers have also
led to the enhancement of their skill and confidence.
Perhaps all these factors taken together have given us
what you call ‘tremendous growth’.
How beneficial is the annuity card for pensioners
that was launched in tie up with UTI bank?
Annuity Card is yet another mode of payment of annuity
in addition to the existing modes of payment viz. ECS, cheque
or draft. The Annuity Card is Visa enabled Debit Card issued
by UTI bank as a co-branded card with LIC. The working is
hassle free and the annuitants do not have to wait for cheques
to be delivered, visit a bank for depositing a cheque and
again withdrawing the amount on the card. The annuitants
don’t need to open S.B.A/c with UTI Bank. The card is issued
absolutely free of cost. The annuitants can go to ATM counter
of UTI bank or associated banks to withdraw the amount of
annuity. The Card can also be used for making payments for
merchandise at establishments, which accept VISA cards.
We have initially launched it in Mumbai and it may be extended
to other places in future.
How has the corporation geared up to meet the claims
arising from the recent Mumbai blasts?
Immediately after the Mumbai bomb blast on 11.7.06, LIC
took pro-active steps in keeping with its traditions. Special
Help Desk was created at the Divisional Offices and Branch
Offices to respond to the death claim enquiries and assist
in the expeditious settlement of claims. Special Task Force
comprising of Senior Officers of the Corporation and headed
by Marketing Manager was also constituted. In addition,
concessions and relaxations were declared with regard to
settlement of death claims, investigation of early death
claims, settlement of Double Accident Benefit and Disability
Benefit with a view to help the nominees of the bomb blast
victims who were our esteemed policyholders. The relaxations
and concessions were allowed in the matter of Death Certificate,
Claim Forms B, B1, C & E. The investigation of early
claims was dispensed with for Sum Assured not exceeding
Rs.2,00,000/- and Double Accident Benefit was allowed to
be settled without insisting on Police Report if the death
was proved to be due to bomb blast. In respect of SSS policies,
all the gaps prior to 31.3.05 were allowed to be treated
as paid.
Consequent to the abovementioned initiatives taken by LIC,
total number of death claims settled as on 26.8.06 arising
out of the bomb blast on 11.7.06.
1) Death Claims:
No. of policies:305
No. of Lives:140
Amount settled:Rs.5,05,25,633/-
2) Accident Benefit:
No. of policies:245
Amount settled:Rs.2,41,91,069/-
How do you see the growth of LIC with competition
heating up with more private entrants?
Competition in any field is good for the industry and
growth of the individual as well. Competition in our field
has changed our outlook too. We are also geared up for the
competition and are working in that direction. This fact
is best illustrated by comparing our progress of six years
after competition to that of six years preceding it. From
1994-95 to 1999-2000 we grew at a rate of 8.32% in policies
and 22.07 in FPI whereas during the competition period from
2000-01 to 2005-06 our growth rate in policies has been
11.435 and 41.075 in FPI. We have retained our dominance
in the market and we shall continue to do so.
What is your present market share and the total
asset base?
The value of investment assets as at 31st March, 2006
is about Rs.4,94,410/ crore.
As on 30.06.2006 our market share (Individual + Group) is
as follows:
Premium: 78.53% Policy:
80.08%
The total asset base of Life Insurance Corporation for the
year 2005-2006 is Rs.552447.33 crores.
What are the new changes that you are planning to
bring about?
Our Vision is to see LIC transform into a world class
Global Financial Conglomerate. We are aiming to double our
asset base in the next five years. We are planning to increase
our investment in equity up to the maximum permissible limit
as per the regulations. We would be providing professional
training to our marketing personnel and facilitating environment
to our human resources for development of their skills with
the help of Professional Training Institutes. We would be
encouraging specialization in specific areas like Bancassurance
/ P & GS / Micro Insurance and other technical fields.
In the coming days most of our newer initiatives would
be in the area of Information Technology. Our new IT projects
in the pipeline will soon bring to the Customers facilities
whereby they would be in a position to receive their policy
monies like Claims, Survival Benefit, Loan payment etc.
- Anytime Any where. We also plan to issue to our policyholders
magnetic cards, which will enable them to pay and receive
money under their policies through ATMs. We are in the process
of establishing 100 Satellite Sampark Branches for better
customer services. We have opened one at the highest altitude
in Leh and seek to reach more highs in the future.
|
