NEW DELHI: The state-owned Life Insurance Corporation of India (LIC) earned a profit of Rs. 5,800 crore in 2005-06, while its income from first year premium during the fiscal touched Rs. 18,085 crore, showing a record growth of 48 per cent.

"Our surplus (profit) is Rs. 5,800 crore in 2005-06," LIC Chairman, A. K. Shukla, told newspersons here on the sidelines of a function to inaugurate `LIC Zindagi Express', an exhibition on a train, showcasing LIC's 50-year history.

The corporation mopped up Rs. 18,085 crore as premium during the fiscal year ended March 2006 through 3.17-crore new policies as compared to a collection of Rs. 12,170 crore through the sale of 2.39-crore policies in the previous year.

Total investment in stocks, Mr. Shukla said, was likely to increase to Rs. 40,000 crore from Rs. 34,000 crore. During the year, it made an investment of Rs. 14,000 crore in the stock market against Rs. 10,000 crore in 2004-05. Having launched several new products in life insurance, pension and annuity during its golden jubilee year, LIC is now working on a micro insurance product meant for the rural poor.

"We have sent a micro insurance product to [the] Insurance Regulatory and Development Authority for approval," Mr. Shukla said, while noting that LIC had also requested the IRDA to allow it to take in more than one general insurer as partners for micro insurance in view of the large scale of operations. It is also in talks with public sector non-life insurers for partnership in the micro insurance product so as to extend a composite life and non-life insurance coverage of up to Rs. 50,000. It is planning to launch new Unit Linked Insurance Products and pension products. Mr. Shukla said LIC aimed at an average 30-35 per cent growth year-on-year by selling more policies and introducing innovative products.

During the current fiscal, LIC will be setting up 50 new satellite offices and recruit over 3,000 Class-II staff. With an asset base of about Rs. 5,00,000 crore currently, LIC has 20-crore policyholders. Besides, the corporation does not require any assistance from the Government as it has enough resources of its own to sustain business growth. Asked whether the opening up of the insurance sector posed any threat to the public sector major, Mr. Shukla said, "We are not threatened by private players, LIC is well established." Despite the churnings in the stock market, LIC's focus, Mr. Shukla said, was on building assets through long-term investment in the bourses.

Printer friendly page  
Send this article to Friends by E-Mail