Andhra Pradesh - Visakhapatnam   

LIC weathers market turmoil

VISAKHAPATNAM: The Life Insurance Corporation of India has not only beaten the economic recession but also improved remarkably in facing the challenges and raising its market share.

“The growth in the insurance is driven mainly by LIC. This is possible due to faith reposed by the people in public sector institute and our track record,” LIC Managing Director A.K. Dasgupta told The Hindu on Wednesday. He said LIC share in new business in August was close to 68 per cent with its nearest rival getting just 5.5 per cent. “It is not that the new players mostly private have entered after the market meltdown. They are in business for past 11 to 12 years,” he said.

The asset share of LIC is put at 90 per cent as on March 2008 with its nearest rival getting three per cent. LIC also accounts for 80 per cent of total premium collected with its nearest rival getting two to three per cent.

Mr. Dasgupta said the growth rate of LIC was phenomenal and it was growing at over 40 per cent every month and 21 to 22 per cent every year. “Our credibility and resource management is praiseworthy.

We don’t promise the moon like other players in the market. Our service initiatives are well-acclaimed due to our focus on efficient delivery system,” he stated. On the basic strength of LIC, he said getting a policy was not their ultimate goal. “Service is our mission,” he said pointing out that last year they had a claim settlement of Rs.36,000 crores. Little over 97 per cent of claims were paid on or before the due date and only 0.2 per cent of claims were outstanding due to documentation, legal heir and other problems.

The company has set a target of new premium for Rs.48,000 crores during the current fiscal and Mr. Dasgupta hoped that they were confident of exceeding the target by March 31, 2010.

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