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LIC completes 50 yrs, sets record of settling 2 claims per second

By Staff
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Mumbai, Sep 1 (UNI) The state owned Life Insurance Corporation of India (LIC) today said it has settled 1.18 crore claims for Rs 28.512 crore during 2005-06, equivalent to settling 44,500 claims per working day or two claims per second.

Briefing mediapersons here on the occasion of LIC completing 50 years in the domestic life insurance market, its Chairman T.S.Vijayan said ''in spite of handling such a large volume 97 per cent of the maturity claims are settled on or before due date and in case of death claims 93 per cent of them are paid within 20 days of intimation.'' Stating the total outstanding ratio of claims as on March 31, 2006 was 0.16 per cent, Mr Vijayan pointed out that the LIC's claim settlement record is better than the global standard. He said this claim settlement figure ''incidentally is more than the number of policies in force taken together by other competitors in the private sector.'' Replying to a question, Mr Vijayan said on the completion of 50 years LIC will have a new logo symbolising its future outlook and aspirations. Responding to a related query, he said LIC is coming out with a new product on September 04, 2006 ''Bima Gold 2'' with additional features that was lacking in the initial offering launched last year.

When quizzed on the additional feature of Bima Gold 2 product, Mr Vijayan said ''for instance if the product is for 16 years and on completion all the benefits were duly settled to the claimant, the additional feature will be provided by LIC free for another 8 years and 50 per cent of the value of the product.'' Registering a growth rate of 182.26 per cent in premium income, he said LIC has earned a market share of 77.51 per cent, a gain of over 3.5 per cent by the end of July 2006. LIC, according to Mr Vijayan, has outperformed the industry growth rate of 177.44 per cent and ascribed the industry growth largely to LIC's growth in the current fiscal. Accordingly, LIC's new premium stands at Rs 10,381.57 crore as on August 15, 2006, he said.

Further, he said the LIC's performance in Group insurance business amply reaffirms the trust reposed even by the corporate houses in LIC's effective and efficient management of large superannuation funds. Explaining, Mr Vijayan said the Group insurance business has collected a new premium of Rs 1819.44 crore with a growth rate of 85 per cent and under social security schemes the new premium is Rs 28.00 crore with a growth rate of 774 per cent as on August 15, 2006.

Under social security schems, LIC has so far covered 172 lakh lives while the growth rate on number of new lives is 682 per cent. With effect from August 15, 2006 the insurance cover under LIC's Janashree Bima Yojana has been increased to Rs 30,000 in case of natural death, Rs 37,500 in case of permanent disability and Rs 75,000 in case of accidental death.

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