New Delhi: Buoyed by over 60.03% growth in first year premium income in July, the country’s largest insurer, LIC, is planning to launch more products in traditional as well as equity linked schemes this fiscal, irrespective of stock market behaviour.
“We intend to launch some more innovative products in 2009-10 irrespective of the fact whether the equity market rebounds or not. These products could be on either platform, linked or non-linked,” Life Insurance Corp managing director A.K. Dasgupta said.
Ulips are life insurance products, part of which is invested in equity markets, so returns on these schemes are based on equity markets performance.
In this fiscal so far, LIC has already come out with two plans - ‘Health Protection Plus´ and ‘Jeevan Saathi Plus´.
“Both the plans are picking up,” Dasgupta added.
LIC has also decided to increase the sale of unit linked product Market Plus-1 as the market conditions were favourable for sale of this product.
“Through this product, we are able to garner about Rs3,550 crore first year premium income up to 31 July 2009,” Dasgupta said.
Other unit plans of LIC include Profit Plus, Fortune Plus, Money Plus I and Child Fortune Plus.
LIC’s first year premium income grew by 60.03% in July.
“For the month of July, LIC has achieved growth rate of 60.03% in terms of first year premium income, including group premium,” Dasgupta said.
LIC has increased its market share to 62.45% among life insurers in the first quarter of current fiscal from 52% in the corresponding period last year, thereby growing by about 20%.
“With our planned activities and various initiatives being undertaken by us in August and September, we are not only hopeful of sustaining the market share but also improve it further by the end of second quarter,” he added.
On asked on the impact of insurance regulator IRDA’s recent circular to keep mortality charge out of recent cap, he said the move will make it possible to sell Ulips for higher ages.
“Had the mortality charges not been removed from the overall cap of charges for unit-linked plans, it might not have been possible to sell unit-linked insurance policies for higher ages,” Dasgupta added.
Mortality charges are those levied by insurers for incidents like death and disability.
IRDA recently gave some breather to insurers by excluding these charges from overall limit prescribed by insurance regulator for the charges that insurers can impose for its Ulips.