Aviva Life sees Rs 100 crore premium income in FY04

Aviva Life Insurance India, the 74:26 joint venture between Dabur India and UK's largest insurer Aviva plc, is eyeing a premium income of over Rs 100 crore in the current financial year as against Rs 70 crore in the previous financial year.

"There is a good scope for growth. We expect to rake in a premium income of over Rs 100 crore in 2003-04 as against Rs 70 crore in the previous financial year. Further, Aviva which has 21 branches, will be opening seven to eight new branches across India this year," Stuart Purdy, managing director, Aviva, said at the launch of two unit-linked funds "" a secure guarantee fund and a equity-oriented growth fund "" under the LifeBond 5 brand.

The New Delhi-headquartered insurance company, whose capital was ramped up by Rs 88 crore to Rs 243 crore recently, has Rs 313 crore worth of assets under management.

According to Bobby Surendranath, head-fund management, Aviva, the secure fund will provide a progressive return on investment with a capital guarantee on maturity by investing 50-100 per cent in debt, 10-20 per cent in equities and money market instruments.

The growth fund, on the other hand, will provide high capital growth by investing upto 85 per cent in equity.

Pointing out the attractiveness of the unit-linked insurance schemes, he said, Aviva's Balance Fund, which was launched in 2002, has delivered a return of 52 per cent in the past 12 months.

LifeBond 5, which combines the features of savings and investment, has a policy term of 10-50 years and the sum assured is five times the annual premium.

The premium period is five years and the minimum premium payable is Rs 25,000. At the end of the fifth year, the proceeds can either be redeemed or reinvested.

Minimum and maximum entry age (without medical examination) is 18 years and 50 years, respectively. The product gives customers tax benefits on the premiums paid and the policy proceeds are tax free.