LIC's health plan to get Budget boost

The Budget proposal providing an additional deduction of Rs 15,000 to an individual paying the medical insurance premium for his parents is expected to boost the recently launched health insurance scheme of Life Insurance Corporation of India (LIC).

LIC launched a unit-linked health insurance plan in the first week of February and is targeting a revenue of Rs 5,000 crore by the end of June 2008.

Amitav Kothari, director, LIC, said the tax exemption limit raised in the Budget would move nearly 10 million assessees out of the tax net.

It would also result in an additional Rs 40,000 crore getting pumped into the system, he added.

Nearly 40 per cent of the amount was likely to be saved and LIC was definitely eyeing a significant share of the pie, said Kothari.

"Though we have not worked out any detailed target yet, it definitely is going to result in an additional income of a few thousand crores for LIC, he added. LIC's health insurance scheme had the advantage of its brand push, said Kothari.

LIC has nearly 19 crore policyholders with a premium income of Rs 1.3 lakh crore, which grew by 42 per cent last year.