LIC settles all claims in central zone

The Life Insurance Corporation (LIC) has claimed it is now the first company in the world to have settled all claims in a zone""in this case, the central zone. The settlement of claims relates to special bonuses, maturities, and death claims.

"LIC has become the first in the world to attain this figure," a top official of the corporation said. The insurer expected to launch in October a pension plan on the lines of Varishtha Pension Bima Yojana, another senior official said. However, the interest rates will not be as lucrative as offered in the earlier scheme, but will vary according to market conditions.

"Last financial year, our performance was excellent and we maintained a speed ratio of 97.85 per cent in terms of special bonus and maturity claim settlements. Similarly, we maintained a 96.61 speed ratio in death claim settlements, and a 0.07 per cent ratio pending death claim settlements. Our Shahdol and Bhopal divisions are the first to settle all death and maturity claims in March 2004. Nothing is pending regarding special bonuses, death settlements, and maturity claims," said N Mohan Raj, zonal manager, LIC (central zone).

"With this, this zone has gone ahead of the six other zones," he added.

According to Mohan Raj, the central zone covered 314,478 individuals (18.09 per cent of the current year's target) as on 31 July, and turned in an insured amount of Rs 2014.92 crore (15.87 per cent of the target) and first premium income of Rs 100.8961 crore (18.68 per cent of the target).

Despite competition, the company is upbeat on its Unit-Linked Plan, and has set a target of selling 40,000 policies and first premium income of Rs 76.07 crore.

"We have already attained the target of 39.04 per cent of policies and 55.14 per cent of the first premium income for our Unit Link Plan," Mohan Raj said.

The insurer has applied for a new pension plan, and it is expecting to turn it to good account in the senior citizen segment in states like Madhya Pradesh and Chhattisgarh.

"We have applied for a new pension plan before the Insurance Regulatory and Development Authority (IRDA) and we expect permission to ahead with the plan, probably in October this year," said Laxmikant Mishra, Madhya Pradesh marketing head.

Mishra said, "The plan will be for people in the age-group 35""55 years. However, the interest rate will be less than 9 per cent," he said.

Adding, "much will depend upon IRDA permission but we are expecting that the plan would be widely accepted in states like Madhya Pradesh and Chhattisgarh."

The central zone has 2,048 computerised branches in the state, with 1,980 of them on the network. These branches are equipped with single-window clearance systems, green channel, information centres, interconnected voice response system, etc.

LIC is observing an "insurance week" during September 1""7.