LIC Housing Finance Ltd (LICHF) is in talks with general insurance companies to act as a corporate agent for one of the four state insurers. "Our preference is for state companies because our existing association has been doing well, and these companies offer highly competitive rates," said the housing finance company's director and chief executive Kranti Sinha.
It is mandatory for the borrower of any housing loan sanctioned by LICHF to buy a comprehensive insurance policy that covers fire, earthquake and flood.
"50,000 plus insurance policies were sold during the year without any hassles or marketing costs," said Sinha, as LICHF disbursed 52,258 loans during the year ended March 31, 2001.
LICHF has tied up with Oriental Insurance, which offers the best rates among the four state companies. "None of the other state insurers could match Oriental on the rates front," said Sinha.
Even as fire comes under tariff control, premium on a comprehensive house insurance policy can vary, and Oriental has been quoting the lowest rates to LICHF, as there is no cost in terms of marketing.
LICHF will, by virtue of its association with Life Insurance Corporation of India (LIC), tie up for life with the state life incumbent.
In effect, it is already cross-selling LIC policies through its NRI housing loans --- 'Grah Shobha'. Further, as LICHF proposes to set up retirement homes in the country for the affluent, it will encourage the sale of LIC pension plans to these individuals for the quarterly payments.
