September 2006

LIC has defined the world standard in the field of Claim Settlement. During the year 2005-06, LIC settled 1.18 crore claims for Rs.28.512 crore, which incidentally is more than the number of policies in force taken together of all its peer companies in India. On an average LIC settles 44500 claims per working day, or to say, 2 claims per second. In spite of handling such a large volume 97% of the maturity claims are settled on or before due date and in case of death claims 93% of the death claims are paid within 20 days of intimation. Total outstanding ratio of claims as on 31st March 2006 was 0.16%. Our claim settlement record is better than the global standard, no wonder LIC has been voted as the most trusted service brand in India for three consecutive years.

As the Largest user of Information Technology in the insurance sector, LIC has networked its 2042 branches to provide freedom to its policyholders in paying premium at any of these offices and has offered an array of on line premium payment avenues like ECS & ATMs.

The friendly LIC portal offers facility of online registration and policyholders can use this to get information about their policies and effect simple transactions like change of address. In keeping with its constant endeavour to provide the best of customer services, LIC recently launched the prepaid ‘Annuity Card’, a debit card which is reloaded with the amount of pension whenever due, for disbursement of annuity / pension to the customers of LIC.

Registering a growth rate of 182.26% in premium income, LIC has earned a market share of 77.51%, a gain of over 3.5% by the end of July 2006. Speaking to the media Mr. Vijayan said that LIC has outperformed the industry growth rate of 177.44%. In fact the industry growth is largely due to LIC’s growth in the current fiscal. As on 15th August 2006, Corporation’s new premium stands at Rs.10381.57 crore showing a growth of 191%. With a marketing strength of 10.44 lakh individual agents, 27 banks, 103 brokers and +660 corporate agents, Corporation is poised to continue its onward march in new business.

LIC’s performance in Group Insurance Business amply reaffirms the trust reposed even by the Corporate Houses in LIC’s effective and efficient management of large superannuation funds.

The Group Insurance portfolio has collected a new premium of Rs.1819.44 crore with a growth rate of 85% and under Social Security Schemes the new premium is Rs.28.00 crore with a growth rate of 774% as on 15th August 2006. Under Social Security Schemes LIC has so far covered 172 lac lives while the growth rate on number of new lives is 682%. With effect from 15th August 2006 the insurance cover under LIC’s Janashree Bima Yojana has been increased to Rs.30000 in case of natural death, Rs.37500 for permanent disability and Rs.75000 in case of accidental death.