In view of the stable market scenario at present and sound economic conditions, LIC (Life Insurance Corporation) has planned to introduce at least four more products in the conventional and non-conventional category.
The insurance giant is planning to introduce a new pension system on pilot basis to encourage people from the unorganised sector to voluntarily save for their retirement. The insurance major will not enter banking business but its subsidiary is in process of obtaining banking license.
Speaking to Business Standard, LIC managing director AK Dasgupta said, “It is the right of every investor to enter the market, it is not going down further. The fundamentals of the market are very strong. Market conditions are very favourable for investors if they want to stay for long. They can invest in conventional and non-conventional products, provided they have a proper strategy.”
In view of the favourable conditions, he said, it was the right time for LIC to introduce new products. Without naming the products he said, “There will be at least four products in both the categories and at least one for women, though we have one of the best products for women, Jeevan Bharti, available in the insurance sector.”
When asked if it was a strategy to mitigate the lower premium figures, he said LIC’s premium income was down sinceinvestors entered the market when it had been touching as high as the 22,000 mark. “They (investors) wanted to make short term profits. The situation is not the same now. We want to ensure a significant market share to close the current financial year.” He ruled out LIC’s direct entry into banking business but said, “LIC Housing Finance will soon enter the banking sector.”
On a new initiative called ‘Swavalamban’, to be regulated by Interim Pension Fund Regulatory and Development Authority (PFRDA), he said, “We have chosen a few districts across the country and initiated the process for the product for people of the unorganised sector. If a subscriber invests Rs 1,000 in the product, the Central government will contribute an equal amount. The contribution by the government of India will be available for the current financial year and three years thereafter. Any citizen, who is not part of any statutory pension scheme of the government and contributes between Rs 1,000 and Rs 12,000 per annum, can join the Swavalamban Scheme.”
Expressing his dissatisfaction over the central zone, Dasgupta said, “There is enough scope for them to do business by any channel, be it direct marketing for any other alternate channel.