LIC to offer health insurance; plans to enter credit card, pension businesses

Mumbai: Life Insurance Corporation (LIC) of India has hinted at plans to enter credit cards and pension funds business.

LIC chairman T S Vijayan said the corporation would enter health insurance, pension management and credit cards business. "We have no intention of owning a bank as it is a highly specialised area," he asserted.

Vijayan said that LIC had created a separate department for health insurance in its corporate set-up and the department was making efforts to come out with innovative products.

"We would be coming out with our initiative during the later part of the year. We are building a strong marketing network and technology platform for the new health insurance product," he said.

Reports, meanwhile, said the country's largest life insurer is trying to acquire a major stake in UTI Bank to foray into banking.

LIC already has a strategic partnership with Corporation Bank and owns 27 per cent stake in it. LIC also has substantial shareholding in a number of other banks, but does not have controlling stake.

LIC, however, is eager to enter the credit card business, as the potential is huge considering the credit card spends as a proportion of total expenditure. There is a possibility of Corporation Bank being roped into it.

GE already has a tie-up with India 's largest commercial bank, State Bank of India , for the credit card business.

Source: Domain-b