LIC TARGETS URBAN POOR FOR MICRO INSURANCE PRODUCTS

Kolkata: The eastern zone of Life Insurance Corporation will focus on tapping the hitherto untouched urban poor population this year through its micro insurance policy, according to Mr R.R. Dash, Zonal Head, Life Insurance Corporation.

While the zone figured among the top performers for LIC in micro insurance in the first quarter of 2008-09, its four urban divisions contributed a mere 8 per cent in the segment.

“This year, we are trying to organise all the NGOs, self-help groups and other micro finance institutions associated with us to concentrate on the BPL segment in the cities. We have identified a large untapped customer base in urban segments such as sweepers, vegetable vendors, rickshaw and bus drivers, conductors, labour groups, dhobi and so on,” Mr Dash said. “We have a target of selling 50,000-60,000 Jeevan Madhur policies, LIC’s flagship micro insurance product, in the cities of the eastern zone this year,” a senior LIC official said.

Last year, only 20,000 policies were sold in the urban areas out of the total 1,30,729 policies sold in the entire zone. “The NGOs tend to avoid the urban market because it is difficult to convince urban poor for a life cover as they are more aware and argumentative,” the official said.

The life risk attached to the urban labour class is however relatively greater, making it necessary for them to have insurance covers, said Mr Dash.

In an effort to boost the sale of micro insurance policy, the zone has also set targets of adding 100 new agents in each of the 11 divisions in the zone, he said.

The target for each agent would also be scaled up to over 1,000 policies from 235 policies being sold by each agent last year.

In the quarter ended June 30, 2008, the eastern zone has sold 44,825 micro insurance policies, up from 1,558 policies sold in the same period last year.

The zone has thus taken a lead in the country in terms of realisation of target, covering 9.07 per cent of the yearly target of 4.94 lakh policies already. The zone follows the southern zone in terms of total micro insurance policies sold.

Source: The Hindu Business Line