The mining ban in Goa has decreased the flow of money in the economy and affected investments in financial instruments. However savings in insurance policies of the Life Insurance Corporation (LIC) continue at a steady pace said Mr SC Acharya, senior divisional manager, Goa branch.
Addressing the media during the launch of two new products – LIC New Jeevan Nidhi and LIC Flexi Plus, Mr Acharya said that there are about 2.9 lakh policy holders in the three mining areas of Bicholim, Curchorem and Ponda.
In these areas there are no surrenders of policies taking place, as yet, and payment of premiums also continued to be on schedule. This was because, “premiums constitute a small proportion of the total outgo of an individual and is not a major expenditure head in any household.”
Speaking on the corporation market share amidst the emergence of new players, Mr Acharya said that it was 81.9 per cent all-India, but share in Goa could even be higher with the state having about 10 lakh policy holders and an annual growth rate of 45 per cent in business. At an all India level, Goa ranks fifth in the number of policy holders and is in seventh place in terms of premium value.
LIC, Mr Acharya said, is working towards cent per cent coverage of all citizens by the year 2020. In Goa, the aim is to achieve this goal by 2015. Meanwhile, talks are on with the state government to participate in the insurance welfare scheme in the offing. New products being considered is group insurance.
The LIC New Jeevan Nidhi (plan number 812) is a deferred annuity pension plan and is most suitable for young income earning individuals. As for the LIC Flexi Plus, it is a unit linked plan which not only offers lump sum benefit on death, but also maturity benefit irrespective of the survival of the policy holder.
About unit linked life insurance policies that are dependent on the share prices, having a sketchy success because of market instability, Mr Acharya said the Flexi Plus has several safe guards in place so that buyers are not exposed to risks. About 15-25 per cent of the corpus of this plan is in listed equity shares and about 45 per cent in guaranteed government securities. [NT]