FM- LIC Board meet: LIC asked to open 1,800 new offices 27-May-2013 Source : Business Standard Finance minister P Chidambaram has asked the country’s largest insurer, Life Insurance Corp of India (LIC), to open 1,800 new offices this financial year. These offices would have to cover all towns with a population of more than 10,000 people, said financial services secretary Rajiv Takru, on the sidelines of a meeting between the LIC board and the finance minister. “LIC is the 83 per cent market holder in life sector, which means that there is no competitor in the market, so it has to show the way to everybody else,” said Takru. Keeping that in view, three thrust areas have been identified. Those areas, which have low penetration of insurance, will be addressed on priority, he added. “Insurance, as a method of saving and as a method of security, should be encouraged in those areas where insurance is not there,” he said. It was pointed in the meeting that while Delhi, Mumbai, Kolkata and Chennai are already insured, remote areas of central India and the northeast will have to have insurance coverage. Takru said a strategy has to be worked out for the same. To ensure that there is no mis-selling, the finance minister called for niche marketing for target groups. This would be for groups that actually need that kind of insurance. Takru said therefore, there would be no mis-selling and there would be targeted and proper selling to those groups. It was further decided that there should be targeted promotional drives for niche markets, designed to hit the audience and the area which LIC was aiming.
Posted on: Thu, 06 Jun 2013 08:15:06 +0000
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