Tuesday, February 5, 2008

LIC Looks To Mop Up Rs 750cr

Kolkata: Life Insurance Corporation of India (LIC) has decided to raise Rs 750 crore by the end of this fiscal, from Eastern region through its maiden stand alone health insurance scheme, Health Plus. LIC is eyeing a first year premium income of Rs 5000 crore for the fiscal from its east zone operation. Health Plus is the first long term unit linked health insurance from the company and it combines health benefits to entire family (husband, wife and children) in a single policy providing daily hospital cash benefit, major surgical benefit and domiciliary treatment benefit. The premium allocation charges for the first year would be 30 percent and 6 percent in the subsequent years. One of the main features of the policy is that the premium remains unchanged through the tenure of the policy.

The policy provides withdrawal of fund equivalent to the actual expenses incurred in respect to the domiciliary treatment after three years as this component is dependent on the capital market. Hospital cash benefit benefit is payable on a daily basis in case of hospitalisation and it ranges between Rs 250-2,500 for the principal insured. However this benefit does not include the expenses incurred during the first 48 hours of hospitalisation. During the term of policy, this benefit shall be available for 365 days for each member.

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