Welcome

LIC Gearing Up To Fight

Sensing stiff competition and growing awareness of insurance, Life Insurance Corporation (LIC) is on an aggressive mode. In addition to its new product launches – ULIPs , Profit Plus & Fortune Plus, it is pushing through its expansion plan through its "satellite" branches.

LIC officials note that while ULIPs are the flavour of the season, they feel that this cannot be long-term and hence are promoting their conventional plans in a big way. One reason why they are also ramping up their satellite branches to around 150 this year.

Satellite branches are basically extensions of large branches and are set up in areas where the insurer is virtually absent. LIC finds it easier to expand with smaller offices rather than go in for opening up full-fledged offices requiring board approval and government permission.

Not just that, On the technology side, the life behemoth is said to be investing over Rs 600 crore on switching over to the digital format by implementing an electronic data management system (EDMS) in three phases.

The life insurance major also plans to pull up on its share of premium from its bancassurance channel, which is considerably less, given its tie up with 25 banks. "The share of business from bancassurance is targeted at 5 per cent. It is not too high at 1.2 per cent at present. This year, the company will be providing the required focus on this channel of distribution", Mr. D.K. Mehrotra. M.D. of L.I.C. said in a recent interview.

With private players working hard too - they have grown by 33 per cent in the first quarter of the current fiscal and are expanding aggressively beyond metros - LIC's efforts to ramp up business to regain lost ground seems justified. In 2006-07, LIC grew its total premium by 118 per cent, higher than the industry growth of 110 per cent. This was largely driven by individual single premium plans, which are largely unit-linked plans.

The life insurer grew in this category by 136 per cent to over Rs 20,500 crore in 2006-07.

Top

Govindas Need Insurance Too

Gokulashtami is one festival that most youngsters look forward to eagerly. In time honoured tradition, each of them vie to be members of the ‘Dahi Handi’ clubs, practicing hard to break the tallest handi. With a lot of corporates jumping into the fray, by sponsoring gifts & monetary prizes for these events, it is no more fun & games. But with all this glitter there is a downside too.

Countless youngsters fall and are hurt (in some case, the injuries are fatal) while climbing human pyramids in their attempt to break the dahi handis that are hung dozens of feet above the ground level.

Several Gokulashtami mandals this time did not take any chances. Nearly 60% of dahi handi mandals across the city and the suburbs have gone in for a personal accident insurance policy cover to compensate members for possible mishaps during the intensely contested events.

Insurance firms are offering an accident cover ranging from Rs 50,000 to Rs 1 lakh a person. Govindas will be compensated for loss of limbs and eyes and also for loss of life. The premium for this cover begins from Rs 50 for every person. A medium-sized mandal with a 100-member group will need to raise around Rs 5,000 for the insurance cover. Some insurance companies are also offering an additional Mediclaim cover to the mandals to include hospitalisation bills as many members get injured and have to be rushed to hospitals for surgeries, which are very expensive. In such cases the mandals find it difficult to shell out money immediately. Thus insurance can come to their rescue.

As per insurance company officials they do not make any profit from this initiative. One claim can in fact wipe out the entire premium amount but they see this as a goodwill gesture towards people. The companies use this to increase their credibility and expand their customer base.

Top

Tips For Buying A Used Vehicle

Before you buy a used car check out on these important factors so that you don't get cheated. Besides, who knows, you may end up getting a much better vehicle than what you expected.
While buying a used car you must externally inspect a number of areas in the vehicle.

Rust:
As far as possible try inspecting the vehicle during daylight. This is because under poor light conditions flaws such as rust, a common problem, will not be easily visible. Specifically inspect the areas around

the headlight, bumpers, bottom of fenders, under door, in the wheel wells and under the boot's carpeting. Similarly check out the insides of the car too.

Touch Up Jobs:
Check out for touch up jobs on paint done to cover up the body damage. Also give a close look to find out dents, scratches, loose bumpers. Ascertain how much you would have to spend later to set these right.

Uneven doors:
Uneven doors indicate how well the car has been maintained. It may also have been involved in an accident. Check out whether these open and close easily.

Gaps:
Find out if there are any gaps between the fenders, the doors and the bonnet and the boot-top.

Lights and Mechanical parts:
Find out if all the headlights, indicator lights, brake lights, back up lights and direction signals work well. Find out if any rewiring needs to be done and importantly check the fuse box.

Upholstery:
Check if the upholstery requires to be changed. Also look under the mats and seat covers. Battery conditions and cooling system: Find out if the battery needs to be changed. Also check out on the cooling system. The coolant level should be almost full.
Finally, Drive it yourself - on rough roads, clean surfaces, turns, twists and get a feel of the vehicle.

And of course do not forget to get yourself & your car appropriately insured.

Top

	Please do not reply back to this mail. This is sent from an unattended mail box. Please mark all your queries / responses to webmaster@insuregain.com
	Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. www.insuregain.com and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. www.insuregain.com, its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.