Market Share of LIC is increased

Market Share of LIC is increased

Market Share of LIC is increased

According to IRDA figures upto September 2013, LIC's market share
in No. of policies has increased to 86.23% from 81.39% at March 2013 and
in New Premium it is increased to 75.73% from 71.25%.

As at 30th Sep. 2013,
LIC has collected Rs.37,906.36 Crores new premium and
sold 1,72,20,815 individual policies.

All the 23 Pvt. Cos.
together collected Rs.12,150.2 Crores (24.27%) and
sold 27,49,470 policies (13.61%).

LIC Agents do Right Selling!

LIC Agents do Right Selling!

LIC Agents do Right Selling!

A Harvard Business School study, “Understanding the Advice of Commissions-Motivated Agents: Evidence from the Indian Life Insurance Market” tried to show that LIC's Agents (only) are doing mis-selling.

The main accusation is, LIC Agents are not recommending term assurance products. The low and medium income households (blindly) trust LIC and because of that trust, they are misled by LIC's agents to endowment plans. According to the study endowment plans are costly. If one is able to plan insurance and investment/savings separately, then it may be true. But, it is not possible for the “worst educated consumer” or “low and medium income households”, whom the study concern about.

According to a report from Espirito Santo Securities, term insurance policies have the highest lapsation rate in India. “People want returns from their insurance policies and see term insurance as a waste of premium,” said the report titled ‘Life insurance thematic: Let’s not give up on life yet’. So, if LIC Agents are not recommending term plans, they are selling what people want.

If it is such a big crime to recommend endowment plans, all the private insurers should not sell them. Are they prepared for it? In India, nobody can sell insurance without savings component. It is LIC's success to provide proper mixture of insurance and savings in plans for decades, which are still able to compete with investment instruments in returns.

The inability of the private players to break the market domination of LIC even after 14 years (life term in India!), makes them to lament like this, calling themselves it a “study”! Whatever it may, the phrase “commission driven sales behavior”, used to describe about LIC Agents must be strongly condemned!

The study actually accept that it is unable to find much difference with private agents. But, at the same time it tries to create an illusion that LIC's agents (only) are doing mis-selling. The news and other items in media and web are also purposefully trying to magnify the illusion.

According to Irda’s Annual Report 2011-12, the highest number of complaints in life insurance related to mis-selling. RBI noted (in the Financial Stability Report) that, they mainly pertained to the private sector, though LIC leads the business with a 70 per cent share. These statements clearly expose the motive of the “study”!

*****

IRDA now allowed Banks to act as insurance brokers. Until now banks are working as corporate agent for one insurance company each in Life and General. The new guidelines allow them to sell the products of all companies. IRDA argues that banks' relationship with the customer is fiduciary (a legal relationship of trust and confidence between two parties) and hence it is not fair for banks to act as agent for a particular company and giving no choice to their customers.

Actually this move is not to support the customers. The late entrants of insurance field are having no bank left to get a tie up and they were asking repeatedly to allow banks to sell products of more than one company.

But, RBI's financial stability report cautioned about mis-selling of insurance products by banks. It observed banks did not have a clear segregation of duties of marketing personnel from other branch functions, and bank employees were directly receiving incentives from third parties such as insurance companies for selling their products. It said that the direct incentives to the bank staff have created distortions in the sales structure.

If one company's incentives can influence what to sell to the customer, what will happen hereafter? Banks will sell the policies of the company which offers highest incentive, even it can be off the record. It will lead to even bribery instead of curtailing mis-selling.

*****

The Irda chairman raised concerns over the health of insurance companies."Many companies are making losses even after 10 years (in operation)," he said. On higher foreign direct investment, Vijayan said increasing capital is not equivalent to increasing stability in a company.

*****

The requirement of having a standard proposal form by life insurance companies, with detailed information of the financial needs of the customers, has now been postponed (from August 16, 2013) to April 1, 2014. IRDA said that it has deferred the implementation, taking into account the representations of the life insurance industry.

*****

LIC policyholders need to pay separate service tax for premiums from October 2013. While private insurers add a service tax component to the premium paid by customers, LIC has not been levying the tax on the premium. Now, IRDA mandated that service tax shall not be included in the contractual premium, but collected from policyholder separately. When service tax is charged separately, LIC may be able to pay higher bonuses on the policies, as the surplus in the policyholders' account is declared as bonus.

K.S.PALANISAMY, AGENT: LIC OF INDIA

LIFE INSURANCE CORPORATION OF INDIA

அன்புடையீர் வணக்கம்!

இந்த கடிதம் வாயிலாக உங்களை தொடர்புகொள்வதில் மிக்க மகிழ்ச்சி என்னுடைய பெயர் K.S.பழனிசாமி LIC முகவர்.

நான் பொதுவான மற்றும் LIC சம்பந்தமான அனைத்து தேவைகளுக்கும், அனைத்து மக்களுக்கும் மற்றும் நண்பர்களுக்கும் நல்லமுறையில் மதிப்புமிக்க சேவை புரிந்து வருகின்றேன் . எனக்கு தாங்கள் ஒரு வாய்ப்பு கொடுத்தால் நான் தங்களுக்கு LIC சம்பந்தமான அனைத்து சேவைகளும் செய்ய காத்திருக்கின்றேன்.

நான் அடுத்த வாரம் தங்களை தொலைபேசியில் தொடர்பு கொண்டு உங்களுக்கு விருப்பமான நாளில் உங்களை நேரில் சந்திக்கின்றேன் .

நன்றி
அன்புடன்
K.S.பழனிசாமி B.A.,
LIC ஆலோசகர் மற்றும் முகவர்
93600 80622
kspgeethalic@gmail.com
kspgeetha@yahoo.co.in

LIC HAS NEAR 100% CLAIM SETTLEMENT

வாழ்க வளமுடன்

Why Insurance

Why Insurance             

Almost each one of us has bought or plans to buy life insurance. The usual process is contact an insurance agent who helps you estimate the policy value and goes ahead and buys the policy on your behalf. So you feel good that you now have a life policy showing how much you worth! Take a step back before you buy that policy. Have you ever considered buying more than one policy value you desire? There are some great gains in doing so. These are.... 

During Financial lows
If you go through a situation where you are financially constrained to surrender your life policy, you will lose the cover for the entire policy even if you do not need the entire surrender value of the policy. For instance if your policy's surrender value is Rs 10 Lakh and you need Rs 4 Lakh cash, you will have to cancel the entire policy and lose life over completely. had this policy of Rs 10 lakh been taken as 2 policies of Rs 5 lakh each, you could have surrendered just one policy. You would still remain covered for Rs 5 lakh! 

Distributing your estate
Breaking up your life policy help in this count too. Taking the same example, instead of having one Rs 10 lakh policy, having 2 Rs 5 Lakh policies helps allocate your estate among your children ( this is an ideal situiation if you have 2 children - each child gets proceeds from one policy).

Taking a loan 
You can use your life policy as a pledgeable security while taking a loan. Lenders as well as the insurer usually offers loans up to a specified percentage of the surrender value of the policy. If you dont need a loan to the extent of the amount you are eligible for, you will still have to offer the entire policy as security to the lender till the repayment of the loan. During the period the policy remains with the lender, he is eligible for all the rights to the policy. However if you break up your policies, you need to pledge only just that many policies to raise the necessary loan. 

Tax Benefits
Section 88 of the Income Tax Act states that premium paid on a life policy is eligible for tax rebate. The beneficiary may be different from the premium paying person. For instance your wife can pay premium for your policy and claim the tax benefit. Breaking up for life policy helps in this case too. If the premium paid on a consolidated policy is higher than the amount of rebate you need, you can break the policy to claim the entire tax rebate. This can be done by another taxpaying family member paying the premium for one policy and claiming the rebate. 

Meeting your life goals
You can divide your life insurance portfolio into a number of policies spread over different tenors to give you a stream of steady income to take care of your life's financial commitments like children's education and marriage, buying property, asving up for your old age etc. Check out specific plans structured by insurers specifically for these purposes. 

What if you have already taken a consolidated life policy?
Don’t despair. You can break it to pieces! Contact your insurance agent to guide you to doing so. By paying a small sum to the insurer, your policy can be broken up into more than one, without any loss to you. It is worth the efforts. 

Contact Us
1) If you want to Buy New Insurance Policies than call 9360080622

2) If you need a detailed quotation from us as to how much insurance you should really go for. 
3) If you have a previous life insurance policy and want servicing for the same. 
4) Contact us on email: kspgeetha@yahoo.co.in

Insurance - Investment Tips
1) Always insure yourself at and early age

2) Insure all members of your Family

3) Always take a policy which gives money back option

4) Always take a Term Insurance for lower premium

5) Take insurance upto 15 times of your income

6) Always pay premium on time

7) Always spread your risk with different type of plan

8) when your policy mature's there must be a company to pay you. Always buy insurance from a reputed Company as inurance is always for a longer period. 

9) Check the companies claim settlement ratio.

10) Always nominate your nearest relative

11) Death is certain, so Insure today and get secure.
If life insurance buying is approached in the proper manner it can be very beneficial to yourself and your family. You need to take the time to give some thought to a subject that can be very unpleasant. I guess that is why most people don't think about it, or at best think about it only after they have had a brush with death, or when a life insurance professional brings up the subject. Sometimes these people wait until it is too late to do something about such a critical matter. 

They find themselves uninsurable when they discover they have some critical illness. People should give life insurance buying serious thought at least once per year as ones situation may change and you find that your need for life insurance may change as a result. 

Contact Us
1) If you want to Buy New Insurance Policies than call 9360080622
2) If you need a detailed quotation from us as to how much insurance you should really go for.
3) If you have a previous life insurance policy and want servicing for the same. 
4) Contact us on email: kspgeetha@yahoo.co.in and kspgeethalic@gmail.com