Hemant Bhargava, Zonal Manager, North Zone shares LIC's group products and its performance

WHAT IS GROUP INSURANCE?

LIC offers life insurance protection under group policies to various groups such as employer-employees, professionals, co-operatives, weaker sections of society, etc. Besides providing insurance to employees, LIC also offers group schemes, which provide funding of Gratuity, Pension and Leave Encashment liabilities of the employers.

Group Insurance implies one contract covering a group of lives. The terms on which insurance cover is granted depend upon the characteristics of the group as a whole. A Master Policy is issued incorporating the contract between the insurance company on the one hand and a legal entity like Employer, Trustees, Association, etc on the other hand defining the group of lives to be covered, benefits, contributions and terms and conditions on which the contract is entered into.

WHAT ARE GROUP PRODUCTS OFFERED BY LIC?

The Group Products available at present are: 1) New Group Superannuation Cash Accumulation Plan, 2) New Group Gratuity Cash Accumulation Plan, 3) New Group Leave Encashment Plan, 4) New One Year Renewable Group Term Assurance Plan- I and Plan –II, 5) New Single Premium Group Insurance Plan, 6) Group Credit Life Insurance Plan, 7) Group Annuity Plan and 8) Group Flexi Income Plan.

HOW GROUP PRODUCTS HELP THE EMPLOYER?

Group Funded Schemes viz Superannuation, Gratuity and Leave Encashment Schemes give the advantage to the employer to meet the statutory obligation by accumulating the fund in a budgeted manner through the scientific process of Actuarial Valuation. The Employer can realise the Income Tax benefits in advance every year as the contributions are treated as business expenses to the company. The Interest earned on the Trust funds is tax-free and also helps in reducing the next year’s contributions. The risk premium paid for group insurance coverage is also a business expense, which further reduces the net premium. While the scheme is tax effective, it enhances the employee loyalty to the organisation as the terminal benefits are well organised and a welfare measure is provided in terms of insurance coverage and to take care of old age income.

WHAT IS NORTH ZONE’S CONTRIBUTION TO LIC IN GROUP BUSINESS?

North Zone’s performance in Group Business has been splendid during last many years. North Zone has been among the top three zones out of the total eight zones in Group Business performance.The zone’s contribution in Group Business has been around 20% of the total business. Last year, zone crossed landmark of Rs.10,000 crore new Group Business Premium Income first time in its history. The Zone is performing excellent in the current year also. We hope this time zone will be at No.1 position in LIC.

WHO ARE THE MEGA GROUP CLIENTS OF THE NORTH ZONE?

We categorise a size of premium, beyond which the clients are rated to be “Mega Group.” At present we are happy that all the major corporates both in Public and Private Sector are associated with LIC.

WHAT IS LIC’S MARKET SHARE IN GROUP BUSINESS?

LIC’s market share in Group Business is 80.12% in premium as on 30.09.2016.