State-owned Life Insurance Corporation (LIC) of India will leverage to the hilt the government’s Aadhar programme, which aims to provide unique identities to the entire 120 crore-odd population, chairman DK Mehrotra said.
We are looking to ride on the Aadhar platform and will be able to provide insurance to people who already have Aadhar cards. The process has already been looped in internally. This will be a part of our Vision 2020, he said.
The move will help the insurer, India’s largest, significantly expand its policyholder base, which stands at over 20 crore now. LIC plans to increase its business in rural areas too with this project.
The customer will have the advantage and convenience of handling five products under the same ID, said Mehrotra.
This will help the insurer bring down its servicing cost, too. LICs Vision 2020 aims to provide a policy for every insurable life in the country.
That’s a potential 100 crore policies in the next eight years, including basic life insurance, health and pension covers.
We have been selling 5-6 crore policies every year through all channels. Now we need to scale it up to bring 80-90 crore people under insurance umbrella, said Mehrotra.
The insurer sees bancassurance as a channel with a lot of potential and plans to revamp its online platform, too, said Mehrotra. We will be coming up with more products online.
For the record, Nandan Nilekani-led Unique Identification Authority of India is currently reported to be issuing 1 lakh cards a day.
http://www.dnaindia.com/money/report_lic-to-insure-crores-through-aadhar_1775939
