LIC's card business to begin in Sept

Life Insurance Corporation of Republic Of India (LIC) will subscribe an understanding with joint venture spouses by this month-end for launching the recognition card concern by the first hebdomad of September. The launch was earlier scheduled for March 1.

LIC would drift a joint venture company called LIC Card Services in conformity with run batted in guidelines. The cardinal depository financial institution necessitates the formation of a new registered physical thing before a raid into the recognition card business.

The payment gateway could be either Visa or Mastercard. LIC is engaged in negotiation with both, according to a senior company executive.

LIC would have the biggest interest in the JV, around 40 per cent, followed by germanium Money Republic Of India at 30-35 per cent. The insurance company had signed a memoranda of apprehension with germanium Money India, Corporation Bank, LIC Housing Finance and LIC Mutual Fund in September last twelvemonth to make a recognition card company. Some loose ends would have got to be tied up before the recognition card game are finally launched, explained LIC executives. The software systems have got to be upgraded to enable this further service.

LIC have already linked its 2048 business offices across the state through a software system system web to supply multi-city facilities to its clients and is in the procedure of checking the software platforms.

LIC is also fine-tuning the transmission channel webs and merchandiser constitutions that would back up the selling of its recognition card. LIC would offer the installation of unbarred loans against the recognition card. It would also let policy insurance premiums to be paid through its ain recognition card.

The coverage company have a database of 19 crore policy holders and takes to add around 1 crore clients in three years. It is confident of having a web of 32 crore policy holders by 2011. It have 14 hundred thousand agents and is adding 1.5 hundred thousand every year. The agents are being trained for merchandising wellness coverage programs as well as recognition cards.