Life Insurance Corporation of India (LIC of India) is likely to submit new unit-linked insurance plans ULIPs with the IRDA in light of its two plans coming to a close.
LIC’s Wealth Plus closed on May 8, 2010 while another pension plan Market Plus I will close at the end of June 2010 month. It is likely to float new schemes to ensure that there are enough products in its stable.
The corporation has created the position of chief product development officer by splitting the position of the chief actuary who was earlier responsible for both product development as well as valuation. LIC has appointed CB Prasad, actuary, as head of product development while M Kulkarni has been appointed actuary for valuation. The creation of the new position is aimed at speeding up product development in the corporation.
Incidentally, LIC is not among the 14 life insurance companies, which have been asked to stop selling ULIPs by SEBI. Also, LIC is in a unique position that every policy sold by the corporation is guaranteed by the government under the LIC Act, 1956. Speaking to ET, LIC chairman TS Vijayan said the corporation usually files for new products at the middle of the year that gives it enough time to market the product. The corporation has seen exceptional sales in April 2010 with premium from new policies growing 97% YoY.