LIC cover low among flood-hit

Thiruvananthapuram: Only around 55 people who died in the recent flood and natural calamities in the state had insurance coverage of the Life Insurance Corporation of India (LIC).

LIC chairman V.K. Sharma said here on Monday that so far 26 claims had been settled by paying a total of Rs 51.2 lakh. Claims to the tune of around Rs 1.5 crore were being processed.

“Our broader aim is to have all individuals in the country covered by life insurance. Hence, we will try to persuade more individuals to take life insurance policies,” said Mr. Sharma.

He was addressing a press conference on the sidelines of handing over '7 crore as contribution of LIC employees and agents for flood relief to Chief Minister Pinarayi Vijayan on Monday.

LIC managing director B. Venugopal said that following the floods, the LIC representatives had visited the houses of 439 people who died in the floods. Only 55 were found to have 79 policies altogether, with some having more than one policy.

Of this, about 40 policies were defunct owing to various factors like non-payment of premium. However, those were being revived. All the policies were being processed at the earliest.  The LIC had announced various steps like condoning late fee for premium of up to 60 days in view of the floods, he said.

LIC Thriuvananthapu-ram senior divisional manager Santha Varkey said that only around one crore of the total population of the state were having insurance coverage. Many took insurance policies for smaller coverage of around Rs 1 lakh.

Mr Venugopal said that the LIC will offer more support to the state government in flood relief activities. It could be either by taking up projects that the government suggest or by buying bonds.

During the last fiscal, the LIC contributed Rs 12,000 crore to various initiatives of the state government, he said. LIC southern zonal manager R. Dhamodharan was also present.