Page 10 - Insurance Times October 2019

LIC of India

News

IDBI plans to launch co- LIC, KVGB renew agreement to sell insurance products
branded credit card to Life Insurance Corporation(LIC) and Karnataka Vikas Grameen Bank (KVGB), a
regional rural bank headquartered in
strengthen tie with LIC Dharwad have recently renewed a MoU to
sell life insurance products through the
branches of KVGB. In a press release, KVGB
said that the bank will promote LIC’s prod-
ucts through its 636 branches.
P Gopi Krishna, Chairman of KVGB, said, “KVGB is renewing the pact with LIC
mainly to increase insurance penetration in rural areas and to provide better
deal to customers both in terms of service and premium.” He further stated
that the bank plays a crucial role in extending affordable banking facilities in
urban and rural areas through various products and services. The bank caters
With an aim of strengthening its re- to the needs of around 80 lakh customers, he added.
lationship with LIC, IDBI Bank is
Sanjay Bhargav, Regional Manager, zonal office of LIC, Bengaluru, said, “The
planning to launch a co-branded Dharwad division of LIC collected Rs 119 crore as first premium from 45,776
credit card.
policies up to August 31 of 2019-20.” While appreciating the work done by
This co-branded credit card will be KVGB, he urged it to popularise life insurance products so that more people in
marketed to customers, agents, and villages could derive the benefits of insurance coverage. IG Kumar Goud, Gen-
employees of the corporation and eral Manager of KVGB, and HK Ravikiran, Senior Divisional Manager of LIC,
its subsidiaries. signed the agreement in Dharwad.

In association with LIC Credit Cards
Services (LIC CSL), the bank is plan- LIC puts Rs 10.69 lakh in public sectors during FY15-FY19
ning to launch the co-branded credit Between the fiscal year 2014-15 and 2018-19, LIC’s total investment in the
card before the festival season of public sector enterprises was nearly equal to the
Diwali gets underway, stated Jorty total amount the company invested in state-
M Chacko, Executive Director, IDBI owned firms since its inception in 1956.
Bank.
Reserve Bank of India’s report reveals that LIC
Presently, IDBI Bank offers five has infused Rs 10.69 lakh crore in the PSUs be-
credit card variants. LIC CSL, which tween FY15 and FY19, the first term of the
has a tie-up with Axis Bank and Cor- Narendra Modi government. As of FY14, LIC's total investment in the public
poration Bank for issuance of credit sector companies stood at Rs 11.94 lakh crore, whereas, as of FY19, the in-
cards under co-branded/white label surer has a total investment of Rs 22.64 lakh crore in PSUs.
agreements, provides credit card
Among the recent investments, LIC bailed out IDBI Bank by acquiring a 51
services to LIC employees, club
percent stake from the government in August 2018. LIC has infused about Rs
member agents, and policyholders.
20,000 crore into it to revive the bank.
10 The Insurance Times, October 2019