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LIC defers launch of new schemes till July

Debjoy Sengupta

Life Insurance Corporation of India has postponed all new product launches till July this year. The reason behind the postponement remains unclear, though unconfirmed reports pointed at problems on the bourses and financial markets.

LIC had earlier planned three new products scheduled for the month of April and May. It had designed a niche product branded 'Smart Lady'. The scheme was to be targeted at working women with higher income levels, that would be linked to the capital market.

Other products lined up for the period were a "double cover plan" that was to have a high premium value and a high rate of return also linked to the equity market, and a developed version of the recently launched Bima Plus. Bima Plus provided investors the option of secured fund, balanced fund and risk fund.

Bima Plus did not meet the company's expectations in that less then a 1000 units were sold all over the country since its launch in February 12 this year, and it could not garner the amount of fund it had expected. R K Mishra, zonal manager marketing says, "the recent scam resulted in declining confidence in the stock market and therefore the sale suffered."

Although the company is yet to decide on new dates of launch, it seems that the corporation will rework its strategies in the wake of the recent scam and might bring in a few changes to the products it had initially planned to launch.

It is also likely that the present products might be replaced by other new products, the decision is however, yet to be taken, says company sources.

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