Recently we posted an article on Online Insurance and India. Aegon Religare was the first company in India which started this trend with it’s online term plan and now offering an online ULIP plan.
Life Insurance Corporation (LIC) will soon sell its policy through the internet for the first time soon with the launch of a pure term plan.
“We are in the process of designing a pure term product which would be sold through both online and through agents,” LIC’s ED- marketing S Roy Chowdhury. “The rates will be lower than what is charged at the moment,” he added. – ET
LIC currently charges higher premium for its term plans than private competitors. For example, a 30-year-old non-smoker has to pay an annual premium of 7,300 for a 25-lakh policy under LIC’s term plan Amulya Jeevan, while she can buy online policies such as ICICI Prudential’s iProtect for 3,350 and various other plans like iLife by Aviva, iTerm from Aegon etc.
This step taken by LIC will surely draw a new landscape to the online Insurance industry in India.
This will surly reduce the premium amount charged by the private insurance companies.
What’s your take on this? Comment!