Calcutta, July 15: Life Insurance Corporation of India (LIC) has projected a first-year premium income (FPI) of Rs 2,180 crore for fiscal 1997-98 from individual insurance business this year. This means it has to sell 1.39 crore policies for an assured sum of Rs 65,220 crore.

Of the projected total FPI, the western zone is expected to bring in the highest at Rs 440 crore, corresponding to 25.10 lakh policies and an assured sum of Rs 14,265.15 crore.

In terms of number of policies sold, however, LIC expects the eastern zone to come out tops with 28.59 lakh policies, yielding a FPI of Rs 391 crore corresponding to a sum assured figure of Rs 12,250 crore. During fiscal 1996-97, the eastern zone sold 25.46 lakh policies, netting a FPI of Rs 330.29 crore with the target sum being Rs 10,705 crore.

According to LIC officers, the eastern zone is traditionally the most receptive in taking policies, but usually the amounts underwritten per policy are smaller compared with its western counterpart where policies are finalised for larger amounts.

Figures for the first quarter of the current year reveal that the eastern zone is ahead of the others in terms of number of policies sold, while it holds second place in terms of FPI and sum assured amounts.

LIC is trying to keep death claims payouts to 12 per cent of total business during the current year, by insuring lives of a better quality. The figure was 24 per cent in 1995-96 and was brought down to 17 per cent in the last fiscal. The international norm is under 10 per cent, and LIC expects to achieve this within the next two years.

Further, in case of maturity claims, LIC plans to cut the settlement figure to two per cent of its total business, from three per cent in the last financial year.

Sources said LIC also expects to do better in the group insurance business, which has suffered in the recent past as LIC focused on the individual segment. An all-India growth of 10 per cent is expected during the current year.

LIC also expects to mobilise around Rs 54,650 crore through `Jeevan Suraksha', one of its most popular schemes. This is almost double the Rs 27,318 crore raised from it in the previous fiscal.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.