Last year, the corporation closed its books with an overall growth rate of 8.57 per cent on incomes and policies combined compared with 11.3 per cent in 1996-1997. The slowdown cannot be explained away by the recession in the economy, said LIC chairman G Krishnamurthy, while briefing mediapersons after the inauguration of the metro area networking of LIC branches in Chennai on Thursday.

``Our people have become more active,'' he said, indicating that service and marketing efficiencies were being toned up in an attempt to rise up to the challenges of privatisation.

On the service front, after Chennai, cities like Bangalore, Delhi and other large cities would be the next to have a computerised network with an interactive voice response system. Customers will beserviced through Internet.

The corporation will impart training to insurance agents as well as the management cadre. LIC -- which plans to introduce two new products every year -- also aims to reduce premium in the ``without profit policies and policies meant for people leading substandard lives.'' It would also be looking at awarding higher bonuses and benefiting older policy holders through such changes.

The pension strategy has been restructured with all individual pension schemes and those meant for corporate groups all coming under one head, pension and group services. Earlier, pension schemes for individuals were handled by other departments.

LIC's total investment in equity is Rs 5,800 crore in book value, but around Rs 13,000 crore in market value. Its equity exposure is restricted to 5 per cent of investments. While LIC had investments in equity to the extent of Rs 1,100 crore last year, this year it hopes to touch Rs 2,000 crore, particularly if the PSU disinvestment momentum picks up, hesaid. The total accumulated overall investment has been Rs 98,000 crore so far, with last year's figure alone touching Rs 20,000 crore.