LIC unit taps Oman with new NRI policy

MUSCAT: LIC International is targeting a premium income of at least $5 million from Oman through its term insurance product aimed at the Indian expatriate community, a top official of the firm said, adding the product would be available for two months from the date of the launch in each of the GCC nations.

New Jeevan Aastha, as the product is named, offers assured annual returns of 4.5 per cent to 5.5 per cent depending on the tenure of the policies, R. Thamodharan, chief executive officer and managing director of the 20-year old firm told reporters yesterday. “During these times of financial uncertainty, this product offers guaranteed returns on the invested capital amount as well as the returns payable on maturity or even an unfortunate death,†he said.

The minimum sum assured on the single-premium policy has been kept at $2,500 and in multiples of $1,000 thereafter subject to a maximum life insurance cover of $48,000, he said adding there could be loyalty additions. “There is no upper limit for top-up premium and the death claim will be double of the sum assured,†he said.

The official also said the policy can be surrendered after two years from the date of commencement and the policy holder can also avail of loans equivalent to 90 per cent of the surrender value. The LIC International, a unit of India’s staterun and the country’s largest insurer LIC of India, has targeted premium incomes of $10 million through the same policy in Dubai, $7 million from Bahrain, $8 million from Kuwait and about $3 million from Qatar. The funds would be invested in the international debt and equity markets with the exposure limit towards the latter being capped at 15 per cent of the total corpus, he said.

The calculations of the funds would be done in US dollar denominations while policyholders can pay in local currencies such as Oman Riyals since the latter is pegged to the greenback, he said. LIC International has sold more than 3,000 policies in Oman since 2006.