The Hindu Business Line : LIC to develop hotel in Chennai

Chennai, Sept. 3 Life Insurance Corporation south zone expects to develop a hotel on the 2.8 acres of property it has in Pallavaram, in Chennai. This would be the first property to be developed as a hotel. LIC has so far developed property for other commercial purposes. South zone comprises Tamil Nadu, Kerala and Puducherry.

Sources close to the development said the company is in talks with hotels chains. The property would be developed by LIC and given on long lease to the hotel chain. LIC had bought this property from Hindustan Unilever for Rs 63 crore two years ago. It had also bought about seven acres of property valued at Rs 110 crore from Amrutanjan last year. The south zone earns about Rs 6 crore as rentals a year from various properties it has across the two States and Union Territory.

Micro insurance

LIC south zone has so far settled 500 claims worth about Rs 75 lakh on its first micro insurance policy called Jeevan Madhur, launched two years ago. It has so far covered about 6 lakh people.

Asked about the experience of micro insurance, Mr V.K. Sharma, Zonal Manager, said the policy was targeted at the low income group and was launched on no-profit basis.

The more number of people insured the better as the fixed cost is lower, he said. Under this policy, the minimum sum insured is Rs 5,000 and the maximum Rs 30,000. As the policyholders are mainly daily wage earners, the flexibility of premium payment is given on weekly basis.

LIC on Thursday launched a term assurance micro insurance plan. The minimum and maximum sum insured would be Rs 10,000 and Rs 50,000 respectively.

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