Life Insurance Corporation of India (LIC) will be rolling out the credit card business by the first week of September. LIC will ink an agreement with joint venture partners for the purpose. The insurance behemoth will set up a joint venture firm called LIC Card Services in accordance with RBI guidelines. The central bank requires the formation of a new registered entity before a foray into the credit card business.
The payment gateway could be either Visa or Mastercard. LIC is engaged in talks with both, according to a senior company executive. LIC would own the largest stake in the JV, around 40 per cent, followed by GE Money India at 30-35 per cent. The insurer had signed a memorandum of understanding with GE Money India, Corporation Bank, LIC Housing Finance and LIC Mutual Fund in September last year to create a credit card company. Some loose ends would have to be tied up before the credit cards are finally launched. LIC has already linked its 2048 offices across the country through a software network to provide multi-city facilities to its customers and is in the process of checking the software platforms. LIC is also fine-tuning the channel networks and merchant establishments that would support the marketing of its credit card. LIC would offer the facility of unsecured loans against the credit card. It would also allow policy premiums to be paid through its own credit card. LIC a database of 19 crore policy holders and aims to add around 1 crore customers in three years. It is confident of having a network of 32 crore policy holders by 2011. It has 14 lakh agents and is adding 1.5 lakh every year.
The payment gateway could be either Visa or Mastercard. LIC is engaged in talks with both, according to a senior company executive. LIC would own the largest stake in the JV, around 40 per cent, followed by GE Money India at 30-35 per cent. The insurer had signed a memorandum of understanding with GE Money India, Corporation Bank, LIC Housing Finance and LIC Mutual Fund in September last year to create a credit card company. Some loose ends would have to be tied up before the credit cards are finally launched. LIC has already linked its 2048 offices across the country through a software network to provide multi-city facilities to its customers and is in the process of checking the software platforms. LIC is also fine-tuning the channel networks and merchant establishments that would support the marketing of its credit card. LIC would offer the facility of unsecured loans against the credit card. It would also allow policy premiums to be paid through its own credit card. LIC a database of 19 crore policy holders and aims to add around 1 crore customers in three years. It is confident of having a network of 32 crore policy holders by 2011. It has 14 lakh agents and is adding 1.5 lakh every year.
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