Lic eyes on rural market in Life insurance

Each year a whopping amount of nearly 70-80 million Nepalese rupees is being paid as premium to the insurance agents across the border. But insurance companies in the urban areas here are still not aware of a latent market in the rural areas in the country. Having realized this fact, Life Insurance Company of India and Bishal Group of Nepal are joining their hands in the name of Life Insurance Corporation Nepal Ltd. The LFC’s new venture in life insurance sector has targeted to go into mainly rural areas in Nepal.

While talking to Rajkumar K.C of The Rising Nepal about his new business in Nepal, managing director of B.C Bose said that the main focus of the LIC is to generate rural market like in India.

Bose, an M.A in Economics with specialization in International Trade, L.L.B and M.B.A in Marketing Management, has wide rage of experience in insurance. Bose has served as a member to the Executive Committee of Insurance Institute of India and also as Director in the Board of J.K Industries and TEXMACO Ltd (K.K Birla Group) in India. Before joining in the recent venture in Nepal, Bose was Executive Director in the Corporate office of LIC of India in Mumbai and in- charge of Personnel and Industrial Relations. He also has a varied experience of working in Life insurance Marketing and Administration with LIC of India as well as a stint in General insurance with Oriental Insurance Company. Excerpts:

TRN- Though the number of insurance companies here is more than 16/17 today, they are not doing their business in real sense. Instead they are said to be involved in manipulation. How will you create an insurance market in such atmosphere ?

Bose – Well, I have seen plenty of scopes here. Despite having so many challenges, we will be able to create market by generating new schemes in a fair manner. As LIC is dealing only with life insurance sector, I really see a big market in this sector here.

TRN- Do you see any prospects of life insurance market in Nepal ?

Bose - To be precise there are 17 insurance companies in life and non – life sector, but out of that, there are only two which are exclusively dealing with life insurance sector. Before coming to Nepal, we conducted a study of insurance market here. In fact Nepal is compact market, but we do not call it a small. Definitely the prospect is very much there for us to emerge as a dominant insurance company if not a leader. The degree of awareness about life insurance here is very high.

Apart from that LIC deals with life insurance only. And it’s attention is not diverted between life and non –life sectors. Besides, it is a joint venture which will have only two promoters. Multiplicity of promoters is perhaps not strong point of a company. That is what we came to know from our study.

There are some similarities between Nepalese and Indian market as well. One of the promoters of LIC Nepal that is Life Insurance Company India has almost 46 years experience in this sub continent.

It has got agency of eight lakhs fifty thousand agents. Life Fund is one lakh eighty crores and number of policy holders is 12 crores.

And Bishal Group knows the Nepalese market very well. Another feature of LIC is that it is totally techno-driven. The total capital base of the company is 25 crores rupees. And that will be divided among LIC (with 55%), Bishal Group (25%) and the public (20%). Hence its solvency is very credible.

TRN- You are aware of that the Nepalese economy is going into recession and insurance companies across the border are influencing the Nepalese market. Apart from this, chances of capital flight is also high. How confident are you in generating market on your own initiatives ?

Bose – We have made market study on the basis of data. We started accepting deposits from September 17. And agencies recruitment is underway. Not now but later we will be stabilize ourselves. After that we will be getting into market segmentation. And our basic objectives in the long run is to have products specific to market segment and agent specific to market segment. Hence the agent, product and market segment will be there. That is of course not now, but after two years.

If you talk about recession the recesionary trend in Nepal is not to that extent of other countries. There is a brighter aspect in the Nepalese economic policy. There is six per cent growth in GDP, five per cent growth in inflation and 12 per cent in money supply.

On top of that LIC is mainly focused on rural business like Life Insurance Company of India that generates more than 50 per cent market from rural areas.

And rural reconstruction is a sort of priority in Nepal which it, generating deserves.

It is totally a rural reconstruction programme in Nepal. Rural areas have a great potential market.

TRN -How will you generate market in rural areas despite a high degree of poverty and illiteracy ?

Bose – Since poverty alleviation is the main objective of the government in the Ninth and Tenth Five year plan, our schemes in generating economic activities will also be helpful in this regard. Just like the rural sector in India we can generate such awareness here also.

We will definitely go to the rural areas where we will have a greater market and we will explore that potentiality. We have a good experience in the rural sector.

TRN- How do you differentiate yourself from other insurance companies here?

Bose- Ours will be totally techno-driven and we accord top priority on human resource development.

Our vision is not to become the best insurance companies, but to become a best company here by not snatching other’s share, but generating our own.

TRN- What sort of reforms do you expect in the insurance sector here?

Bose – Academics of insurance are very essential so as to develop able manpower in this sector. On top of that corporate agencies should be available for which there should be some amendment in the existing Insurance Act.

TRN- How is global insurance market after the terrorist attack in the USA in September 11 ?

Bose – It’s very pathetic but true.

TRN- Is there any possibility of minimizing the risk in insurance business ?

Bose- I strongly feel that there should be a provision of re-insurance market in South Asian countries.

TRN- Do you have any comment on the Nepalese insurance market ?

Bose – Till, now we do not have any problem. I do not know what will happen in future.

Hybrid goat farming scheme for alleviating poverty

Arghakhanchi, Oct. 8 (RSS):Gulmi-Arghakhanchi rural development project has launched hybrid goat farming programme in Argha, Bangi, Dhakabang, Dhanachour, Dharapani, Dhikura, Gokhung, Jaluke and Siddhara village development committee of Arghakhanchi district with the objective of alleviating poverty.

Under the program, hybrid goats will be provided to the landless people of the backward communities having an annual income of less than Rs 3,000 with the objective of improving their living standard.

Likewise, 25-member user’ committee have been constituted in the VDCs where the hybrid goat farming programme have been implemented. These users’ committes have also set up mobile funds in the VDCs.

Under the programme, 225 families have been provided financial assistance to purchase one hybrid she goat each and two hybrid he goats have been provided to groups for reproductive purpose.

The members taking part in the programme are required to return a full grown she goat to the users’ committee within two years and these she goats will be distributed to a new member.

Meanwhile, in Rajbiraj, local farmers of some of the VDCs in Saptari district have been attracted towards the cultivation of potatoes of improved seedlings.

It is said that the production of potatoes went up significantly compared to last year following the start of propagating T.P.S. potato seedlings by laying out a nursery here.

Local farmers tend to cultivate T.P.S. species of potatoes by propagating seeds from a kind of fruit that grows in a potato plant. Such potato seeds bear fruits within three months.

These potatoes are not only excellent in taste and the chances of contracting diseases are minimal, Bhola Chaudhari, a farmer of Jagatpur VDC says.

About five gram of T.P.S. potato seedlings is enough for a Ropani of land and the seedlings can yield up to 40 tonnes from a hectare of land, chief of the agricultural development office Abadhakishor Dev said.

Last year, potatoes were cultivated in some 3,800 hectares of land and yields touched the figure of 55,100 metric tonnes.

Potatoes of T.P.S. species have been gaining popularity among the farmers of several VDCs including Kochabari, Boriya, Kamalpur, Jagatpur, Kanchanpur, Manumannagar, Ghoghanpur, Rupnagar and Dharampur.

Festival time for Dedgaon’s people

BY OUR CORRESPONDENT

Dedgaon (Nawalparasi), Oct. 8: It was festival time for the people of Dedgaon village of the remote and hilly part of Nawalparasi district. They danced and feasted for five consecutive days. Because their village got electricity.

For 90-year-old Jit Bahadur Thada Magar, it was a very happy day of his life. He had never seen electricity in his life. "How can I see it when I have never left my village in my whole life!" Magar says.

The electrification programme has been carried out in seven different wards of the VDC with the financial and technical support from Himalayan Community Development Forum. Mahendra Mahato, chairman of the forum, says 32 KW power has been generated by constructing a dam in the local Bungdi Khola.

The consumers have to pay only Rs. 1 per unit for using the electricity. The collected amount will go to the VDC.

Although there is no road to the village, locals are now very happy as they get electricity facility through the micro-hydropower project. After getting electricity, they say if they have a road, the village will take pace towards development.

Police control units opened

BY OUR CORRESPONDENT

Gaur (Rautahat), Oct. 8: A police control unit under the district police office has been opened in Rautahat district to fight increasing criminal activities in the district.

"To ensure peace and security of the people, we have set up a police control section along with emergency service," said Birendra Babu Shrestha, Superintendent of Police (SP). Since many villages of the district border with India, incidents such as theft, robbery and other criminal activities are quite common, he said.

The police control section has been kept in a separate building in the premises of the district police office.

Shrestha informed that a total of 26 police personnel, including a police officer, have been assigned the task to work with the newly set up section. They offer round the clock service.

"The control unit is provided with communication equipment, vehicles, arms and weapons and relief materials for prompt and effective services," Mahendra Kumar Pokharel, Deputy Superintendent of Police (DSP), said.

Similarly, RSS adds from Janakpurdham, a police control room has been established to provide services to the people twenty four hours a day at District Police Office, Dhanusha.

The room will have necessary arms and weapons, vehicles as well as communication equipment.

Deputy Inspector General of Police Achyut Prasad Chalise of the Central Region while inaugurating the control room called for discipline in serving the people.

Senior Superintendent of Police of Janakpur Zone Hem Bahadur Gurung said it will help in controlling crimes.

Superintendent of Police Sushilbar Singh Thapa also expressed his views.

Two arrested on charge of carrying horns of rhino

BY OUR CORRESPONDENT

Bharatpur, Oct. 8: Police arrested two persons as they were found carrying hides and horns of a rhino in bags at Chitrasari of Ratnanagar Municipality of Chitwan district recently night, whereas one person escaped.

According to Sudip Acharya, Deputy Superintendent of Police (DSP) of Chitwan district police office, those arrested are Ram Bahadur Kumal and Tulasi Chaudhari of Padampur Village Development Committee (VDC).

The alleged have accepted that they had killed a rhino at Jarneli area of Royal Chitwan National Park (RCNP) by digging a trench some days back. Police have kept them at the armed forest guard training centre, Tikauli now.

Meanwhile, RSS adds from Mahottari, District Police Office Mahottari has arrested one among the five involved in the murder of Malechhiya Devi, 57, a resident of Ekdanda Bela VDC ward No. 1 on the charge of practising witchcraft.

The accused arrested is Dularchanda Yadav, a resident of the same ward.

Festival time for Dedgaon’s people

BY OUR CORRESPONDENT

Dedgaon (Nawalparasi), Oct. 8: It was festival time for the people of Dedgaon village of the remote and hilly part of Nawalparasi district. They danced and feasted for five consecutive days. Because their village got electricity.

For 90-year-old Jit Bahadur Thada Magar, it was a very happy day of his life. He had never seen electricity in his life. "How can I see it when I have never left my village in my whole life!" Magar says.

The electrification programme has been carried out in seven different wards of the VDC with the financial and technical support from Himalayan Community Development Forum. Mahendra Mahato, chairman of the forum, says 32 KW power has been generated by constructing a dam in the local Bungdi Khola.

The consumers have to pay only Rs. 1 per unit for using the electricity. The collected amount will go to the VDC.

Although there is no road to the village, locals are now very happy as they get electricity facility through the micro-hydropower project. After getting electricity, they say if they have a road, the village will take pace towards development.

Heavy downpour prevents paddy harvesting in Dang

BY OUR CORRESPONDENT

Dang, Oct. 8: The heavy downpour of the last few days has prevented the farmers from harvesting the paddy. They are now worried that the already ripen crop might be washed away by the flood and rain. They say that the downpour has also hampered the plantation of mustard and other crops.

Before the unwanted rains came, they were happy that they would harvest more grain this year because of enough rain at the start of the monsoon.

The district agricultural development office had estimated that the district would produce 35,000 metric ton more paddy this year. But the rainfall in the recent days has adversely affected the production of paddy.

Shankar Lal Chaudhari, chief of agricultural development office, Dang, said that the loss caused by the rainfall to the production of paddy has yet to be known.

"However, the rainfall has also adversely affected the plantation of potato and mustard," Chaudhary said.

RSS adds from Dhangadi, seed promotion project organised a three-day training on production of seeds and market management at Dadeldhura district recently.

The training programme was participated in by three women and 47 men of Dadeldhura district.

During the training, the trainees were familiarised with the seed production technology, control of various diseases, use of fetilisers, marketing of vegetables, etc.

Giving away certificate to the trainees at the conclusion of the training, marketting expert Tek Bahadur Bom said that the living condition of the farmers could be improved by producing quality seed and exporting it to the international market.

Dadeldhura district produced 4,000 kilograms of vegetable seeds last fiscal year.

The district has the target of producing 16,000 kilograms of vegetable seeds under the current fiscal year.