Chennai: Life Insurance Corporation of India (LIC) will shortly bring out a health insurance plan for domestic non-life insurers.

While talking to the news persons at the launch of a new product ‘Critical Illness Rider’ for group insurance plans, LIC Chairman, T.S. Vijayan stated that the corp. would introduce the new product by the end of this existing year (2007).

Mr. Vijayan told that the India’s biggest insurance group (LIC) has also submitted the new health policy with the Insurance Regulatory and Development Authority (IRDA) for its authorization. LIC expects IRDA approval anytime now.

“We don't have any plans to have a separate health insurance subsidiary,” Mr. Vijayan added.

LIC is also on the verge of finishing its credit card business project with GE Money.

Mr. Vijayan confirmed, “We are in the process of setting up the company.”

But, Vijayan didn’t notice any value in LIC floating a bank to stay in the whole financial services range.

LIC is also getting into referral contracts with different banking institutions, under which an insurance company receives client guides from the bank.

LIC has also been signing up fresh rental contracts to boost its income stream.

LIC made a rental income of Rs 220 crore during last year (2006).

Vijayan also told that LIC would shortly finish up a new commercial property in Madurai.

“We look at government land as the deals are transparent,” he said.

LIC has purchased land for two purposes, firstly for establishing commercial buildings for renting, and secondly to construct flats to be sold to its clients.

The corporation is also involved in building up a residential complex for its policyholders in Chennai.