LIC forays into credit cards business

MUMBAI: State-owned Life Insurance Corporation of India on Monday forayed into the credit cards business with the launch of its white-labelled cards and said it would first target its existing policy-holders.

The insurance giant, that launched its white-labelled credit cards, has tied-up with Karnataka-based Corporation Bank which would be the card-issuer.

"We have launched our credit card today. The card would be like other credit cards but we will also offer value-added services like payment of premiums for our policy-holders," LIC Managing Director D K Mehrotra told PTI.

"Initially, we will be offering cards to our policy- holders which will enable them to pay their premiums using the card," Mehrotra said.

Policy-holders can pay their premiums from outstation also through the card which would reduce their bank charges, he said.

LIC has formed a separate company - LIC Credit Cards Services - to manage its new business.

The company would be headed by its Director and Chief Executive Hemant Bhargav.