Guwahati, March 11: Insurance majors are upping the ante in rural Northeast, with Life Insurance Corporation of India (LICI), the largest state-owned insurance group in the country, leading the way.

In the Guwahati division — a high growth market covering a part of lower and central Assam, as well as Meghalaya — LICI has just two districts left without a branch or satellite office.

LICI (Guwahati division) senior divisional manager S. Kumar told The Telegraph, “As of today, only two districts — Baksa (BTC) and West Khasi Hills in Meghalaya — remain uncovered in the Guwahati division, which has as many as 20 branch offices. However, in about two months, a branch will be set up at Barama in Baksa. In West Khasi Hills, we are in the process of finalising a location which is approachable and accessible.”

LIC has three other divisions in the region – Bongaigaon, Jorhat and Silchar. While Bongaigaon has 12 branch offices and two satellite offices, Jorhat 18 branch offices and seven satellite offices while the Silchar division has 14 branch offices and 13 satellite offices.

Jorhat currently ranks number one in the country in terms of the number of policies sold. “As on February, 2012, our growth rate has been 20.41 per cent. We have set up premium points, satellite offices and appointed senior business associates to cater to the interior areas. However, in terms of reaching out to the remotest districts where there is a huge potential, we still have a long way to go,” said L.K.M. Syiem, divisional manager in-charge, Jorhat division, which covers parts of Arunachal Pradesh and Nagaland as well.

There is a key rural clientele under the Bongaigaon division as well. “The rural market is good and accordingly we have micro insurance schemes for those who are not financially sound. The premium under Jeevan Madhur is as low as Rs 60 per month. We are contemplating branches in East and South Garo Hills which have not been covered,” Ashim Bhuyan, divisional manager in-charge, Bongaigaon division, said.

The Centre has instructed the insurance and non-life insurance companies to set up at least one branch or satellite office by the end of this year.

“A number of districts, especially in the northeastern states do not have a single insurance company branch. For instance, of the 56 districts under review in the Northeast, 31 do not have any branch,” Union finance minister Pranab Mukherjee had stated in a meeting with the chief ministers of east zone states and members of PSUs and financial institutions in Calcutta recently.

Private sector insurance companies, too, are going rural.

Aviva Life Insurance, which has forayed into the Northeast in 2003, is eyeing the interior markets. “Although there are 10 physical units in the Northeast, of which three are in Guwahati, the thrust, of late, has been on the rural areas. We have schemes tailor-made for the low-income group. Under our Jan Suraksha scheme, a person’s life can be insured with a premium as low as Rs 200 per annum,” said Zakir Ahmed, associate vice president (Northeast), Aviva Life Insurance.

The Northeast, as a matter of fact, was among the country’s top performing zones of Aviva Life in January. “In the Northeast, Aviva had registered a growth of 39 per cent in 2010. The growth rate is even higher in the small towns. For instance, Sivasagar branch was ranked second best in the East in 2011. In March last year, the branch which covers policy holders from places such as Geleky, Nazira, Sonari among others, registered a sale of Rs 1 crore,” Ahmed said.

Aviva has covered the interior areas of the region through its business service associates (BSAs). “The BSAs play a significant role in boosting our business as they act as sales managers with a number of agents under them,” he said.

Bharti AXA General Insurance Company Ltd, which ranks among the fastest growing multi-line insurance companies in India, is also planning to reach out to the “undeserved segment”. “We are planning to penetrate deeper into rural and semi-urban markets across the northeastern states through strategic tie-ups with microfinancial institutions to reach out to the undeserved segment. Our strategy would be to focus on building the SME (small and medium enterprises) line of business,” Manish Mishra, zonal vice-president, East, Bharti AXA General Insurance, said.