Mumbai: The Life Insurance Corporation of India (LIC) is targeting a premium income of Rs 11,565 crore during the current financial year, from the sale of three crore and ten lakh policies, according to S.B.Mathur, chairman, LIC.

In the current fiscal, for the period up to June 15, 2004, the insurer has already raked in a first premium income of Rs 821.27 crore from the sale of 25.06 lakh policies for a sum assured of Rs 17,660.23 crore, he disclosed, speaking on the occasion of a bancassurance tie-up with Allahabad Bank here on Thursday.

LIC officials said that the insurer had recorded a growth of over 52 per cent in first premium income during this period, on a year-on-year basis, while the growth in sale of policies had been 27.64 per cent and growth in sum-assured was 31.33 per cent.

Both the insurer and the bank signed a memorandum of understanding, according to which, the latter will market LIC's insurance products through its branch network, acting as its corporate agent. Allahabad bank has a network of 1,900 branches catering to around 20 million customers.

Addressing a press conference here on Thursday, O.N. Singh, Chairman, Allahabad Bank, said, the bank expected to earn a fee-based income of Rs 20-25 crore through this arrangement, during this fiscal. "We are looking to mobilise a premium income of Rs 100 crore in this year alone," he said. To become a corporate agent for LIC, Allahabad Bank had to get out of a referral arrangement it had with ICICI Prudential Life Insurance Company.