The public sector life insurer, which was scouting for space at malls for setting up satellite branches, was surprised to find property owners themselves eager to earn that extra income.
Many mall owners in Mumbai, Delhi and Calcutta have approached LIC wanting to become its corporate agents.
This is working out to be of great advantage for the insurer as it would not only allow it to capture the business potential at shopping malls but also save on lease rent.
"We were planning to set up satellite branches in malls across the country. That's changing as mall owners are now coming to us to become our corporate agents and sell our policies," said A K Shukla, chairman of LIC.
Shopping mall owners see good potential for selling the policies and earning a commission of 25 to 30 per cent by using a little space along the corridors.
The Insurance Regulatory and Development Authority's guidelines require an applicant for a corporate agency to be involved in some activity and insurance distribution should be a subsidiary activity.
"We were planning to lease space at shopping malls. But now we are considering roping in more mall owners to sell our products. This will save us from having to spend money on rent," Shukla said.