Country's Public sector insurer Life Insurance Corporation of India (LIC) said it plans to launch an equity linked scheme, 'Gratuity Plus' by March end and has applied to IRDA for approval of the product.

"We have submited our new product to IRDA for their permission. This would be an equity-based Gratuity scheme that is expected to hit the market by March end," LIC Pension and Group Schemes Executive Director R Venugopal said.

Gratuity Plus would have a lock-in period of three years as per the IRDA requirement on equity-linked products. The scheme would also give switchover options from existing schemes, he added.

Though he declined to quantify the likely amount to be mopped up under the scheme, he said the proposed changes in the tax regime given by the Finance Minister including the relaxations on Fringe Benefit Taxes, would help the fund.

At present, LIC Group Scheme manages the money of 40.7 lakh people, ahead of its target for the year of 30 lakh. As on February 28, 2006, the company had collected Rs 3,031 crore in premium against its target of Rs 3,600 crore.

"We are close to our target of Rs 3,600 crore and confident of getting there," Venugopal said.

(www.hindu.com)