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LIC's new business premium crosses Rs 1.5 lakh cr for first time in history, reports 17.48% growth till January 2020

Life Insurance Corporation of India (LIC), India’s largest life insurer, continues to better its performance, thereby winning people’s trust by crossing Rs 1.5 lakh crore new business premium first time in its history and maintaining dominant leadership in this sector.

Individual new business performance of LIC as of January 2020 has shown an impressive growth of 17.48 percent in its first-year premium and 29.42 percent in the number of policies by posting a figure of Rs 45,199 crore and 1,95,85,635 policies respectively.

The composite market share in the number of policies and first-year premium as on 31 January 2020 is 77.61 percent and 70.02 percent respectively which has increased from 73.54 percent in the number of policies and 66.26 percent in the first year premium as on 31 January 2019

 

LIC’s pension and group schemes vertical, looking after group schemes and superannuation business of LIC, created a new record by clocking more than Rs 1 lakh crore new premium income during the current financial year.

P&GS contributed Rs 1,05,566 crore as new business premium income as against Rs 66,748 crore in the previous year corresponding period. The vertical has covered 2.45 crore lives (for 2019-20) under its social security schemes as of 31 January 2020.

During the current financial year, LIC has paid 1,42,93,289 maturity claims amounting to Rs 69,748 crore as of 31 January 2020. LIC also settled 5,99,881 death claims amounting to Rs 9,866 crores out of which 96.83 percent non-early death claims were settled within 15 days of intimation.

In order to comply with new the Insurance Regulatory and Development Authority of India (IRDAI) regulations, LIC of India has modified the existing products with features such as revised surrender value and extension of revival period from 2 years to 5 years.

Further, more optional benefits in the form of riders, option to take claim payments in instalments (settlement option) are added in most of the products. These modified products are available for sale from 1 February 2020.

LIC's total income grew to Rs 2, 97,017.28 crore for the period ending 30.09.2019 from Rs 2,52,149.60 crore as of the last corresponding period, showing a handsome growth of over 17.79 percent.

Total assets of LIC stood at Rs 32,25,905.42 cr as at 30.09.2019 as compared to 29,89,276.53 cr for the corresponding period last year thus posting a growth of 7.92 percent in the six month period.

During the fiscal year 2018-19, LIC generated the highest ever total valuation surplus of Rs 53214.41 crore, registering a growth of around 9.9 percent over the previous year and paid a dividend of Rs 2610.74 crore to the government again highest in the history.

Being the largest insurer in India, LIC has always explored all the avenues that technology offers to provide the best of services to its valued customers and other stakeholders.

LIC has a strong online presence and has provided digital platform for new business and servicing operations to both internal and external customers. LIC Customer Portal has 1,33,78,231 users.

Source First Post | 08/02/2020