Page 10 - Insurance Times January 2018 Sample

LIC premium income increases 12% at Rs 1.48 trillion LIC to to stop sale of
Total premium income at Life Insurance Corporation rose around 12% in the six Jeevan Akshay
months ended September to Rs.1.48 trillion. Total
net income during the period rose 12.6% to Rs2.50 Life Insurance Corporation of India
trillion. LIC, India's largest institutional investor, will stop
booked Rs.12,374 crore profit from the sale of selling
equities during the period, up 16.3% from a year the popu-
before, as the market scaled record highs. lar annu-
ity prod-
LIC told to pay premium with interest after policy u c t
Jeevan
holder declared dead by court Akshay from next month, as falling
Taking serious note of a complaint wherein the complainant had asked the Life interest rates has made it impossible
Insurance Corporation (LIC) to release the claim amount to sustain returns at the current
against a policy but her application was rejected, the Con- level. It may, however, reintroduce
sumer Forum has now directed LIC to pay the premium the plan by offering a lower rate, a
along with 9 per cent interest from the date the letter senior executive said.
was rejected by the corporation. Jeevan Akshay had been best selling
Promila Kumari, in her complaint to the Forum had stated plan of LIC, generating close to a
that her husband, Narinder Kumar, had taken a life insur- fourth of its new business income.
ance policy of Rs 1 lakh from LIC for 20 years on March The single-premium plan contrib-
28,1999. The premium of Rs 584 per month, payable by uted Rs 10,000 crore to LIC's
the 28th of every month was deducted from the policy holder's salary. The last revenue so far this financial year and
premium was paid on April 2001 and the policy was to get matured on March Rs 22,000 crore for the past two
31, 2019. years.
Meanwhile, Kumar went missing on March 19,2001 and a FIR was lodged by The scheme that offers a regular in-
Promila on March 22, 2001. Kumar was later declared dead by the court on come is currently paying a yield of 7.5
November 5, 2011. The complainant then served a legal notice on February 25, per cent. LIC has seen massive in-
2016, to release the amount against the policy, but LIC rejected it on the ground flows into this product, which offers
that the policy was lying in a lapsed condition nothing is payable. She then moved returns that are half a percentage
the Consumer Forum and filed a formal complaint. points more than the 10-year gov-
ernment securities.
In reply, LIC stated that the premium was deducted from the salary of the policy
holder upto April 2001 and the policy remained in a lapsed condition for non- "We have decided to discontinue
payment of the premium at the time of death, i.e till January 2014 and, there- with the high interest rate of 7.5 per
fore, nothing is payable as per the terms and conditions of the Insurance Policy. cent from December 1," said the
The Forum then directed LIC to pay the premium of the policy along with 9 per senior LIC executive. The executive
cent interest from the date of the rejection letter, ie. November 23, 2011 till said it would file for a revised plan
its realisation. having a lower interest rate of 6-6.5
per cent with the Insurance Regula-
LIC launches Jeevan Shiromani plan for HNIs tor and Development Authority of
India.
Life Insurance Corporation (LIC) launched 'LIC's Jeevan Shiromani', a non-linked,
with profit, limited premium payment money back life Single-premium guaranteed prod-
insurance plan especially designed for the high net-worth ucts help insurers boost revenue. But
individuals segment. According to LIC statement, mini- with the yield on the 10-year govern-
mum basic sum assured under the plan is Rs 1 crore with ment bond at around 7.05 per cent,
no upper limit. The plan is available for ages from 18 to offering a high return has become
55 years. It provides for financial support for the family not only in case of death difficult since the insurer also incurs
of life assured during the policy term but also provides for payment of a lump costs such as on policy administra-
sum amount on diagnosis of any of the specified critical illnesses. tion and acquisition.

10 The Insurance Times, January 2018

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