Page 14 - The Insurance Times October 2025

dividend to Centre for shareholder and highlights LIC's The industry anticipates stronger
contribution to the public exchequer as momentum following the GST Council's
FY25 a state-owned enterprise. recent decision to waive taxes on
The Life Insurance Corporation of India individual life and health policy
(LIC) has paid a dividend of Rs. Life insurers post 6% rise premiums.
7,324.34 crore to the Government of This tax relief is expected to make
India for the financial year 2024-25. in new business premiums insurance more affordable and
The payment was approved at the in August stimulate further growth in the life
insurer's Annual General Meeting held insurance segment during the
on August 26, 2025. Life insurers in India recorded a 6.01% remainder of FY25 and beyond.
increase in new business premiums
LIC CEO and MD R. Doraiswamy (NBP) in August 2025, according to the
presented the dividend cheque to Life Insurance Council. NBP reached LIC unfazed by market
Finance Minister Nirmala Sitharaman, Rs. 1,63,461.52 crore, up from Rs. share dip, aims to boost
in the presence of Department of
1,54,193.76 crore in August 2024.
Financial Services Secretary M. Non-Par portfolio
Nagaraju and Joint Secretary Parshant Individual single premiums rose by LIC is not overly concerned about its
Kumar Goyal. 9.71%, while individual non-single recent dip in market share, stating that
premiums grew by 4.51%. Combined, increased competition is a natural
LIC stated that its total asset base
individual premiums saw 6.20% progression in a liberalised market.
stood at Rs. 56.23 lakh crore as of
March 31, 2025, reaffirming its growth on a year-to-date basis. LIC's Q1FY26 market share stood at
leadership in the Indian life insurance The increase was supported by rising 63.51% in premium (down from
market. sales among first-time buyers, aided by 64.02%) and 63.07% in policy count
(down from 66.54%).
The dividend reflects the insurer's insurer focus on distribution and agent
strong financial performance, even as recruitment. CEO R. Doraiswamy said market share
it navigates increased competition and More than 4.37 lakh agents were reduction is expected with 25-26
regulatory transformation in the added, though overall agent strength players in the sector. Instead, LIC is
sector. grew modestly due to attrition. focusing on sustainable, profitable
growth, especially in non-participating
This payout also reinforces the Digitisation also continues to enhance
(Non-Par) products, which offer
government's role as the principal penetration and policy issuance. guaranteed returns and are gaining
popularity among younger customers.
LIC launches 2-month revival campaign with late fee The Non-Par segment's share in LIC's
concessions individual Annual Premium Equivalent
(APE) has risen to 30% by June 2025,
LIC has initiated a special campaign to revive lapsed insurance policies, from 24% a year earlier. The company
running from August 18 to October 17, 2025. Under this initiative,
now aims for 40% in the coming years.
policyholders can revive eligible non-linked insurance plans with up to 30%
waiver on late fees, capped at Rs. 5,000. LIC's strategy includes offering
products across both Par and Non-Par
The concession is tiered: Rs. 3,000 for premiums up to Rs. 1 lakh, Rs. 4,000 categories to meet evolving consumer
for Rs. 1-3 lakh, and Rs. 5,000 for over Rs. 3 lakh. Micro-insurance policies preferences while maintaining steady
enjoy a full 100% late fee waiver. financial growth.
Policies must be revived within five years of the first unpaid premium and Doraiswamy reaffirmed LIC's ambition
must comply with policy terms. Lapsed policies that were within their to contribute positively to the
premium-paying term but did not complete the full term are eligible. industry's overall expansion.
However, there are no relaxations for medical or health-related
requirements. Insurers applaud GST
LIC said the campaign aims to support customers who missed payments due exemption move on life
to adverse circumstances and to ensure policies stay active for full benefit. and health insurance
Revival is encouraged to restore insurance coverage and financial protection.
India's insurance sector has welcomed

14 October 2025 The Insurance Times