Page 16 - Insurance Times July 2023

The national insurer said it will that only 0.04% of policies sold in FY23
New Term plan for Type
expedite claim settlements to provide had premiums exceeding 5 lakh.
2 diabetics, pre-diabetics financial relief to the victims of the
The finance minister announced in the
Bajaj Allianz Life, has launched an train accident.
February budget the scrapping of the
exclusive term insurance plan for
To mitigate the hardships of the tax exemption on maturity proceeds of
Type 2 diabetic and pre-diabetic
claimants of LIC policies and also of non-unit linked insurance plan (ULIP)
individuals. The Bajaj Allianz Life
Pradhan Mantri Jeevan Jyoti Bima policies purchased after April 1 with
Diabetic Term Plan Sub 8 HbA1c is
Yojana, LIC has announced various annual premiums above 5 lakh. That
first of its kind protection plan in the
concessions for claim settlements. had led to a rise in pre-booking of high-
Indian life insurance industry. ticket, non-linked policies in March.
"In lieu of registered death
According to the insurer, India is
certificates, list of casualties published LIC said the number of policies above
referred to as 'diabetes capital of
by Railway Authorities, Police or any the threshold is 0.04% of the total
the world' with the diabetic
State or Central Government policies and 3.5% in terms of value.
population in the country expected
Authorities will be accepted as proof of
to hit an alarming mark of 69.9
death," the life insurer said in a Pvt life insurers grow 10%
million by 2025 and 80 million by
release.
2030. in May, LIC shrinks 6%
It added, a significant number of LIC's Adani portfolio value Private life insurance companies
India's population who are recorded a 10% annual premium
up 54% from Hindenburg
diagnosed with diabetes are equivalent (APE) growth in May,
The value of Life Insurance
currently under-insured. With following a stagnant April, even as Life
Corporation's investment in the Adani
diabetes being termed as a chronic Insurance Corporation (LIC) recorded a
group companies went up to Rs
disease, those diagnosed with it find 6% decline. In absolute terms, SBI Life
44,664 crore, marking a 54 per cent
it challenging to get comprehensive and HDFC Life recorded the largest
rise from the recent lows of Rs 28,988
life cover to financially secure their growth.
crore.
family's needs.
One of the reasons for the slowdown
According to data sourced from stock
Thereby, the Bajaj Allianz Life's last month has been the high base
exchanges, a sharp turnaround has
Diabetic Term Plan Sub 8 HbA1c effect, with insurance companies
been witnessed in the stocks of flagship
offers life insurance coverage by recording 101% growth in May 2022 as
Adani Enterprises (AEL) and Adani
factoring in the nuances of the the economy opened up after the
Ports and SEZ (APSEZ). The value of the
health condition of those having Covid pandemic. Among individual
investment by LIC, which holds 4.3 per
diabetes. insurers, ICICI Prudential Life, HDFC
cent of Adani Enterprises, has Life and SBI Life showed similar growth
For pre-diabetic or Type 2 diabetic
increased to Rs 12,000 crore. rates of 8-10%, while Max Life's
individuals whose HbA1c is up to
Following the controversy triggered by growth remained weak.
8%, the comprehensive plan will
the Hindenburg Research report, AEL
enable them to provide financial "Private life insurers delivered 10%
shares hit their lowest on February 27
security for their loved ones. APE growth in May 2023. Overall APE
and have since made a sharp
growth was 3%, with a 6% decline at
Tarun Chugh, MD & CEO, Bajaj comeback, especially after GQG
LIC. The strongmomentum in March
Allianz Life, said, "As Life Goals Partners bet $2 billion on Adani group
led to lower business momentum in
enablers we continue to innovate stocks on March 2.
April (0. 5%). The business momentum
and challenge ourselves so that
seems to have picked up gradually
more individuals can secure their life Life insurers see little
since," said Kotak Institutional Equities
goals. With this first-of-its-kind term
impact from tax sop in a research report. On a four-year
plan designed for diabetics, I'm
CAGR basis, private sector APE growth
happy that we will be able to help removal
in May 2023 remained moderate at
several Indians secure their family's
LIC and other life insurers expect the
12%, similar to April 2023.
long-term financial plans by giving
impact of recent tax changes on high-
them the well-deserved peace of Individual new business sum assured
value, non-participating policies to be
mind." for private players witnessed a growth
minimal. LIC said on an investor call
The Insurance Times July 2023 15