Page 37 - Life Insurance Today FEBRUARY 2016
P. 37
Life Insurance
Corporation News
LIC's new plans, but no Bank of India allocates 2 The offer is said to have received total
new benefits crore shares to LIC bids for an estimated 10.1 crore shares,
as against a requirement for 9.26 crore
The Life Insurance Corporation of In- State-run Bank of India has alloted 2 shares for the offer to succeed. How-
dia recently launched two new non- crore shares to LIC valued at Rs 264.12 ever, over 1.98 crore shares tendered
linked, with-profit plans. One is Jeevan crore. by LIC had remained 'unconfirmed' on
Labh, which has policy terms of 16, 21 the stock exchange platform.
and 25 years and premium paying "The bank has allotted 2 crore equity
term of 10, 15 and 16 years, respec- shares to Life Insurance Corporation of The issue was subsequently looked
tively. The other is a closed-end single- India (LIC) on preferential basis at the into by all the entities concerned --
premium plan, Jeevan Shikhar. price of Rs 132.06 per share," it said Essar Oil, LIC, BSE and the custodian
in a regulatory. for LIC shares, StockHolding Corp.
In the case of Jeevan Shikhar, the mini-
mum maturity sum assured is Rs 1 Sebi clears LIC bids earlier LIC pays Rs 1,804.4 crore
lakh, while there is no limit on the stopped by Essar Oil dividend to govt
maximum. The policy term is 15 years
and the maximum entry age is 45 Essar Oil's delisting got through as Sebi A whopping 25 per cent rally in the
years. gave its go-ahead to the stock ex- equity markets boosted the net profit,
change BSE to accept nearly 2 crore or valuation surplus in the official lan-
In Jeevan Labh, the maximum age at shares tendered by the state-run LIC guage, of Life Insurance Corporation
maturity is 75 years. The minimum for the promoters' buyout offer. by 10.4 per cent in 2014-15 at Rs
basic sum assured is Rs 2 lakh and 36,087 crore.
there is no limit on the maximum. On The delisting had got mired in "techni-
maturity of the policy and the policy calities" after a large block of tendered As per the LIC Act, the corporation has
holder surviving to the end of the shares could not be 'confirmed' within to distribute 95 per cent of its profits
policy term, basic sum assured along the stipulated time, prompting BSE to with the policyholders, and accord-
with vested simple reversionary bo- refer the matter to Sebi. While the ingly the financial powerhouse paid Rs
nuses and final additional bonus, if promoters' buyback offer had got more 34,283 crore to its millions of policy-
any, shall be payable. than sufficient bids, the non-confirma- holders in the year, while the remain-
tion of the large chunk of shares - ten- ing 5 per cent worth Rs 1,804.35
"The plan (Jeevan Labh) is suited to dered by LIC - had come in the way of crore was paid to its owner.
those who want premium commit- the closure of the delisting offer.
ment for short duration having life cov- Accordingly, the Corporation chairman
erage and benefits for a longer pe- After looking into the matter in detail S K Roy handed over the valuation sur-
riod," LIC says in a release. On pay- in consultations with all the stakehold- plus worth Rs 1,804.35 crore to the
ment of higher premium, Jeevan Labh ers concerned, Sebi has now given its finance minister for the fiscal year
offers two riders which are Accidental go-ahead for the confirmation of ended March 2015.
Death and Disability Benefit Rider and those shares, top officials at the ex-
a New Term Assurance Rider. change and the company said. Till March 2014, the Corporation had
paid Rs 1,634.89 crore to the govern-
36 February 2016
Life Insurance Today
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