Page 9 - Insurance Times August 2019

LIC of India

News

LIC records 6% growth in LIC secures 2nd place among top 10 Indian corporate
premium; policy payout brands
up by 27% An independent brand valuation consultancy, Brand Finance, took 5,000 com-
panies from India and ranked them in accordance to
LIC had recorded a 6.08% growth in their brand value. And to no one's surprise, the LIC
its total premium income at Rs. has secured its place in the second position after Tata
3,37,185.40 crore in 2018-19 against Group as the most valued brand in India at $7.3 bil-
Rs. 3,17,850.99 crore in 2017-18. lion. The company increased its value by 22.8% to
The financial result for 2018-19 of
the company’s suggests that its first jump from fourth position last year.
year premium increased by 5.68% to The largest insurance company in India, LIC has been operational for over six
Rs. 14,21,91.69 crore. decades. It’s not only limited to the Indian market, but has global partnerships
operation in Fiji, London, Sri Lanka, Nepal, Bahrain and Saudi Arabia.
LIC said its new business premium
income from pension and group su-
perannuation increased by 10.11% in SC refuses to hear PIL against LIC's Jeevan Saral policy
2018-19 to Rs. 91,179.52 crore from The Supreme Court has recently declined to hear an organisation's plea which
Rs. 82,807.83 crore in 2017-18. The alleged that the LIC cheated lakhs of its consumers through its 'Jeevan Saral'
gross total income of the company insurance policy. A division bench of Chief Justice Ranjan Gogoi and Justice
increased by 7.10% to Rs. 5,60,784.39 Deepak Gupta took note of the submission of Solicitor General Tushar Mehta,
crore (Rs. 5,23,611.11 crore). Total appearing for the LIC, that a PIL under Article 32 of the Constitution should not
assets of the insurer increased 9.38% be entertained as the aggrieved insurance purchaser can approach the con-
to Rs. 31,11,847.28 crore (Rs. sumer courts for redressal of grievances.
28,45,041.82 crore).
Tushar Mehta said that before coming out with a policy, the LIC takes the ap-
LIC commands the majority of the proval of the IRDAI. In addition to that, there was a mechanism to deal with
market share at about 60 per cent, the grievances. "We are not inclined to hear the public interest litigation (PIL),"
the growth in 2018-19 seems muted the bench said. Senior advocate Arvind Datar who appeared for organization,
compared to the industry growth of namely, 'Money Life Foundation', stated that the 'Jeevan Saral' has cheated
at least 10%. It stated that the total many customers, mainly, the retired persons of their hard-earned money.
policy payouts in 2018-19 grew by
26.66% to Rs. 2,50,936.23 crore According to the plea, the proposal form of the scheme did not have any pro-
against Rs. 1,98,119.83 crore a year vision to mention the lower maturity sum assured. Instead, it had a provision
ago. The company’s digital collection only for the higher death benefit. The plea alleged that even the policy docu-
through customer portal, Paytm, ments did not have the maturity benefit printed and the customers may get
authorised agents, designated banks lesser money than the total premium paid.
and collection agencies increased by The organization has stated that the policyholders were not in a position in order
38% in 2018-19 and premium collec- to increase dispute individually and therefore, they came together to form a
tion through UPI-BHIM has a growth Non-Governmental Organisation (NGO) to pursue the case. The plea had sought
of 106%. the return of the premium of the policy-holders with 8% interest.

The Insurance Times, August 2019 9