Page 10 - Insurance Times April 2022

LIC of India

News

LIC's profit increases to Rs. In the case of non-participating policy- of LIC, including a stint at ZTC Bhopal as
holders' fund, 100 % of the surplus will Vice Principal.
234 crore
go to the shareholders. "I am excited about the long-term po-
The net profit of Life Insurance Corpo-
tential of the mutual fund industry on
ration of India rose to Rs. 234.91 crore Ramakrishnan appointed the backdrop of its under-penetration.
in the third quarter of the current fi-
nancial year from Rs. 0.91 crore re- new LIC MF chief Coupled with LIC's strong brand pres-
ence across the country and rising sig-
corded in the corresponding period of LIC Mutual Fund on March 1 announced nificant retail investor interest, we will
last year. the appointment of TS Ramakrishnan continue to grow our presence in Tier
For the first nine months of the current as its managing director and chief ex- II, III cities and across the country,"
financial year, LIC has posted a net ecutive officer. Ramakrishnan said.
profit of Rs. 1,642.78 crore as against a Ramakrishnan, who succeeds Dinesh
paltry Rs. 7.08 crore net profit recorded Pangtey, has spent more than 34 years LIC facing disputed tax
during the corresponding period of at LIC, its subsidiaries and associate
2020-21. companies. He has served in various claims of Rs. 75000 crore
The sharp jump in LIC profit is largely positions including, those of regional Life Insurance Corporation (LIC) is fac-
due to the change in the surplus distri- manager pension group and Scheme in ing tax claims disputed of Rs 74,894
bution model. The LIC Act has been the South Central Zone (Hyderabad) crore under litigations, which is close
amended to bring its surplus distribu- and senior division manager in charge to the amount that the corporation is
tion model at par with private life in- at Delhi 1 & 2. widely expected to raise through an ini-
tial public offering (IPO) in the next few
surers. "Ramakrishnan comes on board at an
weeks. At the same time, the corpora-
Before the amendment, the LIC had a exciting phase of the journey of consoli- tion has initiated 227 legal proceedings
single 'Life Fund'. Now it has been seg- dating our position in the market. Our for recoveries of amounts up to Rs
regated into two. One is known as par- objective is to deepen our presence 14,455 crore, which includes default-
ticipating policyholders' fund, while the across Tier II, III cities to gain retail pen- ing companies.
other is called non-participating policy- etration," Nityanand Prabhu, Director
holders' fund. and Business Head at LICMF, said. The corporation has said in its offer docu-
ment that it is facing 63 tax proceed-
The surplus generated under the par- Before joining LIC Mutual Fund, ings where the total amount involved is
ticipating policyholders' fund will be di- Ramakrishnan was the Regional Man- Rs 74,894 crore. Of this, income tax
vided between policyholders and share- ager-Western Region at LIC Housing Fi- claims are Rs 72,762 crore, and indi-
holders in a ratio of 90:10, wherein 90% nance Ltd (LICHFL) and subsequently rect tax claims amount to Rs 2,132
will go to the policyholders and the re- transferred to General Manager crore. Bulk of the claims are differences
maining 10 % to the shareholders. LICHFL. He has worked across four zones with the income tax (I-T) department

10 The Insurance Times, April 2022