Page 12 - Insurance Times November 2020

LIC of India

News

LIC Housing aims for "PMAY CLSS (Pradhan Mantri Awas options: Deferred annuity for single
Yojana Credit Linked Subsidy Scheme) life, and deferred annuity for joint life.
double-digit growth in
is a major driver of home loans today Under the deferred annuity for single
FY21 in the sector. For LICHFL, around 47 life plan, the annuity payments shall be

LIC Housing Finance hopes to record per cent of our business by value is made in arrears for as long as the an-
double-digit growth this fiscal, sup- from the Top 7 metros, while the rest nuitant is alive after the deferment
ported by the return of home loan is from other centres. PMAY consti- period and according to the chosen
growth to pre-Covid-19 levels, govern- tutes nearly 30 per cent of our busi- mode.
ment push, revival in affordable hous- ness," said Mohanty.
In case of unfortunate death, during or
ing segment, and its new products and Meanwhile, its product Griha after the deferment period, death
support measures. Varishtha, which caters to individuals
benefit will be payable to nominee of
"As of now, sentiments are improving covered under defined pension ben- the annuitant.
day by day. We expect a positive rub- efits, appears to be receiving good re-
off in the realty space, with the overall sponse. Close to Rs. 1,000 crore has LIC IPO may spill over to
economy opening in phases. A big chunk already been sanctioned under the
of an upwardly mobile middle-class seg- scheme since its introduction in July. next fiscal
ment, urbanisation rates, and the The mega initial public offering of Life
emerging concept of work from home LIC launches its new de- Insurance Corp (LIC) may spill over to
will be able to sustain the demand. At ferred annuity plan the next fiscal as the government will
the current rate, we can look forward first look at the independent actuarial
to a double-digit growth towards the 'Jeevan Shanti' valuation of the country's largest in-
end of the current financial year," LIC has introduced new Jeevan Shanti surer, a top official has said.
Siddhartha Mohanty, MD and CEO of LIC plan. It is a new deferred annuity plan, Department of Investment and Public
Housing Finance, told. He is of the view which is a non-linked, non-participat- Asset Management (DIPAM) Secretary
that people with stable earnings have ing, individual single premium plan. Tuhin Kanta Pandey said the pre-IPO
not been impacted greatly, and are look- The annuity rates for the New Jeevan work of LIC is going on at four stages -
ing to cash in on this opportunity - it is
Shanti plan are guaranteed at the in- - appointment of advisors for ensuring
a buyers' market. ception of the policy, and annuities are compliance, legislative amendment,
Affordable housing has seen the fast- payable after the deferment period LIC''s internal software changes to
est recovery post pandemic due to the throughout the life of the annuitant, come out with its ''embedded value''
inherent demand and sops given by the LIC said in a statement. and appointing an actuary for vetting
government under PMAY CLSS in the The plan, which can be bought offline LIC's actuarial valuation.
form of subsidy. and online, comes with two annuity The government plans to amend the

12 The Insurance Times, November 2020