Page 11 - Insurance Times August 2020

LIC of India News

LIC settles 561 corona Citibank, CLSA, and Credit Suisse were However, in the first quarter (Q1) of
among the foreign investment banks 2020-21 (FY21), LIC's NBP contracted
claims worth Rs. 27 cr that applied for the role. Over half a 18.45 per cent to Rs 36,530 crore,
Life Insurance Corporation of India said dozen domestic firms, including Axis against Rs 44,794 crore in the corre-
that it has settled 561 Covid-19 death Capital, SBI Cards, and Edelweiss, are sponding quarter a year ago.
claims amounting to nearly Rs 27 also in the fray. Deloitte India Touche In the pension and superannuation
crore. The insurer has also relaxed its Tohmatsu was the only non investment business, it earned NBP to the tune of
norms amid the lockdown to process bank to apply.
Rs 1.29 trillion in FY20, compared to
maturity claims based on email submis- LIC'S IPO will be by far the biggest in Rs.90,848.86 crore a year ago. Total
sions of survival-benefit requirements the domestic capital markets. Industry income of the insurer grew 9.83 per
and is settling such claims without the players say many firms want to play cent to Rs 6.15 trillion in FY20, from Rs
policy document if certain conditions
the TA'S role. "LIC'S IPO will be a 'tro- 5.60 trillion. Total assets grew to Rs
are met. phy deal' in the truest of sense. Any 31.96 trillion, from Rs 31.11 trillion -
"Death claims arising due to Covid-19 firm that is associated with the IPO will up 2.71 per cent.
are treated on a par with other causes get bragging rights," said an invest- Policy payouts by the Corporation grew
of death and payments are being ment banker. 1.31 per cent to Rs 2.54 trillion in FY20,
made on an urgent basis. LIC has also Experts said the selection of the TA compared to Rs 2.50 trillion in FY19. It
relaxed the procedure and is accept- meant that the Centre was serious said digital transactions for its policies
ing requirements of death claim about launching the IPO before the grew 36 per cent. To attract
through email from their club agents end of this financial year. Given the millennials, the Corporation last year
and development officers," the corpo- complexities involved, many had ex- improved its customer service experi-
ration said. pressed doubts whether the Centre ence and upgraded its online services.
would be able to launch the IPO before Of the 21.8-million new policies it sold
Government sets the ball March 31. in FY20, nearly 50 per cent were to
millennial customers.
rolling for LIC IPO
LIC's total premium grew As far as death claims due to Covid-19
The government has kicked off the
process to launch the initial public of- 12% in FY 20 are concerned, the Corporation settled
561 claims amounting to Rs 26.74
fer (IPO) of LIC. The Department of LIC has clocked 12.42 per cent growth crore. "Death claims arising due to
Investment and Public Asset Manage- in 2019-20 (FY20) in total premium in- Covid-19 are treated on a par with
ment (Dipam), the nodal agency for come at Rs 3.79 trillion, compared to other causes of death, and payments
conducting divestments, screened 11 Rs.3.37 trillion in 2018-19 (FY19). The are being made on urgent basis," it
companies to play the pre-IPO trans- insurer's new business premium (NBP) said.
action advisor's (TA'S) role for the pro- was up 25.17 per cent in FY20 to Rs
posed IPO. 1.77 trillion. While Q1FY21 was rough for life insur-

The Insurance Times, August 2020 11