Page 10 - Insurance Times March 2016 Sample

LIC of India
Net profit of LIC rose
10.4% amounting to Rs
36,087 crore
A whopping 25% rally in the equity
markets boosted
the net profit of
Life Insurance Cor- for the whole policy term.
poration (LIC) by
10.4% in fiscal
2015 at Rs 36,087
crore. As per the LIC Act, the corpo-
ration has to distribute 95% of its
profits with the policy holders, and
accordingly the financial powerhouse
paid Rs 34,283 crore to its millions
of policy holders in the year, while
the remaining 5% worth Rs 1,804.35
crore was paid to its owner, the gov-
ernment.
LIC wants separate tax
exemption limit
The Life Insurance Council, an asso-
ciation of
life insurers,
has asked
the Finance
Ministry to
carve out
separate tax exemption limits for life
insurance and pension policies. It
wants a separate tax exemption
limit of Rs. 1.5 lakh for premiums to
help attract more flows into life in-
surance policies.
10 The Insurance Times, March 2016

'Jeevan Labh'- Risk covered for whole term
LIC will soon offer to the public a lim- The maximum age at maturity is 75
ited-premium, non-linked and with- years, said Shaji M Shankar, Senior Di-
profit endowment assurance
plan 'Jeevan Labh'. The high- visional Manager, LIC,
light of the plan is that pre- Thiruvananthapuram Divi-
mium is payable for a limited sion. The plan is suitable for
period while risk is covered those who want premium
commitment for a short du-
The plan is available from ages 8 to 59 ration while life coverage and
years with a choice of policy term of benefits are assured for a longer pe-
16, 21 and 25 years and premium-pay- riod.
ing terms of 10,15 and 16 years re-
spectively. Minimum basic sum assured is Rs. 2
lakh with maximum basic sum assured
having no limit, Shankar added.
LIC devotes Rs. 53,000 cr in domestic equities
LIC has invested Rs 53,000 crore in Foreign Institutional Investors (FIIs)
domestic equity markets so far in 2015- have pulled out their investments from
16. In the last financial year, the pub- India and other emerging markets.
lic sector insurance giant
pumped in Rs 39,000 crore That has brought down
in stocks, chairman SK Roy valuations of several
said. stocks, particularly in the
large-cap space.
"Much of the year, capital Many analysts say that
markets have been down. this is a good time to buy
This has given us an opportu- equity as the pullout by
nity to be net buyers… We FIIs is only due to the glo-
have been focusing on buying bal uncertainties and
available stocks, and have crossed Rs slump in crude oil, while India's funda-
53,000 crore as far as our equity pur- mentals remain strong. LIC has been
chases are concerned," Roy said. "fairly active" in IT, pharmaceuticals
and FMCG space, in the last two
LIC's income on investments so far in months, Roy added. It has also been
2015-16 is Rs 10,000 crore. Since the picking up bonds of public sector banks,
end of March 2015, the benchmark despite their rising non-performing as-
BSE Sensex has declined 11.20%, as sets, or bad loans.