Page 11 - Insurance Times October 2019

LIC’s assets grow to Rs IDBI approves preferential issues to govt, LIC
31.11 lakh IDBI has recently approved the proposal for preferential issue to the govern-
ment and LIC aggregating after their infusion of Rs
The LIC said that its assets have
grown to 4,557 crore and Rs 4,743 crore, respectively, a total
over Rs capital infusion of a little over Rs 9,000 crore.
31.11 lakh At 12.45, the IDBI Bank share price was down by 2.52
crore with per cent at Rs 27.10. The board of directors, at a
as much as meeting on September 19, approved the proposal for preferential issue of
32 plans capital to the government and LIC aggregating up to Rs 4,557 crore and Rs 4,743
under individual business. According crore, respectively, subject to regulatory approvals, if any, the bank's regula-
to the report at the end of July tory filing said.
2019, the market share of the in-
surer increased to 73.1 percent at "In terms of Regulation 30 of the SEBI (LODR) Regulations, 2015, it is hereby
the end of July 2019. advised that the Board of Directors of IDBI Bank, at its meeting held on Sep-
tember 19, 2019, has approved the proposal for Preferential Issue of Capital
"Starting with an initial capital of Rs
to Government of India and Life Insurance Corporation of India aggregating up
5 crore in 1956, LIC has assets of to Rs 4,557 crore and Rs 4,743 crore respectively, subject to statutory/regula-
over Rs 31,11,847.28 crore with life tory approvals, if any, required to be obtained in this regard," it said.
fund to the tune of Rs 28,28,320.12
crore," LIC the insurer said in a Shares of IDBI Bank fell 3 per cent on opening on September 19 after the com-
statement. LIC further said that it pany approved preferential issue of capital to Life Insurance Corporation and
had started with 168 offices in 1956, the government.
and today it has over 4,851 offices.
The insurer has over one lakh em- LIC introduces ‘Tech-Term’ insurance plan
ployees, 11.79 lakh agents, 29.09 LIC has recently announced a new term insurance plan, known as LIC's 'Tech-
crore plus policies.
Term' plan. It is a non-linked, without profit,
During 2018-19, LIC registered a pure protection 'online term assurance policy'
growth of 5.68 percent in the new which provides financial protection to the
business in terms of the first year insured's family in case of his/her unfortunate
Premium. Total first year premium demise.
amounted to Rs 1,42,191.69 crore
at the end of March 31, 2019 cap- Through online application process, the new
turing 66.24 per cent of market tech-term plan will be available and will not
share. LIC's market share in terms of involve any intermediary. Tech-term insurance plan can be bought by resident
number of policies was 74.71 per- Indians and is not available to overseas citizens of India (OCI) or person of In-
cent, garnering over 21 million new dian origin (PIO). However, non-resident Indians (NRIs) can apply for the plan,
policies as on March 31, 2019. during their stay in India, subject to the condition that the applicant is resid-
ing in any one of the permissible countries.
It further said the focus of the Corpo-
ration is to enhance the e-presence The minimum policy term is 10 years while the maximum term is 40 years and
and e-delivery capabilities and to trans- the maximum age for policy coverage is 80 years. The person opting for the
form existing enterprise IT systems in policy must have earned income, sufficient to cover all existing and proposed
sync with the expectation of the users. insurance cover under all insurers. Sum assured or the minimum life cover for
LIC is also issuing ePolicy along with LIC Tech-Term is Rs 50 lakh, with no upper limit. Policyholder has the option
physical policy document, it said. to pay premium either on yearly, half-yearly or single premium basis. However,
LIC has already revamped its portal the premium rates will differ for smoker and nonsmoker category.
system with latest technological The policyholder can also add accidental benefit rider by paying an additional
platforms to enhance digital experi- premium. The LIC Tech-Term plan can be customised as per the needs of the
ence and provide online services policyholder. Death benefit can be availed as an installment of 5 years, 10 years
and has more than 1.13 crore regis- or 15 years. Installments can be paid in advance at yearly, half-yearly, quar-
tered users with an average daily terly or monthly intervals, as opted by the policyholder. Alternatively, death
login count in excess of 1 lakh users.
benefit can also be paid in lump sum to the nominee.
The Insurance Times, October 2019 11