Page 12 - The Insurance Times May 2021

Government has recently notified the claims were made on LIC in April- LIC's pension and group schemes
revised pay packets for LIC employees. December 2020, up 17.11% from the vertical also created a new record by
The wage revision is effective from 6,97,314 claims in the corresponding recording its highest ever new business
1.8.2017. period of 2019. It was not specified premium of Rs. 1.28 lakh crore over a
Shreekant Mishra, General Secretary, how many of these death claims base of Rs. 1.27 lakh crore in FY20.
All India Insurance Employees related to COVID-19. Despite COVID-19, the corporation
Association, remarked, "The employees In the 9 months of 2020-21, LIC settled added 3.5 lakh agents taking its sales
are happy with the wage revision that 8,08,575 death claims and paid Rs. force to 13.5 lakh.
has come at a difficult situation. The 16,945.96 crore. The data indicate
pay hike for the employees is expected that the number of death claims made LIC collects highest-ever
to be over 25% per month."
rose sharply in the October-December premium of Rs. 1.84 trillion
He also said that a loading of 15% has period. Between April and June,
been given after 100% neutralization 1,68,301 death claims were made and in FY21
of dearness allowance at 6,352 points they increased to 4,50,849 in the 6 Life Insurance Corporation of India has
of consumer price index. An additional months between April and September recently said that it has collected
Special Allowance ranging between Rs. 2020. highest-ever first year premium of Rs.
1,500 to Rs. 13,500 per month has 1.84 trillion for fiscal year ending
been introduced for all cadres, which The data must be seen in the context March, 2021. The corporation
of the fact that though India was
shall be reckoned for the purpose of continued its performance in new
calculation of dearness allowance but among countries earliest to report business, despite a highly challenging
will not count for any other purpose COVID-19, its death rate due to the business environment due to the
i.e. house rent allowance, city infection has not been very high. COVID-19 pandemic for the entire
compensatory allowance, privilege previous year and paid Rs. 1.34 trillion
leave encashment, gratuity, LIC's March, 2021 policy as claims to policyholders.
superannuation benefit and others.
sales grow 299% According to the data of Life Insurance
Mishra stated that the overall increase Council, first-year premium for March,
LIC has recently stated that its policy
in LIC's total wage bill will be about Rs. 2021 rose 64.7% to Rs. 28,105.92
2,700 crore per year. He also said it will sales in March, 2021 were 299% higher crore compared to Rs. 17,066.57 crore
be five-day week for LIC employees. than the previous year. It had sold 2.1 in March, 2020. Its premium for the
crore policies in FY21 of which 47 lakhs
He further added, "In the first round, were sold in March, 2021 alone. full year 2020-21 increased by 3.5% to
the management offered 10% wage Rs. 1.84 trillion.
hike and it was revised upwards in the The business of LIC was hit severely in LIC, in a release, stated, "LIC also
second round to 15%. We said the offer March, 2020 due to the lockdown in procured an impressive 2.10 crore
does not meet our expectations." the second half. Although in the first policies, out of which 46.72 lakhs were
According to him, the 15% wage hike half, LIC had been struggling to grow procured in the month of March alone,
offer was made on September 30, because of the lockdown, the surge in with a growth of 298.82% over last
2020 and the first offer of 10% hike was business in March has helped the year for the corresponding month."
made in March, 2019. corporation record its highest ever
During the FY 2020-21, LIC settled 9.59
first-year premium income of Rs.
lakh death claims amounting to Rs.
LIC's death claims sprang 56,406 crores under individual 18,137.34 crores. Annuity payments
assurance plans in FY21. This is a 10.1%
to 17.11% in first 9 months due in March 2021 have also been
growth over the previous year. settled on due dates.
of FY21 The market share cornered by LIC is at "On the claims front, in spite of severe
Death claims made on LIC crossed the 81% in terms of number of policies for constraints due to COVID-19
8-lakh mark between April and March, 2021 and 75% for the entire pandemic, LIC settled 2.19 crore
December 2020, reversing the decline year. In terms of the first-year maturity claims, money back claims
in their numbers over the previous 3 premium, LIC has a 65% market share and annuities, amounting to Rs. 1.16
years. As many as 8,16,652 death for March and 66% for the entire year. trillion," it further added. T

12 The Insurance Times, May 2021