Page 10 - Insurance Times February 2016
P. 10
LIC of India
News
LIC's launches new plans Sebi clears LIC bids earlier stopped by Essar Oil
The Life Insurance Corporation of In- Essar Oil's delisting got through as Sebi in consultations with all the stakehold-
dia recently launched two new non- gave its go-ahead to the stock ex- ers concerned, Sebi has now given its
change BSE to accept nearly 2 crore go-ahead for the confirmation of those
linked, with- shares tendered by the state-run LIC shares, top officials at the exchange
profit plans. for the promoters' buyout offer. and the company said.
One is
Jeevan Labh, The delisting had got mired The offer is said to have re-
which has in "technicalities" after a ceived total bids for an esti-
policy terms of 16, 21 and 25 years large block of tendered mated 10.1 crore shares, as
and premium paying term of 10, 15 shares could not be 'con- against a requirement for
and 16 years, respectively. The other firmed' within the stipulated time, 9.26 crore shares for the offer to suc-
is a closed-end single-premium plan, prompting BSE to refer the matter to ceed. However, over 1.98 crore shares
Jeevan Shikhar. Sebi. While the promoters' buyback of- tendered by LIC had remained 'uncon-
fer had got more than sufficient bids, firmed' on the stock exchange plat-
In the case of Jeevan Shikhar, the the non-confirmation of the large form.
minimum maturity sum assured is chunk of shares - tendered by LIC - had
Rs 1 lakh, while there is no limit on come in the way of the closure of the The issue was subsequently looked into
the maximum. The policy term is delisting offer. by all the entities concerned -- Essar
15 years and the maximum entry Oil, LIC, BSE and the custodian for LIC
age is 45 years. In Jeevan Labh, the After looking into the matter in detail shares, StockHolding Corp.
maximum age at maturity is 75
years. The minimum basic sum as- LIC pays Rs 1,804.4 crore dividend to govt
sured is Rs 2 lakh and there is no limit
on the maximum. On maturity of the A whopping 25 per cent rally in the 1,804.35 crore was paid to its owner.
policy and the policy holder surviving equity markets boosted the net profit,
to the end of the policy term, basic or valuation surplus in the official lan- Accordingly, the Corporation chairman
sum assured along with vested guage, of Life Insurance Corporation S K Roy handed over the valuation sur-
simple reversionary bonuses and fi- by 10.4 per cent in 2014-15
nal additional bonus, if any, shall be at Rs 36,087 crore. plus worth Rs 1,804.35 crore
payable. to the finance minister for the
As per the LIC Act, the corpo- fiscal year ended March 2015.
"The plan (Jeevan Labh) is suited to ration has to distribute 95 per
those who want premium commit- cent of its profits with the Till March 2014, the Corpora-
ment for short duration having life policyholders, and accord- tion had paid Rs 1,634.89
coverage and benefits for a longer ingly the financial power- crore to the government,
period," LIC says in a release. On pay- house paid Rs 34,283 crore to its mil- when its total profit stood at
ment of higher premium, Jeevan Labh lions of policyholders in the year, while Rs 32,697.8 crore. The payout for
offers two riders which are Acciden- the remaining 5 per cent worth Rs 2014-15 was 10.39 per cent more than
tal Death and Disability Benefit Rider the previous year.
and a New Term Assurance Rider.
10 The Insurance Times, February 2016
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