Page 10 - Insurance Times April 2021

LIC of India News

LIC to sell stake in IDBI According to one of the 27 proposed growth in retail APE for FY21. Its retail
amendments, the central government APE grew by 6% year-on-year.
Bank to ease disinvest- will hold at least 75% in LIC for the first Ana analyst wrote, "We expect
ment process five years post the IPO, and growth trajectory to continue
Life Insurance Corporation of India has subsequently hold at least 51% at all improving for IPRU Life into FY22 on
agreed to shed its shareholding in IDBI times after five years of the listing. lower base, better environment for
Bank with an objective to boost to the Finance Minister Nirmala Sitharaman, ULIPs, traction from new banca
government to completely exit from In the Budget Speech 2021, stated the partnerships and pickup in credit
the IDBI Bank and also ease the Initial Public Offering (IPO) of LIC protect on improving disbursals."
process of its strategic disinvestment. would be launched in the next financial
However, it is for the part of LIC to year, beginning April 1. Currently, the LIC eases process to claim
decide on the quantum of stake it government owns 100 per cent stake
would like to part with to aid this in LIC. Once listed, it is likely to policy maturity benefits
process. become the country's biggest company Due to the restrictions on movement

A senior official said that LIC is ready by market capitalisation with an due to COVID-19, LIC has allowed its
to sell shares. The government intends estimated valuation of Rs. 8-10 lakh policyholders to deposit their maturity
to complete the process in FY21-22. crore. claim documents at their nearest LIC
Keeping that in mind, amendments office anywhere in the country. LIC has
have been proposed in the Finance Bill LIC loses market share; allowed its 74 customer zones, 113
2021. ICICI Prudential sees signs divisional offices, 2,048 branches, and
1,526 satellite offices to receive
of growth maturity claims documents from
Govt. proposes to increase
According to the latest data from the policyholders whose maturity
in LIC's authorised capital insurance regulator, despite the blow payments are due, irrespective of the
to Rs. 25,000 crore from the pandemic, private life insurers servicing branch of the policy.
have continued to corner market share LIC, however, said that the actual
The government has proposed to hike
the authorised capital of Life Insurance shows. Private sector life insurers have claim payment will be processed by the
Corporation of India to Rs. 25,000 been eating into the market share of servicing branch only. The documents
crore to facilitate its listing slated for LIC for years now. It is found that in an will be digitally transferred through
the next fiscal. Presently, the paid-up annualised premium equivalent basis, LIC's pan-India network. In all these
LIC lost 200 basis points month-on- offices, officers have been especially
capital of LIC with over 29 crore policies
is Rs. 100 crore. The amendments, month in market share to private authorized to facilitate this job. "The
which were proposed as part of Finance sector peers in February. policyholder can walk into any of the
Bill 2021, will lead to the setting up of ICICI Prudential Life Insurance Co Ltd above offices of LIC and ask for
a board with independent directors in improved its market share significantly. authorized officer for assistance in this
line with listing obligations. ICICI Prulife reported its first monthly regard," LIC stated.

10 The Insurance Times, April 2021