Page 10 - Insurance Times April 2021
P. 10

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
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