Page 11 - Insurance Times April 2022

over the years on the actual income of "PMJJBY is part of that and reservation with a three-year term or till the per-
the corporation. will be there (for the policyholders)," son concerned reaches the age of 63.
Kumar said in an interaction with the Further, remuneration for the post
The cases are pending with the Com-
media. would be Rs 75 lakh per annum, the
missioner of Income Tax (appeals) or
the Income Tax Appellate Tribunal. The Launched in 2015, PMJJBY offers a re- public notice had said.
corporation is also facing Rs 3,265-crore newable one year life cover of Rs 2 lakh An email sent to LIC seeking comments
claims from the I-T department for the to all savings bank account holders in on the appointment of Agrawal did not
year 2003, 2004 and 2005, which are the age group of 18-50 years, covering elicit a response.
pending in the Bombay high court. The death due to any reason, for a premium Agrawal was earlier the CFO of Reliance
tax department has said that LIC can- of Rs 330 per annum per subscriber. Nippon Life Insurance for over 12 years.
not claim deductions for dividend in-
This government scheme is offered or Prior to that, he was associated with
come, provisions for solvency margin administered through LIC. As per the ICICI Prudential Life Insurance for 5
and for loss arising out of Jeevan Draft Red Herring Prospectus (DRHP) years.
Suraksha fund from its income. The de- filed last week, the maximum bid
partment is claiming Rs 756 crore, Rs amount under the Policyholder Reser- The public listing of LIC has come under
964 crore and Rs 1,545 crore as dues vation Portion by an eligible policy- some cloud due to the geopolitical ten-
for the three assessment years. holder would not exceed Rs 2,00,000 sions globally, following the military ac-
Overall, the corporation is party to (net of policyholder discount). tion by Russia in Ukraine. Business Stan-
dard reported that a group of ministers
26,919 litigations. These include crimi-
It further said policyholders having one in the Indian government are likely to
nal, consumer, civil and other action by or more policies of LIC as on the date of
statutory or regulatory authorities. DRHP and bid/offer opening date and meet this week and take a call on
Nearly half (12,323 cases) are consumer who are residents of India would be eli- whether to defer the IPO of the insur-
complaints, largely relating to claims. gible to apply in this offer, under the ance behemoth, given the volatility in
There are also 14,263 civil cases that Policyholder Reservation Portion. the stock markets following the on-go-
include rival claims on policies and other ing war between Russia and Ukraine.
cases.
Sunil Agrawal appointed
According to analysts, the tax claims are 10.8 million eligible to avail
not seen as a major issue as the LIC is a CFO of LIC ahead of listing of policyholders' quota
government entity and the Centre is Life Insurance Corporation (LIC) has About 10.8 million policyhol-ders of Life
going all out by issuing notification, appointed Sunil Agrawal as the chief fi-
amending legislation and generally iron- nancial officer (CFO) of the corporation. Insurance Corpo-ration of India (LIC)
have linked their policies with PAN and
ing out all the issues that are coming in Prior to Agrawal's appointment,
the way of the IPO. Shubhangi Sanjay Soman was the ex- have a demat account. This exud-es
ecutive director in charge of finance confidence among government and LIC
officials about the subscription of poli-
PMJJBY policyholders eli- and accounting (F&A) at the corpora-
tion. The position of Executive director cyholders' reservation in the upcoming
gible for LIC IPO at dis- F&A has been changed to CFO as the initial public offering (IPO).
count corporation is preparing to get listed LIC has identified 50 million unique indi-
Subscribers of Pradhan Mantri Jeevan on the bourses. viduals who hold about 282 million poli-
Jyoti Bima Yojana (PMJJBY) are eligible LIC had invited applications for the post cies. Crossing the 10-million mark for in-
for LIC initial public offering at a dis- of CFO in September last year. The in- dividuals who are eligible for the IPO res-
count, Chairman of insurance company surer had said in a public notice that ervation has been above the expecta-
M R Kumar said. the post of CFO would be a contractual, tion, said a top government official. T

The Insurance Times, April 2022 11