Page 12 - Insurance Times November 2020
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LIC of India


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         LIC Housing aims for               "PMAY CLSS (Pradhan Mantri Awas    options: Deferred annuity for single
                                            Yojana Credit Linked Subsidy Scheme)  life, and deferred annuity for joint life.
         double-digit growth in
                                            is a major driver of home loans today  Under the deferred annuity for single
         FY21                               in the sector. For LICHFL, around 47  life plan, the annuity payments shall be

         LIC Housing Finance hopes to record  per cent of our business by value is  made in arrears for as long as the an-
         double-digit growth this fiscal, sup-  from the Top 7 metros, while the rest  nuitant is alive after the deferment
         ported by the return of home loan  is from other centres. PMAY consti-  period and according to the chosen
         growth to pre-Covid-19 levels, govern-  tutes nearly 30 per cent of our busi-  mode.
         ment push, revival in affordable hous-  ness," said Mohanty.
                                                                               In case of unfortunate death, during or
         ing segment, and its new products and  Meanwhile, its product Griha   after the deferment period, death
         support measures.                  Varishtha, which caters to individuals
                                                                               benefit will be payable to nominee of
         "As of now, sentiments are improving  covered under defined pension ben-  the annuitant.
         day by day. We expect a positive rub-  efits, appears to be receiving good re-
         off in the realty space, with the overall  sponse. Close to Rs. 1,000 crore has  LIC IPO may spill over to
         economy opening in phases. A big chunk  already been sanctioned under the
         of an upwardly mobile middle-class seg-  scheme since its introduction in July.  next fiscal
         ment, urbanisation rates, and the                                     The mega initial public offering of Life
         emerging concept of work from home LIC launches its new de-           Insurance Corp (LIC) may spill over to
         will be able to sustain the demand. At  ferred annuity plan           the next fiscal as the government will
         the current rate, we can look forward                                 first look at the independent actuarial
         to a double-digit growth towards the 'Jeevan Shanti'                  valuation of the country's largest in-
         end of the current financial year,"  LIC has introduced new Jeevan Shanti  surer, a top official has said.
         Siddhartha Mohanty, MD and CEO of LIC  plan. It is a new deferred annuity plan,  Department of Investment and Public
         Housing Finance, told. He is of the view  which is a non-linked, non-participat-  Asset Management (DIPAM) Secretary
         that people with stable earnings have  ing, individual single premium plan.  Tuhin Kanta Pandey said the pre-IPO
         not been impacted greatly, and are look-  The annuity rates for the New Jeevan  work of LIC is going on at four stages -
         ing to cash in on this opportunity - it is
                                            Shanti plan are guaranteed at the in-  - appointment of advisors for ensuring
         a buyers' market.                  ception of the policy, and annuities are  compliance, legislative amendment,
         Affordable housing has seen the fast-  payable after the deferment period  LIC''s internal software changes to
         est recovery post pandemic due to the  throughout the life of the annuitant,  come out with its ''embedded value''
         inherent demand and sops given by the  LIC said in a statement.       and appointing an actuary for vetting
         government under PMAY CLSS in the  The plan, which can be bought offline  LIC's actuarial valuation.
         form of subsidy.                   and online, comes with two annuity  The government plans to amend the

          12  The Insurance Times, November 2020
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