Page 16 - Insurance Times May 2024

to 49% in 2015 and then to 74% in received in insurance companies disciplinary authority consequent to his
2021 between December 2014 and January involvement in the front running," LIC
The insurance sector has received 2024, he said. said in an exchange filing.
close to Rs 54,000 crore as foreign During the period, Joshi said, the Sebi said in a confirmatory order that
direct investment (FDI) in the last 9 number of insurance players increased the restraint imposed vide the interim
years on the back of further from 53 to 70 as of January 2024. order dated April 27, 2023, on Yogesh
liberalisation of overseas capital flow Garg, Sarita Garg, Kamlesh Agarwal,
norms by the government, Financial LIC fires employee involved Ved Prakash HUF and Sarita Garg HUF
Services Secretary Vivek Joshi has said. from buying, selling or dealing in
in front-running trades case
The government increased the LIC said it has sacked an employee securities either directly or indirectly,
permissible FDI limit from 26 per cent involved in a stock market front- in any manner whatsoever, will
in 2014 to 49 per cent in 2015 and then continue until further orders.
running case which was under
to 74 per cent in 2021, he told PTI in
investigation by market regulator Sebi.
an interview. LIC gets Rs. 39L GST
"Yogesh Garg was an employee in the
However, he said, the permissible FDI cadre of Administrative Officer of LIC. demand notice
limit for insurance intermediaries was He has been removed from the services LIC said tax authorities have slapped a
increased to 100 per cent in 2019. of the Corporation following the due demand notice of about Rs 39.39 lakh

As a result, Rs 53,900 crore of FDI was administrative procedure by the on it for short payment of Goods and
Services Tax (GST) for 2017-18.
Bonus notified for postal, rural postal life insurance The company has received a
schemes for FY25 communication/demand order for
interest and penalty from the
The Centre has approved a simple reversionary bonus for Postal Life Insurance
Additional Commissioner, Central
Scheme and Rural Postal Life Insurance Scheme for fiscal year 2024-25. There
Goods & Service Tax, Gandhinagar on
is no change in the rate.
January 3, 2024, LIC said in a
According to a notification, under the Postal Life Insurance Scheme, rate of regulatory filing.
bonus will be Rs. 76 per thousand of sum assured for whole life assurance The corporation has filed an appeal
(WLA). Similarly, for endowment assurance (EA) (including joint life and against the order demanding GST of Rs
children policies), it will be Rs. 52 per thousand of sum assured. Anticipated 19,64,584 for FY 2017-18 and interest
endowment assurance (AEA) will fetch Rs. 48 per thousand of sum assured. applicable on it along with a penalty of
In case of convertible whole life assurance (CWLA), whole life bonus rate would
Rs 19,74,584 before the Commissioner
be applicable, but on conversion, endowment assurance bonus rate will be (Appeals), Ahmedabad on March 26,
applicable.
2024, it said.
Rate of terminal bonus will be Rs. 20 per sum assured of Rs. 10,000, subject to
maximum of Rs. 1,000 for WLA and EA policies with term of 20 years or more. April reinsurance renewals
"The rates of bonus for the Financial Year 2024-25 will be applicable from flat after steep rise in FY24
April 1, 2024," the notification said. Interim bonus at the rates mentioned
In the current renewal period, the
above will also be payable for all claims arising due to maturity or death until rates have been flat to a marginal
future valuation is completed, the notification added. increase of 5 percent after adjusting
Last reported number of policy holders was given for the fiscal year 2021-22 for risk in comparison to over 30 per
in the report of Comptroller and Auditor General (C&AG). At the end of FY22, cent hardening in the rates seen last
the number of policy holders under Postal Life Insurance Scheme was over year.
47.5 lakh and under the Rural Postal Life Insurance Rural scheme, the number During the April reinsurance renewals,
of subscribers was over Rs. 57.81 lakh.
general insurers transfer a portion of
Another notification gave bonus rate for Rural Postal Life Insurance. According their risk portfolios to reinsurers by
to the notification, the rate for WLA will be Rs. 60 per thousand of sum paying a certain premium to reduce
assured. Similarly, for EA (including children policy), rate will be Rs. 48 per the likelihood of paying a large
thousand of sum assured. obligation in the form of a claim.

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