Page 36 - Life Insurance Today March 2016
P. 36
Life Insurance
CorporationNews
Net profit of LIC rose 'Jeevan Labh'- Risk covered for whole term
10.4% amounting to Rs
36,087 crore LIC will soon offer to the public a lim- The maximum age at maturity is 75
ited-premium, non-linked and with- years, said Shaji M Shankar, Senior Di-
A whopping 25% rally in the equity profit endowment assur-
markets boosted ance plan 'Jeevan Labh'. The visional Manager, LIC,
the net profit of highlight of the plan is that Thiruvananthapuram Divi-
Life Insurance premium is payable for a sion. The plan is suitable for
Corporation (LIC) limited period while risk is those who want premium
by 10.4% in fiscal covered for the whole policy commitment for a short du-
2015 at Rs 36,087 term. The plan is available from ages ration while life coverage
8 to 59 years with a choice of policy and benefits are assured for a longer
crore. As per the LIC Act, the corpo- term of 16, 21 and 25 years and pre- period.
ration has to distribute 95% of its mium-paying terms of 10,15 and 16
profits with the policy holders, and years respectively. Minimum basic sum assured is Rs. 2
accordingly the financial power- lakh with maximum basic sum assured
house paid Rs 34,283 crore to its having no limit, Shankar added.
millions of policy holders in the year,
while the remaining 5% worth Rs LIC devotes Rs. 53,000 cr in domestic equities
1,804.35 crore was paid to its
owner, the government. LIC has invested Rs 53,000 crore in Foreign Institutional Investors (FIIs)
domestic equity markets so far in have pulled out their investments
LIC wants separate tax ex- 2015-16. In the last financial year, the from India and other emerging mar-
emption limit public sector insurance giant
pumped in Rs 39,000 crore kets. That has brought
The Life Insurance Council, an asso- in stocks, chairman SK Roy down valuations of sev-
ciation of said. eral stocks, particularly in
life insur- the large-cap space.
ers, has
asked the "Much of the year, capital Many analysts say that
Finance markets have been down. this is a good time to buy
Ministry to This has given us an oppor- equity as the pullout by
carve out separate tax exemption tunity to be net buyers… We FIIs is only due to the glo-
limits for life insurance and pension have been focusing on buy- bal uncertainties and
policies. It wants a separate tax ex- ing available stocks, and have crossed slump in crude oil, while India's fun-
emption limit of Rs. 1.5 lakh for pre- Rs 53,000 crore as far as our equity damentals remain strong. LIC has
miums to help attract more flows purchases are concerned," Roy said. been "fairly active" in IT, pharmaceu-
into life insurance policies. ticals and FMCG space, in the last two
LIC's income on investments so far in months, Roy added. It has also been
36 2015-16 is Rs 10,000 crore. Since the picking up bonds of public sector
end of March 2015, the benchmark banks, despite their rising non-per-
BSE Sensex has declined 11.20%, as forming assets, or bad loans.
March 2016 Life Insurance Today
