Life Insurance Corporation (LIC) who bought with participating plans have a reason to smile. Despite adverse market conditions, the public sector behemoth has declared a bonus of Rs 21,580 crore for such policyholders for 2010-11, which is 10.34 per cent higher than the bonus rates in 2009-10.
The new bonus rates will be applicable to policies resulting in claims on or after January 1, 2012.
Insurance regulations require LIC to pay 95 per cent of its surpluses as bonus to policyholders while the remaining 5 per cent is paid back as dividend to the government. The Corporation has declared a dividend of Rs 1135 crore to the government. The Corporation’s net actuarial surplus in 2010-11 stood at Rs 22,716 crore against Rs 20,586 crore in the previous year.
The corporation has declared higher bonus rates for the current year under seven of its with profit plans—Jeevan Anand, Jeevan Tarang, Jeevan Madhur, Child Future plan, Jeevan Shree I, Jeevan Bharati I and Jeevan Pramukh and loyalty additions for the first time under 7 other plans---Jeevan Aastha, Jeevan Sneha, Jeevan Sanchay, Children’s money back, Jeevan Vishwas, Bima Nivesh Triple Cover and Jeevan Saral. The final additional bonuses and bonuses under all other with profit plans have been retained at last year’s level.
As on March 31, 2011, LIC’s total assets stood at Rs 13,17,416 crore, up from Rs 11,52,057 crore in the previous fiscal, while the solvency ratio was 154.07 percent as against the prescribed 150 percent.
The corporation, which celebrated its 55th anniversary on Thursday, collected Rs 2,03,358 crore in premium last fiscal, accounting for 68.70 percent of the market.
However, lack of popular offerings like 'Market Plus' in its products suite has resulted in a negative growth on premiums for the four month period ended July 31, 2011 even though its market share grew to 72.43 percent, its executive director (Marketing) S Roy Chowdhury said.
He said LIC is mulling to launch newer products in the near future both in the offline and online space.
Chowdhury said the insurer is re-working on its strategy to increase sale of pure term plans and would soon launch a lucrative product.
Insurance regulations require LIC to pay 95 per cent of its surpluses as bonus to policyholders while the remaining 5 per cent is paid back as dividend to the government. The Corporation has declared a dividend of Rs 1135 crore to the government. The Corporation’s net actuarial surplus in 2010-11 stood at Rs 22,716 crore against Rs 20,586 crore in the previous year.
The corporation has declared higher bonus rates for the current year under seven of its with profit plans—Jeevan Anand, Jeevan Tarang, Jeevan Madhur, Child Future plan, Jeevan Shree I, Jeevan Bharati I and Jeevan Pramukh and loyalty additions for the first time under 7 other plans---Jeevan Aastha, Jeevan Sneha, Jeevan Sanchay, Children’s money back, Jeevan Vishwas, Bima Nivesh Triple Cover and Jeevan Saral. The final additional bonuses and bonuses under all other with profit plans have been retained at last year’s level.
As on March 31, 2011, LIC’s total assets stood at Rs 13,17,416 crore, up from Rs 11,52,057 crore in the previous fiscal, while the solvency ratio was 154.07 percent as against the prescribed 150 percent.
The corporation, which celebrated its 55th anniversary on Thursday, collected Rs 2,03,358 crore in premium last fiscal, accounting for 68.70 percent of the market.
However, lack of popular offerings like 'Market Plus' in its products suite has resulted in a negative growth on premiums for the four month period ended July 31, 2011 even though its market share grew to 72.43 percent, its executive director (Marketing) S Roy Chowdhury said.
He said LIC is mulling to launch newer products in the near future both in the offline and online space.
Chowdhury said the insurer is re-working on its strategy to increase sale of pure term plans and would soon launch a lucrative product.
He also said that the Corporation is targeting to increase its premium income from banks to 5 per cent in 2011-12.
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