In the financial year, 2019-20, LIC, the country’s largest life insurance company, has achieved success in terms of new business. India is currently under lockdown, and businesses got shut, despite this, LIC has made a 25.2 percent increase in the first year’s premium amount from the new insurance policy.
The last week of the month of March in every financial year is very crucial for the insurance companies in terms of business. But this time, the financial year fell due to the lockdown due to COVID-19 epidemic. Despite this, LIC made huge profits. During this period, LIC sold 2.19 crore insurance policies, and its first-year premium income for these policies increased to Rs 51,227 crore.
Moreover, the stake of LIC in the insurance sector has also increased. Its market share increased by 1.19 percent to 75.90% as this figure is according to the number of policies. Furthermore, its share increased to 2.50 percent to 68.74 percent for the first year premium amount.
LIC gave a statement that it has set a new record in its category of pension and group plans by raising a premium of one lakh crore rupees during 2019-20. LIC raised a totally new premium of Rs 1,26,749 crore during the year under the group plans as compared to Rs 91,179 crore collected last year. The company’s market share in this category increased from 78 percent to 80.54 percent.
LIC has stated that the insurance corporation disposed of 2.03 crore maturity and money-back claims and annuity during the financial year despite several challenges due to the lockdown. The company also distributed 7.50 lakh death claims during the period under review.
A few days ago, LIC also granted a 30-day extension to deposit the premium payable in March and April 2020, in view of the difficulties faced by policyholders due to the lockdown. Policyholders of LIC can also pay the premium through the digital payment options of the insurance company. For this, they will not have to pay any kind of service charge.