Life
Insurance Corporation of India (LIC) has informed that it had 53 Individual
products and 10 Pension & Group Schemes (P&GS) as on 31.03.2013. LIC maintains a single fund in terms of
Section 24 of LIC Act, 1956 and all receipts of the Corporation are credited
thereto and all payments of the Corporation are made there from. Section 26 of
the said Act provides that an annual actuarial investigation into the financial
condition of the life insurance business of the Corporation be carried out and
any surplus emerging as a result of this investigation is distributed to the
policyholders in terms of Section 28 of the said Act. The total surplus for the
last three years is as follows:
Year
|
Valuation
Surplus
(in Rs. Crores )
|
2009-10
|
20618.45
|
2010-11
|
22752.34
|
2011-12
|
25624.58
|
Reversionary bonuses are declared from the valuation
surplus, for all participating (with profit) products. All in force policies under these
participating products are eligible for bonus subject to conditions as contained
in the policy document.
LIC has further informed that Insurance Regulatory and
Development Authority (IRDA) has issued
new Regulations in February 2013 on traditional life insurance products
(Non-Linked) and ULIPs (Linked).
Accordingly the new insurance policies to be sold under Individual Life
Business as well as under the Group Life Business have to be compliant with
these regulations w.e.f 1st October 2013 for Individual Life
Business and 1st August 2013 for Group Life Business. Consequently, LIC needs to modify most of its
products. LIC also designs new products
from time to time to meet the needs of the policyholders and different segments
of society.
Subsequent to the new Regulations, LIC has filed three
Individual Life Business products and five Group Business schemes with IRDA, of
which one group business scheme has been approved.
This was stated by Minister of State
for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha
today.
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