Life Insurance Corporation (LIC) has approached IRDAI to review the Surrender Value Guidelines issued in June 2024. While the guidelines were considered favorable for policyholders, increasing surrender values from 30% to over 70%, LIC is requesting a reassessment of how surrender values are calculated.
The surrender value in life insurance refers to the amount a policyholder receives when they choose to terminate their policy before maturity or before a claim is made. It is typically a portion of the premium paid, minus any applicable fees, and grows over time. Early surrender may result in a lower or even zero surrender value. LIC's request comes as the new guidelines are set to take effect shortly, with the industry awaiting IRDAI's decision.
LIC Pays Rs. 3,662 Crore Dividend to Government
State-owned Life Insurance Corporation of India (LIC) has handed over a dividend cheque amounting to Rs. 3,662.17 crore to Finance Minister Nirmala Sitharaman. The cheque was presented by LIC's Chief Executive Officer and Managing Director, Siddhartha Mohanty, in the presence of M.P. Tangirala, Additional Secretary at the Ministry of Finance.
LIC also paid an interim dividend of Rs. 2,441.45 crore on March 1, 2024, bringing the total dividend payout to Rs. 6,103.62 crore for the financial year 2023-24. As of March 2024, the Government of India holds a 96.5% stake in LIC, which remains the market leader in the Indian life insurance industry with an asset base of over Rs. 52.85 lakh crore.
LIC Reports 9.6% Growth in Q1 FY25 Profit
Life Insurance Corporation of India (LIC) has reported a year-on-year increase of 9.61% in net profit, reaching Rs. 10,461 crore for the first quarter of FY25. This growth was primarily driven by a strong performance in the group business premium segment.
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IRDAI Corner
The Insurance Regulatory and Development Authority of India (IRDAI) as part of steps towards reinforcing empowerment of policyholders has issued Master Circular on Protection of Policyholdersi¦ Interests under the IRDAI (Protection of Policyholdersi¦ Interests, Operations, and Allied Matters of Insurers) Regulations, 2024 replacing 30 circulars.
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