Lic May Clip Bonus To Adjust For Rates
The bonus declared by Life Insurance Corporation of India (LIC) was likely to come down marginally this year.
The insurance major will also discontinue two guaranteed return plans -- Bima Nivesh and Jeevan Shree - within one month. LIC recently evaluated its products and decided to discontinue its entire range of high yielding guaranteed return policies.
"The issue with regards to bonus is being decided by the Insurance Regulatory Development Authority (Irda), and we expect a decision in a few weeks," said LIC zonal manager east, R K Mishra.
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Bonus declared last year varied between Rs 65 to Rs 104 per Rs 1,000 of sum assured. "In view of falling interest rates yields have declined and hence the need for an adjusted bonus, but LIC would continue to share 95 per cent of surpluses with customers as a norm," Mishra said.
LIC was also considering a revised version of Bima Nivesh or a completely new product to replace the former. The insurance major was also evaluating the possibility of launching a revised version of the children's money back policy.
A revision of a deposit linked insurance plan for tea garden workers was on the cards. LIC has started talks with the Assam Tea Planter's Provident Fund Commissioner for an improved version of the plan because sum assured in case of accidental death for a worker was only Rs 15,000. The company has also reduced rates for all group insurance products from 12 per cent previously, to 10 per cent now.
On the operational front the public sector major has targeted 2.69 lakh new policies that will translate into a total premium collection of Rs 1,877,360 crore.