LIC paid Rs 1.34 trn as claims to policyholders in FY21, marking growth

State-owned insurer said it procured 2.1 crore policies in FY21, out of which 46.72 lakh were in March

State-owned Life Insurance Corporation (LIC) said on Tuesday it earned its highest new business premium income, of Rs 1.84 trillion, in FY21. It paid claims worth Rs 1.34 trillion to policyholders.

LIC, in a late-night statement, said it procured 2.1 crore policies in FY21, out of which 46.72 lakh were in March. The procurement marked a growth of 298.82 per cent over last year for the corresponding month. In the individual assurance business, LIC has seen the highest ever first-year premium income of Rs 56,406 crore in FY21, up 10.11 per cent compared to last year.

The company’s pension and group schemes saw a record new business premium income of Rs 1.27 trillion. The number of new schemes also touched a record high of 31,795.

LIC was not so active in the ULIP business but with its two new products--SIIP and Nivesh Plus--it has underwritten 90,000 policies with premiums to the tune of Rs 800 crore.

The company settled 2.19 crore maturity claims, money back claims, and annuities, amounting to Rs 1.16 trillion. In FY21, it settled 9.59 lakh death claims amounting to Rs 18,137.34 crore.