Lic Bonus For Pre-1976 Policies

The Life Insurance Corporation of India (LIC) has announced a special one time bonus rates for 1996-97 ranging between Rs 2.50 to Rs 40 per 1,000 sum assured for policies issued before April 1, 1976.

LIC chairman G Krishnamurthy announced the bonus rates for the year approved by the board of the Life Insurance Corporation pursuant to the actuarial valuation as on March 31, 1997.

The policies issued before April one, 1976 and after March 31, 1971, would be eligible for Rs 2.5 per 1,000 for the sum assured up to Rs 25,000 and Rs 10 and Rs 20 for the sum assured from Rs 25,001 to Rs 50,000 and for more than Rs 50,000, respectively.

 

The policies issued on or before March 31, 1971, would accrue double the percentage of bonus for the sums respectively assured.

Simple reversionary bonus has also been declared as a result of the valuation for all with profit policies.

The whole life type of policies commencing on or after April 1, 1976, would earn a bonus of Rs 88 and for those before April 1, 1976 but after March 31, 1971, the rate would be Rs 93 and for all those commencing on and before March 31, 1971, would get Rs 97 per 1,000 for the sum assured.

For the endowment type of policies, the rate of bonus under the policy term would be Rs 65 for policies for 10 years or less, Rs 69 for the policies for 11 to 15 years, and for 16 years and above the rate of bonus would be Rs 71 per 1,000 sum assured for the policies released on and after April 1, 1976.

For the endowment type of policies for 16 years and above, the rates for the policies issued before April one, 1976 but after 1971 would be Rs 76 and for the policies released on and before 1971 would be Rs 80 per 1,000 for the sum assured.

For money back, anticipated endowment and Jeevan Surabhi policies the rates of bonus for the policy issued for 12 to 15 years is fixed at Rs 64 and for that of 20 and 25 year terms is fixed at Rs 67 and Rs 69 per 1,000 for the sum assured for the policies taken on and after April one, 1976 and for the policies taken before April one, 1976 but after March 31, 1971, for a period of 25 years would accrue a bonus of Rs 74 per 1,000 for the sum assured.

The corporation has also announced substantial increase in final (additional) bonus for policies fulfilling the stipulated conditions depending upon the term and sum assured of the policy.

A Life Insurance Corporation press release here yesterday said that the bonus rates have also been declared for pension plans, Jeevan Dhara, Jeevan Akshay, immediate and deferred annuities and group annuities.