The Life Insurance Corporation of India (LIC) has declared 22 per cent growth in the valuation surplus, the money available with the corporation for distribution after paying all expenses and taxes, for 2006-07. Out of the surplus of Rs 15,127.21 cr, 95 per cent has been allocated to profit policyholders and the balance five per cent to the Central government.
Whole life type plans have been given a higher bonus of Rs 70 per thousand sum assured, compared with Rs 66 given in the previous year. Jeevan Tarang and Jeevan Anurag schemes get Rs 48 and Rs 44 per thousand sum assured, representing a growth of 50 per cent and 25 per cent, respectively. Endowment type of plans would get a bonus in the range of Rs 48-34, depending on the term of the policy. While anticipated endowment and money back plans get Rs 44-32, Jeevan Surabhi policy holders would get bonus at Rs 50 for a 25- year term policy and Rs 34 for a 15 year term policy.
"Business composition is changing significantly from non-linked products to linked products," LIC Chairman TS Vijayan said at a press conference. The growth in Unit Linked Insurance Policies (ULIPs) has outpaced traditional insurance products and LIC has seen 80 per cent of its new business premium come from ULIPs. The first premium income has gone up 31 per cent to Rs 15,126 crore at the end of August. LIC anticipates an investment of Rs 1,17,000 crore this year against Rs 90,000 crore of investments made last year.