LIC’s new business premium reports 25% growth for FY 2020

Life Insurance Corporation of India (LIC of India)’s New Business performance reported a 25.17 % growth in its first year premium by posting a highest-ever figure

Life Insurance Corporation of India (LIC of India)’s New Business performance reported a 25.17 % growth in its first year premium by posting a highest-ever figure of Rs 1,77,977.07 crore for the year ended March 2020, the company has said in statement.

LIC building in Mumbai (Mint File Photo)

The company’s Pension and Group Superannuation Business showed a growth of 39.46% and crossed one lac crore in the same period, collecting Rs 1,26,696.21 cr as New Business Premium Income as against Rs 90848.86 cr in the previous year corresponding period.

A growth of 12.42 % in the country’s largest life insurer’s total premium income netted LIC Rs 3,79,062.56 cr of Total Premium Income as at March end 2020 compared to Rs 3,37,185.40 cr collected during the corresponding period last year.

Total policy payouts amounted to Rs 2,54,222.27 cr for the period ending 31.3.2020 as compared to Rs 2,50,936.23 cr for the corresponding period last year, showing an increase of 1.31%.

Overall, LIC’s gross total income grew 9.83 % at Rs 6, 15,882.94 cr for the period ended March 2020, up from Rs 5, 60,784.39 cr as at the last corresponding period.

Reaching out to its customers , LIC waived convenience fee on all policy-related digital transactions using credit cards w.e.f December 1, 2019 and the facility will be available till November 30, 2020.

It also ensured that all digital channels were available 24X7 for the payment of premium during the Covid-19 lockdown period.

LIC took every possible step to ensure that people stay covered through insurance during pandemic. For collection of premium all Digital channels were available 24X7 during the lockdown period.

The company dominated the insurance sector with a market share of 75.90% in policies and 68.74 % in first year premium for the year ended March 2020.