Life Insurance Corporation of India (LIC) has informed that it had 53 Individual products and 10 Pension & Group Schemes (P&GS) as on 31.03.2013.  LIC maintains a single fund in terms of Section 24 of LIC Act, 1956 and all receipts of the Corporation are credited thereto and all payments of the Corporation are made there from. Section 26 of the said Act provides that an annual actuarial investigation into the financial condition of the life insurance business of the Corporation be carried out and any surplus emerging as a result of this investigation is distributed to the policyholders in terms of Section 28 of the said Act. The total surplus for the last three years is as follows:

 Reversionary bonuses are declared from the valuation surplus, for all participating (with profit) products.  All in force policies under these participating products are eligible for bonus subject to conditions as contained in the policy document.

LIC has further informed that Insurance Regulatory and Development Authority (IRDA)  has issued new Regulations in February 2013 on traditional life insurance products (Non-Linked) and ULIPs (Linked).  Accordingly the new insurance policies to be sold under Individual Life Business as well as under the Group Life Business have to be compliant with these regulations w.e.f 1st October 2013 for Individual Life Business and 1st August 2013 for Group Life Business.  Consequently, LIC needs to modify most of its products.  LIC also designs new products from time to time to meet the needs of the policyholders and different segments of society.

Subsequent to the new Regulations, LIC has filed three Individual Life Business products and five Group Business schemes with IRDA, of which one group business scheme has been approved.

This was stated by Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

Courtesy : Press Information Bureau