LIC settles 561 Covid death claims, eases norms

30/07/2020

LIC settles 561 Covid death claims, eases norms

MUMBAI: Life Insurance Corporation (LIC) of India has said that it has settled 561 death claims due to COVID-19 amounting to Rs 26.7 crore. The corporation has also relaxed its norms during the lockdown to allow payment on maturity claims based on email submission of survival benefit requirements and subject to conditions is settling such claims without the policy document.

“Death claims arising due to COVID-19 are treated at par with other causes of death and payments are being made on an urgent basis. LIC has also relaxed the procedure and is accepting requirements of death claim through email from their club agents and development officers,” said the corporation in a statement.

Even before the pandemic, the number of customers using digital channels has grown significantly with the LIC recording a 36% increase in digital transactions for FY20. It has also waived digital payment charges, including payment by credit cards, up to November 2020.

The corporation on Thursday has announced its audited figures for the year ended March 2020. New Business (first-year premium) for the year ending March 2020 grew 25.1 % to a record Rs 1,77,977 crore. Pension and group superannuation business also crossed the Rs 1 lakh crore milestone with total collections of Rs 1,26,696 crore of new business against Rs 90848 crore in the previous year recording a growth of 39.4%.

Total premium income (new policies and renewals) amounted to Rs 3,79,062 crore for FY20 as compared to Rs 3,37,185 crore in FY19 recording a growth of 12.4%. Total policy payouts for the year amounted to Rs 2,54,222 crore an increase of 1.31% over Rs 2,50,936 crore in FY19. At the end of the year, the corporation had a market share of 75.9% in policies and 68.7 % in first-year premium

The corporation’s gross total income, which includes investment income rose to Rs 6, 15,882 lakh crore for FY20 up 9.83% from Rs 5, 60,784.39crore from FY19. Total Assets of the corporation increased 2.71% to Rs 31,96,215 crore from Rs 31,11,847 crore in FY19.