LIC to pay 40% more dividend, bonus in 2016-17

Higher bonuses on Jeevan Shree, Jeevan Pramukh, Jeevan Nidhi plan & Jeevan Amrit

Mumbai: With higher profits from its huge investment portfolio, Life Insurance Corporation (LIC) has decided to pay 40 per cent higher bonuses and dividends to the government and its customers for 2016-17.

The Corporation has allocated Rs 47,387.44 crore as reversionary bonuses with profit to policyholders and paid Rs 2,494.08 crore to the government towards its share of surplus on within the country business, against Rs 34,207.58 crore and Rs 1,800.40 crore, respectively, a year ago, said sources at LIC.

The Corporation has been able to maintain solvency ratio of 154.65 per cent against the statutory requirement of 150 per cent. The customers of policies like Jeevan Shree, Jeevan Pramukh, Jeevan Nidhi plan and Jeevan Amrit have received higher bonuses during 2016-17.

The Corporation has also declared bonuses for the customers of newly introduced schemes such as Jeevan Tarun, Jeevan Labh, Jeevan Pragati. One-time Diamond Jubilee year special reversionary bonuses have also been declared, ranging between Rs 5 and Rs 60 per thousand sum assured.

“2016-2017 was a great year business-wise though we had to face an extremely competitive scenario. We not only need to understand the competition but be two steps ahead,” said VK Sharma, LIC chairman, while addressing the corporation’s 57th annual senior divisional managers' conference here recently.

According to a copy of the chairman’s speech, “if we don’t think out of the box now, it will become extremely difficult for us to maintain our position as a market leader in future,” he said.