About Me

My photo
Trichy, Tamil Nadu, India
Working as an Assistant in LIC of India, Rockfort BO, Trichy, TN. Having a strong belief that LIC's welfare is our welfare and always trying to work towards that. Also functioning as an office bearer of AIIEA Thanjavur Division.

Sunday, March 21, 2010

Private Life Insurance Cos. repudiate more claims

Settlement Ratio 
LIC : Private - 1000 : 94
(i.e. for every thousand claims settled by LIC, Pvt. Players settle 94 claims!)

Repudiation Ratio
LIC : Private - 1000 : 1374
(i.e. for every thousand claims repudiated by LIC, Pvt. Players repudiate 1374 claims!!)

One may argue that it is inappropriate to compare Pvt. with LIC because of the size/volume.  But at the same time he/she must agree that the repudiation by Pvt. is much much higher to their size/volume.

A friend in need 

a friend indeed!

An insurance policy must do the same.

What if an insurance policy is repudiated when the breadwinner unexpectedly loses life?
Main purpose of insurance policy is family protection.
Private cos. defeat that very purpose in most of the cases!
Explain your policyholder the truth!
That is
"LIC only protects your family!"

Saturday, March 20, 2010

LIC hikes stake in IOB to 12% from 9.96%

LIC hikes stake in IOB to 12% from 9.96%

       Life Insurance Coporations' (LIC), which has been reportedly planning to make a foray into the banking sector, has hiked its stake in the Chennai-based public sector lender Indian Overseas Bank (IOB) to close to 12%.
         LIC has bought additional shares of IOB from the open market in different tranches. The Insurance Regulatory & Development Authority (Irda) had capped the life insurer's exposure to a single company at 10% level sometime back. Though LIC had subsequently sought a review, Irda has not yet relaxed the norms.
        The insurance behemoth has bought close to 2% stake through market purchase. Post transaction, LIC’s share in IOB went up to 11.97% from 9.96%. The insurance major bought 1,08,41,158 shares and the tansaction was executed on BSE and NSE platforms. In a regulatory filing with exchanges, IOB informed that LIC now holds 6,52,02,526 shares (11.97%) in IOB. Prior to transaction LIC was holding 5,42,61, 368 shares in the bank. The government holds 61.23% in the bank, while Citigroup Global Markets Mauritius Pvt Ltd has 1.59% equity shares, apart from LIC. The total public shareholding in the bank has been at 38.77%. IOB stocks closed at Rs 88 on NSE on Thursday
       In 2009, IOB took over Pune-based Shree Suvarna Sahakari Bank, which was founded in 1969. Way  back in 2001, it had acquired Mumbai-based Adarsha Janata Sahakari Bank. In the quarter ended December 2009, IOB posted a 73.7% drop in its net profit at Rs 101.70 crore as compared to Rs 388.44 crore in the same quarter last fiscal. 
Courtesy: Financial Express 19.3.2010

Monday, March 15, 2010

LIC’s investment brain sees Sensex at 21,000

LIC’s investment brain sees Sensex at 21,000
THE Sensex is heading back towards its lifetime high level. That’s what the man who manages more than $60 billion equity assets for the life insurer behemoth Life Insurance Corporation of India (LIC), believes.
N Mohan Raj, executive director of investments at LIC, told Financial Chronicle that he expects the Bombay Stock Exchange’s (BSE) benchmark to deliver more than 20 per cent return in the financial year 2010-11 as the economic growth picks pace.
Though he declined to give any specific target for the Sensex at the end of FY11, Mohan Raj expects the Sensex to end 2009-10 at 17,500 levels. A 20 per cent increase would take the 30-stock index to 21,000-mark, surpassing its previous closing high of 20,873. 33 on January 8.
“Things are looking up. Thanks to the government policy of putting more money in rural sector and infrastructure as well as pick up in credit demand, the economy will grow in the next fiscal year,” he said. Mohan Raj believes the Indian market is adequately valued at present and expects companies having bias towards rural consumption to do well.
He said there would be less liquidity for the secondary market because of the strong pipeline of public issues in the next financial year. 
The Indian government wants to raise Rs 40,000 crore in FY11 by selling stake in profitable state-run enterprises.
LIC will examine all large public issues, be it from public sector or private sector, and make an investment call based on the merit of the offering, the LIC executive director said.
Mohan Raj said the global situation would continue to impact the Indian market and the inflows of funds from abroad will have a notable role in deciding its future direction. “However, the performance of the
domestic economy and scope for domestic consumption will be favourable factors,” he added.
In FY10, LIC will end up investing up to Rs 60,000 crore in Indian shares, about 49 per cent more than Rs 40,300 crore it invested in FY09.
LIC is one of the dominant players in the Indian stock market, with investments in more than 400 companies. As of December 31, 2009, its top five holdings were - Reliance Industries ($ 5 billion), Larsen & Toubro ($4 billion), State Bank of India ($3 billion), ITC ($ 3 billion) and ONGC ($ 3 billion).
Courtesy: mydigitalfc.com

Wednesday, March 10, 2010

Comparison charts of features & charges of 
LIC's Wealth Plus with other cos.' highest NAV Guaranteed plans.

Awards, awarded to LIC in 2009

Awards, awarded to LIC in 2009
None of the institutions or organisations
which awarded these awards
is a supporter of Public Sector!
All are pro private!
They are always trying to establish that
private cos. are best in service, etc.!
But they had to award LIC!
That is the un-disputable victory of LIC!

LIC's Contribution to India's 5 year Plans

LIC's Contribution to India's 5 year Plans

True to the spirit of nationalization, the Corporation has deployed its funds to the best advantage of LIC policyholders as well as for the community as a whole. National priorities and the obligation of reasonable returns to the policy holders are the main criteria of LIC's investments.

LIC's investments in Social Sector

Our money helps to the growth of our nation
if, it is with LIC!
Tell this to the policyholders!
Without losing the security of our money
Without losing the growth of our money
we can help our nation
by saving and investing in LIC!

LIC 1.4.2008 to 31.3.2009

This is our LIC in 2008-09.
What should we achieve this year?
What is your contribution for that?

Monday, March 8, 2010

LIC may seek bank licence

State-owned Life Insurance Corporation of India (LIC) is likely to seek a licence to float a bank when the Reserve Bank of India (RBI) allows more players.
Sources close to the development said the country’s largest insurer had been keen to run a bank for a long time to manage the large premium collection and claim settlement work.
This year, for instance, the public sector insurer is expected to collect over Rs 176,000 crore as premium
income. Similarly, it settles over 15 million claims annually which involves payouts to policyholders. Regular payments for the annuities business also need to be made.
LIC holds stakes in several Indian banks and, based on special clearance from the insurance regulator, it was allowed to hold 26 per cent in state-owned Corporation Bank.

The insurer was also one of the promoters of Axis Bank, now the country’s third-largest private bank, and has tried to take control of it in the past. Its proposals were, however, turned down by the RBI on grounds that the bank had received a licence as a “private sector bank” whereas LIC was a government-owned entity.
Asked to comment, LIC Chairman T S Vijayan said: “Corporation Bank is a public sector bank and it is a strategic investment. We are one of the promoters in Axis Bank. But starting a bank is an entirely different ball-game. We are waiting for the guidelines to come and will take a call based on the regulations.”
To go ahead with its banking plans, LIC will need permission from the Insurance Regulatory and Development Authority (Irda), which took a considerable amount of time clearing its proposal to acquire a stake in Corporation Bank.
LIC is the latest to join the list of companies to evince interest in setting up a bank. The list includes Aditya Birla Financial Services, Reliance Capital, Bajaj Finserv Srei, Shriram Transport, Indiabulls and IFCI.
In the Budget, Finance Minister Pranab Mukherjee had announced the RBI’s intent to issue fresh bank licences. This will be the first set of licences to be issued since Yes Bank and Kotak Mahindra Bank received permission eight years ago. The Kotak group is a majority shareholder in Business Standard.
The insurer will also need additional capital for its banking foray. Under the law governing it, LIC has a paid-up capital base of Rs 5 crore.
Courtesy: Business Standard, 8.3.2010

4% of GDP contributed by LIC - Finance Minister

"We are expecting to collect around Rs.176,000 crore by the end of March this year and hope to increase it by 18 percent next fiscal (2010-11)," LIC chairman T.S. Vijayan told reporters. 
Last fiscal (2008-09), the LIC's premium income was Rs.153,000 crore.
Vijayan was speaking after laying the foundation stone for company housing complex in Kolkata.

The company's income from its real estate business is Rs.200-300 crore in the current fiscal, which would increase in the coming years, he said without specifying any amount. 
"Of the total GDP (gross domestic product) of the country, 4 percent is contributed by LIC," said  Finance Minister Pranab Mukherjee, who was also present in the programme. Mukherjee said every year the LIC contributes a hefty dividend to the country's coffers.  "We have given a dividend of Rs.929 crore to the government this year," Vijayan said.
India’s No. 1 insurer will invest nearly Rs 36,000 crore in infrastructure in 2010-11.  “Infrastructure accounts for 15 per cent of our total investment,” Vijayan said.  According to Vijayan, the LIC is a big lender to Indian Railway Finance Corporation Limited, with 27 per cent of its assets financed by the insurer through debt.
The market share of the state-owned insurer has grown to 65.06 per cent. Its market share had dipped to 55 per cent in October 2008.

Courtesy:Economic Times, 7.3.2010, The Telegraph, 8.3.2010

Sunday, March 7, 2010

Bima Bachat maturity illustration 
according to Corporation's illustrative rates:


Bima Bachat is better than Old Jeevan Shree(112)!

A good guide in ppt format
highlights the best things in Bima Bachat.
It argues and establishes that 
Bachat is better than Jeevan Shree, 
one of the best ever plans of LIC!

Sent by: N R SINGH

Current year Claim settlement

Claim Settlement during the first 6 months of the current financial year
Source: IRDA


A presentation on