LIC settles 561 Covid claims worth Rs 27 crore

Mumbai: Life Insurance Corporation of India said that it has settled 561 Covid-19 death claims amounting to nearly Rs 27 crore till last week. The insurer has also relaxed its norms amid the lockdown to process maturity claims based on email submissions of survival-benefit requirements and is settling such claims without the policy document if certain conditions are met.

“Death claims arising due to Covid-19 are treated on a 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,” the corporation said.

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

The corporation on Thursday also announced its audited figures FY20. New business (first-year premium) for the year ending March 2020 grew 25 % to a record Rs 1.8 lakh crore. Pension & group superannuation business also crossed the Rs 1-lakh-crore milestone, with total collections of Rs 1.3 lakh crore of new business against Rs 90,848 crore in the previous year, recording a growth of over 39%.

Total premium income (new policies and renewals) amounted to Rs 3.8 lakh crore for FY20 as compared to Rs 3.4 lakh crore in FY19, recording a growth of over 12%. Total policy payouts for the year were Rs 2.54 lakh crore, a 1% increase over Rs 2.51 lakh crore in FY19. At the end of the year, the corporation had a market share of nearly 76% in policies and 69 % in first-year premium.

LIC’s gross total income, which includes investment income, rose to Rs 6.2 lakh crore for FY20 — up nearly 10% from Rs 5.6 lakh crore in FY19. The corporation’s total assets increased 3% to nearly Rs 32 lakh crore from a little over Rs 31 lakh crore in FY19.

Source: The Times of India

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