LIC announces bonus for policyholders

By Our Special Correspondent

MUMBAI, SEPT. 2. Mr. G. N. Bajpai, Chairman, Life Insurance Corporation of India (LIC), has announced the bonus rates for policyholders for 2000-01 pursuant to the actuarial valuation as on March 31, 2001.

According to a press release issued by LIC, consequent to the valuation of the corporation done on March 31, 2001 a surplus of Rs. 7,585.30 crores has emerged. Out of the surplus declared, 95 per cent, that is, Rs. 7,206.03 crores is distributed as bonus to the holders of profit policies which were in force as on March 31, 2001. Five per cent of the surplus, that is, Rs. 379.27 crores is to be given to the Government as its yearly dividend.

The bonus rates for the various types of policies broadly are: Whole Life range from Rs. 95 to Rs. 106; Endowment Rs. 54 to Rs. 89; Money Back, Anticipated Endowment Rs. 53 to Rs. 72; Jeevan Mitra, Jeevan Sathi, Limited Endowment from Rs. 65 to Rs. 91; Jeevan Surabhi policies Rs. 56 to Rs. 80.

In general, policies of longer term earn higher bonuses than policies of short term. LIC has by and large maintained the previous bonus rates to the policy holders.

LIC declared the Simple Reversionary Bonus as a result of the valuation for all with profit policies subject to the stipulated conditions. In addition to this, final (additional) bonus rates were also announced for policies fulfilling the stipulated conditions depending upon term and sum assured of the policy.

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Section  : Business
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