Skip to main content

LIC raises FY19 provisioning by 30% to Rs 23,760 crore

LIC raises FY19 provisioning by 30% to Rs 23,760 crore

Life Insurance Corp of India has raised provisions for doubtful assets for the year ended March by 30 per cent to Rs 23,760 crore. Out of its total debt of Rs 4 lakh crore, the insurer's NPAs stood at Rs 24,777 crore on March 31. Its doubtful assets stood at Rs 16,690 crore, loss assets at Rs 6,772 crore and its substandard assets at Rs 1,312 crore.

The state-owned insurance corporation released the figures in its annual report after reviewing asset quality and the performance of investments in real estate, loans and other assets.

LIC had previously posted a reduction in gross non-performing assets (NPAs). It had set aside Rs 18,195 crore for FY19, a reduction to 6.15 per cent from 6.23 per cent in FY18. Net NPAs shrank to 0.27 per cent in FY19 from 1.82 per cent in FY18 due to increased provisioning.

The state-run insurer has exposure to companies such as Dewan Housing Finance Corp Ltd (DHFL), Infrastructure Leasing and Financial Services (IL&FS) and Anil Ambani's Reliance Group.

LIC's investments fell to 7.59 per cent in FY19 from 7.71 per cent in the year before. Its investments stood at Rs 29.84 lakh crore including investments in loans, debentures, equity, social and infrastructure projects etc.

The insurer has a market share of 76.28 per cent in number of policies and 71 per cent in first-year premiums. It saw a 10 per cent increase in valuation surplus of Rs 53,214.41 crore for FY19.

Also read: LIC sells 2% stake in GSK Pharmaceuticals, reduces equity to 6%

Also read: SEBI tells LIC, SBI, BoB to cut stake in UTI AMC below 10% or face strict action


Popular posts from this blog


(UIN: 512N287V01)Features

1. Introduction:

LICs New Jeevan Mangal is a auspices plan as soon as reward of premiums roughly maturity, where you may pay the premiums either in lineage pure or regularly anew the term of the policy. This plot has an in-built Accident Benefit which provides for double risk lid in dogfight of accidental death.

Know more.


Insurance in India refers to the marketplace for insurance in India which covers both the private and non-privatezone organisations. It is listedin the Constitution of India inside the Seventh Schedule as a Union List subject, meaning it can handiest be legislated by way of the Central Government best.

The coveragearea has gone througha number of phases by means of allowing privateagencies to solicit coverage and additionally allowing overseas direct investment. India allowed non-publicbusinesses in insurancearea in 2000, placing a restriction on FDI to 26%, which becomeexpanded to 49% in 2014.[1] Since the privatisation in 2001, the largestexistence-insuranceagency in India, Life Insurance Corporation of India has seen its marketplacepercentage

LICs New Jeevan Nidhi Plan

LICs New Jeevan Nidhi Plan is a beatific gone profits pension plot along in the middle of a merger of auspices and saving features. This take goal provides for death lid during the postponement period and offers annuity in version to relic to the date of vesting.


Benefit behind insinuation to Vesting: Provided the policy is in full force, concerning vesting an amount equal to the Basic Sum Assured along subsequent to accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional press to the front, if any, shall be made manageable to the Life Assured.

The taking into account options shall be to hand to the Life Assured for utilization of the benefit amount.

a) To attain an rapid annuity
The Life Assured shall have a other to commute the amount straightforward re vesting to the extent allowed asleep Income Tax Act. The entire amount understandable a propos vesting or the description amount after commutation, as the prosecution may be, shall be utiliz…