ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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A Decade of LIC

The Life Insurance Corporation completed a decade of existence at the end of August. It has celebrated this even by announcing a substantial increase in new business beyond the Rs 700 crore level at which it had been stuck for several years. During the year ended March 1966, it underwrote Rs 798 crores, against Rs 200 crores before nationalisation.

The Life Insurance Corporation completed a decade of existence at the end of August. It has celebrated this even by announcing a substantial increase in new business beyond the Rs 700 crore level at which it had been stuck for several years. During the year ended March 1966, it underwrote Rs 798 crores, against Rs 200 crores before nationalisation. The average sum assured per policy has risen over the decade from Rs 3,530 to Rs 5,110, and the total business in force from Rs 1,220 crores under 48 lakh policies to Rs 4,387 crores under 115 lakh policies. Total investments pertaining to life business have expanded from Rs 349 crores to Rs 961 crores after building up a Rs 51 crore reserve against depreciation in investments. Out of a total investment of Rs. 896 crores in India, 73 per cent is in the public sector, six per cent in cooperatives, one per cent in the joint sector and the remaining 20 per cent in the private sector. Over this 10year period, total assets have more than doubled from Rs 415 crores to Rs 1,100 crores. Mortgage loans have increased over the period from Rs 4 crores to Rs 16 crores. During 196566 alone, LIC underwrote 96 new capital issues for an aggregate sum of Rs 21 crores, against Rs 10 crores during the eight years 1956 to 1963, and Rs 6 crores in 1964.

New business in rural areas (as defined in the Census of 1961) has increased from Rs 183 crores in 1961 to Rs 221 crores in 196566. The scheme for collection of premia through selected post offices ,which was so far restricted to a few States, has now been extended to the whole country. An increasing proportion of the new business underwritten is under nonmedical schemes: 21 per cent (Rs 164 crores) in 196566 against 16 per cent only in 1961 when it was introduced. A special study of mortality experience under this scheme is currently in hand. The salary savings scheme has fetched new business of Rs 109 crores, against Rs 77 crores in the previous year and Rs 14 crores in 1958 when it was introduced. The coverage of this scheme is being extended steadily to various categories of Government employees. Foreign business has declined to Rs 8.5 crores from Rs 11 crores in the previous year.

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