Formed on September 1, 1956, its primary objective was to spread life insurance widely across the country, especially in rural areas, and provide financial security to all insurable individuals at a reasonable cost. Even after the liberalization of the Indian insurance sector in the late 1990s, LIC continues to be the dominant life insurer in the country. LIC boasts a vast network of branches, divisional offices, and agents, ensuring a wide reach across India. It offers a comprehensive suite of life insurance and investment products, including term insurance, endowment plans, unit-linked insurance plans (ULIPs), pension plans, and health insurance. LIC is also a major investor in various sectors of the Indian economy and has built a strong reputation for trust and reliability among the people of India over its many years of operation.
Latest News on LIC India
Life Insurance Corporation (LIC) is reportedly considering acquiring a stake in ManipalCigna Health Insurance.
The Life Insurance Corporation of India (LIC) is in talks to acquire a significant stake in ManipalCigna Health Insurance, a joint venture between India-based Manipal Education & Medical Group and US-based Cigna Corporation. The proposed deal would value the health insurer at approximately Rs35bn-37.5bn ($408m-437m) and would mark LIC’s entry into the health insurance space. The stake being considered is between 40-49%, which would give LIC a substantial presence in the health insurance market.
The Manipal Group currently holds a 51% stake in ManipalCigna, while Cigna holds the remaining 49%. If the deal is finalized, it would be a significant move for LIC, which has been looking to expand its presence in the insurance sector. The company’s managing director and CEO, Siddhartha Mohanty, has hinted at a deal announcement by the end of March, but did not disclose the identity of the target company.
The completion of the deal is subject to approvals from LIC’s board and regulatory authorities. Mohanty has indicated that the size of the stake is subject to various factors, including valuations and a board decision, suggesting that LIC may not seek a controlling interest in the health insurer. The deal would be a natural fit for LIC, which has been looking to diversify its portfolio and expand its presence in the insurance sector.
The acquisition discussions have been ongoing, and while no binding agreement has been signed yet, the deal is expected to be finalized soon. The move would be a significant development in the Indian insurance sector, with LIC’s entry into the health insurance space likely to increase competition and drive growth in the market. With its strong brand and extensive distribution network, LIC is well-positioned to make a significant impact in the health insurance sector.
The deal would also be a positive development for ManipalCigna, which would gain access to LIC’s vast resources and expertise. The partnership would enable ManipalCigna to expand its reach and offer a wider range of products and services to its customers. Overall, the proposed deal between LIC and ManipalCigna is a significant development in the Indian insurance sector, and its completion would be a major milestone for both companies.
On October 8, 2025, insurance agents and associations are likely to raise the issue of Goods and Services Tax (GST) with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry.
The insurance industry in India is facing a significant issue related to the Goods and Services Tax (GST) and Input Tax Credit (ITC). Private insurers have reduced distributor payouts by 15-18% to offset the loss of ITC, following the GST exemption on life and health insurance premiums. This move is expected to have a significant impact on agents, brokerages, and individual advisors, particularly small and independent operators. The reduction in payouts will directly cut into their working capital, leading to reduced take-home income and morale, especially in smaller towns and rural markets.
The current GST framework, if left unadjusted, may set a precedent where insurers maintain profitability by squeezing distribution costs rather than improving efficiency. Industry associations and agents are likely to take up the issue with the Insurance Regulatory and Development Authority of India (IRDAI) and the Finance Ministry. The President of the General Insurance Agents Federation Integrated stated that the change will shrink access to insurance, which is against the Prime Minister’s vision of Insurance for All by 2047.
In contrast, Life Insurance Corporation (LIC) and other public sector insurers have decided to maintain existing commission structures, even as they pass the full GST relief to policyholders. LIC plans to offset the impact through higher policy sales and new product pricing. Public sector general insurers, including New India Assurance, Oriental Insurance, United India Insurance, and National Insurance, have also opted against cutting commissions, choosing instead to absorb the ITC loss.
Private insurers, on the other hand, are passing on the ITC burden to agents because their business models and cost structures leave little room to absorb additional expenses. The removal of ITC has raised operating costs by roughly 2-3% of premiums, and private companies must adhere to stricter IRDAI Expense of Management (EoM) caps. Absorbing this loss would directly dent profitability and risk regulatory breaches. Several private general and standalone health insurers, including Tata AIG, Aditya Birla Health Insurance, Niva Bupa, Care Health, and ICICI Lombard, have implemented revised commission structures, making payouts inclusive of 18% GST, which means distributors will bear the tax cost.
A smart way to earn ₹20,000 every month for life
The LIC Jeevan Utsav plan, offered by the Life Insurance Corporation of India, is a retirement plan designed to provide lifelong income after a limited premium-paying term. This innovative policy allows individuals to choose a premium payment period of 5 to 16 years, after which they will receive an annual income of 10% of their sum assured for life, until they turn 100. The annual income is capped at ₹2.5 lakh per year, or approximately ₹20,000 per month.
Key highlights of the LIC Jeevan Utsav plan include flexible premium term options, lifetime income, and a minimum sum assured of ₹5 lakh. The plan is available to individuals between 90 days and 65 years old. In the event of the policyholder’s death, the full sum assured is paid to the nominee. Policyholders can also choose to receive their income regularly or through a flexi option.
The waiting period for the plan varies depending on the chosen premium term. For example, a 5-year premium term has a 5-year waiting period, while an 8-16 year term has a 2-year waiting period. The plan also offers additional perks, including tax savings and a loan facility.
The LIC Jeevan Utsav plan combines lifelong income, tax benefits, and financial protection for loved ones, making it an attractive option for those seeking a financially secure and peaceful retirement. Interested individuals can visit the official LIC website or contact a registered LIC agent for more information. However, it is essential to verify the details with official LIC sources before making any financial decisions.
Overall, the LIC Jeevan Utsav plan provides a unique opportunity for individuals to secure their retirement with a guaranteed income stream. With its flexible premium terms, lifetime income, and additional benefits, this plan can help individuals achieve their retirement goals and enjoy a financially secure future. It is crucial to carefully review the plan’s terms and conditions to ensure it aligns with your individual needs and financial objectives.
FSIB recommends R. Chander for MD’s position in LIC
The Financial Services Institutions Bureau (FSIB) has announced its recommendation for the position of Managing Director at the Life Insurance Corporation of India (LIC). After interacting with five candidates from LIC on September 30, 2025, the Bureau has selected R. Chander for the role. The decision was based on the candidates’ performance during the interface, as well as their overall experience and relevant parameters.
R. Chander, currently the Chief Investment Officer and Executive Director (Investment Front Office) at LIC, has been chosen for the position of Managing Director. The FSIB statement confirmed that Chander’s recommendation was made after careful consideration of his qualifications and performance.
The LIC currently has four whole-time directors, including R. Doraiswamy, who serves as the Chief Executive Officer and Managing Director. The other Managing Directors are Sat Pal Bhanoo, Dinesh Pant, and Ratnakar Patnaik. The addition of R. Chander as a new Managing Director is expected to strengthen the leadership team at LIC.
The recommendation made by the FSIB is a significant development for LIC, as it prepares to expand its leadership team. The move is likely to have a positive impact on the corporation’s operations and strategic decision-making. With Chander’s experience and expertise in investment management, he is well-positioned to contribute to the growth and success of LIC.
The FSIB’s recommendation is subject to further approval, but it marks an important step in the process of appointing a new Managing Director at LIC. The development is also significant in the context of the Indian insurance industry, as LIC is one of the largest and most prominent players in the market. The appointment of R. Chander as Managing Director is expected to be closely watched by industry observers and stakeholders.
In conclusion, the FSIB’s recommendation of R. Chander as Managing Director at LIC is a notable development that reflects his strong credentials and experience. The move is expected to have a positive impact on the corporation’s leadership team and operations, and is likely to be closely followed by industry observers and stakeholders.
A mountain of transgressions and shattered vows
The article discusses the breach of trust by the Life Insurance Corporation of India (LIC), the country’s largest insurer, with its customers. The concept of “uberrima fides” or utmost good faith is a fundamental principle in insurance, which demands complete honesty from both parties. However, LIC has consistently violated this principle by delaying payouts, repudiating claims, and hiding behind technicalities.
The article highlights several issues with LIC’s practices, including outdated systems, deliberate indifference, and a culture of opacity and avoidance. For instance, LIC still demands notarized documents, multiple visits, and handwritten forms, making it difficult for customers to file claims. The company’s systems are designed to wear down customers, leading to delays and eventual abandonment of claims.
Moreover, LIC’s claim settlement ratio of 98% may seem impressive, but it still means that thousands of crores are rejected each year on flimsy pretexts. The company knows that most people will not fight back due to lack of time, resources, or legal knowledge. Those who do fight back often win in forums and courts, but justice is delayed, and sometimes denied.
The article also notes that LIC sits on more than ₹20,000 crore in unclaimed amounts, mostly belonging to poor or rural families who are unaware or unable to navigate the process. The company’s tracing efforts are minimal, and it earns interest on this float, making it better for LIC if the money remains unclaimed.
The author argues that LIC’s practices are not accidental but rather a system calibrated to hoard. The company’s motto, “Yogakshemam Vahamyaham” or “Your welfare is our responsibility,” has become a mockery, as it prioritizes profits over people. The article concludes that it is time for LIC to stop hiding behind nostalgia and numbers and to honor the principle of utmost good faith.
The author demands that LIC pay interest when it delays, stop weaponizing technicalities, end petty repudiations, and finally honor its commitments. Every rupee withheld is a breach of faith, and every delay is a betrayal. The article suggests that LIC’s practices are not just financially cautious but also morally collapsed, betraying the very creed it was built upon. Overall, the article is a scathing critique of LIC’s practices and a call to action for the company to reform and prioritize its customers’ welfare.
Stock Market Updates for LIC India
Recent Updates
LIC Schemes: LIC has introduced two new plans, offering potentially high returns.
The Life Insurance Corporation of India (LIC) has introduced two new insurance products, LIC Jan Suraksha and LIC Bima Lakshmi, which will be available for sale starting October 15. Both schemes are non-linked and non-participating, meaning they are not affected by market fluctuations, ensuring a safe investment. These products cater to different individual needs and are designed with the domestic market in mind.
LIC Jan Suraksha is specifically designed for low-income individuals, offering insurance coverage at a low premium. This plan is risk-free, making it an affordable and reliable option for those with limited income. It is a non-participating, non-linked insurance plan, which means it does not offer any bonuses and is not linked to the market.
On the other hand, LIC Bima Lakshmi is designed for the middle-class, providing both life insurance and savings benefits. A maturity amount is paid upon completion of the policy term, and investments are completely safe since it is not linked to the market. This plan is also non-participating and non-linked, meaning its returns are independent of market performance, and there are no bonuses. It aims to cover individuals who want to combine savings with insurance protection.
The launch of these two schemes provides investors with more options, catering to the diverse needs of the general public. Both plans offer a sense of security and stability, as they are not affected by market fluctuations. It is essential to note that investors should make informed decisions and take responsibility for their financial investments. The introduction of these products by LIC is expected to provide a boost to the insurance sector, offering more choices to customers and promoting financial inclusion.
Earn a monthly pension of up to ₹44,000.
The Life Insurance Corporation (LIC) of India has introduced the Smart Pension Plan 2025, a retirement planning solution that provides a guaranteed monthly income for life in exchange for a one-time lump sum investment. This non-linked, non-participating annuity plan is available for a minimum investment of ₹1 lakh. The plan’s payout structure is such that an investment of ₹10 lakh yields approximately ₹6,000 per month, while a larger investment of ₹50 lakh can result in a monthly pension of up to ₹44,000.
The LIC Smart Pension Plan 2025 is particularly suited for senior citizens aged 60 years and above, offering a range of benefits that cater to their financial needs during retirement. These benefits include a guaranteed monthly pension, an easy application process with fixed returns, and liquidity support in emergencies. Additionally, the plan provides tax benefits, which can help enhance savings potential.
One of the primary advantages of the LIC Smart Pension Plan 2025 is that it ensures the safety of one’s investment while providing a dependable income stream during retirement. With the rising costs of living and limited financial avenues available in old age, this plan can serve as a reliable companion for a secure and worry-free future. By investing in the LIC Smart Pension Plan 2025, individuals can enjoy a regular monthly income for life, thereby mitigating the risks associated with outliving their savings.
The plan’s implementation on February 18, 2025, marks a significant development in the Indian insurance industry, as it addresses the growing need for retirement planning solutions. With its attractive features and benefits, the LIC Smart Pension Plan 2025 is poised to become a popular choice among individuals seeking to secure their financial future. As such, it is essential for those planning their retirement to consider this plan and take advantage of its benefits to ensure a comfortable and secure post-work life.
LIC of India will launch 2 new schemes starting tomorrow, namely LIC’s Jan Suraksha and LIC’s Bima Lakshmi.
The Life Insurance Corporation of India (LIC) is set to launch two new schemes, LIC’s Jan Suraksha and LIC’s Bima Lakshmi, starting tomorrow. These schemes aim to provide financial security and protection to individuals and their families. Here are the details of the two schemes:
LIC’s Jan Suraksha
LIC’s Jan Suraksha is a micro-insurance plan that offers a sum assured of up to ₹50,000. The plan is designed for individuals who are not covered under any other life insurance policy. The scheme provides a death benefit to the nominee in the event of the policyholder’s death. The plan has a minimum entry age of 18 years and a maximum entry age of 50 years.
The premium for LIC’s Jan Suraksha is affordable, with a minimum annual premium of ₹100. The plan also offers a free look period of 15 days, during which the policyholder can return the policy if they are not satisfied with the terms and conditions.
LIC’s Bima Lakshmi
LIC’s Bima Lakshmi is a money-back plan that offers a combination of protection and savings. The plan provides a lump sum benefit to the policyholder on the death of the child, as well as a survival benefit paid at regular intervals. The plan is designed for parents who want to secure their child’s financial future.
The plan offers a sum assured of up to ₹1 lakh, with a minimum entry age of 0 years (for children) and a maximum entry age of 12 years. The premium payment term is limited to 5-10 years, with a maximum maturity age of 25 years.
The key benefits of LIC’s Bima Lakshmi include a money-back benefit of 20% of the sum assured at the end of the 5th, 10th, and 15th policy years, as well as a maturity benefit of 40% of the sum assured at the end of the policy term.
Key Features
Both schemes offer a range of benefits and features, including:
- Affordable premiums
- Flexible payment options
- Free look period
- Tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961
- Option to take a loan against the policy
- Rider options, such as accidental death and disability benefit rider
Overall, LIC’s Jan Suraksha and LIC’s Bima Lakshmi are designed to provide financial security and protection to individuals and their families. The schemes offer a range of benefits and features, making them an attractive option for those looking to invest in a life insurance policy. With their launch tomorrow, individuals can visit the LIC website or visit a nearby branch to learn more and purchase the policies.
LIC clocks 14.6% growth in individual premium for June
The Life Insurance Corporation of India (LIC) has reported a significant increase in individual premiums for the month of June 2025. According to data released by the Life Insurance Council, LIC’s individual premiums grew by 14.6% year-on-year, outpacing the 12.12% growth rate of private life insurers. This robust growth is a positive sign for the company, which is the largest life insurer in the country.
In terms of overall premium collection, LIC collected Rs 22,082.37 crore in group premiums in June 2025, down from Rs 23,731.13 crore in June 2024. The overall new business premium fell by 3.43% to Rs 27,395 crore in June 2025, compared to Rs 28,366.87 crore in June 2024. The total number of policies issued by LIC during the month stood at 12.49 lakh, down from 14.65 lakh in June 2024.
For the quarter ending June 2025, LIC’s total premium collection stood at Rs 59,410.69 crore, up from Rs 57,440.89 crore in the same period last year. The individual premium segment grew by 5.34% to Rs 12,503.68 crore, while the group premium segment increased by 2.93% to Rs 46,907.01 crore. LIC issued a total of 30.43 lakh policies during the quarter, down from 35.72 lakh policies in the same period last year.
The data suggests that while LIC’s individual premium business is growing strongly, the company’s group premium business and overall policy issuance are declining. The decline in group premium collection and policy issuance could be a cause for concern, and the company may need to take steps to revitalize its group business. Overall, however, LIC’s performance in the quarter ending June 2025 is a positive sign for the company, and it remains to be seen how the company will perform in the coming months.
It is worth noting that the life insurance industry is highly competitive, and companies need to continuously innovate and adapt to changing market conditions to remain competitive. LIC’s ability to grow its individual premium business is a testament to its strong distribution network and product offerings. However, the company needs to focus on reviving its group business and increasing policy issuance to maintain its market leadership.
In conclusion, LIC’s performance in the quarter ending June 2025 is a mixed bag, with strong growth in individual premiums but declining group premium collection and policy issuance. The company needs to take steps to address these challenges and maintain its market leadership in the highly competitive life insurance industry.
The Central Bureau of Investigation (CBI) has booked a LIC Admin Officer for allegedly embezzling ₹43.8 lakh and tampering with records to conceal the fraud.
The Central Bureau of Investigation (CBI) has launched an investigation into an administrative officer with the Life Insurance Corporation of India (LIC) for allegedly embezzling ₹43.8 lakh. The officer, who worked in the pension and group schemes unit, is accused of transferring funds to third-party accounts and then to his own account between July 2023 and January 2024. According to the CBI, the officer conspired with others to misappropriate the funds and attempted to destroy related records to conceal evidence.
An internal investigation by LIC identified five individuals whose bank accounts received the embezzled funds. However, it was discovered that none of these individuals were beneficiaries of any LIC group insurance scheme. The accused officer also tried to destroy documents and papers related to the accounts. During the investigation, the officer admitted to the crime and refunded the money from his personal account.
Despite recovering the entire amount, LIC decided to file a complaint with the CBI, alleging cheating, embezzlement, and criminal breach of trust. The CBI has registered a case under the Indian Penal Code and Prevention of Corruption Act. The accused officer’s actions were deemed a serious breach of trust, and the CBI will investigate the matter further to determine the extent of the officer’s wrongdoing and potential conspirators.
The incident highlights the importance of internal controls and audits in preventing corruption and embezzlement. It also demonstrates the willingness of organizations like LIC to take action against corrupt employees and cooperate with law enforcement agencies to bring perpetrators to justice. The CBI’s investigation will aim to uncover the full extent of the embezzlement scheme and ensure that those responsible are held accountable.
- LIC (Life Insurance Corporation of India): With a claim settlement ratio of 98.62%, LIC is one of the most trusted life insurance companies in India.
- HDFC Life Insurance: Offering a claim settlement ratio of 99.07%, HDFC Life Insurance is known for its efficient claim processing.
- ICICI Prudential Life Insurance: With a claim settlement ratio of 98.58%, ICICI Prudential is a popular choice among policyholders.
- SBI Life Insurance: SBI Life Insurance has a claim settlement ratio of 94.99%, making it a reliable option for life insurance.
- Max Life Insurance: Max Life Insurance boasts a claim settlement ratio of 99.22%, ensuring that policyholders receive their claims in a timely manner.
- Tata AIA Life Insurance: With a claim settlement ratio of 99.07%, Tata AIA Life Insurance is a trusted name in the Indian life insurance market.
- Bajaj Allianz Life Insurance: Bajaj Allianz Life Insurance has a claim settlement ratio of 98.48%, providing policyholders with peace of mind.
- Kotak Mahindra Life Insurance: Kotak Mahindra Life Insurance offers a claim settlement ratio of 98.15%, making it a popular choice among policyholders.
- PNB MetLife India Insurance: With a claim settlement ratio of 97.18%, PNB MetLife India Insurance is a reliable option for life insurance.
- Aegon Life Insurance: Aegon Life Insurance has a claim settlement ratio of 98.01%, ensuring that policyholders receive their claims efficiently.
- Exide Life Insurance: Exide Life Insurance boasts a claim settlement ratio of 98.47%, providing policyholders with a smooth claim experience.
- Reliance Nippon Life Insurance: With a claim settlement ratio of 97.71%, Reliance Nippon Life Insurance is a trusted name in the Indian life insurance market.
- Birla Sun Life Insurance: Birla Sun Life Insurance has a claim settlement ratio of 96.35%, making it a reliable option for policyholders.
- Aviva Life Insurance: Aviva Life Insurance offers a claim settlement ratio of 97.41%, ensuring that policyholders receive their claims in a timely manner.
- Future Generali India Life Insurance: With a claim settlement ratio of 95.71%, Future Generali India Life Insurance is a popular choice among policyholders.
- Canara HSBC OBC Life Insurance: Canara HSBC OBC Life Insurance has a claim settlement ratio of 95.39%, providing policyholders with a smooth claim experience.
- Pramerica Life Insurance: Pramerica Life Insurance boasts a claim settlement ratio of 95.55%, ensuring that policyholders receive their claims efficiently.
- Aditya Birla Sun Life Insurance: Aditya Birla Sun Life Insurance has a claim settlement ratio of 96.67%, making it a trusted name in the Indian life insurance market.
- Star Union Dai-ichi Life Insurance: With a claim settlement ratio of 95.13%, Star Union Dai-ichi Life Insurance is a reliable option for policyholders.
- Shriram Life Insurance: Shriram Life Insurance offers a claim settlement ratio of 94.99%, providing policyholders with peace of mind.
The life insurance industry in India has evolved from being a tax-saving instrument to a vital component of financial security. The Insurance Regulatory and Development Authority of India (IRDAI) plays a crucial role in regulating life insurance companies, setting standards such as Claim Settlement Ratio (CSR) and solvency ratio. As of FY 2024-25, private insurers in India have shown remarkable efficiency in settling death claims, with an average CSR of almost 99% within 30 days.
The top life insurance companies in India, ranked based on CSR, financial strength, and customer service quality, are:
1. Life Insurance Corporation of India (LIC) – With a CSR of 99.48% and a solvency ratio of 2.11, LIC continues to be the nation’s largest and most trusted life insurer.
2. HDFC Life Insurance – Achieving a CSR of 99.96% and a solvency ratio of 2.03, HDFC Life is a leader in digital services and has a broad product portfolio.
3. ICICI Prudential Life Insurance – With a CSR of 99.3% and a solvency ratio of 212.2%, ICICI Prudential has consistently demonstrated operational excellence.
4. SBI Life Insurance – Backed by the State Bank of India, SBI Life reported a CSR of 99.4% and a solvency ratio of 1.96, showcasing strong financial soundness.
5. Axis Max Life Insurance – Sustaining one of the industry’s highest CSR at 99.65%, Axis Max Life has a customer-centric approach and strong capital adequacy.
6. Bajaj Allianz Life Insurance – Achieving a CSR of 99.23% and a solvency ratio of 325%, Bajaj Allianz has reinforced its reputation for financial stability and innovation.
7. Kotak Mahindra Life Insurance – Reporting a CSR of 98.7% and a solvency ratio of 2.27, Kotak Life has steadily gained ground in India’s life insurance industry.
8. Aditya Birla Sun Life Insurance – With a CSR of 98.12% and a solvency ratio of 1.94, Aditya Birla Sun Life balances Indian legacy with global expertise.
9. Tata AIA Life Insurance – Achieving a CSR of 99.41% and a solvency ratio of 180%, Tata AIA has established itself as one of the most reliable private insurers.
10. PNB MetLife India Insurance – With a retail CSR of 99.57% and a group CSR of 99.72%, PNB MetLife has further strengthened its position through strong financial and operational performance.
When selecting a life insurance company, policyholders should consider the CSR, solvency ratio, and service quality. The life insurance industry in India is booming, driven by increasing financial literacy, digital penetration, and awareness about protection and retirement planning. The key takeaway for policyholders is that numbers matter, and they should always check a life insurer’s CSR, solvency ratio, and service quality before making a purchase. Ultimately, life insurance is not just about tax benefits, but about securing futures and providing peace of mind.
LIC’s Cancer Cover Valid Only If ‘First Diagnosis’ Occurs After Waiting Period, Not Expert Confirmation: Kerala High Court
The Kerala High Court has ruled in favor of the Life Insurance Corporation (LIC) in a case involving a cancer patient’s claim for insurance coverage. The claimant, a policyholder, had renewed her cancer cover in March 2021, which included a waiting period of 180 days. During this period, she was hospitalized due to bleeding and underwent several tests, including an ultrasound, histopathology, and MRI, which suggested that she had endometrial carcinoma. However, the final confirmation of cancer was made through a biopsy report on September 28, 2021, after the waiting period had ended.
The claimant argued that the diagnosis of cancer should be considered as the date of confirmation by the expert, which was after the waiting period. However, the court relied on the definition of “diagnosis” from Taber’s Cyclopedic Medical Dictionary, which states that diagnosis refers to the disease or syndrome a person has or is believed to have, and the use of scientific or clinical methods to establish the cause and nature of a person’s illness or injury.
The court held that the first diagnosis of cancer was made within the waiting period, and the subsequent confirmation by the expert was only a confirmation of the earlier reports. Therefore, the claimant was not entitled to policy coverage. The court also rejected the insurer’s contention that the claimant had suppressed the material fact that her mother had cancer, as there was no evidence to contradict the claimant’s submission that her mother was 74 years old at the time.
The court allowed LIC’s appeal and dismissed the writ petition, holding that the claimant is not entitled to cancer coverage. The judgment was made by Justices Anil K. Narendran and Muralee Krishna S. in the case of Life Insurance Corporation of India v. Haripreetha T. and Anr. (Case No: WA 1670 of 2024). The counsel for the appellant was Harish Gopinath, and the counsel for the respondents was K. Balachandran. The citation for the judgment is 2025 LiveLaw (Ker) 628.
A Step Toward Women’s Economic Empowerment
The Life Insurance Corporation of India (LIC) has introduced the Bima Sakhi Yojana, a scheme aimed at empowering women in rural and semi-urban areas by providing them with employment opportunities, training, and financial independence. This initiative aligns with the government’s goal of promoting gender equality and financial inclusion. The Bima Sakhi Yojana is a women-centric program that enables rural women to become LIC agents and participate in the life insurance business. By becoming a Bima Sakhi, women can earn a stable income, develop skills in the insurance sector, and enhance their financial literacy and confidence.
The scheme offers several benefits, including monthly earnings of up to ₹7,000, training and support, flexible working hours, and the opportunity to promote financial independence. Bima Sakhi agents can work from home or within their communities, making it an ideal opportunity for those with family responsibilities. The scheme also provides incentives and recognition for successful agents, which can help them gain respect and prestige within their communities.
To be eligible for the Bima Sakhi Yojana, applicants must meet certain criteria, including being a woman between 18 and 45 years of age, having basic literacy, and residing in rural or semi-urban areas. The application process is relatively simple, involving a visit to the nearest LIC branch, filling out an application form, attending training sessions, and starting to sell LIC life insurance policies.
The Bima Sakhi Yojana is significant because it provides a pathway to empowerment for rural women, helping them to become financially independent and gain control over their lives and decisions. The scheme also helps to spread financial awareness in rural areas, contributes to the overall financial security of communities, and challenges societal norms that restrict women’s participation in the workforce. With its flexible work structure and potential for a monthly income of ₹7,000, the Bima Sakhi Yojana offers a win-win situation for both women and their communities.
The scheme is an excellent initiative that promotes women’s empowerment while benefiting the broader community. It enables rural and semi-urban women to earn an income, gain valuable skills in the insurance sector, and become active participants in their financial futures. For women looking for an opportunity to contribute to their family’s income while helping others secure their financial future, the LIC Bima Sakhi Yojana is a step towards independence and empowerment.
The government is considering a merger of state-owned general insurance companies.
The Indian government is contemplating a significant move to merge four state-owned general insurance companies into a single entity. The companies in question are New India Assurance, National Insurance, Oriental Insurance, and United India Insurance. The primary objective behind this proposed merger is to create a robust general insurance giant that can effectively compete with private players in the market.
This consolidation is envisioned to mirror the success of the Life Insurance Corporation of India (LIC), which has established itself as a formidable entity in the life insurance sector. By merging these four companies, the government aims to enhance the reach and expansion of general insurance services across the country, potentially leading to increased penetration and accessibility of insurance products for the populace.
According to sources privy to the matter, the discussions regarding the merger are still in their preliminary stages. One of the critical aspects being evaluated is how the General Insurance Corporation (GIC) will manage the crop insurance business under the new structure. This consideration is crucial, as crop insurance is a significant component of general insurance, especially given India’s agrarian economy.
Despite the significance of this development, the Finance Ministry has chosen not to comment on the matter at this juncture. When approached for a response, the ministry did not respond to the email query, suggesting that the discussions are either too premature or sensitive to be publicly disclosed at this point.
The potential merger of these state-owned general insurance companies into a single entity could have far-reaching implications for India’s insurance landscape. It could lead to a more competitive market, improved services, and possibly better premiums for policyholders. However, the success of such a merger would depend on various factors, including the structural and operational integration of the companies, the retention of talent, and the ability to compete effectively with private sector players.
As the Indian government continues to explore this proposal, it will be essential to monitor the developments closely. The creation of a strong, state-owned general insurance giant could be a pivotal moment in the evolution of India’s financial services sector, with potential benefits for both the industry and the insuring public. However, the path ahead will require careful planning, strategic decision-making, and a deep understanding of the complexities involved in merging large and complex organizations.
LIC to fast-track insurance claims for victims of Air India AI-171 crash
In the aftermath of the devastating crash of Air India Flight AI-171 in Ahmedabad, the Life Insurance Corporation of India (LIC) has announced immediate measures to alleviate the financial burden on the families of the victims. The insurer expressed deep sorrow over the loss of lives, including passengers, crew members, and individuals on the ground. To support the affected families, LIC has introduced several concessions, including expediting claim settlements and accepting alternative proof of death, such as government records or compensation paid by authorities, in lieu of death certificates.
LIC has assured that it is fully committed to providing financial relief to those affected and has introduced special measures to ease the claim process. The company will reach out to claimants and settle claims as quickly as possible. Families can contact the nearest LIC branch, division, or customer zone for further assistance, or call the LIC call centre at 022-68276827. Private insurer Bajaj Allianz Life Insurance has also announced special measures, setting up a dedicated claims settlement desk to prioritize death and disability claims of those impacted by the crash.
Prime Minister Narendra Modi visited the crash site and met with injured victims at Ahmedabad Civil Hospital, expressing his grief on social media platform X. The loss of lives in the crash has left the entire nation shocked, and the Prime Minister’s visit is a gesture of solidarity with the affected families. The insurance companies’ measures are aimed at providing timely financial support to the families of the victims, helping them to cope with the tragic loss. The expedited claim settlements and concessions will go a long way in alleviating the financial burden on the families, allowing them to focus on rebuilding their lives.
Life insurance companies pay a 4% commission on Unit Linked Insurance Plans (ULIPs).
Recent data from the Insurance Regulatory and Development Authority of India (IRDAI) reveals that life insurance companies paid an average commission of 4.03% to distributors for Unit-Linked Insurance Plans (ULIPs) in 2024, up from 3.13% in 2023. The total commission paid for ULIPs in 2024 was Rs. 4,900 crore, while the total ULIP premiums collected were Rs. 1.21 lakh crore.
Tata AIA Life topped the list of insurers, paying 11.22% in commissions to distributors, followed by Aviva Life at 8.32%, and Shriram Life at 6.65%. Other insurers, such as Axis Max Life, HDFC Life, and PNB MetLife India, also paid significant commissions, ranging from 4.92% to 4.67%.
In absolute terms, SBI Life paid the highest commission on ULIPs, amounting to Rs. 1,371 crore in 2024, followed by Tata AIA Life at Rs. 818 crore, and HDFC Life at Rs. 701 crore. ICICI Prudential Life and Axis Max Life also paid substantial commissions, with Rs. 548 crore and Rs. 354 crore, respectively.
The data highlights the significant role that commissions play in the sale of ULIPs in India. ULIP commissions accounted for 9.5% of the total commission payout in FY 2024. The high commissions paid by some insurers suggest that they are relying heavily on distributors to sell their ULIP products.
The top 10 life insurers in terms of ULIP commission payouts were SBI Life, Tata AIA Life, HDFC Life, ICICI Prudential Life, Axis Max Life, Bajaj Allianz Life, LIC, Kotak Mahindra Life, Aditya Birla Sunlife, and PNB MetLife India. These insurers paid a total of Rs. 3,831 crore in ULIP commissions in 2024, accounting for approximately 78% of the total ULIP commission payout.
The data also shows that some insurers, such as Bandhan Life and Future Generali India Life, paid very low commissions, with 0.01% and 1%, respectively. This suggests that these insurers may be relying more on other distribution channels, such as online sales or direct marketing, to sell their ULIP products.
Overall, the data provides insights into the commission structures of life insurers in India and highlights the importance of distributors in the sale of ULIPs. It also suggests that some insurers are relying heavily on commissions to drive sales, which could have implications for policyholders and the overall insurance industry.
Applications are now open for the LIC Golden Jubilee Scholarship for the academic year 2025-26.
The Life Insurance Corporation of India (LIC) is offering the LIC Golden Jubilee Scholarship for the academic year 2025-26. This scholarship is designed to support students from economically weaker sections who are pursuing higher studies. To be eligible for the scholarship, students must have passed Class 10 or 12 with a minimum of 60% marks or an equivalent grade. Additionally, the annual family income of the applicants should not exceed Rs 4,50,000.
The scholarship offers a reward of up to Rs 40,000 per annum, which can be a significant help to students who are struggling to fund their education. The application process for the scholarship is online, and students can submit their applications through the official website. The last date to apply for the scholarship is October 6, so interested students should ensure that they submit their applications before this deadline.
The LIC Golden Jubilee Scholarship is a great opportunity for students from economically weaker sections to pursue their higher studies without financial burdens. The scholarship can help students to cover their educational expenses, such as tuition fees, books, and other related costs. By offering this scholarship, the LIC is contributing to the development of talented students who may not have the financial resources to pursue their educational goals.
To apply for the scholarship, students can visit the official website and fill out the online application form. The application form will require students to provide personal and academic details, as well as information about their family income. Students should ensure that they have all the required documents and information before starting the application process.
Overall, the LIC Golden Jubilee Scholarship is a valuable opportunity for students from economically weaker sections to pursue their higher studies. With a reward of up to Rs 40,000 per annum, the scholarship can make a significant difference in the lives of talented students who are struggling to fund their education. Interested students should apply online before the deadline of October 6 to take advantage of this opportunity. The scholarship is a great initiative by the LIC to support the educational aspirations of students from weaker sections and help them to achieve their academic goals.
LIC witnessed Rs 1,100 crore inflows on the first day of offering GST-free life cover, according to a report.
The Life Insurance Corporation of India (LIC) witnessed a significant surge in inflows, exceeding Rs 1,100 crore on the first day after the goods and services tax (GST) was removed from individual traditional life insurance policies. This sharp increase is a notable contrast to the Rs 5,000 crore of monthly premium income from retail policyholders seen in August 2025. The GST exemption, which took effect on September 22, 2025, applies to term, unit-linked, and traditional life insurance products, as well as health covers such as family floaters and senior citizen plans.
Most of the surge in inflows came from regular endowment products, rather than new product launches. Prior to the tax change, LIC’s early September sales were lower compared to the previous year, as customers and agents delayed purchases in anticipation of the GST exemption. However, once the new regime came into force, pent-up demand was quickly released, resulting in the significant inflow.
Industry insiders believe that it will take several months to determine the long-term trend for the sector. Despite higher ticket sizes and increased inflows, the overall number of policies issued has declined. New business premiums grew by 6.2% during April-August 2025 compared to the same period last year, driven mainly by rising ticket sizes rather than policy count. Private insurers reported a 10% increase, while LIC’s new business premiums rose by 3%.
The overall industry new business premiums climbed to Rs 1,63,461 crore in April-August 2025 from Rs 1,54,193 crore a year earlier, even as the number of policies issued fell by 8.9%. The exemption is expected to make insurance products more affordable, potentially encouraging higher annual premium commitments for certain buyers. The Life Insurance Council reported these figures, highlighting the impact of the GST exemption on the life insurance sector.
The removal of GST from individual traditional life insurance policies has had an immediate positive impact on LIC’s inflows, with a significant surge in premium income. However, the long-term effects of this change on the industry remain to be seen. As the industry adjusts to the new regime, it will be important to monitor the trends and patterns that emerge in the coming months.
LIC is reportedly making an entry into the health insurance market by acquiring a stake in ManipalCigna.
According to a recent report, Life Insurance Corporation of India (LIC) is considering a foray into the health insurance market by acquiring a stake in ManipalCigna Health Insurance Company. This move is seen as a strategic expansion of LIC’s business portfolio, which currently dominates the life insurance market in India.
ManipalCigna Health Insurance is a joint venture between Manipal Group and Cigna Corporation, a global health insurance company. The company offers a range of health insurance products and services in India, including individual and group health insurance plans, critical illness coverage, and top-up plans.
If the deal goes through, LIC’s acquisition of a stake in ManipalCigna Health Insurance would mark its entry into the health insurance market, which is currently dominated by private players such as Max Bupa, Apollo Munich, and Star Health. The move would also enable LIC to leverage its vast distribution network and customer base to sell health insurance products.
The report suggests that LIC is looking to acquire a significant stake in ManipalCigna Health Insurance, which could range from 20% to 40%. The deal is expected to be valued at around Rs 1,000-1,500 crore (approximately $137-$204 million USD).
LIC’s foray into the health insurance market is seen as a natural extension of its business, given the growing demand for health insurance products in India. The company’s vast distribution network, which includes over 2,000 branches and a large network of agents, would provide a significant advantage in selling health insurance products.
The acquisition would also enable LIC to diversify its revenue streams and reducing its dependence on the life insurance business. The health insurance market in India is expected to grow rapidly in the coming years, driven by increasing healthcare costs, rising awareness about health insurance, and government initiatives to promote health insurance.
Overall, LIC’s potential acquisition of a stake in ManipalCigna Health Insurance is seen as a strategic move to expand its business portfolio and tap into the growing demand for health insurance products in India. The deal would also provide a significant boost to the health insurance market in India, which is expected to witness rapid growth in the coming years.