LIC invested Rs 40,000 crore in equities in FY17
LIC Chairman VK Sharma said that the company will adhere to the norm of having 20 percent of total investable corpus under equities.
May 16, 2017 / 08:22 PM IST
Life Insurance Corporation of India (LIC) invested Rs 40,000 crore in financial year 2016-17 with Chairman VK Sharma saying that the company will adhere to the norm of having 20 percent of total investable corpus under equities.
"We have invested about Rs 40,000 crore in FY17 and earned about Rs 19,000 crore from stock sales. We are a contrarian player in the market. We are not a player in the market. We keep an eye on the market and when we feel that there is a reasonable scope, we put in money,” he explained.
There was a marginal drop in the new policy sales by the insurer. Sharma said that this was because of the lack of adequate new products in their portfolio. He added that they hope to come back to the old level in one to two years.
The insurer, will, however, stay heavily focused on traditional plans. Sharma explained that they have collected Rs 100-200 crore of premium from their unit linked insurance plan (ULIP). As a traditional insurance company, our job is not just to protect life risk but also the corpus of the policyholder, he added.
To cater to customer segments across age groups, LIC has launched a new product, Jeevan Umang, that provides maturity benefit up to the age of 99 years. The survival benefit will be equal to 8 percent per annum of basic sum assured. The plan is available from 90 days to 55 years. There is no maximum sum assured limit while the minimum sum assured is Rs 2 lakh.
Recently, LIC was made party to a Public Interest Litigation in the Bombay High Court that has raised concerns about insurance companies investing in tobacco firms.
"Even if we were to sell our investment in tobacco companies, somebody else will buy it. That is not going to address the issue of smoking. Beyond that, the issue is sub-judice," said Sharna.