LIC mobilises Rs 2,000 cr in 20 days

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The Life Insurance Corporation (LIC), which has ended 2004-05 with a total first year premium of over Rs 14,500 crore, has mobilised over Rs 2,000 crore in 20 days by selling its newly launched unit-linked product Future Plus.

Such a high mobilisation from one product has helped the the life insurance behemoth to close 2004-05 with a good growth despite facing many agitations by its employees including development officers.

Out of Rs 14,000 crore, Rs 11,500 crore will be from individual policies and another over Rs 3,500 crore will be from group insurance policies, said AK Shukla, managing director, LIC.

However, the growth in number of policies have fallen as policy holders have taken bigger insurance cover. LIC will also book heafty profit out of the bullish stock market in 2004-05.

‘‘The corporation had targeted 1% of profit from its investment which is expected to touch around Rs 4,00,000 crore,’’ said a top official of the corporation.

The corporation’s surplus income is expected to take a hit as it had to pay huge extra tax which is linked to its funds meant for solvency margin.

The corporation, after paying the amount which is over Rs 2,000 crore, is pleading before the tax apellatte authority to get refunds.

‘‘We are in the process of paying the extra tax but have approached the appallatte authority,’’ said the top officual.

Meanwhile, three of the managing directors of the corporation, AK Shukla, K Sridhar, TS Vijyan has been inteviewed by the centre for the selection of chiarman of the corporation.