LIFE September 2019
IRDAI asks insurers to expedite life insurance claims in flood – hit states.
IRDAI has asked insurers to relax procedures wherever possible to expedite life insurance claim settlements in flood affected states. In a circular sent to Chief Executive Officers of all life insurance companies, the authority had directed them to initiate immediate action “to ensure that all reported claims re registered and eligible claims are settled expeditiously. A state wise progress report on the claims settled should also be submitted to the authority, it said. With regard to claims involving loss of life where difficulty is faced in obtaining a death certificate due to non-recovery of body, the procedure followed in the aftermath of the floods in Chennai in 2015 may be considered.
LIC’s stake in Hindalco increased to 10.39%
Shares of Hindalco may remain in focus as Life Insurance Corporation of India (LIC) has increased its stake in the company. In a notice to bourses, Hindalco said LIC has acquired 4.65 crore shares of the company through open market transactions between May 5, 2017 and August 14, 2019. Following the acquisition, LIC’s stake in Hindalco increased to 10.39% from 8.32%. At the end of June, LIC has a stake of 9.25% in Hindalco, exchanges data show.
LIC posts higher than industry growth of 51.86% YOY for APR – JUL:
Life Insurance Corporation of India (LIC) has registered a higher than industry growth of 51.86% year on year (YOY) [life] in new business collection for the April to July 2019 period. LIC collected new premiums of Rs. 60,106.66 crore for the period compared to Rs. 22,039.81 crore collected by the private companies.
Public Listing of LIC likely:
The Central Government is mulling over the public listing of Life Insurance Corporation of India. LIC holds 2/3 share of India’s Life Insurance market. According to the information received from the sources, the process is in the early state and has been discussed within the government.The Department of Investment and Public Asset Management (DIPAM) and DFS are exploring the pros and cons of listing the insurance company. The dilution is likely to happen with the sale of a small tranche through an IPO, followed by a further reduction in the government’s holdings, the sources informed.
IF the LIC shares are listed on stock exchanges, it can easily emerge as the top listed company in the country in terms of market valuation. It is likely that LIC can over take current leaders Reliance Industries Ltd and Tata Consultancy Services.