Cash Bounty

Mumbai, Dec. 20 (PTI): The Life Insurance Corporation of India (LIC) today declared a bonus for its various policy holders for the year 2005-06, which will result in a total outgo of Rs 11,784.58 crore.

The country’s largest life insurer had a surplus of Rs 12,404.82 crore in the year, of which 95 per cent is being distributed as bonus to policies in force as on March 31, 2006.

The remaining 5 per cent or Rs 620.24 crore will be the government’s share. The number of policies as on March 31, 2006 were 18.64 crore.

According to the revisionary bonus rates, whole life policies would earn Rs 66 per thousand sum assured while endowment type policies would earn in a range of Rs 40-46.

For money-back and anticipated endowment policies, the bonus will be Rs 37 (term 20 years) and Rs 47 (term 25 years). Policies Jeevan Mitra, Jeevan Sathi, limited payment endowment will earn in the range of Rs 43-47.

The Jeevan Surabhi policy of 20-year term would receive bonus of Rs 39 while for a term of 25 years it will receive bonus of Rs 47. The Jeevan Anand plan bonus ranges from Rs 40 to Rs 44 while Jeevan Rekha bonus ranges from Rs 33 to Rs 48.

The bonus for Jeevan Anurag will range from Rs 32 to Rs 35 and for Jeevan Tarang it would be Rs 32.

For the new Jeevan Suraksha-I, the bonus will be Rs 32 per thousand notional cash and for new Jeevan Dhara-I will be Rs 3 per thousand notional cash option.

In addition to reversionary bonus, LIC has declared a final (additional) bonus and loyalty addition to give add-on value to policyholders who keep long-term policy in force.

The increase in this bonus is in the range of 16 per cent to 100 per cent and the rate of bonus is up to Rs 1,680 per thousand sum assured depending on the plan, term and sum assured of the policy.

While the interim bonuses of old plans have been maintained, for new plans issued from 2001, they have been increased, the release said.