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'Bonus' is defined as an additional benefit in excess
of the basic benefit, paid to a 'with profit life insurance policy'. It
is the amount added to the basic sum assured. A 'with profit plan' enables
the policyholder to participate in the profits earned by the insurance company,
which are then added to the sum assured of the policy, which is either paid
out when the policy matures or in the event of death of the insured.
The Life Insurance Corporation of India (LIC) announces
bonus on its 'with profit plans' annually. This section will carry the bonus
announced by the Corporation from time to time. Your search ends here if
you have any queries pertaining to LIC bonus.
Golden Jubilee Bonus
To coincide with its fiftieth anniversary, the insurance
mammoth, Life Insurance Corporation of India (LIC) announced a special
bonus for its policyholders on September 2005. Apart from the special
bonus, the corporation announced a final additional bonus for its policyholders.
The proceeds will be rendered at the time of the maturity of the policy.
On account of it’s golden jubilee celebrations, the Corporation
announced a generous bonus of Rs 16.82 crore. As per the bonus announcement,
policyholders till March 31, 1981 would receive additional Rs 50 per 1,000
insured while policyholders between April 1981 to March 2001 would receive
between Rs 45 to Rs 6 per 1,000 insured as per their year of investment.
Policyholders from April 2001 to date will get Rs 5 per 1,000 insured.
LIC would spend an additional Rs 2,100 crore in payment of the golden
jubilee bonus to its customers.
LIC, which was formed in 1956 is one of the largest public sector undertakings
in the world with an assured sum of Rs 13,21,010 crore to date. LIC has
contributed significantly towards the development of infrastructure like
drinking water, electricity, housing, etc.
At present, LIC has grown into a $100 billion corporation with the assets
value of Rs 4,40,043 crore and the Total Life Fund being Rs 3,85,000 crore
as on March 31, 2005.
SUMMARY OF VALUATION RESULTS FOR 2010-2011
Bonus Rates
a) The rates of Simple Reversionary Bonus, and Interim Bonus declared in respect of participating policies issued by the Corporation and also those issued by erstwhile insurers before 19/01/1956 (excluding those on UK, Fiji and Mauritius Registers) are as given in Table 1 and Table 2 respectively.
Table 1: Simple Reversionary and Interim Bonus Rates
Group
Plan
Term
Reversionary Bonus Rate %o Sum Assured (**)
Interim Bonus Rate %o Sum Assured (**)
(*)
1
Whole Life type (Plans 2, 5, 6, 8, 10, 28 (Before Conversion), 35, 36, 37, 38, 49,77,78, 85 & 86)
(*) Premium Paying Term in case of Jeevan Anand (Plan 149) & Jeevan Rekha (Plan 152); Accumulation period in case of Jeevan Tarang (Plan 178); Deferment Period in case of New Jeevan Suraksha – I (Plan 147), New Jeevan Dhara ¬I (Plan 148) & Jeevan Nidhi (Plan 169);
(**) In case of New Jeevan Suraksha – I (Plan 147) and New Jeevan Dhara – I (Plan 148), bonus rates are per thousand Cash Option. In case of Jeevan Madhur (Plan 182), bonus rates are per thousand death benefit Sum assured. In case of Jeevan Amrit Plan, bonus rates are per thousand premium(s) paid.
b) The above reversionary bonus rates are applicable for policy year entered upon during the inter valuation period i.e. 01/04/2010 to 31/03/2011 and in force for full sum assured as on 31/03/2011. It would apply to policies resulting into claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2012.
c) The above interim bonus rates are applicable to policies in respect of each policy year entered upon after 31/03/2011 and result into claims by death or maturity (including those discounted within one year of maturity) or are surrendered during the period commencing from 01/01/2012 and ending 9 months from the date of next valuation.
d) No cash bonus has been declared in respect of New Jeevan Akshay ¬I (Plan 146).
e) For General Annuity / Pension policies (Plans 147, 148 & 169), the bonus rates are applicable only during the deferment period. The bonus rates in case of Plan 147 & 148 are not applicable for policies exiting by death during the deferment period. However, cash value of bonuses is payable in case of surrenders during the deferment period.
f) No bonus has been declared for any other General Annuity or Pension plans.
g) Policies issued by erstwhile insurers: In respect of policies issued by erstwhile insurers on or before 19/01/1956, the rates of Simple Reversionary Bonus would be as shown below, on the basis of the respective bonus group indices. It may be noted that the bonus rates for policies with Group Index 0 to 9 would be the same as that applicable to policies issued by the Corporation (Group Index 10), for the Valuation as at 31/03/1986 onwards.
Table 2: Simple Reversionary Rates for policies issued by erstwhile insurers
Group Index
Bonus per thousand Sum Assured per annum
Whole Life Assurance
Endowment Assurance
49
343.00
25
175.00
120.00
23
161.00
110.40
21
147.00
100.80
20
140.00
96.00
19
133.00
91.20
18
126.00
86.40
17
119.00
16
112.00
76.80
15
105.00
72.00
14
98.00
67.20
13
91.00
62.40
12
84.00
57.60
11
77.00
52.80
10
70.00
48.00
0 to 9
70.00
48.00
h) With profit policies transferred from the UK, Fiji & Mauritius Branch Registers and also those from LIC (International) BSC (Closed) will be allowed bonus at the same rate as applicable to corresponding plans on Indian Registers. Cash Back policies issued for term 18 by LIC (International) BSC (Closed) will be allowed bonus rate as applicable to 15 year Money Back policies.
FINAL (ADDITIONAL) BONUS
(i) In addition to the Simple Reversionary Bonuses and Interim Bonuses, Final (Additional) Bonus (FAB) have also been declared in respect of participating policies (excluding policies on U.K., Fiji and Mauritius Registers) resulting into claims by maturity or claim discounted (i.e., surrendered with one year preceding the date of maturity) or death claims during the period commencing from January 1, 2012 and ending 9 months from the date of next valuation (i.e. up to 31.12.2012), at the rates mentioned below, provided they are kept in force for full sum assured till the date of maturity or the date of discounting or the date of death as the case may be subject to the qualifying conditions being satisfied. It may be noted that the rates of Final (Additional) Bonus are related to the sum assured group under the policy.
(ii) Plans of Groups 1, 2, 5 and 6 of Table 1
In case of Plans of Groups 1, 2 , 5 and 6 of Table 1 the Final (Additional) Bonuses as per Table 4 is payable on maturity (including discounted claims) or in case of claims by death, provided the policy is in full force and premiums have been paid for 15 years or more. The rates of Final (Additional) Bonus are as follows:
Table 4
Terms in respect of maturities, discounted maturity claims / Number of years’ premiums paid in respect of claims by death (#)
Amount of Final (Additional) Bonus per
1000/Sum Assured for policies with sum assured
Up to 25,000
25,001 to 50,000
50,001 to 1,99,999
2,00,000 and above
15
0
0
10
20
16
0
0
15
25
17
0
10
20
30
18
10
15
25
35
19
15
20
30
50
20
20
25
40
70
21
25
30
50
100
22
30
50
80
150
23
35
100
150
250
24
70
150
230
350
25
170
250
330
450
26
270
350
430
550
27
370
450
540
670
28
470
550
650
790
29
570
650
760
910
30
670
750
900
1100
31
800
900
1100
1300
32
950
1050
1300
1550
33
1100
1200
1550
1800
34
1250
1350
1700
2050
35
1400
1500
1850
2300
36
1550
1650
2050
2550
37
1700
1800
2250
2800
38
1850
1950
2500
3050
39
2000
2100
2750
3300
40 & above
2150
2500
3000
3550
(#) In the case of death claims under Single Premium / Fully Paid¬up Limited Premium Payment policies the number of years in the first column indicates the number of policy years elapsed inclusive of the policy year in which the death takes place.
(iii) Plans of Group 3 of Table 1
The Final (Additional) Bonuses as per Table 5 are applicable in respect of Plans of Group 3 of Table 1 and are payable at the following rates:
Table 5
Terms in respect of maturities, discounted maturity claims / Number of years’ premiums paid in case of premium paying policies, Duration** elapsed in case of fully paid up policies in respect of claims by death
Amount of Final (Additional) Bonus Per
1000/Sum Assured for policies with Sum Assured
Up to 25,000
25,001 to 50,000
50,001 to 1,99,999
2,00,000 & above
Below 15
0
0
0
0
15 – 19
0
0
15
20
20
0
10
30
40
21 – 24
10
20
30
40
25
40
150
175
225
** Duration = Policy anniversary following date of claim minus Date of commencement
(iv) Plans of Group 4 of Table 1 Table 6
Policy Term in respect of Maturities / Duration elapsed in respect of claims by death
Amount of Final (Additional) Bonus Per 1000/-sum assured for policies with sum assured
Up to 25,000/
25,001 to 50,000
50,001 to 1,99,999
2,00,000 and above
Below 15
0
0
0
0
15 – 19
0
0
20
30
20
40
50
75
100
21 -22
40
80
100
125
** Duration = Policy anniversary following date of claim minus Date of commencement
(v) No final (additional) bonus has been declared in respect of Jeevan Akshay (Plan 97) policies, Jeevan Dhara (Plan 96) policies (both on vesting and after vesting and on death), Immediate Annuities (Plan 115), Deferred Annuities (Plan 116) and Jeevan Suraksha Policies (Plan 122).
Notes:
1. In the case of policies with mode of payment of premiums other than yearly, unpaid premiums if any, falling due before the policy anniversary are deducted from the claim amount and hence they should be treated to have been received for this purpose.
2. In case of the Progressive Protection Policies which are in full force, the Final (Additional) Bonus will be based on the sum assured in force on the date of death / maturity, subject to other qualifying conditions mentioned above.
3. For payment of Final additional bonuses ¬In case of Children's Deferred Assurance Policies (Plans 35 to 42, 49, 50, 80 & 81), the term / duration at death will be reckoned from the deferred date. In case of New Children's Deferred Assurance Policies (Plan 92), the term / duration at death will be reckoned from the risk commencing date. In case of Jeevan Balya (Plan 101), the term / duration at death would be reckoned from the vesting date. In the case of Jeevan Kishore (Plan 102) and Jeevan Sukanya (Plan 109), the term or duration at death would be reckoned from the date of commencement of the policy.
4. In case of multi¬purpose policies in respect of death claims, the Final (Additional) Bonus will be paid only at the end of the original term along with the Reversionary Bonus, subject to other qualifying conditions mentioned above.
5. Where a non¬participating policy has been altered to a participating policy, the period of Final (Additional) Bonus both as regards death claims and maturity claims will be reckoned from the date of such alteration.
6. In case of Convertible Whole Life Policy converted to With Profit Endowment Policy after 5 years, the period for Final (Additional) Bonus will be reckoned from the scheduled date of conversion. In respect of Convertible Whole life With Profit Policy (Plan 28) the period will be reckoned from the date of commencement of the policy.
7. In case of Marriage Endowment and Jeevan Chaya policies, in respect of death claim, the final additional bonus will be paid at the end of the original term along with reversionary bonuses subject to other qualifying conditions mentioned above.
8. In case of policies transferred from UK, Fiji and Mauritius branch registers and also those from LIC (International) BSC (Closed), the term / duration at death for the purpose of Final Additional Bonus will be reckoned from the actual date of transfer of policies to India.
9. The above rate of Final (Additional) Bonus and qualifying conditions will apply to participating assurance policies of a similar nature issued by erstwhile insurers irrespective of their bonus indices.
10. In case of doubt in respect of any special plan of any of the erstwhile insurers regarding eligibility for Final (Additional) Bonus, reference may be made to Actuarial Department, Central Office giving details of Plan, Benefits, etc.
11. In case of maturity claims, if no premiums have been paid during the last policy year, but the policy was in force for full sum assured on the policy anniversary prior to the maturity date, the claim is paid for full sum assured on the maturity date along with reversionary and interim bonus subject to the deduction of the unpaid installments of premium with interest, if any, for the last year of the Policy. Such policies will be eligible for payment of Final (Additional) Bonus for full sum assured if other qualifying conditions stated herein are satisfied.
12. Where a policyholder discounts the policy within one year preceding the date of maturity, the policy will be eligible for Final (Additional) Bonus provided other qualifying conditions are satisfied.
13. The policies for which death claim is payable as per Claims Concession Clause, the Final (Additional) Bonus would be payable provided other qualifying conditions stated in this circular are satisfied.
LOYALTY ADDITIONS
a) Maturity and Death: The Loyalty addition rates in respect of the plans given below will apply to all maturing policies after remaining in force for full sum assured and also to all policies discounted in the last year of the policy. The Loyalty additions are payable in case of death subject to the conditions applicable to each plan as given in the policy document. These rates are applicable during the period commencing 01/01/2012 and ending 9 months from the date of next valuation (i.e., up to 31/12/2012).
Table 7
Payable on Maturity/death in the year of maturity per ` 1000/-Sum assured
Term
Loyalty Addition
11
250
12
300
13
350
14
400
All
40
All
90
10
25
10
100
10
100
5
70
Payable on Maturity or Death (after commencement of risk) per ` 1000/Sum Assured
Plan
Duration Elapsed
Loyalty Addition
113
Up to 11
Nil
12
10
13
15
14
20
15
30
16
40
17
50
18
65
19
80
Payable on Maturity or Death as a percentage of premiums (`) paid
Plan
Term / Duration on Death
Loyalty Addition
111*
15 to 19
25%
Payable on Death
Plan
Duration on Death
Single Premium Band (`)
Amount of Loyalty Addition (`)
195
5
Up to 99999
Nil
100000 to 149999
300
150000 to 249999
600
250000 to 349999
1000
Above 349999
2000
Loyalty Addition payable on Maturity or Death as a percentage of premiums (`) paid – Plan 150
Term
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Duration on Death / Term on Maturity
6
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
7
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
8
4%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
9
5%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
4%
10
20%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
11
20%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
12
20%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
Payable on Death per `
1000/-Sum Assured
Plan
Duration
Loyalty Addition
137
All
40
Loyalty Addition payable on Maturity or Death per `
1000/-Sum Assured
Plan
124
125
126
128
Duration
13
10
14
25
10
10
10
15
50
20
15
15
16
30
15
20
17
40
20
30
Payable on death per ` 1000/-Maturity Sum Assured for the corresponding Duration
Plan
Duration
Loyalty Addition
165
10
250
Loyalty Addition payable on Maturity or Death per `
1000/-Sum Assured
Plan
154
155
156
157
Duration on Death / term on Maturity
6
20
20
20
25
7
25
25
25
30
8
30
30
30
35
9
40
40
40
40
10
50
50
50
50
11
80
70
60
60
Loyalty Addition Payable on Maturity or Death per `
1000/-Sum Assured
Plan
159
151-10
151-15
151-20
151-25
Duration on Death / Term on Maturity
2
3
4
25
5
30
6
35
7
40
8
45
35
35
35
30
9
55
70
40
40
35
10
65
130
45
45
40
11
75
50
50
45
12
60
55
50
Loyalty Addition payable on Maturity or Death per ` 1000/-Sum Assured under Plan 112
Duratio n on Death / Term on Maturity
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
9
40
30
20
10
10
10
10
10
10
10
10
10
10
10
10
10
10
70
55
45
35
30
25
20
15
15
15
15
10
10
10
10
10
11
105
70
55
40
25
25
20
20
20
20
15
15
15
15
15
12
140
90
65
45
40
35
30
25
25
20
20
20
20
20
13
175
105
80
70
60
50
40
40
30
30
30
30
25
14
210
160
120
90
70
55
50
45
40
40
40
40
15
250
180
150
120
90
70
65
60
55
50
50
16
345
250
190
140
105
90
80
70
65
60
17
450
300
200
145
120
100
85
70
70
18
560
350
200
150
125
105
85
85
19
680
260
200
150
125
105
105
* In case of Bima Kiran (Table No. 111), if death occurs in policy year, loyalty addition is payable provided policy is in force for full sum assured and premiums are recovered for 15th policy year.
(No Loyalty Additions have been declared for any other Plans)
b) Surrender: No Loyalty Additions have been declared under any Policies resulting into Surrenders.
Notes:
1. In the case of policies with mode of payment of premiums other than yearly, unpaid premiums if any, falling due before the policy anniversary are deducted from the claim amount and hence they should be treated to have been received for this purpose.
2. In case of maturity claims, if no premiums have been paid during the last policy year, but the policy was in force for full sum assured on the policy anniversary prior to the maturity date, the claim is paid for full sum assured on the maturity date along with Guaranteed Additions, reversionary and interim bonus (if any) subject to the deduction of the unpaid installments of premium with interest, if any, for the last year of the Policy. Such policies will be eligible for payment of Loyalty Additions for full sum assured if other qualifying conditions stated herein are satisfied.
3. Where a policyholder discounts the policy within one year preceding the date of maturity, the policy will be eligible for Loyalty Additions provided other qualifying conditions are satisfied.
4. The policies for which death claim is payable as per Claims Concession Clause, the Loyalty additions would be payable provided other qualifying conditions stated in this circular are satisfied.
5. In case of Komal Jeevan (Plan 159) the duration elapsed is reckoned from the date of commencement of risk.
The Final (Additional) Bonus is payable along with the
Sum Assured in addition to the reversionary and interim bonuses on participating
policies resulting into claim by death or maturity during the period commencing
from 1.1.2003 and ending nine months from the date of next valuation provided
such participating policies are in force for the full Sum Assured at the
time of claim and premiums have been paid for 15 years or more. The rates
of Final (Additional) Bonus payable on participating Endowment and Whole
Life Policies are given below:
Terms in respect of maturities / number of years premiums paid
in respect of claims by death.
Amount of Final (Additional) Bonus Per Rs.1000/- Sum
Assured for policies With Sum Assured
Up to Rs.25,000
Rs.25,001 to Rs.50,000
Rs.50,001 to Rs.1,99,999
Rs.2,00,000 to Rs. 4,99,999
Rs.5,00,000 and above
15
0
0
0
0
0
16
0
0
0
0
0
17
0
0
50
60
60
18
0
0
75
90
100
19
0
50
100
120
150
20
25
100
150
180
200
21
50
150
200
240
250
22
75
200
250
300
300
23
100
250
300
350
350
24
150
325
375
400
400
25
200
400
450
475
475
26
250
475
525
550
550
27
300
550
600
625
625
28
375
625
675
700
700
29
450
700
750
775
775
30
525
750
800
850
850
31
600
800
850
900
900
32
650
850
900
950
950
33
700
900
950
1000
1000
34
750
950
1000
1050
1050
35
800
1000
1050
1100
1100
36
850
1050
1100
1150
1150
37
900
1100
1150
1200
1200
38
950
1150
1200
1250
1250
39
1000
1200
1250
1300
1300
40 & above
1100
1250
1300
1400
1400
No Final (Additional) Bonus is payable in respect
of death claims under Anticipated Endowment and Money Back Policies for
all terms as also maturities in respect of Anticipated Endowment and Money
Back Policies with terms 15 years or less. In respect of maturities under
Anticipated Endowment and Money Back Policies with terms 20 and 25 years
the Final (Additional) Bonus payable will be Rs.25/- and Rs.40/- per thousand
Sum Assured, respectively. The aforesaid rates will be applicable to policies
which mature between 1.1.2003 and 9 months from the date of next valuation.
The Final (Additional) Bonus is not payable in the event of the policy
being "surrendered" or "discounted" before the date
of maturity. It is also not payable to paid-up policies.
No Final (Additional ) Bonus is declared in respect of annuity policies.
a) The rates of Simple Reversionary Bonus, and Interim Bonus declared in respect of participating policies issued by the Corporation and also those issued by erstwhile insurers before 19/01/1956 (excluding those on UK, Fiji and Mauritius Registers) are as given in
(*) Premium Paying Term in case of Jeevan Anand (Plan 149) & Jeevan Rekha (Plan 152);
Accumulation period in case of Jeevan Tarang (Plan 178);
Deferment Period in case of New Jeevan Suraksha – I (Plan 147), New Jeevan Dhara - I (Plan
148) & Jeevan Nidhi (Plan 169);
(**) In case of New Jeevan Suraksha – I (Plan 147) and New Jeevan Dhara – I (Plan 148), bonus rates are per thousand Cash Option. In case of Jeevan Madhur (Plan 182 ) , bonus rates are per thousand death benefit Sum assured. In case of Jeevan Amrit Plan, bonus rates are per thousand premium paid.
b) The above reversionary bonus rates are applicable for policy year entered upon during the inter valuation period i.e. 01/04/2009 to 31/03/2010 and in force for full sum assured as on 31/03/2010. It would apply to policies resulting into claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2011.
c) The above interim bonus rates are applicable to policies in respect of each policy year entered upon after 31/03/2010 and result into claims by death or maturity (including those discounted within one year of maturity) or are surrendered during the period commencing from 01/01/2011 and ending 9 months from the date of next valuation.
d) No cash bonus has been declared in respect of New Jeevan Akshay - I (Plan 146).
e) For General Annuity / Pension policies (Plans 147, 148 & 169), the bonus rates are applicable only during the deferment period. The bonus rates in case of Plan 147 & 148 are not applicable for policies exiting by death during the deferment period. However, cash value of bonuses is payable in case of surrenders during the deferment period.
f) No bonus has been declared for any other General Annuity or Pension plans.
g)Policies issued by erstwhile insurers: In respect of policies issued by erstwhile
insurers on or before 19/01/1956, the rates of Simple Reversionary Bonus would be as
shown below, on the basis of the respective bonus group indices. It may be noted that
the bonus rates for policies with Group Index 0 to 9 would be the same as that
applicable to policies issued by the Corporation (Group Index 10), for the Valuation as at
31/03/1986 onwards.
LOYALTY ADDITIONS
a)Maturity and Death: The Loyalty addition rates in respect of the plans given below will apply to all maturing policies after remaining inforce for full sum assured and also to all policies discounted in the last year of the policy. The Loyalty additions are payable in case of death subject to the conditions applicable to each plan as given in the policy document. These rates are applicable during the period commencing 01/01/2011 and ending 9 months from the date of next valuation (i.e., up to 31/12/2011).
Payable on Maturity per thousand Sum assured
Plan
Term
Loyalty Addition
135
11 and 12
200
142
10
25
166
5
60
171
5
70
Payable on Maturity or death as a percentage of premiums paid
Plan
Term\Duration on death
Loyalty addition
111
15 - 19
25%
Payable on Maturity or on Death per thousand Sum assured
Plan
Term/Duration on death
Loyalty addition
137
All
40
b) Loyalty addition payable on death or on maturity per thousand sum assured under all
plans except Plan 150 where Loyalty additions is a percentage of premiums paid and
applicable from 01.01.2011 to the period up to 9 months from the date of next
valuation in respect of the following plans :
Plan
154 to 157
159
150
151
151
151
151
112
112
112
112
Term
All
All
All
10
15
20
25
10
15
20
25
Duration on death/Term on Maturity
2
Nil
3
Nil
4
20
5
15
25
2%
6
20
30
2%
7
25
35
3%
8
30
45
4%
35
35
35
35
9
40
55
5%
70
35
35
40
40
Nil
Nil
Nil
10
25%
130
35
40
45
70
25
10
10
11
25
15
15
12
45
20
15
13
80
30
25
14
160
45
35
15
250
70
45
16
105
60
* In case of Bima Kiran (Table No. 111), if death occurs in 15th policy year,
loyalty addition is payable provided policy is inforce for full sum assured and
premiums are recovered for 15th policy year.
(No Loyalty Additions have been declared for any other Plan)
b) Surrender: No Loyalty Additions have been declared under any Policies resulting into
Surrenders.
Notes: 1. In the case of policies with mode of payment of premiums other than yearly, unpaid
premiums if any, falling due before the policy anniversary are deducted from the
claim amount and hence they should be treated to have been received for this
purpose.
2. In case of maturity claims, if no premiums have been paid during the last policy
year, but the policy was in force for full sum assured on the policy anniversary prior
to the maturity date, the claim is paid for full sum assured on the maturity date
along with Guaranteed Additions, reversionary and interim bonus (if any) subject to
the deduction of the unpaid instalments of premium with interest, if any, for the last
year of the Policy. Such policies will be eligible for payment of Loyalty Additions for
full sum assured if other qualifying conditions stated herein are satisfied.
3. Where a policyholder discounts the policy within one year preceding the date of
maturity, the policy will be eligible for Loyalty Additions provided other qualifying
conditions are satisfied.
4. The policies for which death claim is payable as per Claims Concession Clause, the
Loyalty additions would be payable provided other qualifying conditions stated in this
circular are satisfied.
5. In case of Komal Jeevan (Plan 159) the duration elapsed is reckoned from the date
of commencement of risk.
Whole life plans:-2,5,8,28( before conversion), 35,36,37,38,49,77,78,85,86 Endowment type plans:-14,17,27& 28( After conversion), 34, 39, 40, 41, 42, 50, 54, 79, 80, 81, 84, 87,90,91,92,95,101,102, 103,109,110,121. Money back & Anticipated Endowment:-24,25,26,73,74,75,76 & 93.
Jeevan Surbhi Policy Term
JEEVAN ANAND (149) PREMIUM PAYING TERM
JEEVAN REKHA152 Premium Paying Term
JEEVAN TARANG178 Accumulation period
15
20
25
UPTO 10 yrs
11 to 15
16 to 20
21 & above
UPTO 10 yrs
11 to 15
16 to 20
21 & above
10
15
20
Reversionary & Interim Bonus
34
41
50
34
37
41
45
49
44
40
34
40
44
48
JEEVAN ANURAG168 Policy term
New Jeevan Suraksha1 Plan 147 ( Deferment period)
New Jeevan Dhara1 Plan 148 (Deferment period)
UPTO 10 yrs
11 to 15
16 to 20
21 & above
UPTO 5 yrs
6 to 10
11 to 15
16yrs & above
UPTO 5 yrs
6 to 10
11 to 15
16yrs & above
Reversionary & Interim Bonus
38
40
42
44
21
27
31
35
20
25
28
32
Jeevan Madhur
Child Career PlanPlan184
Child Future plan Plan185
Jeevan Bharati
JEEVAN AMRUT Plan no 186
182
Policy term
Policy term
Plan160
Policy Term
Up
11
11
16
21
11
16
21
15
20
10
16
21
to
to
to
to
yrs &
to
to
yrs &
yrs
yrs
TO
TO
YRS
10
15
15
20
above
15
20
above
15
20
ABOVE
yrs
yrs
yrs
yrs
yrs
yrs
Reversionary & Interim Bonus
20
25
34
38
40
36
40
42
38
40
30
30
30
UNDER FOLLOWING PLANS, BONUS RATES ARE DECLARED ARE OF INTERIM BONUS ONLY. SINCE 5 YEARS HAVE NOT COMPLETED AS ON DATE OF THIS VALUATION. FOR FIRST 5 YEARS POLICIES ARE PARTICIPATING BY WAY OF GUARANTEED ADDITION.
JEEVAN SHREE1 Plan no 162 Policy Term
JEEVAN NIDHI PLAN NO 169
JEEVAN PRAMUKH167 POLICY TERM *
JEEVAN BHARATII TERM192
10
20
25
UPTO
11
16
21
10
20
25
15
20
&
yrs
yrs
10
to
to
&
&
15
yrs
15
20
above
15
Interim Bonus
40
44
48
32
34
36
38
40
44
48
28
30
• UNDER JEEVAN PRAMUKH PLAN 167¬FOR POLICY TERM 5 YEARS, POLICY WILL PARTICIPATE IN GUARANTEED ADDITION AND HENCE WILL NOT BE ELIGIBLE FOR BONUS.
• UNDER JEEVAN MADHUR PLAN¬182, BONUS RATES ARE PER 1000 DEATH BENEFIT SUM ASSURED.
• UNDER JEEVAN AMRUT PLAN¬186, BONUS RATES ARE PER 1000 PREMIUM PAID AS ON DATE OF VALUATION.
• No bonus has been declared in respect of Jeevan Akshay plan¬146. or any other Annuity or Pension plan.
• Bonus rates under plan 147,148 are applicable only during the deferment period and not applicable for policies result into death claim.
• UNDER ALL INDIVIDUAL ANNUITY OR PENSION POLICIES, ( PLAN 147,148,169) BONUS WILL VEST PROVIDED THE POLICIES HAVE BEEN IN FORCE FOR FULL SUM ASSURED / NOTIONAL CASH OPTION, FOR A PERIOD OF AT LEAST 2 YEARS FROM THE DATE OF COMMENCEMENT AND 2 FULL YEARS PREMIUMS HAVE BEEN PAID.
• Under Jeevan Amrut plan¬186, Bonus will vest under the policy provided at least 1 year’s premiums have been paid and the policy has been in force for a period of at least one year from the date of commencement.
• The above reversionary bonus rates are applicable for policy year entered upon during the inter valuation period i.e. from 1/4/2008 to 31/3/2009 and in force for full sum assured as on 31/3/2009 or for paid up policies which are in books of corporation as on date of valuation i.e as on 31/3/2009.it would apply to policies resulting into claims or maturity including those discounted within one year of maturity or surrendered on or after 1/1/2010.
• The interim bonus rates are applicable to policies in respect of each policy year entered upon after 31/3/2009 and result into claims by death or maturity/ discounted or are surrendered during the period commencing from 1/1/2010 and ending 9 months from the date of next valuation.
• Bonus rates declared for 162¬new Jeevan shree, 169,167,192 are to be used for death claims or policies surrendered for calculating the bonus for 6th year i.e for the period .
• Final Additional Bonus rates have also been declared in respect of participating policies resulting into claims by Maturity or claim discounted or death claims during the period commencing from 1/1/2010 and ending 9 months from the date of next valuation, provided they are kept in force for full sum assured till the date of maturity or the date of discounting or the date of death as the case may be subject to the qualifying conditions being satisfied. In case of death claims under single premium/fully paid up limited premium payment policies, the no of years elapsed inclusive of the policy year upto which bonus is payable includes policy year in which the death takes place.
• It has been clarified that under CDA plans ( 35 to 38,49,39 to 42,50,80,81), for policies vested on or before 31/12/1998, bonus rate will be determined with reference to the policy term counted from the date of commencement of the policy. For policies vesting from 1/1/1999, the bonus rate will be determined with reference to the policy term counted from the vesting / deferred date.
• Under New CDA plan 92, the bonus rate will be determined with reference to the policy term counted from the date of commencement of risk, irrespective of date of vesting of policy. Policy will also participate in bonus from date of commencement of risk.
• Under Jeevan Balya plan ¬101, bonus rate will be determined with reference to policy term counted from date of vesting i.e 21 yrs. Policy will also participate in bonus from date of vesting.
• Under plans 102,109,184,185, bonus rate will be determined with reference to policy term stipulated under the policy.
LOYALTY ADDITION:-
The loyalty addition rates in respect of the plans given below will apply to all maturing policies after remaining in force for full sum assured and also to all policies discounted in the last policy year of the policy. The loyalty additions are payable in case of death claims also. These rates are applicable during the period commencing from 1/1/2010 and ending 9 months from the date of next valuation where date of maturity /discount or death is on after 1/1/2010 to 31/12/2010.
Name Of Plan
Plan
Duration elapsed /Term
Loyalty Addition per 1000 sum assured
Jeevan shree
112
5 to 9
75
10 & more
150
Nav prabhat
137
40
New Jeevan Shree
151
5 & more
45
Jeevan Samridhi
154,155, 156,157
5 & More
20
Bima nivesh2002
158
5 yrs
45
Komal Jeevan
159
All terms
20
Bima Nivesh2004
166
5 yrs
60
Bima kiran
111
15 to 19 yrs
25% of premiums paid less any extra premiums paid
BIMA NIVESH 2005
171
5 YRS
30
NOTES :-
1) A loyalty addition is NOT payable for policies which are surrendered. But it is payable if
policy is discounted in last policy year provided last year’s premiums have remained to be
unpaid.
2) In the case of policies with mode of payment of premiums other than yearly, unpaid
premiums if any, falling due before the policy anniversary are deducted from the claim
amount. Hence they should be treated to have been received for this purpose and
accordingly loyalty addition will be paid taking the new duration.
3) In case of maturity claims, if no premiums have been paid during the last policy year, but
the policy was in force for full sum assured on the policy anniversary prior to the maturity
date. The claim is paid for full sum assured on the maturity date along with guaranteed
addition, reversionary bonus and interim bonus sub to the deduction of the unpaid
instalment of premiums with interest, if any, for the last year of policy. Such policies will
be eligible for payment of loyalty additions for full sum assured if other qualifying
conditions stated herein are satisfied.
4) Where a policyholder discounts the policy within one year preceding the date of maturity,
the policy will be eligible for loyalty additions provided policy is in force as on date of
discount or policy is in force on last policy anniversary prior to date of maturity and o/s
premiums are deducted.
5) The policies for which death claim is payable as per claims concession clause ,the loyalty
additions would be payable provided other qualifying conditions are satisfied.
6) In case of Komal Jeevan plan, the duration elapsed is reckoned from the date of
commencement of risk. In short, loyalty addition is payable, if risk has commenced under
the policy.
7) In case of Bima Kiran plan-111, if death occurs in 15th policy year, loyalty addition is
payable provided policy is inforce for full sum assured and premiums are recovered for
15th policy year.
Whole life plans:-2,5,8,28( before conversion), 35,36,37,38,49,77,78,85,86
Endowment type plans:-14,17,27& 28( After conversion), 34, 39, 40, 41, 42, 50, 54, 79, 80, 81, 84, 87,90,91,92,95,101,102, 103,109,110,121.
Money back & Anticipated Endowment :-24,25,26,73,74,75,76 & 93.
Jeevan Surbhi Policy Term
JEEVAN ANAND (149) PREMIUM PAYING TERM
JEEVAN REKHA-152 Premium Paying Term
JEEVAN TARANG-178 Accumulation period
15
20
25
UPTO 10 yrs
11 to 15
16 to 20
21 & above
UPTO 10 yrs
11 to 15
16 to 20
21 & above
10
15
20
Reversionary & Interim Bonus
34
41
50
34
37
41
45
49
44
40
34
40
44
48
JEEVAN ANURAG-168 Policy term
New Jeevan Suraksha-1 Plan 147 ( Deferment period)
New Jeevan Dhara-1 Plan 148 (Deferment period)
UPTO 10 yrs
11 to 15
16 to 20
21 & above
UPTO 5 yrs
6 to 10
11 to 15
16yrs & above
UPTO 5 yrs
6 to 10
11 to 15
16yrs & above
Reversionary & Interim Bonus
38
40
42
44
21
27
31
35
20
25
28
32
Jeevan Madhur182
Child Career Plan-Plan-184 Policy term
Child Future plan Plan-185 Policy term
Jeevan Bharati Plan160
JEEVAN AMRUT Plan no 186 Policy Term
Up to 10 yrs
11 to 15 yrs
11 to 15 yrs
16 to 20 yrs
21 yrs & above
11 to 15 yrs
16 to 20 yrs
21 yrs & above
15 yrs
20 yrs
10 TO 15
16 TO 20
21 YRS ABOVE
Reversionary & Interim Bonus
20
25
34
38
40
36
40
42
38
40
30
30
30
UNDER FOLLOWING PLANS, BONUS RATES ARE DECLARED ARE OF INTERIM BONUS ONLY.
SINCE 5 YEARS HAVE NOT COMPLETED AS ON DATE OF THIS VALUATION. FOR FIRST 5
YEARS POLICIES ARE PARTICIPATING BY WAY OF GUARANTEED ADDITION.
JEEVAN SHREE1 Plan no 162 Policy Term
JEEVAN NIDHI PLAN NO 169
JEEVAN PRAMUKH POLICY TERM *
10 & 15
20 yrs
25 yrs
UPTO 10 yrs
11 to 15
16 to 20
21 & above
10 & 15
20
25
Interim Bonus
40
44
48
32
34
36
38
40
44
48
Loyalty Addition
The loyalty addition rates in respect of the plans given below will apply to all maturing policies after remaining in force for full sum assured and also to all policies discounted in the last policy year of the policy. The loyalty additions are payable in case of death claims also. These rates are applicable during the period commencing from 1/1/2009 and ending 9 months from the date of next valuation where date of maturity /discount or death is on after 1/1/2009 to 31/12/2009.
Name Of Plan
Plan
Duration elapsed /Term
Loyalty Addition per 1000 sum assured
Jeevan shree
112
5 to 9
75
10 & more
150
Nav prabhat
137
40
New Jeevan Shree
151
5 & more
45
Jeevan Samridhi
154,155, 156,157
5 & More
20
Bima nivesh-2002
158
5 yrs
45
Komal Jeevan
159
All terms
20
Bima Nivesh-2004
166
5 yrs
45
Bima kiran
111
15 to 19 yrs
25% of premiums paid less any extra premiums paid
NOTES
1)
A loyalty addition is NOT payable for policies which are surrendered. But it is payable if policy is discounted in last policy year provided last year’s premiums have remained to be unpaid.
2)
In the case of policies with mode of payment of premiums other than yearly, unpaid premiums if any, falling due before the policy anniversary are deducted from the claim amount. Hence they should be treated to have been received for this purpose and accordingly loyalty addition will be paid taking the new duration.
3)
In case of maturity claims, if no premiums have been paid during the last policy year, but the policy was in force for full sum assured on the policy anniversary prior to the maturity date. The claim is paid for full sum assured on the maturity date along with guaranteed addition, reversionary bonus and interim bonus sub to the deduction of the unpaid instalment of premiums with interest, if any, for the last year of policy. Such policies will be eligible for payment of loyalty additions for full sum assured if other qualifying conditions stated herein are satisfied.
4)
Where a policyholder discounts the policy within one year preceding the date of maturity, the policy will be eligible for loyalty additions provided policy is in force as on date of discount or policy is in force on last policy anniversary prior to date of maturity and o/s premiums are deducted.
5)
The policies for which death claim is payable as per claims concession clause ,the loyalty additions would be payable provided other qualifying conditions are satisfied.
6)
In case of Komal Jeevan plan, the duration elapsed is reckoned from the date of commencement of risk. In short, loyalty addition is payable ,if risk has commenced under the policy.
FINAL (ADDITIONAL) BONUS PER 1000 SUM ASSURED FOR POLICIES
In addition to simple reversionary bonus and interim bonus, FAB is also payable in respect of participating policies resulting into claims by maturity or claim discounted or death claims
during the period commencing from 1/1/2009 and ending 9 months from the date of next valuation, provided they are kept in force for full sum assured till the date of maturity or the date of discounting or the date of death as the case may be.
# No. of years means term in respect of maturity/ discounted maturity claim. In case Death claim, no of years means premiums paid or recovered.
1) FAB is payable on maturity, discounted claim or in case of death claim provided policy is in full force and premiums have been paid/ recovered for 15 years or more. 2) FAB is not payable under policies where guaranteed addition is payable. 3) in case of death claims under single premium/ fully paid up limited premium payment policies the number of years in the first column means the no of policy years elapsed inclusive of the policy year in which the death takes place.
FOR PLANS 24,25,26,73,74,75,76,93,106,107,108
No of
Amount of final additional bonus per 1000 S.A.
Years #
Up to 25000
25,001 to 50,000
50,001 to 1,99,999
2,00,000 & above
Upto 14 yrs
0
0
0
0
15 to 19 yrs
0
0
20
30
20 to 24 yrs
40
50
75
100
25 yrs
75
100
150
200
# No. of years means term in respect of maturity/ discounted maturity claim. In case Death claim, no of years means premiums paid or recovered. In case of fully paid up policies duration elapsed means policy anniversary following date of claim – DOC.
1) Where a policyholder discounts the policy within 1 year preceding the date of maturity , the policy will be eligible for FAB provided other qualifying conditions are satisfied.
The Simple Reversionary Bonus declared as a result of the valuation as on 31.03.2007 for with-profit policies subject to the stipulated conditions, are as under:
Whole Life
Rs.70 per thousand sum assured underWhole Life Assurances.
Individual Assurances
Endowment type of policies* (1)
Jeevan Mitra (Double Cover), Jeevan Sathi and Limited Endowment (2)
Jeevan Mitra (Triple Cover) (3)
Policy Term
Policy Term
Policy Term
10 & less
11 to 15
16 to 20
>20
15
16 to 20
>20
15
16 to 20
>20
BONUS RATES PER THOUSAND RUPEES SUM ASSURED
34
38
42
48
40
44
48
40
45
50
* Under Endowment type of assurances including Jan Raksha but excluding Money Back type of plans, Jeevan Surabhi, Jeevan Mitra, Jeevan Sathi, Limited Endowment, Jeevan anand, Jeevan Rekha, Jeevan Anurag Jeevan Tarang, Jeevan Madhur, Child Career, Child Future, Jeevan Bharati and Jeevan Shree I Plans.
Rs.11,784.58 crore Bonus from LIC to itsPolicy Holders for the year 2005-06.
Life Insurance Corporation has announced the Bonuspayable to its Policyholders for the year 2005-06 pursuant to theActuarial Valuation as on 31st March,2006. A surplus of Rs.12,404.82 crore has emerged as a result of valuation out ofwhich 95% i.e. Rs.11,784.58 crore is distributed as Bonus to theholders of with profit policies which were in-force as on 31st March,2006. 5% of the surplus i.e. Rs.620.24 crore is the shareof Government of India. The number of in-force policies has goneup from 16.77 crore to 18.64 crore as on 31st March,2006.
Reversionary Bonus Rates:
Whole Life Policies – Rs.66.00 per thousand sum assured Bonus on various plans per thousand sum assured for 16 years and above is as under. The bonus depends onterms of the policy. The bonus amount is higherfor long term policies.> Endowment Type Policies-range from Rs.40.00 to Rs.46.00.
Jeevan Anand plan – range from Rs.40.00 to Rs.44.00
Jeevan Rekha Plan – range from Rs.33.00 (term >20 years) to Rs.48.00 (term 10 years and less).
Jeevan Anurag – range from Rs.32 to Rs.35.
Jeevan Tarang – Rs.32
New Jeevan Suraksha–I– Rs.32 (per thousand Notional Cash Option)
New Jeevan Dhara–I– Rs.30 (per thousand Notional Cash Option).
Terminal Bonus:
In addition to the above Reversionary Bonuses, LIC has also
declared Final (Additional) Bonus and Loyalty Addition to give
add on value to those policyholders who keep their long term
policies in force. There is an increase in Final (Addl.) Bonus
in the range of 16 % to 100%, The rates of Final (Additional)
Bonus are upto Rs.1,680 per thousand Sum Assured depending upon
plan, term and sum assured of the policy for policies fulfilling
the stipulated conditions. The Loyalty Additions in respect of
Jeevan Shree, New Jeevan Shree and
Bima Nivesh-2002 policies ranging from Rs.40 to Rs.125 per
thousand Sum Assured depending upon term of policy have also been
declared.
HIGHLIGHTS
Final Additional Bonuses have been increased by 16 % to
more than 100%.
Interim Bonuses under all new plans issued from the year
2001 onwards, have been increased from that declared last
year.
Interim Bonuses of old plans maintained.
The Simple Reversionary Bonus declared as a result of the
valuation for with-profit policies subject to the stipulated
conditions, are as under:
Individual Assurances
Endowment type of policies* (1)
Jeevan Mitra, Jeevan Sathi and Limited Endowment (2)
Rs.13,209 crore Bonus from
LIC to its Policy Holders for the year 2004-05
The Hon’ble Finance Minister Shri P. Chidambaram
announced the Bonus of Life Insurance Corporation of India, on 15th November,
2005 for its policyholders for the year 2004-05 pursuant to the Actuarial
Valuation as on 31st March, 2005. A surplus of Rs. 13,904.21crore has emerged
as a result of valuation. Out of the Surplus declared, 95% i.e. Rs.13,209
crore is distributed as Bonus to the holders of with profit policies which
were in-force as on 31st March 2005 and 5% of the surplus i.e. Rs. 695.21
crore is the share of Government of India. The number of in-force policies
has gone up from 15.62 crore to 16.59 crore as on 31st March, 2005.
Reversionary Bonus Rates:
Whole Life Policies - Rs.71.00 per thousand sum assured Bonus on various
plans per thousand sum assured for 16 years and above is as under. The
bonus depends on term of the policy. The bonus amount is higher for
long term policies. Endowment Type Policies - range from Rs. 45.00 to
Rs. 50.00
Jeevan Anand plan - range from Rs.43.00 to Rs.47.00
Jeevan Rekha Plan - range from Rs.34.00 to Rs.40.00
Jeevan Anurag – range from Rs. 28 to Rs. 30
New Jeevan Suraksha – I – range from Rs. 18 to Rs. 30
(%0 Notional Cash Option)
New Jeevan Dhara – I – range from Rs. 18 to Rs. 28 (%0
Notional Cash Option)
Final (Additional) Bonus:
In addition to the above Reversionary Bonuses, LIC has also declared Final
(Additional) Bonus and Loyalty Addition to give add on value to those
policyholders who keep their policies in force. The rates of Final (Additional)
Bonus are upto Rs.1,400 per thousand Sum Assured depending upon term and
sum assured of the policy for policies fulfilling the stipulated conditions.
Also, as in the previous year, the Loyalty Addition in respect of Jeevan
Shree policies maturing on completion of term upto 9 years is Rs.75 per
thousand Sum Assured and with policy term 10 years at the rate of Rs.125
per thousand Sum Assured.
Special Reversionary Bonus:
It may be mentioned that on the 1st September, 2005, the Golden Jubilee
Year celebration was inaugurated by the Hon’ble Prime Minister Dr.
Manmohan Singh. On the occasion a Special Golden Jubilee Reversionary
Bonus ranging from Rs. 5/- to Rs. 50/- per thousand sum assured was announced
by the Hon’ble Finance Minister Shri P. Chidambaram. That bonus
was in addition to the bonus now declared.
The Simple Reversionary Bonus declared as a result of the valuation for
all with-profit policies subject to the stipulated conditions, are as
under:
I) Individual Assurances
Endowment type of
policies *
(1)
Jeevan Mitra, Jeevan Sathi and Limited Endowment
(2)
Rs. 10,388 crore Bonus
from LIC to its Policy Holders for the year 2003-04
Life Insurance Corporation of India, today announced
the Bonus for its policyholders for the year 2003-04 pursuant to the Actuarial
Valuation as on 31st March, 2004. A surplus of Rs. 10,93 crore has emerged
as a result of valuation. Out of the Surplus declared, 95% i.e. Rs. 10,388
crore is distributed as Bonus to the holders of with profit policies which
were in=force as on 31st March 2004 and 5% of the surplus i.e. Rs. 547 crore
is the share of Government of India as yearly dividend. The number of in-force
policies has gone up from 14.11 crore to 15.62 crore as on 31st March, 2004,
registering a growth of 10.7%.
Reversionary Bonus Rates:
Whole Life Polices – Rs. 80.00 per thousand sum assured Bonus
on various plans per thousand sum assured for 16 years and above is
as under. The bonus depends on term of the policy. The bonus amount
is higher for long term policies.
Endowment Two Policies – range from Rs. 51.00 to Rs. 57.00
Jeevan Anand Plan – range from Rs. 49.00 to Rs. 53.00
Jeevan Rekha Plan – range form Rs. 39.00 to Rs. 45.00
The Bonus rates declared by the Corporation show
a marginal adjustment over last year because of the fall in average yield
on investments owing to overall declining interest rate scenario.
Bonus on Pension Plans:
The special feature of the valuation is declaration of bonus for the Individual
Pension Plans – New Jeevan Dhara – I & New Jeevan Suraksha
– I ranging from Rs. 18.00 to Rs. 24.00 per thousand Notional Cash
Option.
Additional Bonus:
In addition to the above Reversionary Bonuses, LIC has also declared Final
Additional Bonus and Loyalty Addition to give add on value to those policyholders
who keep their policies in force. The rates of Final (Additional) Bonus
are upto Rs. 1,400 per thousand Sum Assured depending upon term and sum
assured of the policy for polices fulfilling the stipulated conditions.
Also, as in the previous year, the Loyalty Addition in respect of Jeevan
Shree policies maturing on completion of 5 years’ term is Rs. 75
per thousand Sum Assured and with policy term 10 years at the rate of
Rs. 125 per thousand Sum Assured.
The Simple Reversionary Bonus declared as a result of the valuation for
all with-profit policies subject to the stipulated conditions, are as
under:
I) Individual Assurances
Endowment type of
policies *
(1)
Jeevan Mitra, Jeevan Sathi and Limited Endowment
(2)
LIC announces bonus to
Policyholders for 2002-2003
Life Insurance Corporation of India, today announced
the Bonus for its policyholders for the year 2002-03 pursuant to the Actuarial
Valuation as on 31st March, 2003. A surplus of Rs.9,733 crore has emerged
as a result of valuation. Out of the Surplus declared, 95% i.e. Rs.9,246
crore is distributed as Bonus to the holders of with profit policies which
were in-force as on 31st March 2003 and 5% of the surplus i.e. Rs.487 crore
is the share of Government of India as yearly dividend. The number of in-force
policies has gone up from 12.79 crores to 14.11 crores as on 31st March,
2003, registering a growth of 10.32%.
Reversionary Bonus Rates:
Whole Life Policies - Rs.90.00 per thousand sum assured
Bonus on various plans per thousand sum assured for 16 years and above
is as under. The bonus depends on term of the policy. It is lower for
short term and higher for long term.
Endowment Type Policies - range from Rs.58.00 to Rs.64.00
Jeevan Anand plan - range from Rs.54.00 to Rs.59.00
Jeevan Rekha Plan - range from Rs.58.00 to Rs.64.00
The Bonus rates declared by the Corporation show a marginal
adjustment over last year because of the fall in average yield on investments
owing to overall declining interest rate scenario.
Bonus On Pension Plans:
The special feature of the valuation is declaration of bonus for the Individual
Pension Plans – New Jeevan Dhara-I & New Jeevan Suraksha-I ranging
from Rs.18.00 to Rs.24.00 per thousand Notional Cash Option.
Additional Bonus:
In addition to the above Reversionary Bonuses, LIC has also declared Final
Additional Bonus and Loyalty Addition to give add on value to those policyholders
who keep their policies in force. The rates of Final (Additional) Bonus
are upto Rs.1,400 per thousand Sum Assured depending upon term and sum
assured of the policy for policies fulfilling the stipulated conditions.
Also, as in the previous year, the Loyalty Addition in respect of Jeevan
Shree policies maturing on completion of 5 years’ term is Rs.75
per thousand Sum Assured.
The Simple Reversionary Bonus declared as a result of the valuation for
all with-profit policies subject to the stipulated conditions, are as
under:
I) Individual Assurances
Endowment type of policies & Jeevan Rekha Plan *
(1)
Jeevan Mitra, Jeevan Sathi and Limited Endowment
(2)
LIC announces Bonus to Policy
holders for 2001-2002
Total Valuation Surplus Declared – Rs.8637.50 Crore
Government’s share of Valuation Surplus Rs.431.88 crore
Shri S.B. Mathur, Chairman, Life Insurance Corporation
of India , today announced the Bonus rates for its policyholders for the
year 2001-02 pursuant to the Actuarial Valuation as on 31st March, 2002
. The Valuation of the Corporation’s Assets and Liabilities is an
annual exercise. A surplus of Rs.8,637.50 crore has emerged as a result
of valuation. Out of the Surplus declared, 95% i.e. Rs.8,205.62 crore
is distributed as Bonus to the holders of with profit policies which were
in-force as on 31st March 2002 and 5% of the surplus i.e. Rs.431.88 crore
is to be given to the Government of India as yearly dividend, Government
of India being the stakeholder of LIC of India. The number of in-force
policies under Individual Assurance and Individual pension plans has gone
up from 11.30 crore to 12.81 crore as on 31st March, 2002.
The Bonus Rates per thousand Sum assured in brief for the various types
of policies depending upon the term etc. are as follows:
Bonus rate for Whole Life Policies is Rs.100.00
Bonus rates for Endowment Type Policies range from Rs.49.00 to Rs.71.00
Bonus rates for Money Back, Anticipated Endowment range from Rs.48.00
to Rs.65.00
Bonus rates for Jeevan Mitra, Jeevan Sathi, Limited Endowment Policies
range from Rs.60.00 to Rs.72.00
Bonus rates for Jeevan Surabhi Policies range from Rs.51.00 to Rs.72.00
Bonus rates for Jeevan Anand plan range from Rs.40.00 to Rs.65.00.
The Corporation has reduced minimum period for accrual of bonus from
5 years to 3 years for in-force policies.
In general, policies of longer term acquire higher
bonuses than policies of shorter term. Despite the lowering of the returns
on the Government Bonds, Securities, Bank rates and Post Office Schemes,
the Bonus Rates declared show marginal adjustment over last year. In fact
the Bonus Rates in case of Whole Life Policies and Final Additional bonus
have gone up.
The Simple Reversionary Bonus declared as a result of the valuation for
all with-profit policies subject to the stipulated conditions, are as
under:
Endowment type of policies Excluding
(1)
Jeevan Mitra, Jeevan Sathi and Limited
Endowment
(2)
Money Back and Anticipated Endowment
(3)
Jeevan Surabhi
(4)
Jeevan Anand
(5)
Policy Term
Policy Term
Policy Term
Policy Term
Policy Term
10 & less
11 to 15
16 to 20
21 & above
15 & less
16 to 20
21 & above
15
20
25
15
20
25
5
6 to 10
11 to 15
16 to 20
21 & above
BONUS RATES PER THOUSAND RUPEES SUM ASSURED
44
51
58
64
54
59
65
42
52
58
45
54
64
38
44
49
54
59
* Excluding Jeevan Mitra, (Double and Triple Cover),
Jeevan Sathi, Limited Endowment (including Single Premium), Money
Back, Anticipated Endowment, Jeevan Surabhi and Jeevan Anand policies
for which bonus rates are given in Column (2) to (5)
In addition to these Simple Reversionary Bonus rates,
Final (Additional) Bonus rates are also announced for policies fulfilling
the stipulated conditions depending upon Term and Sum Assured of the policy.
The Final (Additional) Bonus rates range from Rs.25/- to Rs. 1,400/- per
thousand rupees Sum Assured, showing growth especially for long term policies
as compared to Rs.25/- to Rs.1,250/- declared in the fiscal 2000-01. Also,
the Loyalty Addition in respect of Jeevan Shree Plan for 5 year term has
been increased from Rs.50/- to Rs.75/-.
LIC announces Bonus to Policy holders
for 2000-2001
Government's Share of Valuation Surplus Rs.379.27 crore
Insurance Corporation of India, today announced the Bonus
rates for the policyholders for the year 2000-01 pursuant to the Actuarial
Valuation as on 31st March,2001. The Valuation of the Corporation's Assets
and Liabilities is an annual exercise. Consequent to the 31st valuation
of the Corporation done as on 31st March, 2001 a surplus of Rs.7,585.30
crore has emerged. Out of the Surplus declared 95% i.e Rs.7,206.03 crore
is distributed as Bonus to the holders of with profit policies which were
in force as on 31st March 2001. 5% of the surplus i.e. Rs.379.27 crore is
to be given to the Government of India as its yearly dividend. The bonus
rates for the various types of policies broadly are as follows:
Bonus rates for Whole Life Type Policies range from Rs.95.00 to Rs.106.00
Bonus rates for Endowment Type Policies range from Rs.54.00 to Rs.89.00
Bonus rates for Money Back, Anticipated Endowment range from Rs.53.00
to Rs.72.00
Bonus rates for Jeevan Mitra, Jeevan Sathi, Limited Endowment Policies
range from Rs.65.00 to Rs.91.00
Bonus rates for Jeevan Surabhi Policies range from Rs.56.00 to Rs.80.00
In general, policies of longer term earn higher bonuses
than policies of shorter term. LIC has by and large maintained the previous
bonus rates to the policyholders.
The Simple Reversionary Bonus declared as a result
of the valuation for all with-profit policies subject to the stipulated
conditions, are as under:
Reversionary Bonus Rates per thousand Sum Assured
Year of
Commence-ment
of policy 1
Whole Life 2
Endowment type of policies Excluding *
Jeevan Mitra, Jeevan Sathi and Limited Endowment
Money Back and Anticipated Endowment
Jeevan Surabhi
Policy Term
Policy Term
Policy Term
Policy Term
10 & less 3
11 to 15 4
16 to 205
21 & above 6
10 & less 7
11 to 15 8
16 to 20 9
21 & above 10
12 & 15 11
20 12
25 13
15 14
20 15
25 16
* Excluding Jeevan Mitra,(Double and Triple Cover),
Jeevan Sathi, Limited Endowment (including Single Premium), Money Back,
Anticipated Endowment and Jeevan Surabhi policies for which bonus rates
are given in Column (7) to (16).
In addition to these Simple Reversionary Bonus rates, Final (Additional)
Bonus rates were also announced for policies fulfilling the stipulated
conditions depending upon term and sum assured of the policy. The Final
(Additional) Bonus rates range from Rs.25/- to Rs. 1,250/- per thousand
rupees Sum Assured.
24,25,26,73,74,75,76,93,106,107,108 
