$10.3 Million paid out to LICI policy holder; highest ever
Life Insurance Corporation of India will pay out an all-time high bonus of $10.13 million amongst its Fijian policyholders. The total bonus paid has grown by 15 per cent over the previous year, LICI general manager, Vimlesh Dhar, announced during a press conference yesterday.
“It has been a successful 2015 notching up sales of 9541 policies under individual insurance with a growth of approximately 15 per cent,” he said.
LICI is currently servicing over 60,000 policies in Fiji and also achieved the milestone of crossing $0.5 billion dollars investment in Fiji as at end of 2015.
“All the investments of LICI are in Fiji especially in the Fiji Infrastructure Bonds which is helping to build the infrastructure in Fiji,” he said. LICI has invested more than $63 million in the Fiji Infrastructure Bond.
In addition to the bonus, LICI has also declared additional bonus paid out on maturity for policies of longer tenures of 15 or more years. LICI adds reversionary bonus to policyholders account at the end of every year. Thus, LICI pays out 95 per cent of its distributable surplus to its customers. Mr Dhar said LICI is working closely with Post Fiji for increasing mobility to its customers for deposit of premiums for those in rural areas.
LICI is collaborating with other insurers not only in the life insurance sector but insurance in general under the Reserve Bank’s inclusion initiative for launching of a new product. The product will include many covers that one person has to take separately which can be very expensive, but this bundle will be convenient to buy and sell. Mr Dhar said more people can be covered in a short span of time.
The product will have life insurance, health, fire, accidental cover insurance. Mr Dhar said at the moment, only 12 per cent of the population has life insurance policy.
“We hope this product is very affordable, the premium is limited to $50 per annum with the coverage of $10,000 of risk cover combined of all the features,” he said. He said the date to launch the product is set for July 2016. Mr Dhar said the initiative is through the Reserve Bank of Fiji under the banner of National Financial Inclusion Taskforce.
From left: Manager (Finance, Investment and Human Resource) Anand Gurpreet, General Manager LICI Vimlesh Dhar and Manager (Information Systems) Deepak Tak.