Ahead of the Life Insurance Corporation of India’s (LIC’s) public listing, the finance ministry and the insurer have approved gradually lowering the public sector outfit’s distributable surplus to its policyholders.
From next year, LIC will distribute 92.5 per cent of its surplus to the policyholders against 95 per cent at present, and then bring the level down to the industry norm of 90 per cent.
The pie for the shareholders, including the government, will go up to 10 per cent from 5 per cent at present.
“Starting 2022-23, 92.5 per cent of the insurer’s surplus will be transferred to the policyholders, and the remaining 7.5 per cent to the shareholders, for the next two years,” an official said.
After two years, the surplus transferred to the policyholders will be brought down to 90 per cent, he added.
