Mumbai, Sep 14 (UNI) Life Insurance Corporation of India (LIC), country's largest life insurance company, has declared a surplus growth of 22 per cent for the financial year 2006-07 at Rs 15,127.21 crore against Rs 12,404.82 crore in the previous fiscal.
LIC also announced a bonus of Rs 14,370.85 crore for its policy holders, which has been increased in a proportionate manner in accordance with policy durations.
Announcing its valuation results here today, LIC Chairman T S Vijayan said that 95 per cent of the surplus amounting Rs 14,370.85 crore has been allocated to the profit policy holders and balance five per cent amounting Rs 756.36 crore has been allocated to the Central Government as its share.
The Company declared a bonus of Rs 70 per thousand for whole life type plans, which was Rs 66 per thousand in the previous fiscal.
Similarly, it has increased the bonus amount on other policies like for Jeevan Tarang plan under 20 years accumulation has been increased to Rs 48 from Rs 32 per thousand in the last fiscal, marking an increase of 50 per cent.
Under Jeevan Anurag plan, with policy term of more than 20 years, the bonus has been increased to Rs 44 per thousand from Rs 32 per thousand for the same policy term in the previous fiscal.
When asked about the launch of proposed LIC credit card, Mr Vijayan said that the company has entered into a joint venture with GE and Corporation bank and the plan is well on track.
''Moreover, we have made a suggestion to our associates to include our premium collection facility in the credit card,'' he added.
He said that the company has already brought down it's transaction cost and wants to bring it down further.
LIC has over 20 crore customers across the country. The insurance giant is targeting more than two crore credit card holders for its new business line.
According to sources, LIC and its JV partner will hold approximately 30 per cent stakes each in the venture and the remaining stake is likely to be offloaded to financial investors.