The unclaimed amount in FY 2021 was Rs 18495.32 crore, while in FY 2020 it was Rs 16052.65 crore. In FY19 this amount was Rs 13843.70 crore.
31.6 crore shares will be offered under LIC’s IPO.
government on Sunday Life Insurance Corporation of India- LIC Of IPO ( LIC IPO, market regulator for SEBI Draft document has been filed with The IPO is expected to hit the capital markets in March. According to the draft Red Herring Prospects (DRHP) filed on Sunday, around Rs 21,539 crore is lying unclaimed with LIC till the end of September 2021. The unclaimed amount in FY 2021 was Rs 18495.32 crore, while in FY 2020 it was Rs 16052.65 crore. In FY19 this amount was Rs 13843.70 crore. This unclaimed fund includes unclaimed amount and interest earned on unclaimed amount.
This amount is for crores of policyholders across India, who failed to claim after the completion of its policies or their family members forgot to claim after the death of the insured. Every insurer is required to provide information about any unclaimed amount of Rs 1,000 or more on their respective websites (to continue even after completion of 10 years) and a facility to be provided on the website to enable the policyholders or beneficiaries to verify the unclaimed amounts.
How to know unclaimed amount
If you too have ever been or were a LIC policyholder, then you can easily find out from home whether you also have any dues. To find out the amount lying unclaimed in LIC, first click on https://licindia.in/Bottom-Links/Unclaimed-Policy-Dues. Here enter your LIC policy number, policyholder’s name, date of birth and policyholder’s PAN. After that press submit button. After doing this the unclaimed amount will be visible.
Under the SCWF Act, the unclaimed amount of policyholders held for more than a period of 10 years is transferred to the Senior Citizens’ Welfare Fund.
In FY21, LIC issued about 21 million individual policies in India, representing about 75 per cent market share in new individual policy issuance. The second largest player in the industry issued 1.66 million individual policies in FY21 and had a market share of 5.9 per cent.
Government to sell 5% stake in LIC through IPO
Under LIC’s IPO, 316 crore shares will be offered, which is equivalent to 5 per cent stake. International firm Milliman Advisors has estimated the embedded value of LIC at around Rs 5.4 lakh crore as of 30 September 2021, according to the draft red herring prospectus. The IPO is in the form of Outright Offer for Sale (OFS) by the Government of India.
As on March 31, 2021, LIC had a market share of 66 per cent in the new premium business with 283 crore policies and 13.5 lakh agents. A portion of the IPO will be reserved for anchor investors. Also, up to 10 percent of LIC’s IPO issue will be reserved for policyholders.