Question : LIC OF INDIA has launched new plan- LIC’s Bachat Plus in March 2021. Which of the following statement is correct regarding Indian insurance sector ?
(a) Overall market size of the insurance sector is expected to US$ 280 billion in 2020.
(b) Overall market size of the insurance sector is expected to US$ 380 billion in 2020.
(c) Overall market size of the insurance sector is expected to US$ 480 billion in 2020.
(d) Overall market size of the insurance sector is expected to US$ 180 billion in 2020.
Ans.(a)
Related facts
- LIC OF INDIA has launched new plan- LIC’s Bachat Plus in March 2021.
- It is a Non-Linked,Participating,Individual,Savings Plan which offers combination of protection and savings.
- This plan provides financial support for the family of the deceased policyholder any time before maturity and lump sum amount at the time of maturity for the surviving policyholders. Proposer can choose to pay the premium either as Lumpsum (Single Premium) or for a Limited period of 5 years.
- It can be purchased Offline through agent /other intermediaries as well as Online.
Sum Assured & other information
- The Minimum Basic Sum Assured is Rs 1,00,000/- with no upper limit. The eligibility conditions for policy term, age at entry, maturity age etc will be as per premium payment and options chosen accordingly by the proposer.
- High Basic Sum Assured Rebate is offered for both modes of premium payment.
- This plan also takes care of liquidity needs through its loan facility.
- The flexible options offered under this new plan by LIC are an attractive feature suitable for people with varying needs from all segments of the society.
Indian Insurance sector at a glance
- In India, the overall market size of the insurance sector is expected to US$ 280 billion in 2020.
- The insurance industry of India has 57 insurance companies 24 are in the life insurance business, while 33 are non-life insurers.
- Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. There are six public sector insurers in the non-life insurance segment.
- Gross premium collected by life insurance companies in India increased from Rs. 2.56 trillion (US$ 39.7 billion) in FY12 to Rs. 7.31 trillion (US$ 94.7 billion) in FY20. During FY12-FY20, premium from new business of life insurance companies in India increased at a CAGR of 15% to reach Rs. 2.13 trillion (US$ 37 billion) in FY20.
By — Pankaj Pandey.