Life Insurance Corporation of India (LIC) every year declares the rate of interest to charged on the various financial transaction in the coming financial year. These financial transactions include policy loan, revival, backdating of policy and many other transactions. The rate of interest in these financial transactions are declared by the actuarial department of LIC.
Rate of Interest for the various financial transaction for FY 2016-17
| S No. | Type of Transaction | Rate of Interest |
| 1 (i) | Policy Loans [under all plans except Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) and Jeevan Shikhar (Plan 837)] | 10.00% |
| 1 (ii) | Policy Loans under Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) and Jeevan Shikhar (Plan 837) | 10.50% |
| 2(i) | For policy issued on or after 01/01/1987, arrear of premiums with in six month from the date of FUP | 9.50% (subject to minimum int. of Rs. 5) |
| 2(ii) | For policy issued on or after 01/01/1987, for revival | 9.50% (subject to minimum int. of Rs. 5) |
| 3 | Arrear of premiums for alterations and age proving higher | 9.50% |
| 4 | Dating back the policies | 9.50% |
| 5(i) | Discount factor for commutation of instalments under Education Annuity policies. | 9.50% |
| 5(ii) | Discount factor for commutation of Income Benefits under Multi-purpose, Guaranteed Benefits under Annuity Policies. | 9.50% |
| 5(iii) | Discount factor for unpaid instalments under settlement option | 9.50% |
| 6 | Settlement options for Maturity Claims | 6.00% |
| 7(i) | Advance payment of premiums under Jeevan Sneha (Plan 128) | 10.00% |
| 7(ii) | Advance payment of premiums under Jeevan Bharati (Plan 160) and Jeevan Bharati I (Plan 192) | 6.00% |
| 8 | Delayed payment of claims | 9.00% |
| 9 | Discounted value of Accumulated Vale for calculation of SSV under Jeevan Saral (Plan 165) | 7.50% |
| 10 | Accumulation of Survival Benefit (SB) under Jeevan Bharati (Plan 160) and Jeevan Bharati-I (Plan 192) | 4.00% |
| 11 | Discounting of claims during the last year of policy term | 9.00% |
| 12 | Reinstatement of surrendered policies | 10.50% |
These rates will be effective from 01/04/2016 to 31/03/2017. All the rate of Interest mentioned above will also be applicable on all the plans launched after 01/01/2014.
Dear Sir,
With due respects and humble submissions, I beg to state that I am a Development Officer working in a rural area called Bongaigaon Division in Eastern Zone of Assam and Western Meghalaya since 1999.
Sir, I would like to know about Maturity Settlement Options of Maturity Claims. I use this as a Marketing tool and have very successfully used this to grow my business manifold. But Sir, the circular in this regard that I possess is that of 2005. Therefore, the Rates of Settlement option payable per Rs 1000 Maturity Sum Assured is different. I even fail to calculate the settlement options manually to reach the exact figures. However, Sir, I do have the software utility of Maturity settlement option developed by you. Sri Mana Valan, Development officer, Chennai , sent it to me on request and that has proved extremely beneficial.
I shall be highly obliged if you can send me the latest LIC circular in this regard and method to calculate Maturity settlement options manually at the present declared rate of 6 %. I shall also be pleased if you can send me the Latest Rates of Settlement Option payable per Rs 1000 maturity Sum Assured payable Yearly or Half Yearly for 2 to 10 years.
My email address is [email protected] . I shall be extremely happy to hear from you. Here’s hoping that you will respond after receiving mine. Have a blessed day Sir.
Thanking you and expecting responses,
Yours authentically,
Mr. Joy deep Choudhury
Development Officer
Good postings Thanks for updating.