life insurance corporation of india share price Directors report

Dear Members,

Your Board of Directors (Board) are pleased to present the 66^th Annual Report of Life Insurance Corporation of India ("the Corporation"/

"LICI"/"LIC"), together with the audited financial statements for the year ended March 31, 2023.

1. HIGHLIGHTS OF FINANCIAL PERFORMANCE:

The Highlights of the Standalone financial performance of the Corporation for financial year under review, are presented below: ( in crore)

Particulars	2022-23	2021-22	Growth
New business Premium (Net of Reinsurance)
First Year Premium	39,054.94	36,615.35	6.67%
Single Premium	1,92,960.65	1,62,282.83	18.90%
Renewal Premium	2,41,989.02	2,28,521.03	5.90%
Total Premium	4,74,004.61	4,27,419.21	10.90%
Investment & Other income	3,14,048.03	2,93,683.36	6.93%
Total Income	7,88,052.64	7,21,102.57	9.28%
Profit after Tax (PAT)	36,397.39	4,043.12	800.23%

Other Key Parameters:

Particulars	2022-23	2021-22	Growth
Corporations Annual Premium Equivalent (APE) ( in crore)	56,682.00	50,390.00	12.49%
Assets under Management	43,97,204.59	40,84,600.65	7.65%
Embedded Value ( in crore)	5,82,243.00	5,41,492.00	7.52%
* Solvency Margin	1.87	1.85	-

* Solvency margin is calculated before considering the proposed final dividend for the FY, which is subject to shareholders approval in AGM.

Your Corporation witnessed consistent performance and growth in FY2023. Some of the other key financial parameters of the Corporation are as follows:

Gross NPA has decreased by 55.58% from 27,087.11 crore in FY 2022 to 12,031.36 crore in FY 2023.

Net NPA has decreased by 96.63% from 175.81 crore in FY 2022 to 5.93 crore in FY 2023.

Basic & Diluted EPS for the FY 2023 is 57.55.

Net retention ratio for the FY 2023 is 99.86%

COVID – 19:

In view of the changed claim experience during last two years and uncertainty of change in claim experience, additional COVID reserve was provided for, in the valuation for the years ended March, 2021 and March, 2022. However, with the COVID related claims now significantly coming down and in view of improving overall claim experience, no additional COVID reserve has been provided for the valuation as at March, 2023, as the mortality assumptions are adequate.

2. DIVIDEND AND RESERVES:

The Board of Directors of the Corporation has recommended a final dividend of 3/- per equity share of the face value of 10/- each, subject to approval of the members of the Corporation in Annual General Meeting. This translates into a dividend pay-out ratio of 5.22%.

The Corporation has formulated a ‘Dividend Distribution Policy, which has been approved by the Board of Directors. In terms of Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing

Regulations/SEBI(LODR) Regulations, 2015) the ‘Dividend Distribution Policy is hosted on the website of the Corporation at https:// licindia.in/documents/20121/46602/Dividend-distribution-policy.pdf/a099808b-9f30-9c88-29cd-1d3e63d19456?t=1665744390416 The Corporation has carried forward a profitamounting to 35,448.64 crores during the FY2023 to the Reserves. The Corporation has accumulated profit of 39,462.97 crores as at March 31, 2023.

The Corporation has uploaded the details of unpaid and unclaimed dividend of FY 2021-22 as on March 31, 2023 on the Corporations website at https://licindia.in/documents/d/guest/lic_unclaimed-dividend-fy-2021-22_31-03-2023

3. CAPITAL AND SHAREHOLDING:

The Authorised Share Capital of the Corporation is 25,000 crore divided into 2,500 crore shares of 10/- each. The issued, subscribed and paid-up equity share capital of the Corporation as at March 31, 2023 is 63,249,977,010 comprising of 6,324,997,701 equity shares of the face value of 10/- each.

During the year ended March 31, 2023, the Corporation had made an Initial Public Offering (IPO), of 221,374,920 equity shares of 10 each at a price of 949 per share (including Share Premium of 939) through an offer for sale by the President of India, acting through the Ministry of Finance, Government of India (‘selling shareholder).

The above offer included a reservation of 1,581,249 equity shares for subscription by eligible employees and a reservation of 22,137,492 equity shares, for subscription by eligible policyholders of the Corporation. The equity shares, under employee reservation portion and policyholders reservation portion were offered to eligible employees and policyholders at a discount of 45 per share and of 60 per share respectively. A discount of 45 per share was also offered to retail shareholders. Post public issue, shareholding of President of India as on March 31, 2023 was 96.50%.

Pursuant to Regulation 32 of the SEBI (LODR) Regulations, 2015, no monitoring agency was appointed to monitor utilization of funds as the offer was an offer for sale and the entire proceeds were transferred to selling shareholder after deducting the offer expenses and relevant taxes thereon. The Corporation has not received any proceeds from the offer.

The shares of the Corporation have been listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE) w.e.f. May 17, 2022.

4. PRODUCTS:

Your Corporation offers a wide variety of products, which fulfil the needs of different customer segments of the society. During the financial year 2022-23, the Corporation introduced seven (7) new Individual products viz LICs Bima Ratna, LICs Dhan Sanchay, LICs New Pension Plus, LICs Dhan Varsha, LICs New Tech Term, LICs New Jeevan Amar, LICs Jeevan Azad and one (1) Group Rider viz. LICs Group Accident Benefit Rider.

In addition, the Corporation also introduced modified versions of five (5) Individual Products viz; LICs Aadhaar Stambh, LICs Aadhaar Shila, LICs New Jeevan Shanti, LICs Jeevan Akshay VII and LICs Saral Pension.

As at the end of the financial year 2022-23, the Corporation had thirty seven(37) Individual Products, eleven (11) seven (7) Individual Riders and 1 Group Rider available for sale.

5. CUSTOMER RELATIONSHIP MANAGEMENT: (A) Policy Servicing:

Servicing of policies is one of the important aspects in the value chain of life insurance, due to the nature of its long-term contract. Our customer service facilities start with our Branch Offices/ Satellite Offices through which the all the required services, like nomination, assignment, change of address, loan, surrender etc. In an endeavour to provide best services to our Customers we have taken many initiatives like ‘Anywhere Services where policy holder can avail services at branches other than servicing branch, customer portal has been created to avail online facility of premium paid certificate, online loan, change in address, mode of paying premium, NEFT Registration and validation of E-NACH. There are many alternate channels available for payment of premium which includes digital payment through net banking, credit card, debit card, UPI, e-wallets on LIC Customer portal, Premium can also be paid through Auto Debit, NACH and Electronic Bill pay process. Offline channels where premium can be paid in cash or through Cheque are enabled at IDBI Bank, City Union Bank, Common Service Centre (CSC), Suvidha Infoserve and APT Online and Premium paying points operated by selected Agents.

LIC has centralized call center which is operational 24x7 by calling at 022-68276827. Services are available in eight Regional languages (Bengali, Guajarati, Kannada, Malayalam, Marathi, Oriya, Tamil and Telugu) in addition to English and Hindi.

There are 74 Customer Zones operative across India which functions from 8.00 AM to 8.00 PM. Customer can also connect now through our new WhatsApp services No.8976862050.

An initiative called LICHELP, where policyholders can SMS LICHELP<POLICYNO> on officialfrom 9222492224.An Customer Zone mapped to the servicing branch of the policy, contacts the customer and support for any service requirement. The Corporation has an online system wherein a policyholder registered on the Customer Portal of LIC of India can register complaint and track its status through LICs e-services available on our website www.licindia.in The Complaints registered under IRDAIs Grievance Management System-BIMA BHAROSA are synced with LICs Complaint Management System. The Corporation has Grievance Redressal Officers(GROs) at Branch/ Divisional/Zonal/Central Office levels to redress grievances of customers. Their names are available on our website. The respective GROs are available at their personal interaction with the customers on all Mondays between 2.30 PM to 4.30 PM. Customers can meet the GROs on other days with prior appointment. Customers may also send their grievances through Post, by email etc. to the respective servicing offices / GROs.

(B) Claims Related Performance: Settlement of Claims:

LICs Claims Settlement ratio has been the best in post COVID Era, both in Maturity as well as in Death Claim and there is a declining trend in unclaimed amounts.

During the year, the Corporation has settled 225.51 lakh claims amounting to 2,09,938.63 Crore (Including Individual, Micro Insurance and Pension & Group Schemes). All payments were made through digital mode i.e., 100% payment through NEFT. All Claims reported under COVID Claims were settled. The figures in respect of settlement of claims for the last three years are provided in the Management Discussion & Analysis report which forms part of the annual report.

6. INFORMATION TECHNOLOGY:

Technology is the key differentiator in todays era. Technological innovation in the insurance sector has led to

LICs operations. Information Technology vertical of the Corporation is working towards imbibing new digital initiatives, upgrading digital capabilities and automating LICs operational processes. The Corporation has launched customized mobile Applications for our customers, intermediaries and supervisory officials, for on boarding of customers, Agents performance monitoring, Performance Review for Line Managers, Pre-recruitment App for agents, Artificial Intelligence (AI) Powered App for submission of Existence Certificate for availing annuities.

Customer Portal and LIC Digital mobile app provide service functionalities for more than 210 lakh registered users (Premier/ Normal) for creation and updating of profile, viewing policy and proposal images, premium payments including advance premium payments. Online Service request modules such as for loan Interest payments, loan repayments, change of address, mode change, ULIP fund switch, eNACH, Online PAN and NEFT data registration, register and track a grievance, etc. enable submission and fulfillment of various customer servicing requests. eFEAP, the core insurance solution of the Corporation developed in-house, enables all the offices of the Corporation to carry out activities right from the start of policy life cycle at New Business stage to Policy Servicing and ultimately to Claim settlement and also HR & CRM related activities.

Upgradation of the infrastructure of the core insurance solution (eFEAP-Next) was undertaken successfully with consolidation of hardware infrastructure of 113 Mini Data Centers and various Non-DC setups using the HCI based technologies and setting up private-cloud at four professionally managed Co-location Data Centers spread geographically in east, west, north and south Tier III Co-location data centers. Two Disaster Recovery (DR) setups were also created as part of this exercise.

Artificial Intelligence (AI) powered 24x7 Chatbot ‘LIC Mitra and ‘Jeevan Saakshya mobile application facilitate the submission of digital existence life certificate for Individual Pension Plan (IPP)Annuitants and Staff Pensioners of LIC.

Apart from these, Corporation could enable seamless integration with outside platforms like Aadhaar, PAN, UMANG, Digilocker, etc., for the benefit of our customers, Electronic Document Management System (EDMS) allows upload and archive images of policy/agency docket and is integrated with eFeap for docket view, endorsement capturing. eFeap archival also enables viewing of policy document thus enabling anywhere / anytime servicing of policy.

LIC has implemented a robust network through two service providers for uninterrupted network availability using MPLS. For seamless connectivity and availability of services through internet, the internet outbreak links have been procured at multiple locations through multiple service providers. We have also established Communication channels for productivity enhancement viz. dedicated VC Solution and email setup to provide collaboration among internal and external stakeholders.

To ensure a secure environment, the infrastructure and access controls are managed through an enterprise level Anti-virus, Active Directory, Biometric /OTP based authentications. The internal systems and resources are protected from external attacks using state-of-art firewalls.

To optimize the utilization as well as allocation of resources for multiple applications and services, private cloud technology has been implemented.

Corporation is also planning many initiatives for supporting the stakeholders ranging from internal users, intermediaries to the prospective customers. Thus, information technology acts as a key enabler for the Corporation resulting in efficiency, security and transparency thereby achieving the Digital India mission.

7. PERSISTENCY:

The 13th month persistency for Individual Regular Premium Business, by premium, for 2022-23 is 77% as against 76% for 2021-22 and the 61st month persistency for the same is 62% for 2022-23 as against 61% for 2021-22 The 13th month persistency for Individual Regular Premium Business, by number, of policies for 2022-23 is 64% as against 63% for 2021-22 and the 61st month persistency for the same is 50% for both 2022-23 and 2021-22.

8. HUMAN RESOURCE:

As on March 31, 2023, the Corporation has a total of 98,463 employees on roll which includes 23,157 female employees (constitutes approx. 23.52% of total employees). The details are as under:

Particulars	Male	Female	Total
CLASS-1	23,244	7,085	30,329
CLASS-2	17,863	1,142	19,005
CLASS-3	32,971	14,552	47,523
CLASS-4	1,228	378	1,606
Total	75,306	23,157	98,463

9. PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE:

In accordance with the Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act 2013, the Corporation has initiated various steps to improve the status of women and worked for their economic empowerment.

At every level of the Corporation, women officers/employees have contributed significantly. In the Corporation, Committees for prevention of sexualharassment effectivelyat Central Office, Zonal Office and Divisional Office level.workplacearefunctioning The summary of cases as at March 31, 2023 are as under:

No of cases pending at the end of previous Financial Year	No of cases received during the year	Total cases	Cases disposed off during the year	No of pending cases as on 31.03.2023
04	14	18	14	04

10. ENTERPRISE RISK MANAGEMENT:

LIC has robust Enterprise Risk Management framework to conduct business in an orderly fashion taking into account the risks faced by the Corporation and controlling its business effectively with defined responsibilities and adequate risk management procedures. Board has delegated the responsibility relating to Risk Management to Risk Management Committee of the Board (RMCB). The ERM framework has robust and efficient mechanism for the identification, assessing, mitigation and monitoring the risks. RMCB reviews Enterprise Risk Management activities executed across the organization on quarterly basis.

Key Risk Management Tools are Risk Appetite Statements, Risk Registers, Incident Management Framework & Operational Loss database, Top Risks and Key Risk Indicators. The mitigation strategy with respect to various risks as covered under the current Enterprise Risk Management framework is: Market Risk, Liquidity Risk, Credit risk, Insurance Risk, and Operational Risk.

11. INSPECTION:

Your Corporation has a Board approved Inspection Policy which stipulates that every office of the Corporation in India shall be inspected at least once a year by Officers of systemic lapses.

During the financial year 2022-23, we introduced a Performance Matrix for Branch Offices encompassing the Key Result Areas of performance aligned to the Corporate goals. The need for such a matrix was felt to sensitize all our units to have equal focus on both marketing & Customer Services which would not only enable them to align their activities with the objectives of the Corporation but at the same time would also enable them to achieve "Excellent" rating in Inspection.

Keeping with the pace of improving our systems and procedures, with the intervention of technology, further development was made in the Remote Inspection Package, whereby a substantial portion of inspection job can be completed before the commencement of Inspection of Units, thereby saving on precious time.

During the year of review, your Corporation has completed the inspection of all Satellite Offices, Branch Offices, Divisional Offices, Zonal Offices and Central Office by March 15, 2023 and 82% Branch "Excellent". Common Irregularities were shared with Heads of Departments of Central Office for necessary systemic improvement

12. INTERNAL AUDIT AND COMPLIANCE FRAMEWORK:

Your Corporations Internal Audit functions are overseen by the Internal Audit Department at the CentralOffice twelve Audit Centers which conduct the audit. The CO Audit department besides monitoring the operations of the Audit Centers, arranges for the audits of various Departments of Central Office.

To bring in professional approachtowardstheauditingofOffices,during the year 2022-2023, 1/3 rd of the DivisionalOfficesand the Branches under those Division including P&GS units were audited by CA firms. rd of Divisions and its Branches including P&GS units through CA firms in the coming years so that in three years period all Divisions and all Branches of the Corporation including P&GS units will be audited by CA firms.

Audit is carried out in all the Units based on Department-wise Questionnaires developed for this purpose which includes IFC questions in respect of each tier of the Corporation viz. Branch, Division, Zone and Central Office.

Major findings during the Internal Audit are regularly shared with Departments concerned of Central Office, which issue necessary instructions to the operating units and also introduce further systemic controls wherever required.

Further, as per our fraud monitoring framework, the fraud reported for value of more than 1 Crore is placed to the Risk Management Committee through the Central Fraud Monitoring Committee and Committee of Executives for Risk Management. Each Auditee Unit is audited every year. The audit activities is reported to the Audit Committee on bi-monthly basis. A summary of the reports of the auditors is placed before the Audit Committee after the close of the financial year.

13. INTERNAL FINANCIAL CONTROLS:

The Corporations internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Corporations internal financial control over financial policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflects the transactions and dispositions of the assets of the Corporation, (2) provides reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and directors of the Corporation, and (3) provides reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Corporations assets that could have a material effect on the financial statements.

14. RELATED PARTY TRANSACTIONS:

The Corporation has a Board approved Policy on Related Party Transactions (RPTs). The Policy intends to ensure that proper reporting, approval and disclosure processes are in place for all related party transactions. During the year, pursuant to notification of amendments to Listing Regulations, amongst other changes, the scope of related party transactions has been widened significantly and the said Policy was amended to align it with all the applicable amendments. The updated Policy on dealing with RPTs as approved by the Board is disseminated on the Corporations website at https://licindia.in/documents/20121/46602/Revised-RPT-Policy-Version3.pdf/8c03ebdf-e096-8cf1-6485-f58f89a14eba?t=1674020688256 All RPTs are placed before the Audit Committee for approval and review. Prior omnibus approval is obtained for RPTs that are of repetitive nature and / or entered in the ordinary course of business and are at arms length. Details of material related party transaction(s) which require approval of the shareholders of the Corporation have been detailed in the notice convening the 2nd AGM.

The details of related party transaction during the FY 2022 23 are available at page no. 438-451 of the Annual Report.

15 Ind AS IMPLEMENTATION

Ind AS 117 is yet to be notified by MCA. Insurance Regulatory and Development Authority of India (IRDAI) has issued instructions/ guidelines to the insurers regarding preparedness of Ind AS including engagement of professionals to facilitate the process of implementation of Ind AS.

The Corporation has floated the Request for Proposal (RFP) for engagement of Consultant for GAP analysis and its impact assessment on implementation of Ind AS and evaluation for the same is under process.

16. BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

As on date of this report, the Corporations Board comprises of fifteen (15) Directors viz., One (1) Government Nominee Director, Nine (9) Independent Directors and five (5) Whole Time Directors including Whole Time Chairperson and four Managing Directors. The ‘Directors Policy is hosted on the website of the Corporation at https://licindia.in/documents/20121/46602/Director-s-Policy.pdf/e17d3aa6-7027-a578-9dec-f4a6bee8043e?t=1668407463609

A) Changes in Board Composition:

• Appointment of Directors:

(i) Mr. Siddhartha Mohanty (DIN: 08058830): The Government of India, vide its letter dated March 11, 2023, had entrusted financial and administrative powers and functions of Chairperson of Life in the interim to Mr. Siddhartha Mohanty, Managing Director in addition to his own duties, for a period of three months w.e.f., March 14, 2023, or till assumption of the charge by the regular appointee to the said post, or until further orders, whichever is the earliest.

Further, the Government of India, vide its notification dated April 28, 2023, has appointed Mr. Siddhartha Mohanty, Managing Director & in-charge as Whole Time Chairperson of Life Insurance Corporation of India w.e.f., April 29, 2023 till June 29, 2024 and thereafter, as Chief Executive Officer and Managing June 07, 2025, i.e., upto the date of his attaining the age of 62 years or until further orders, whichever is earliest. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Mr. Siddhartha Mohanty as Whole Time Chairperson Corporation along with his brief profile has been included in the notice of the 2 nd AGM, for formal approval of the members.

(ii) Mr. Jagannath M. (DIN 10090437): The Government of India vide their notification dated March 13, 2023, had appointed Mr. Jagannath M. as Managing Director of the Corporation w.e.f., March 13, 2023 till the date of his superannuation or until further orders, whichever is earliest. The Board of the Corporation took note of the same. The necessary resolution for appointment of Mr. Jagannath M. as Managing Director of the Corporation along with his brief profile has been included in the notice of the 2 nd AGM, for formal approval of the members. (iii) Mr. Tablesh Pandey (DIN 10119561): The Government of India, vide their notification dated March 13, 2023, had appointed Mr. Tablesh Pandey as Managing Director of the Corporation w.e.f., April 01, 2023 till the date of his superannuation or until further orders, whichever is earliest. The Board of the Corporation took note of the same. The necessary resolution for appointment of Mr. Tablesh Pandey as Managing Director of the Corporation along with his brief profile has been included in the notice of the 2 nd AGM, for formal approval of the members. (iv) Dr. Maruthi Prasad Tangirala (DIN: 03609968) : The Government of India, vide their notification dated June 28, 2023, had appointed Dr. Maruthi Prasad Tangirala as Government Nominee Director of the Corporation with immediate effect and until further orders, in place of Mr. Suchindra Misra. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Dr. Maruthi Prasad Tangirala as Government Nominee Director of the Corporation along with his brief profile has been included in the notice of the 2nd AGM, for formal approval of the members

(v) Mr. Sat Pal Bhanoo (DIN: *Not Applicable): The Government of India vide their notification has appointed Mr. Sat Pal Bhanoo as Managing Director of the Corporation w.e.f., the date of assumption of charge and upto the date of his superannuation (i.e., December 31, 2025), or until further orders, which ever is earlier. Mr. Sat Pal Bhanoo took charge as Managing Director of the Corporation on July 20, 2023. The Board of the Corporation took note of the same. The necessary resolution for appointment of Mr. Sat Pal Bhanoo as Managing Director of the Corporation along with his brief profile has been included in the notice of 2nd AGM, for formal approval of the

(*Section 153 of the Companies Act, 2013 and the rules thereunder pertaining to holding of DIN by a Director are not applicable to the Corporation. However, Mr. Bhanoo will be obtaining DIN in due course of time.)

• Cessation of Directors:

(i) Mr. Raj Kumar (DIN: 06627311): Mr. Raj Kumar ceased to hold office as Managing Director of the Corporation, with effect from the close of business hours on January 31, 2023, upon expiry of his extended service and term beyond superannuation, in terms ofGovernmentofIndiasearliernotification . dated January 30, 2022 (ii) Mr. M. R. Kumar (DIN: 03628755): Mr. M. R. Kumar ceased to hold office as Whole Time Chairperson of the Corporation, with effect from the close of business hours on March 13, 2023, upon completion of his term, in terms of Government of Indias notification dated January 30, 2022 read with letter dated March (iii) Mr. Bishnu Charan Patnaik (DIN: 08384583): Mr. Bishnu Charan Patnaik ceased to hold office as Managing Director of the Corporation, w.e.f. March 31, 2023, after close of office hours, upon his superannuation, in terms of Government of Indias Notification dated July 05, 2021.

(iv) Mr . Suchindra Misra (DIN: 01873568): The Government of India, vide their notification dated June 28, appointed Dr. Maruthi Prasad Tangirala as Government Nominee Director of the Corporation with immediate effect and until further orders, in place of Mr. Suchindra Misra. Accordingly, Mr. Suchindra Misra ceased to be a Government Nominee Director of the Corporation w.e.f, June 28, 2023 The Board acknowledges the invaluable contributions made by Mr. M.R. Kumar, Mr. Raj Kumar, Mr. Bishnu Charan Patnaik and Mr. Suchindra Misra during their tenure as Whole Time Chairperson, Managing Directors and

Government Nominee Director respectively and places its deep appreciation for their guidance and leadership to the Corporation. from M/s S.N.The Ananthasubramanian Corporation obtained & Co., Practicing Certificate Company Secretaries (Firms Registration No. P1991MH040400), confirming that none of the Directors of the Corporation are debarred or disqualified from being appointed or continuing as Director on the Board by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any .authority such other

• Independent Directors: Your Corporation has received declarations from all the Independent Directors confirming that they meet the ‘Criteria of Independence as laid down under Section 4(3) of the LIC Act, 1956 read with the Rules and Regulations made thereunder.

The Board is of the opinionthatall fulfillthe conditions relating to their status as Independent IndependentDirectors

Director as specified under Section 4(3) of the LIC Act, 1956 read with the Rules and Regulations made thereunder and applicable provisions of the SEBI Listing Regulations and are independent of the management.

The current Board Composition as well composition of Board during FY 2022-23, are furnished in the Corporate Governance Report annexed to this report.

B) Key Managerial Personnel (KMPs) and changes, if any

In terms of the guidelines on Corporate Governance issued by IRDAI, the following senior management employees of the Corporation were holding positions of KMPs as on March 31, 2023 and July 20, 2023:

		KMPs holding positions (as on July 20, 2023)
S. No.	Name of KMP	Designation
1	Mr. Siddhartha Mohanty	Whole Time Chairperson
2	Ms. Mini Ipe	Managing Director
3	Mr. Jagannath M	Managing Director
4	Mr. Tablesh Pandey	Managing Director
5	Mr. Sat Pal Bhanoo	Managing Director
6	Mr. Pawan Agrawal	Company Secretary & Compliance Officer
7	Mr. Sunil Agrawal	Chief Financial Officer
8	Mr. P. Kumresan	Executive Director (Audit) & Chief Internal Auditor
9	Mr. R. Sudhakar	Executive Director (Marketing) & Chief MarketingOfficer
10	Mr. Dinesh Pant	Executive Director (Actuarial) & Appointed Actuary
11	Mr. Krishna Kumar. S	Executive Director (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance Officer
12	Mr. Ratnakar Patnaik	Executive Director (Investment Front Office) & Chief Investment Officer
13	Mr. Pratap Chandra Paikray	Executive Director (ERM) & Chief Risk Officer

 

		KMPs holding positions (as on March 31, 2023)
S. No.	Name of KMP	Designation
1	Mr. Siddhartha Mohanty	Managing Director & In-charge
2	Ms. Mini Ipe	Managing Director
3	Mr. Bishnu Charan Patnaik	Managing Director
4	Mr. Jagannath M	Managing Director
5	Mr. Pramod Ranjan Misra	Executive Director (Investment Front Office) & Chief Investment Officer
6	Mr. Tablesh Pandey	Executive Director (ERM) & Chief RiskOfficer
7	Mr. Pawan Agrawal	Company Secretary & Compliance Officer
8	Mr. Sunil Agrawal	Chief Financial Officer
9	Mr. P. Kumresan	Executive Director (Audit) & Chief Internal Auditor
10	Mr. S Thiruvenkatachari	Executive Director (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance Officer
11	Mr. R. Sudhakar	Officer ExecutiveDirector(Marketing)&ChiefMarketing
12	Mr. Dinesh Pant	Executive Director (Actuarial) & Appointed Actuary

Performance Evaluation of the Board:

In terms of Section 19B of the LIC Act, 1956, Nomination & Remuneration Committee (NRC) will carry out the evaluation of performance of Directors appointed under section 4(2) (f) and (g) of the LIC Act 1956. In terms of Regulation 17 of SEBI (LODR) Regulations, 2015, the evaluation of Independent Directors shall be done by entire Board. Further, in terms of Regulations 25 of the SEBI (LODR) Regulations, 2015, the Independent Directors shall review the performance of non-Independent Directors, Chairperson and the Board of Directors as a whole.

Pursuant to the foregoing provisions of LIC Act, 1956 and SEBI (LODR) Regulations, 2015, the entire Board including the members of NRC of the Corporation, undertook the performance evaluation of Independent Directors for the financial year ended on March 31, 2023.

Further, Independent Directors met separately, without the attendance of non-Independent Directors and members of the management, and inter-alia reviewed the performance of the non-independent Directors, Board as a whole; and that of the Chairperson of the Corporation. They further assessed the quality, quantity and timeliness of the flow of information between the Corporation, management and the board.

The evaluation of the Individual Performance of Directors, the Board, and the Chairperson of the Board was undertaken by circulation of questionnaires through an iOS-based application meant for evaluation.

‘Fit and Proper criteria: compliance All theDirectorsoftheCorporationhaveconfirmed with the ‘fit and proper criteria on the format prescribed under the Directors Policy approved by the Board.

Directors & Officers Liability Insurance:

As per Regulation 25 (10) of the SEBI (Listing Obligations & Disclosure Requirement) Regulations 2015 requiring the Companies to take Directors and Officers Liability Insurance (D&O) for all its Independent Directors, the Corporation has taken D&O Insurance for all its Directors and Members of the Senior Management Team for such quantum and risks as determined by the Board.

Succession Planning:

In terms of the Board approved policy on succession planning, the Nomination & Remuneration Committee of the Board oversees matters related to succession planning of KMPs, Senior Management and other key executives of the Corporation. Nomination & Remuneration Committee also recommends the appointment of Independent Directors to fill vacancies on the Board.

Meetings of the Board and its Committees, attendance and constitution of various Committees:

The details of meetings of the Board and Committees of the Board held during the year, attendance of Directors and constitution of various Committees of the Board, forms part of the Corporate Governance Report, which is annexed to this report.

Remuneration Policy:

Pursuant to the provisions of Section 19C of LIC Act, 1956, the Board has approved the remuneration policy as recommended by the Nomination & Remuneration Committee of the Board. The Policy is placed on the website of the Corporation at https://licindia.in/documents/20121/46602/Director-s-Policy.pdf/e17d3aa6-7027-a578-9dec-f4a6bee8043e?t=1668407463609.

Further, details about remuneration to Directors including Whole-time Directors are provided under report on Corporate Governance, which is annexed and forms part of this Annual Report.

Secretarial Standards:

The Corporation is obliged to comply with Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India (ICSI) in terms of provisions contained under Life Insurance Corporation Act, 1956 read with Rules & Regulations made thereunder.

17. CORPORATE GOVERNANCE:

The Corporation considers its stakeholders as partners in success, and remains committed to delivering value to stakeholders. The Corporation believes that a sound corporate governance mechanism is critical to retain and enhance stakeholders trust. It is committed to exercise overall responsibilities rigorously and diligently throughout the organisation, managing its affairs in a manner consistent with corporate governance requirements and expectations.

The Corporation conducts its business while adhering to various corporate governance practices to help ensure that there is operational transparency, information sharing, accountability and continuous dialogue with all our stakeholders. The Corporation has standard operating procedures or manuals in place that detail procedures to be followed for each function. The Corporation has several Board sub-committees that overlook Corporations corporate governance and enhance brand equity, strengthen the stakes of Shareholders and maintain a healthy working environment within the organisation.

Pursuant to the provisions of the SEBI (LODR) Regulations, 2015, a ReportonCorporateGovernancealongwithCertificatefrom

Auditors regarding compliance of conditions of Corporate Governance has been appended to this report and forms part of this Annual Report.

18. LIC GOLDEN JUBILEE FOUNDATION (LICGJF):

LIC Golden Jubilee Foundation (LICGJF) was established in the year 2006 as a part of LICs Community Service initiatives.

The objectives of the Foundation are Relief of Poverty or Distress, Advancement of Education, Medical Relief and Advancement of any other object of General Public Utility. During the year, your Corporation has provided 100/- crore to the foundation and as on March 31, 2023, LICGJFs total corpus was of 360 Crore. The interest earned on the corpus is utilised for funding various projects for charitable purposes. Since inception, the Foundation has supported NGOs located across the country and dedicated to the above objectives through 723 projects amounting to 145.52 Crores. During 2022-23, the Foundation has sanctioned 18.49 Crore for 77 projects. The Foundation has reached out to many deprived sections of society through infrastructural support provided in the above areas. LIC Golden Jubilee scholarship Scheme provides scholarships to children from economically weaker sections of the society, amounting to 20,000/- p.a for regular students for pursuing higher education and 10,000/- p.a to special girl child for pursuing 10 + 2 education. During 2022-23, scholarship of 10.04 crore was disbursed. Since inception, LICGJF has disbursed scholarships of 59.02 crore to 24,875 students.

19. P ARTICULARS OF INVESTMENT IN TERMS OF SECTION 27A OF INSURANCE ACT, 1938:

Pursuant to the provisions of Section 27A of the Insurance Act, 1938, the investments as at March 31, 2023 are mentioned in Table No. 6 and the investments in infrastructure and social sector for the year 2022-2023 are mentioned in Table No. 7 at page no. 316-317 of the Annual Report.

20. SUBSIDIARY, JOINT VENTURES AND ASSOCIATE COMPANIES:

As on March 31, 2023, the Corporation has three wholly owned subsidiary companies, four subsidiary companies, six associate companies and two joint venture companies:

S. No.	Name of the entity		Nature of entity	Business activity	% of shares held by the LIC
1	LIC Cards Services Limited ("LICCSL")		1Wholly owned subsidiary	LICCSL is engaged in the business of issue and development of credit cards, smart cards, charge cards and other types of cards, or any other payment products such as domestic and international travelers cheques and gift vouchers of all descriptions.	100%
2	LIC Pension Fund Limited ("LICPFL")		1Wholly owned subsidiary	LICPFL is engaged in the business of pension fund for pension fund schemes, as regulated by the Pension Fund Regulatory and Development Authority, Government of India.	100%
3	Life Insurance Corporation (Singapore) Pte. Limited ("LIC Singapore")		2Wholly owned subsidiary	LIC Singapore is engaged in the business of life insurance.	100%
4	Life Insurance Corporation (International) B.S.C. (c) ("LIC Bahrain")		3Subsidiary	LIC Bahrain is engaged in the business of life insurance in Bahrain and GCC countries.	99.66%
5	Life Insurance Corporation (Lanka) Limited ("LIC Lanka")		3Subsidiary	LIC Lanka is engaged in the business of life insurance.	86.49%
6	Life Insurance Corporation (Nepal) Limited ("LIC Nepal")		3Subsidiary	LIC Nepal is engaged in the business of life insurance.	55%
7	Life Insurance Corporation (LIC) of Bangladesh Limited ("LIC Bangladesh")		3Subsidiary	LIC Bangladesh is engaged in the business of, among other things, life insurance services by carrying out life and supplementary health coverage, providing accident benefit and pension insurance business under individual and group schemes and all kinds of guarantee and indemnity business.	83.33%
8	LIC Mutual Fund Trustee Private Limited ("LICMF Trustee")		4Associate	LICMF Trustee is engaged in the business of acting as a trustee for mutual funds.	49%
9	LIC Mutual Fund Asset Management Limited ("LICMF")		4Associate	LICMF is engaged in the business of investment management.	45%
10	LIC Housing Finance Limited ("LICHFL")		4Associate	LICHFL is engaged in the business of providing long term finance to persons, in particular to holders of policies issued by our Corporation, for the construction or purchase of houses for residential purposes.	45.24%
11	LIC HFL Asset Management Company Limited ("LICHFL AMC")	4Associate		LICHFL AMC is engaged in the business of, inter alia, managing, advising and administering all kinds of venture / mutual funds, capital and private equity funds.	5.38%
12	IDBI Bank Limited ("IDBI Bank")	4Associate		IDBI Bank is engaged in the business of banking in all forms within and outside India	49.24%
13	IDBI Trusteeship Services Limited ("ITSL")	4Associate		ITSL is engaged in the business of providing trusteeship services.	29.84%
14	Kenindia Assurance Company Limited ("KACL")	5Joint Venture		KACL is engaged in the business of life and non-life insurance.	10.21%
15	Saudi Indian Company for Co- operative Insurance ("SICCI")	5Joint Venture		SICCI is engaged in the business of life and non-life insurance.	4.98%

1Indian wholly owned subsidiary companies; ²foreign wholly owned subsidiary company; 3foreign subsidiary companies; 4Indian associate companies and ⁵foreign joint venture companies

The Corporation also operates directly through its branch offices in Fiji (Suva and Lautoka), Mauritius (Port Kingdom (Watford) Pursuant to the provisions of Listing Regulations, the Board has approved the policy for determining the materiality of subsidiaries within India and outside India. The policies are placed on website of the Corporation are as under:

Within India	https://licindia.in/documents/20121/46602/Policy-for-determining-Material-Subsidiaries-in-India.pdf/84ecdaa9- f927-7a18-26ef-f2af9430e11a?t=1668407223421
Outside India	https://licindia.in/documents/20121/46602/Policy-on-Material-Subsidiaries-outside-India.pdf/a6377617-f33a- 6dd3-9f0d-82589934140c?t=1668407278203

The financial position and performance of each of the Corporations wholly owned subsidiary companies, companies and associate companies is given in the annual report.

21. CONSOLIDATED FINANCIAL STATEMENTS:

In accordance with Section 24B of the LIC Act, 1956 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Consolidated Financial Statements (CFS) of the Corporation consisting of subsidiaries and associates have been prepared. The CFS have been prepared in accordance with the Insurance Regulatory and Development Authority of India (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 and the circulars issued thereafter and the applicable Accounting Standards i.e. AS 21: Consolidated Financial Statements and AS 23: Accounting for Investments in Associates in CFS issued by Institute of Chartered Accountants of India (ICAI) and forms part of Annual report.

22. RURAL AND SOCIAL SECTOR OBLIGATIONS:

As per the regulatory requirements, the Corporation has met its Rural and Social obligations for FY 2023. As against the minimum of 20%, the Corporation has issued 22.25% policies in affirmsthe Corporations approach towards life ruralsectorwhich insurance inclusion. Further, 75,36,725 new lives covered (14.05% of total new lives covered in preceding year) by the Corporation are from the underprivileged social sector as against the regulatory requirement of at least 5% of total lives covered in preceding year. Consequently, the Corporation has met the minimum social and rural regulatory norms laid down by the IRDAI.

23. MANAGEMENT REPORT:

Pursuant to the provisions of Regulation 3 of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002, the Management Report is placed separately and forms part of the Annual Report.

24. ST ATUTORY AUDITORS:

Pursuant to Section 25 of the LIC Act, 1956, the Corporation has appointed the Statutory Auditors of the Corporation for the FY

2023 after due recommendations and approvals. The details of the Statutory Auditors are annexed at page no.319 of the Annual Report.

25. STATUTORY AUDITORS REPORT:

The Statutory Auditors Report (including annexure thereof) to the Members does not contain any qualification, reservation, adverse remark, or disclaimer hence do not call for any further comments u/s 24C(1)(f) of the LIC Act, 1956. There were no reportable frauds identified by the statutory auditors during the FY2023.

26. SECRETARIAL AUDITORS REPORT:

Pursuant to Regulation 24A of SEBI (LODR) Regulations, 2015, the Corporation has appointed M/s S.N. Ananthasubramanian & Co., Practicing Company Secretary, Mumbai as the Secretarial Auditor of the Corporation. The Auditor has not made any qualification, reservation or adverse remark or disclaimer in his report for FY 2023. The detailed report on Secretarial Audit of the Corporation for FY 2023 from part forms part of this Annual Report.

27. CERTIFICATE FROM COMPLIANCE OFFICER (UNDER THE IRDAI CORPORATE GOVERNANCE GUIDELINES, 2016):

A Compliance Certificate, for complying with IRDAI Corporate Governance Guidelines, issued by the Executive Director (Corporate Governance/GJF/Regulatory Compliance), designated as the Chief Compliance officer under the IRDAI Corporate Governance Guidelines, is annexed and forms part of the Corporate Governance Report is appended to this Annual Report.

28. MATERIAL EVENTS, CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE CORPORATION:

There have been no material changes and commitments, affecting from the end of the financial year to which the Balance Sheet relates and the. date ofthisreport

29. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE

GOING CONCERN STATUS AND OPERATIONS OF THE CORPORATION:

During FY 2022-23, no significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and operations of the Corporation.

30. DIRECTORS RESPONSIBILITY STATEMENT:

In terms of Section 24C(2) of LIC Act, 1956 and the Corporate Governance Guidelines, your Directors confirm that; (a) in the preparation of the annual accounts for the year ended March 31, 2023, the applicable Accounting Standards have been followed along with proper explanation relating to material departures; (b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Corporation as of theprofit date; ofthe Corporationforthe year ended onthat (c) they have taken proper and sufficient care for the maintenance provisions of the LIC Act, 1956 for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities; (d) they have prepared the accounts for the current financial year ended March 31, 2023 on a going concern basis; (e) the vigilance administration referred under Section 8(1)(h) of the Central Vigilance Commission Act, 2003 is in operation in the Corporation under the superintendence of the Central Vigilance Commission and in addition they have laid down internal financial controls to be followed by the Corporation and that such internal financial controls are adequate and were operating effectively; (f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

31. INVESTOR RELATIONS:

The Corporation has always valued its customer and stakeholders relationships and it is our endeavour that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. The Corporation disseminates information on its operations and initiatives on a regular basis. The Corporations website (www.licindia.in) serves as a key awareness facility for all its stakeholders, allowing them to access information at their convenience. It provides comprehensive information on the Corporations strategy, financial latest press releases.

The Corporation publishes financial results on a quarterly basis. The financial results of the Corporation are prepared and posted on the website of the Corporation for the current as well as previous years.

32. MANAGEMENT DISCUSSION AND ANALYSIS REPORT, REPORT ON THE CORPORATE GOVERNANCE AND BUSINESS

RESPONSIBILITY & SUSTAINABILITY REPORT:

Pursuant to Regulation 34 of the SEBI Listing Regulations, Management Discussion and Analysis (MD&A) Report and Business Responsibility & Sustainability Report (BRSR) are presented in separate sections and form part of Annual report. In compliance with SEBI Listing Regulations, a Report on the Corporate Governance framework of the Corporation, with certifications as required under applicable Regulations (including guidelines on Corporate Governance issued by IRDAI) is annexed hereto and forms part of this Annual report.

33. IRDAI LICENSE:

The Insurance Regulatory and Development Authority of India (IRDAI) have renewed the annual licence of the Corporation to continue the Life Insurance Business for the FY 2024.

34. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:

The Corporation believes to conduct the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty and ethical behavior and committed to develop a culture where it is safe for all stakeholders to raise concerns about any poor or unacceptable practice and any event of misconduct.

In accordance with the provisions of LIC Act, 1956, IRDAI Corporate Governance Guidelines, 2016 and Regulation 22 of SEBI

Listing Regulations, the Corporation is required to establish a Vigil Mechanism for Directors and employees for adequate safeguard against victimization of Directors, Employees or any other person who report genuine concerns. The Corporation has a Policy for Prevention, Detection and Investigation of Frauds and Protection of Whistle Blowers ("the Whistle Blower Policy"), which also encourages its employees and various stakeholders to bring to its notice any issue involving compromise/ violation of ethical norms, legal or regulatory provisions, actual or suspected fraud etc., without any fear of reprisal, discrimination, harassment or victimisation of any kind. The details of Whistle Blower complaints/ concerns received, if any, and subsequent actions taken and the functioning of the Whistle Blower Mechanism is reviewed quarterly by the Audit Committee of the Board.

The complaints received through CVC-CMS portal (Complaint Management System) are being redressed through portal itself. The Whistle Blower Policy is hosted on the Corporations website at https://licindia.in/documents/20121/46602/Whilstblower-policy.pdf/6b7b20c3-9f37-8a16-1bd2-789c4a2f920d?t=1668407087077.

35. AWARDS & RECOGNITIONS:

Your Corporation has received various awards and accolades during the year under review in areas of Customer Service, Claim Service, Training etc., including the awards for Most Trusted Brand in insurance. Some of the key ones are listed below:

National award for leadership & excellence in BFSI under four categories namely Insurance Company of the year-Life, Claims services leader-large, Customer Service Excellence & Best persistency award.

ET Ascent Presents - National Award for Excellence in CSR and Sustainability under two categories namely Brand Excellence Award and Award for Customer Service and Loyalty.

Berkshire Media Indias Best Company of the year.

IBC Infomedia Indias Most trusted Brand.

Kantar Most Purposeful Non-FMCG Brand in India.

ASSOCHAM Moment of Truth (Claims Experience) Life Insurance.

Navbharat BFSI Awards 2022 Best Life Insurance Company in Claims settlement.

World BFSI Congress and Awards under three categories namely Insurance Company of the year, Excellence in Claims Service and Customer Service Excellence award.

Golden Peacock National Training Award

LIC of India is the top ranked Indian Firm on latest Fortune Global 500 list- ranked 98th as per August/September 2022 issue.

36. BOARD POLICIES:

The details of the policies approved and adopted by the Board of Directors of the Corporation as mandated under the LIC Act, 1956 and Securities and Exchange Board of India (SEBI) regulations are annexed to this report.

37. ACKNOWLEDGEMENTS AND APPRECIATIONS:

The Directors express their sincere thanks to the Honble Parliamentary Committees which visited its offices, the Honble Union Finance Minister, Honble Union Minister of State for Finance (Expenditure, Banking and Insurance), the Insurance Division of the Ministry of Finance, Department of Economic Affairs for their active support, advice and co-operation on various issues. The Directors are grateful to the Insurance Regulatory and Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and Government of India (GOI) for their continued co-operation, support and advice. The Directors would also like to take this opportunity to express their sincere gratitude to the valued Policyholders and Shareholders for their continued trust and patronage.

The Directors also express their gratitude for the advice, guidance and support received from time to time, from the Auditors, and Statutory Authorities. The Directors express their deep sense of appreciation to all the Employees, Agents, Corporate Agents and Brokers, Distributors, Re-insurers, Bankers and the Registrars who continue to display outstanding professionalism and commitment, enabling the organization to retain market leadership in its business operations.