1. PREAMBLE
The Life Insurance Corporation of India has pleasure in presenting its 68th Annual Report as per section 27 of the Life Insurance Corporation Act, 1956, Insurance Regulatory Development Authority of India (Corporate Governance for Insurers) Regulations, 2024 and Regulation 34 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the Financial Year ending 31.03.2025.
2. GLOBAL ECONOMIC ENVIRONMENT
FY2025 was characterized by a wave of elections across the globe, leading to notable leadership changes in major economies, including the United States and several other countries. Adding to the uncertainty stemming from political transitions, ongoing geopolitical tensions particularly in the Middle East and the continued Russia-Ukraine conflict further contributed to global instability. In the early months of CY2025, the U.S. administration announced a series of tariff increases on imports from multiple countries. While the full impact of these tariffs on the global economy remains unclear, the overall effect is expected to be negative.
Amid these challenges, inflation rates in major economies began to decline, prompting central banks to reduce interest rates in an effort to stimulate growth as signs of economic slowdown became evident. As per IMF 04th April 2025 report, Global growth is projected to drop to 2.8 percent in 2025 and 3 percent in 2026. The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity. After the pandemic, the decisive and forceful monetary policy response brought inflation down to near central bank targets at relatively little cost to economic activity. The priority for central banks remains fine-tuning monetary policy stances to achieve their mandates and ensure price and financial stability in an environment with even more difficult trade-offs. Global headline inflation is expected to decline at a pace that is slightly slower than what was expected in January, reaching 4.3 percent in 2025 and 3.6 percent in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in 2025.
3. MACRO - ECONOMIC ENVIRONMENT IN INDIA
Our business, financial health, results of operations and cash flows are significantly affected by macroeconomic conditions in India, where we conduct vast majority of business and generate substantially all of our income. While our business tends to benefit from increased consumer confidence in the overall economy and the life insurance sector in particular, adverse macroeconomic conditions in India may reduce demand for our products, increase the number of policy surrenders and withdrawals, reduce the returns from our investment activities and otherwise adversely affect our results of operations.
Key macroeconomic factors affecting the performance of the growing but under penetrated life insurance industry in India include Indias population growth trajectory and favourable demographics, urbanisation, overall economic growth rates, household income growth rate and consumer attitudes towards financial savings.
These factors affect the proportion of household savings invested in insurance products relative to other competing products ranging from physical assets such as real estates and gold, to financial saving instruments, such as bank deposits, provident and mutual funds. Macroeconomic conditions also affect the mix of investments across various asset classes.
The macro environment includes trends in the Gross Domestic Product (GDP), inflation, employment, spending and monetary and fiscal policy.
(i) GDP Growth Rate: The rate of growth of Gross Domestic Product (GDP) directly impacts the insurance sector. A robust economy with higher GDP growth tends to drive demand for insurance products. Against this challenging global economic landscape, the Indian economy remained resilient, supported by robust macroeconomic fundamentals and proactive policy measures. Although real gross domestic product (GDP) growth moderated to 6.5 per cent in 2024-25, India remained the fastest growing large economy. Economic activity was bolstered by an improvement in consumption demand and net exports on the expenditure side and buoyant services sector and recovery in agricultural production on the supply side. According to RBI, Indias GDP is projected to grow by 6.5% in FY2026.
(ii) Employment: The latest Periodic Labour Force Survey (PLFS) data for April 2025 shows that Indias unemployment rate stood at 5.1%, with a slight increase in rural areas. The Labour Force Participation Rate (LFPR) was 55.6%, with rural areas having a higher LFPR of 58.0% and urban areas at 50.7%. The WPR (the proportion of workers in the total population) was 52.8% overall. In rural areas, it was 55.4% and in urban areas, it was 47.4%. Unemployment Rate (UR) in Current Weekly Status (CWS) among persons of age 15 years and above was 5.1% in April, 2025. The male UR was a touch higher at 5.2% compared to the female UR of 5.0% at the country level. Worker Population Ratio (WPR) in CWS in rural areas among persons of age 15 years and above was 55.4%. WPR in urban areas among persons of the same age group was 47.4% with the overall WPR at the country level observed as 52.8% during April, 2025.
(iii) Disposable Income: Disposable income refers to the amount of money individuals or households have for spending and saving after income taxes have been deducted. It is a key indicator of financial well-being and directly influences consumption patterns, savings behavior, and overall economic demand. Increases in disposable income typically leading to higher consumer spending, which can drive economic growth.
(iv) Household Savings: The level of domestic household savings in a country affects the availability of funds for investment. Higher savings can lead to increased investments in insurance policies. According to data published for the fiscal year 2023–24, domestic savings within the Indian household sector witnessed a notable 9 percent increase in FY2024, an improvement over the 6% growth recorded in FY2023.
(v) Household Financial Savings: The financial well-being of households plays a crucial role in shaping their capacity to purchase insurance. When households have surplus savings, they are more likely to invest in life insurance. In FY 2024, India witnessed a modest recovery in household financial savings, gross financial savings as a share of total household savings rose to 62.8%, up from 58.43% the previous year. In 2024, life insurance made up 16.97% of peoples financial savings in India. This was due to insurance products offering greater value to customers.
(vi) Inflation: According to International Monetary Fund (IMF), global economic growth has remained fairly moderate. The global economy grew by 3.3 per cent in 2023. The International Monetary Fund (IMF) has projected growth of 3.2 per cent and 3.3 per cent for 2024 and 2025, respectively. Over the next five years, global growth is expected to average around 3.2 per cent, which is modest by historical standards. While the overall global outlook remains steady, growth varies across different regions.
Indias headline inflation, measured by the Consumer Price Index (CPI), has moderated in FY25 (April-December) compared to FY24. This decline is primarily due to a significant decrease in core inflation, which dropped by 0.9 percentage points between FY24 and FY25 (April-December). The sharp decline in core inflation was largely driven by core services inflation, which was lower than core goods inflation. A decrease in fuel price inflation has also contributed to the moderation in headline inflation, alleviating pressure on household budgets. In general, the decline in retail inflation can be attributed to a reduction in input prices, as reflected in wholesale price inflation, which was in the deflationary zone (-0.7 per cent) in FY24 and remained low in FY25 (April-December).
Indias CPI inflation for FY25 is projected to be 4.8%, with a peak in Q3 due to seasonal factors, followed by a moderation in Q4. This outlook reflects a balanced approach to managing inflation and supporting economic growth.
(vii) Trade and Forex: Indias merchandise exports grew marginally by 0.1 per cent in 2024-25 as against a contraction of 3.1 per cent a year ago. On the other hand, merchandise imports grew by 6.2 per cent during this period as against a contraction of 5.3 per cent a year ago. Consequently, Indias merchandise trade deficit widened to US$ 282.8 billion during 2024-25 from US$ 241.1 billion a year ago. Nonetheless, strong services exports and a steady flow in inward remittances cushioned Indias Current Account Deficit (CAD) to remain within sustainable level at 1.3 per cent of GDP during April-December 2024 (1.1 per cent a year ago).
Net foreign direct investment (FDI) inflows stood at US$ 0.4 billion during 2024-25, lower than US$ 10.1 billion a year ago, and FPI recorded net inflows of US$ 1.7 billion during 2024-25 (US$ 41.6 billion a year ago).
(viii) Regulatory Changes: The Insurance Regulatory and Development Authority of India (IRDAI) has issued Regulations/ master circulars covering various areas like management expenses, protection of policyholders interest, product flexibility, social sector rural obligations, corporate governance, Registration and Capital Structure of Insurers.
4. OUTLOOK ON THE LIFE INSURANCE INDUSTRY IN INDIA
The Indian insurance industry is poised for strong growth in 2025, driven by a robust economy, supportive government policies, and increasing awareness of financial protection. While the overall industry is expected to grow, the Indian life insurance market is expected to become the second-largest in Asia. The Indian life insurance market is projected to grow at 10.5% annually over the next decade, significantly higher than the global average of 5%, according to Allianze Global Insurance.
5. OPPORTUNITIES FOR INSURANCE INDUSTRY
(i) India has worlds largest population: As of 2025, India is the most populous country in the world, with an estimated population of approximately 1.46 billion people. The world population is projected to reach 8.634 billion by 2031, with a yearly increase of 0.76%.
(ii) Favourable demographics: As of year 2020, India has one of the largest young populations in the world, with a median age of 28 years. About 87% of Indians will still be below the age of 60 by calendar 2031. CRISIL Report forecasts that 64% of them will be between 15 and 59 years.
Note: Figures may not add up to total due to rounding off
(iii) Urbanisation: Urbanisation across the world has increased and similar trend has been observed in India, currently, close to 35% of the population live in urban areas and this is estimated to increase to 52.8% by 2050 as per World Urbanisation Prospects 2018. Urbanisation of India is one of the most important drive as it will drive substantial investments in infrastructure development, which, in turn, is expected to lead to job creation, development of modern consumer services and increased ability to mobilise savings. An increase in urbanisation has led to improvement in the style of living and awareness to secure financial stability through saving and investments.
Source: United Nations World Urbanisation Prospects, 2018
(iv) Low Life Insurance Penetration and insurance density in India: Insurance penetration and density are two metrics, among others, often used to assess the level of development of insurance sector in a country. While insurance penetration is measured as the percentage of insurance premiums to GDP, insurance density is calculated as the ratio of premium to population (per capita premium).
Despite the strong growth in life insurance in India over the years, indicators such as insurance penetration and insurance density indicate that India is still under-insured as compared to Advance Asia Pacific countries such as South Korea, Taiwan, Singapore and Japan etc.
Source: IRDAI Annual Report 2023-24-Insurance Penetration and density for the year 2023. # Data relates to F.Y., other data relates to calendar year.
P.S. : Insurance density is measured as ratio of premium (in US Dollar) to total population and Insurance penetration is measured as ratio of premium to GDP.
6. BUSINESS PERFORMANCE
A. New Business
(i) Individual New Business
During the financial year 2024-25, the Corporation under Individual New Business, has procured 1,77,82,975 Policies with a New Business Premium Income of Rs. 62,495 crore.
During the financial year 2024-25, 75.81 lakhs individual policies sold to millennial customers. The percentage of individual policies sold to millennial customers to total number of individual policies sold is 42.63%.
(ii) Individual New Business Sum Assured
Individual new business sum assured represents the total sum insured by us for mortality and morbidity risks on the Individual new business written in a given period. During the financial year 2024-25, the Corporation sold total New Business Sum Assured of Rs. 5,88,604 crore.
(iii) Rural Thrust
Sustained and conscious efforts are made to carry the message of Life Insurance to the rural areas, especially the backward and remote areas. As a result, there has been steady growth of New Business from these areas. The Individual New Business Premium from rural areas amounts to Rs. 32,753.96 crore representing 52.41% completed during the Financial Year 2024-25.
(iv) Individual Agent and POSP-LI (Conventional /Tied) Channel
During the Financial Year 2024-25, conventional channel garnered total Rs. 58,576.17 crore new business premium and 173.59 lakh policies. Share of the channel in Corporations performance stood at 97.62% in policies and 93.73% in New Business Premium.
(v) Bancassurance and Alternate Channels (B&AC)
During the Financial Year 2024-25, B&AC channel has shown its best ever performance 3,496 Crs of FYPI, thereby registering an impressive growth of 58%.
The share of First year Premium Income to the Corporations Business has increased from 3.83% to 5.60%.
During the year we have added to our partnership 10 Banks, 10 (Other) Corporate Agents, 51 Brokers and 60 IMFs.
The total Partnership Universe for the channel now stands at 95 banks, 88 (Other) Corporate agents, 301 Brokers and 162 IMFs.
Both Banks and Other Alternate Channels showed impressive growth in terms of Premium procurement over previous fiscal; Banks Rs. 2577 Crs. (Rs. 1640 Crs.) showing growth of 57.10%, Other Alternate channels Rs. 919 Crs. (Rs. 573 Crs.) showing growth of 60.43%. (Figures in brackets indicate Last Year Performance).
(vi) Micro Insurance
In the Financial year 2024-25, 8.99 lakh policies with NBP of Rs. 354.81 crore were sold.
(vii) Digital Marketing
The Digital Marketing Channel commenced its operations w.e.f. 1st June, 2021. The channel was envisaged to provide a digitally smart and technology driven platform requiring minimum human intervention. The entire system of onboarding of the customers right from proposal filling, pre-policy medical scheduling, Underwriting, payment mechanism and completion of the policy is online and paperless. The aim is to provide a seamless end-to-end buying experience to the customer, in tune with expectation of tech-savvy millennial.
During Financial Year 2024-25, the channel procured the following New Business:
| Particulars | Number of Policies | First Premium Income (Rs. in Cr) |
| Online Business | 5,004 | 60.98 |
| National Pension System (NPS) Fund Business | 3,744 | 271.33 |
At present the channel offers 18 products for online purchase. Out of 18 products 4 are for Protection, 4 for Annuity, 4 for ULIP and 6 for savings.
(viii) Pension and Group Schemes New Business Premium
During the year 2024-25, the P&GS vertical completed 32,268 Schemes covering 4,61,63,553 lives with New Business Premium Income (NBPI) of Rs. 1,64,262 crore.
(ix) LICs Mahila Career Agent Scheme (LICs Bima Sakhi)
LIC had launched Mahila Career Agent Scheme (LICs Bima Sakhi) on 09.12.2024. The scheme aims to provide employment opportunities to women and provides them financial independence and the advantage of working as per their convenience and time. This is a stipendiary agency scheme for 3 years with monthly stipend of Rs. 7000/- in First Year, Rs. 6000/- in Second Year and Rs. 5000/- in Third Year in addition to the commission payments. After 3 years, the agent will continue to work and earn commission and other benefits as per the rules. As at 31.03.2025, total 1,48,888 Bima Sakhis were recruited and they completed New Business of 4,71,120 policies with FPI of
Rs. 604.57 Crores and stipend of Rs. 62.36 Crores was paid .Bima Sakhis Business % Share to Total Business for NOP was 2.65% and for FYPI was 1.02%.
B. AGENTS
(i) Agency Strength
The total number of Agents on our Roll is 14,86,851 as at 31.03.2025 as against 14,14,743 as on 31.03.2024, registering growth of 5.10%. During the Financial Year 2024-25, total 3,37,365 agents were recruited out of which 2,59,239 agents were in the age group of 18-40 years.
(ii) Agents Club Membership
In order to motivate and recognize high and consistent performers amongst the agency force, various Clubs have been formed. The details of membership strength of the Clubs are furnished in the Table below:
MEMBERS OF VARIOUS AGENTS CLUB
| Name of Club | Membership Year 2024-25 |
| Elite | 48 |
| Corporate | 424 |
| Galaxy | 1,950 |
| Chairman | 44,500 |
| Zonal Manager | 34,932 |
| Divisional Manager | 49,883 |
| Branch Manager | 33,344 |
| Distinguished Agents Club | 13,066 |
Total |
1,78,147 |
(iii) Career Agents Scheme
The Corporation has a scheme for Urban Career Agents and Rural Career Agents to promote the cause of professionalizing the Agency force. They are given stipends at the start of their career to enable them to settle down in the profession. As on 31st March 2025 there are 913 Urban Career Agents and 46,706 Rural Career Agents.
City Career Agents Scheme was introduced in 2010 to provide all Development Officers an opportunity to recruit stipendiary Agents. As on 31st March 2025 there are 12,694 City Career Agents.
(iv) Senior Business Associates
The SBA Scheme was introduced in the year 2009 to recognize high performing Development Officers and to empower them with certain financial and non-financial functions.
(v) LIC Associates Scheme
The LICA scheme was introduced from 01.04.2016 with an objective to introduce an innovative distribution channel and strengthening the distribution system by gainfully redeploying the valuable marketing talent of retired Development Officers and Senior Business Associates depending on their cost.
(vi) Chief Life Insurance Advisor
LIC introduced the Chief Life Insurance Advisor Scheme 2008 on 12.04.2008 with the objective of increasing the market presence by utilizing the capabilities of existing high performing agents for growth in Agency and New Business.
(vii) New Business Procured through SBAs, LICAs & CLIAs During 2024-25
| Particulars | Number of Policies | First Year Premium Income (Rs. in Cr) |
| SBA | 40,46,331 | 13,280.46 |
| LICA | 10,87,981 | 4100.64 |
| CLIA | 30,68,266 | 10,218.89 |
7. ANALYSIS OF FINANCIAL STATEMENTS (STANDALONE) A. Income Statement Analysis (i) Revenue Account (Policyholders Account)
The summary of Revenue Account of the Corporation for Financial year 2024-25 along with comparative analysis is as follows:
( in crore)
| Particulars | Financial Year 2024-25 | Financial Year 2023-24 | Growth % |
| Net Premium Income | 4,88,148 | 4,75,070 | 2.75 |
| Income from Investments (Net) | 3,92,623 | 3,63,944 | 7.88 |
| Other Income | 663 | 14,648 | (95.47) |
| Contribution from Shareholders A/c - Towards Excess EOM | 2,642 | 13 | |
Total (A) |
8,84,076 | 8,53,675 | 3.56 |
| Net Commission | 25,309 | 25,959 | (2.50) |
| Operating Expenses | 35,415 | 48,122 | (26.41) |
| Provisions for doubtful debts (including bad debts written off) | (1,546) | (1,011) | 52.92 |
| Provisions for diminution in value of investments and Provision for doubtful Debt and Bonds | (627) | (1,908) | (67.15) |
| Goods & Service tax on linked charges | 223 | 134 | 66.42 |
| Provision for taxes | 7,773 | 5,825 | 33.44 |
| Benefits Paid (Net) | 4,16,355 | 3,88,809 | 7.08 |
| Change in actuarial liability | 3,53,334 | 3,53,036 | 0.08 |
Total (B) |
8,36,236 | 8,18,966 | 2.11 |
Surplus/Deficit (A-B) |
47,840 | 34,709 | 37.83 |
| Amount transferred from Shareholders Account (Non Technical Account) | 2,255 | 2,598 | (13.20) |
| Amount available for appropriation | 50,095 | 37,307 | 34.28 |
Appropriations |
|||
| a. Transferred to Shareholders A/c | 49,507 | 40,022 | 23.70 |
| b. Funds for Future Appropriations | 588 | (2,715) | 121.66 |
a. Premium Income
The following table sets forth summary of premium income at segment level for the period indicated
| ( in crore) | |||||||||||
| Particulars | Financial Year 2024-25 | Financial Year 2023-24 | |||||||||
| PAR | Non-Par | Linked | CRAC* | Total | PAR | Non-Par | Linked | CRAC | Total | Growth % | |
| FY Premium | 25,660 | 4,975 | 1,720 | - | 32,355 | 29,072 | 2,791 | 748 | - | 32,611 | (0.78) |
| Single Premium | 3,567 | 15,861 | 10,712 | - | 30,140 | 4,485 | 16,921 | 3,699 | - | 25,105 | 20.06 |
| Total NBP | 29,227 | 20,836 | 12,432 | - | 62,495 | 33,557 | 19,712 | 4,447 | - | 57,716 | 8.28 |
| Renewal Premium | 2,48,967 | 4,135 | 3,438 | 1 | 2,56,541 | 2,42,033 | 1,940 | 2,078 | 1 | 2,46,052 | 4.26 |
| Total Premium (Individual) | 2,78,194 | 24,971 | 15,870 | 1 | 3,19,036 | 2,75,590 | 21,652 | 6,525 | 1 | 3,03,768 | 5.03 |
| P&GS Premium | - | 1,69,112 | - | 1,69,112 | - | 1,71,300 | 2 | - | 1,71,302 | (1.28) | |
Total Premium |
2,78,194 | 1,94,083 | 15,870 | 1 | 4,88,148 | 2,75,590 | 1,92,952 | 6,527 | 1 | 4,75,070 | 2.75 |
(*CRAC-Capital Redemption & Annuity Certain)
Total premium increased by 2.75% from Rs. 4,75,070 crore in FY 2023-24 to Rs. 4,88,148 crore in FY 2024-25. Unit-Linked segment of Individual business had shown a strong growth by 143.14% from Rs. 6,527 crore in FY 2023-24 to Rs. 15,870 crore in FY 2024-25.
b. Investment Income: Net Investment income increased by 7.88% from Rs. 3,63,944 crore in FY 2023-24 to
Rs. 3,92,623 crore in FY 2024-25 which includes interest, dividends, and capital gains from investments made by LIC. The rental income from the Estate portfolio for the year 2024-25 is Rs. 630 crore, which is an increase of 12.72% over the rental income for the last year.
c. Other Income: Other income decreased by 95.48% from Rs. 14,648 crore in FY 2023-24 to Rs. 663 crore in FY 2024-25, due to refund of income tax and interest thereon in FY 2023-24.
d. Revenue Analysis: Total Revenue Income increased from Rs. 8,53,675 crore in FY 2023-24 to Rs. 8,84,076 crore in FY 2024-25 primarily on account of an increase in premium income, investment income and reduction in expenses.
e. Commission expenses: The following table shows the comparative summary of commission expenses:
| ( in crore) | |||
| Particulars | Financial Year 2024-25 | Financial Year 2023-24 | Growth % |
| First year commission | 9,986.84 | 11,081.17 | (9.88) |
| Single commission | 760.47 | 783.33 | (2.92) |
Total |
10,747.31 | 11,864.50 | (9.41) |
| Renewal commission | 14,561.45 | 14,094.62 | 3.31 |
Total Commission |
25,308.76 | 25,959.12 | (2.51) |
Total commission decreased marginally by 2.51% from Rs. 25,959.12 crore in FY 2023-24 to Rs. 25,308.76 crore in FY 2024-25.
f. Operating Expenses related to insurance business: The following table shows the comparative summary of operating expenses: ( in crore)
| Particulars | Financial Year 2024-25 | Financial Year 2023-24 | Growth % |
| Salaries and other benefits to employees | 26,896 | 39,584 | (32.05) |
| Other Expenses to Management | 8,519 | 8,538 | (0.22) |
Total |
35,415 | 48,122 | (26.41) |
Total operating expenses decreased by 26.41% from Rs. 48,122 crore in FY 2023-24 to Rs. 35,415 crore in FY 2024-25.
g. Benefits Paid: This includes death benefits, maturity benefits, annuity payments, surrender, withdrawal, interim bonus paid and other claims to the Policyholders.
A summary of benefits paid is as under ( in crore)
| Particulars | Financial Year 2024-25 | Financial Year 2023-24 | Growth % |
| Claims by Death | 24,420 | 22,625 | 7.93 |
| Claims by Maturity | 2,37,313 | 2,08,136 | 14.02 |
| Annuities | 22,098 | 20,107 | 9.90 |
| Surrenders etc | |||
| Non linked (Indl) | 42,426 | 40,198 | 5.54 |
| Linked (Indl.) | 3,308 | 2,393 | 38.24 |
| P &GS(surrender) | 2,885 | 2,604 | 10.79 |
| Total Surrender | 48,619 | 45,195 | 7.58 |
| P&GS (Withdrawal) | 82,287 | 88,631 | (7.16) |
| Other Claim Cost (interest on unclaimed amounts) and others | (1,458) | 1,255 | |
| Interim Bonus Paid | 3,076 | 2,860 | 7.55 |
Total Benefits Paid |
4,16,355 | 3,88,809 | 7.08 |
Total benefits paid increased by 7.08% from Rs. 3,88,809 crore in FY 2023-24 to Rs. 4,16,355 crore in FY 2024-25. The increase was primarily on account of an increase in maturity and surrender claims from Rs. 2,08,136 crore and Rs. 45,195 crore in FY 2023-24 to Rs. 2,37,313 crore and Rs. 48,619 crore in FY 2024-25 respectively.
(ii) Profit and Loss Account (Shareholders Account)
The summary of Profit and Loss Account of the Corporation for Financial year 2024-25 along with comparative analysis is as follows: ( in crore)
Profit After Tax:
• Profit after Tax (PAT) for the year ended 31st March, 2025 is Rs. 48,151 crore as compared to Rs. 40,676 crore for the year ended 31st March, 2024.
B. Financial Snapshot - Balance Sheet: The summary of Balance Sheet of the Corporation for Financial year 2024-25 along with comparative analysis is as follows:
( in crore)
| Particulars | Financial Year 2024-25 | Financial Year 2023-24 | Growth % |
SOURCES OF FUNDS |
|||
SHAREHOLDERS FUNDS: |
|||
| Share Capital | 6,325 | 6,325 | 0 |
| Reserves and Surplus | 1,20,096 | 75,740 | 58.56 |
| Fair Value Change Account | (233) | (127) | |
POLICYHOLDERS FUNDS: |
|||
| Fair Value Change Account | 6,47,540 | 6,92,682 | (6.52) |
| Hedge Fluctuation Reserve | 11 | 0 | |
| Policy Liabilities | 47,35,580 | 43,95,325 | 7.74 |
| Funds for Discontinued Policies | |||
| (i) Discontinued on Account of non-payment of premiums | 791 | 394 | 100.76 |
| (ii) Others | 14 | 14 | 0 |
| Insurance Reserves | 15,670 | 15,594 | 0.49 |
| Provision for Linked Liabilities | 47,533 | 34,876 | 36.29 |
Sub-Total |
54,47,139 | 51,38,885 | 6.00 |
| Fund for Future Appropriations | 1,828 | 1,215 | 50.45 |
TOTAL |
55,75,155 | 5,222,038 | 6.76 |
APPLICATION OF FUNDS |
|||
| Investment-Shareholders | 1,04,026 | 63,744 | 63.19 |
| Investments-Policyholders | 51,36,279 | 48,76,512 | 5.33 |
| Assets held to cover Linked Liabilities | 48,312 | 35,258 | 37.02 |
| Loans | 1,27,480 | 1,20,258 | 6.01 |
| Fixed Assets | 4,461 | 4,057 | 9.96 |
NET CURRENT ASSETS |
1,54,597 | 1,22,209 | 26.50 |
TOTAL |
55,75,155 | 52,22,038 | 6.76 |
i) Reserve and Surplus: Reserve and Surplus (Shareholders fund) as at 31st March, 2025 increased to Rs. 1,20,096 crore from Rs. 75,740 crore as at 31st March, 2024. The increase of 58.56% is primarily due to increase in profit after tax.
ii) Fair Value Change Account: Fair Value Change Account (Policyholders fund) decreased from Rs. 6,92,682 crore as at 31st March, 2024 to Rs. 6,47,540 crore as at 31st March, 2025. The decrease of 6.52% is primarily due to mark to market movement in share prices during the current financial year.
iii) Policy Liabilities: Policy liabilities increased from Rs. 43,95,325 crore as at 31st March, 2024 to Rs. 47,35,580 crore as at 31st March, 2025. Policyholders liability depends upon the business profile and assumptions made about future mortality/morbidity, interest, expenses etc., at each point of time. The change in business profile happens due to policies exiting and policies entering mainly due to new business and existing policies getting closure to maturity.
iv) Provision for Linked Liabilities: Provision for linked liabilities (Policyholders fund) increased from Rs. 34,876 crore as at 31st March, 2024 to Rs. 47,533 crore as at 31st March, 2025. The Policyholders Linked Liabilities represents the unit liability in respect of Linked business and has been considered as the value of the units standing to the credit of the policyholders, using the Net Assets Value (NAV) as on valuation date.
v) Investments: The Corporation holds a significant portion of their assets in investments such as government securities, debentures, corporate bonds, mutual funds, equities etc. The summary of investments as at 31st March, 2025 along with comparative figures are as follows: ( in crore)
| Particulars | FY 2024-25 | FY 2023-24 |
Investments |
||
| a. Shareholders | 1,04,026 | 63,744 |
| b. Policyholders | 51,36,279 | 48,76,512 |
| Assets held to cover linked liabilities | 48,312 | 35,258 |
Total Investments |
52,88,617 | 49,75,514 |
Total investment grew by Rs. 3,13,103 crore from Rs. 49,75,514 crore as at 31st March, 2024 to Rs. 52,88,617 crore as at 31st March, 2025.Total Equity Investment portfolio constitute Rs. 13,43,109 crore and others Rs. 39,45,508 crore as at 31st March, 2025. For detailed category wise breakup of investments, refer Schedule 8, 8A and 8B of Financial Statements. Increase in policyholders investment portfolio is attributable to increase in premium and investment income offset by net outgo due to operating expenses and claims.
The yield on investments (on shareholders fund) for the financial year 2024-25, without unrealised gains is 6.93% and yield on investments (on Policyholders fund) for the financial year 2024-25, without unrealised gains is 8.65%.
vi) Fixed Assets: Fixed Assets (net of depreciation) have increased from Rs. 4,057 crore as at 31st March, 2024 to Rs. 4,461 crore as at 31st March, 2025.
vii) Net Current Assets: Net Current Assets have increased by 26.50% from Rs. 1,22,209 crore as at 31st March, 2024 to Rs. 1,54,597 crore as at 31st March, 2025.
C. Cash flow statement
The following table set forth, for the period indicated, a summary of the cash flows:
| ( in crore) | ||
| Particulars | FY 2024-25 | FY 2023-24 |
| Net cash generated from/(used in) operating Activities | (6,180) | 28,911 |
| Net cash generated from/(used in) investing Activities | 37,514 | (28,129) |
| Net cash generated from/(used in) financing Activities | (3,794) | (4,427) |
| Cash and cash equivalent at the end of period | 62,324 | 34,712 |
(i) Operating Activities
Net cash flow from operating activities is (Rs. 6180 crore) in FY2025 as against Rs. 28,911 crore in FY2024 primarily on account of increase in policy benefits payments and arrears payment.
(ii) Investing Activities
Net cash flow generated from investing activities is Rs. 37,514 crore in FY2025 as against (Rs. 28,129 crore) in FY2024 primarily on account of an increase in sale of investment from Rs. 2,55,319 crore in FY2024 to Rs. 3,04,015 crore in FY2025 and increase in rent/interest/dividend received from Rs. 2,91,778 crore in FY2024 to Rs. 3,13,556 crore in FY2025 offset in part by purchase of investments etc.
(iii) Financing Activities
Net cash flow from financing activities is (Rs. 3,794 crore) in FY2025 as against (Rs. 4427 crore) in FY2024 primarily on account of an increase in interest/dividends paid.
D. Disclosure of Accounting Policies
Please refer Schedule 15A of Standalone Financial Statements in this Annual Report from Page No. 417 to 431. E. Segment-wise Performance
Segment-wise Performance is available in the Financial Statements, which forms a part of this Annual Report.
8. KEY PERFORMANCE INDICATORS
Following are the key parameters on which performance of the Corporation can be measured
(i) Market Share: Life Insurance Corporation (LIC) of India has historically held a dominant position in the Indian life insurance market. With its extensive network and over six decades long presence, LIC has maintained a substantial market share, i.e. 57.05% of the total life insurance business in the country as at 31st March 2025 by Total First Year Premium Income. In term of Individual First Year Premium Income, LIC market share is 37.46 per cent. P&GS Market Share in FYPI is 71.19 per cent. While in policies LIC overall market share is 65.83 per cent. This significant market share underscores LICs widespread reach, brand recognition and the trust it commands among Indian consumers.
While LIC faces increasing competition from private insurers, its market dominance remains resilient, supported by its wide range of insurance products, strong distribution network and government backing. However, ongoing market dynamics and regulatory changes may influence LICs market share over time, necessitating continuous strategic adaptation to maintain its competitive edge.
(ii) Product Mix: LIC offers a diverse portfolio of life insurance products catering to varied customer needs and preferences. Its product mix includes traditional endowment plans, whole life plan, term insurance plans, pension plans, unit-linked insurance plans (ULIPs) and micro insurance products. Traditional plans, such as whole life and money back plans have been the cornerstone of LICs product offerings, providing long-term savings and protection benefits to policyholders. In recent years, LIC has also introduced innovative products tailored to evolving market demands, such as unit-linked plans with investment options and whole life insurance plans with comprehensive coverage. This balanced product mix allows LIC to appeal to a broad customer base, ranging from individuals seeking basic life coverage to those interested in investment-linked insurance solutions. Continuous product innovation, coupled with effective marketing strategies, enables LIC to maintain its leadership position and adapt to changing consumer preferences and market trends.
(iii) Distribution Mix: LICs extensive distribution network is one of its key strengths, facilitating widespread accessibility and customer outreach across urban and rural areas in India. The company operates through a multi-channel distribution framework encompassing agents, bancassurance partnerships and digital platforms.
LICs extensive network of agents, often referred to as insurance advisors, plays a pivotal role in reaching out to customers, educating them about insurance products, and facilitating policy sales and servicing. Bancassurance tie-ups with leading banks, Corporate Agents, Brokers and IMFs further expand LICs distribution reach, enabling it to leverage the existing customer base of partner organizations.
In addition to traditional channels, LIC has embraced digitalization to enhance customer engagement and streamline distribution processes. The company offers online platforms and mobile applications for policy purchase, premium payments, claims processing, and customer service, catering to tech-savvy consumers and millennials.
By leveraging a diverse distribution mix, LIC effectively addresses the varying needs and preferences of its customer segments while ensuring widespread market penetration and customer satisfaction.
(iv) Assets Under Management (AUM): The Corporations consolidated AUM increased by 6.45% from Rs. 51,21,887 crore as at 31st March 2024 to Rs. 54,52,297 crore as on 31st March 2025.
(v) Expenses of Management Ratio
The Corporation continuously focuses on reduction in operating expenses. Total Expenses of Management Ratio decreased from 15.57% in FY 2024 to 12.42% in FY 2025.
(vi) Commission Ratio
The Corporation Commission Ratio marginally decreased from 5.46% in FY 2024 to 5.18% in FY 2025.
(vii) Profitability: Profit after tax (PAT) increased from Rs. 40,676 crore in FY 2024 to Rs. 48,151 crore in FY 2025 primarily due to increase in surplus from non-participating segment (transfer of amount pertaining to the accretion on the available solvency margin from non-participating account to Shareholders account). Please refer Note No. 24 of Schedule 15 (A) of Significant Accounting Policies forming part of Standalone Financial Statement.
(viii) Net Worth: During the Financial Year 2024-25, the net worth has increased by 54% from Rs. 81,938 crore as at 31st March, 2024 to Rs. 1,26,188 crore as at 31st March, 2025. The net worth of LIC is consistently increasing. The increase in net worth is on account of increased reserves.
Profitability and net worth are key indicators of the financial health and stability of Life Insurance Corporation (LIC) of India.
(ix) Earnings Per Share (EPS) EPS reflects the companys profitability on a per-share basis. Basic and diluted EPS has increased from Rs. 64.31 as at 31st March, 2024 to Rs. 76.13 as at 31st March, 2025.
(x) Solvency: Solvency ratio is a regulatory measure of capital adequacy for Indian Insurance companies and is calculated by dividing an insurers available solvency margin by its required solvency margin, each as calculated in accordance with IRDAI guidelines. The minimum Solvency Ratio required to be maintained is the control limit of 1.50 as set by the IRDAI. The Corporation Solvency Ratio (within India business) increased from 1.98 as at 31st March, 2024 to 2.11 as at 31st March, 2025.
(xi) Persistency: Persistency Ratio measures the percentage of the issued business that remains in force and premium paying after a certain period of time. Maintaining a high level of persistency is important for our results of operations, as a large block of in-force policies provides us with regular revenue in the form of regular premiums.
| Individual Products | 13th Month | 25th Month | 37th Month | 49th Month | 61th Month |
| On number of policies basis | |||||
| FY 2024 (in %) | 66.99 | 57.47 | 52.50 | 53.23 | 48.59 |
| FY 2025 (in %) | 64.12 | 59.32 | 52.66 | 48.79 | 50.31 |
| On premium basis | |||||
| FY 2024 (in %) | 77.66 | 71.00 | 65.47 | 66.31 | 60.88 |
| FY 2025 (in %) | 74.84 | 70.99 | 66.11 | 61.51 | 63.12 |
(xii) Annualized Premium Equivalent (APE): The Corporation total APE in FY 2025 was 56,828 Crore. This was 56,970 Crore in FY 2024. Individual Non PAR APE has increased by 50.28% from 7041 in FY 2024 to 10581 in FY 2025.
(xiii) Value of New Business (VoNB) and VoNB Margin: VoNB is an important metric of profitability as it reflects the additional value generated through the activity of writing new policies during any given period. VoNB margin is the ratio of VNB to APE for the relevant period and is a measure of expected profitability of new business in percentage terms.
For FY 2025, the Corporations VoNB and VoNB margins were 10,011 crore and 17.6% respectively as against 9,583 crore and 16.8% respectively of FY 2024.
(xiv) Indian Embedded Value (IEV): IEV increased by 6.81% from 7,27,344 crore in FY 2024 to 7,76,876 crore in FY 2025.
9. SOFTWARE DEVELOPMENT
LIC has upgraded its IT infrastructure with enhanced network bandwidth, hardware, and security systems including Next Generation Firewalls, Multi-Factor Authentication, and Advanced Persistent Threat solutions to ensure robust cyber defense. Continuous assessments ensure compliance with regulatory standards, while private clouds and asset management tools optimize resource use.
The e-FEAP Next core insurance application was modernized to support paperless workflows, automated testing, real-time data integration, and robotic process automation, improving operational efficiency.
Online sales were boosted by the ANANDA platform enhancements, enabling streamlined KYC, digital consent, and seamless payment processes.
Digital payments surged with over 77% of renewal premiums collected through omnichannel platforms, supported by partnerships with major digital payment providers.
Enterprise Document Management System (EDMS) supports extensive document archival and integration with multiple LIC systems.
The Customer Portal and LIC Digital App enhanced security with biometric login, masked data, and self-service features, increasing user engagement significantly. Merchant and agent portals were upgraded for improved digital transactions, security, and operational ease, including QR code-based collections and grievance redressal.
AI-powered chatbots like LIC Mitra 2.0 provide multilingual customer support, while apps like PRAGATI and PRATIDHI assist sales and marketing teams with real-time insights and training resources.
Overall, these initiatives strengthen LICs digital ecosystem, improve customer experience, and boost operational efficiency.
Major initiatives undertaken:
1. Core Business Application
2. LIC Customer Portal and "LIC Digital" Mobile App
3. Seamless Integration with Government Platforms
4. AI/ML, WhatsApp Business and Communication Solutions
5. Seamless Customer On-boarding
6. Modernizing Payment/Receipts
7. Digital Transformation
For detailed information on these initiatives, please refer Page No. 206 to 208 of Annual Report.
10. HUMAN RESOURCES: a) Staff Strength
The number of employees of the Corporation as on 31.03.2025 is 91,606 as against 98,661 at the end of the previous financial year.
b) Empowerment of Women
23.87% of the workplace consist of women employees in different cadres. Our Central Office and all Zonal Offices and Divisional Offices have Internal Complaints Committee to deal with the complaints regarding sexual harassment at workplace and all such committees are functioning effectively.
The Corporation is mindful of its responsibilities towards the weaker sections and adheres to all government Guidelines on reservation to Scheduled Caste/Scheduled Tribes and Other Backward Classes, persons with disabilities as well as Ex-Servicemen, Economically Weaker Sections.
11. LIC GOLDEN JUBILEE FOUNDATION
LIC Golden Jubilee Foundation was established in the year 2006, to give a formal shape to LICs Community Development initiatives. The objective of the foundation are relief of Poverty or Distress, Advancement of Education, Medical Relief and Advancement of any other object of General Public Utility. For further detailed information, please refer Point No.14 of Boards Report on Page No. 213.
12. LICI GROUP STRUCTURE
13. PERFORMANCE OF INDIAN SUBSIDIARIES, ASSOCIATES & EQUITY PARTICIPATION
Life Insurance Corporation of India has the following Subsidiaries and Associate Companies operating in India:
A. LIC HOUSING FINANCE LIMITED (Associate- LICIs stake: 45.24%)
LIC Housing Finance Ltd. was incorporated in 1989. The Company provides long term housing finance to individuals and finance to builders and developers. It has its Corporate Office in Mumbai and 9 Regional Offices, 23 Back Offices, 307 Marketing Offices and 1 Customer Service Point in the country and a representative office in Dubai. The Companys shares are listed on the Bombay Stock Exchange and the National Stock Exchange. The Company is rated ‘AAA Stable by CRISIL & CARE.
Total Assets of the Company is Rs. 3,13,927 crore as at 31.03.2025. Loan disbursement for the year 2024-25 is Rs. 64,022 crore. Outstanding loan portfolio as at 31.03.2025 is Rs. 3,07,732 crore. Total Income for FY 2024-25 is Rs. 28,056.22 crore and PAT as at 31.03.2025 is Rs. 5429.02 crore.
B. LICHFL ASSET MANAGEMENT COMPANY LIMITED (Associate–LICIs stake: 5.38%)
LICHFL Asset Management Company Limited was incorporated in 2008. LICHFL Asset Management Co Ltd manages Alternative Investment Fund (AIF) / Venture Capital Fund (VCF) as Investment Manager.
Total income for FY 2024-25 is Rs. 19.45 crore and PAT is Rs. 8.72 crore.
C. LIC MUTUAL FUND ASSET MANAGEMENT LIMITED (Associate–LICIs stake: 44.61%)
LIC Mutual Fund (the "Mutual Fund") has been constituted as a trust on 20.04.1989, with LIC of India as the Sponsor, LIC Mutual Fund Trustee Private Ltd. as the Trustee and LIC Mutual Fund Asset Management Ltd as the Investment Manager to LIC Mutual Fund. With a network of 193 Investor service centers, 44 Area Offices and 242 Sales Team members, LIC MF is present in around 220 locations spread over length and breadth of the country.
In FY 2024-25, the Company launched two new funds - ‘LICMF Manufacturing Fund and ‘LICMF Multi Asset Allocation Fund. As of 31st March 2025, LIC Mutual Fund has been managing 41 schemes. During the year 2024-25, the AMC has mobilized gross sales of Rs. 1,59,521 crore from all live schemes. The total number of investors on 31.03.2025 stood at 8,24,834. The average Assets under Management (AAUM) was Rs. 36,476 crore for the last quarter of 2024-25 and it ranked 23rd in terms of AAUM in the Industry. Total income for FY 2024-25 was Rs. 106.29 crore and PAT as at 31.03.2025 was Rs. 8.53 crore.
D. LIC MUTUAL FUND TRUSTEE PRIVATE LIMITED (Associate–LICIs stake: 49.00%)
LIC Mutual Fund Trustee Pvt. Ltd. is the Appointed Trustee (corporate entity) and holds the fiduciary responsibility of LIC Mutual Fund. It functions as the Trustee Company to LIC Mutual Fund.
Total income for the year ended 31.03.2025 is Rs. 0.53 crore and PAT as at 31.03.2025 is Rs. 0.22 crore.
E. LIC PENSION FUND LIMITED (Wholly owned subsidiary of LIC)
LIC Pension Fund Limited was incorporated in 2007 under the Companies Act, 1956 by Life Insurance Corporation of India, and has its Corporate Office in Mumbai. It acts as a Fund Manager for managing the funds received from NPS Trust.
In FY 2024-25, the Company obtained POP license for marketing NPS, which will help in increasing the subscriber base. They have also got approval for managing the new Unified Pension Fund, which will further strength the AUM of the Company.
The total Assets under Management (AUM) was Rs. 3,82,441 crore as on 31st March 2025. Total income for FY 2024-25 is Rs. 157.49 crore and PAT as at 31.03.2025 is Rs. 63.29 crore.
F. LIC CARDS SERVICES LIMITED (Wholly owned subsidiary of LIC)
LIC Cards Services Ltd., (LIC CSL) was incorporated on 11th November 2008. The Company has its Corporate Office in Delhi and 13 Area Offices in different locations across the country. LIC CSL is in the business of Marketing and Distribution of Co-branded Credit Cards in partnership with Axis Bank, IDFC First Bank, and IDBI Bank and Co-branded Gift Cards in partnership with Axis Bank and IDBI Bank. The Company has also entered into an Agreement with M/s Pluxee India Private Limited (formerly Sodexo SVC India Private Limited) for issuing Meal Cards to employees of LIC. Total Number of cards sold for the FY 2024-25 is 70,648 and No. of Outstanding cards as on 31.03.2025 is 6,28,650. Total income for FY 2024-25 is Rs. 30.90 crore and PAT as at 31.03.2025 is Rs. 5.44 crore.
G. IDBI BANK LIMITED (Associate–LICIs stake: 49.24%)
Acquired as a Subsidiary in January 2019, the Bank became our Associate Company in December 2020. Headquartered in Mumbai, the Bank has a pan-India presence of over 2,100 branches and 3,100 ATMs. IDBI Bank is a full-service universal bank. The Bank is the largest Bancassurance partner of LIC.
Deposits as at 31.03.2025 is Rs. 3,10,293 crore and Advances is Rs. 2,18,399 crore. Total income for FY 2024-25 is Rs. 33,826 crore and PAT as at 31.03.2025 is Rs. 7,515 crore.
H. IDBI TRUSTEESHIP SERVICES LIMITED (Associate–LICIs stake: 29.84%)
IDBI Trusteeship Services Limited (ITSL) was incorporated in August 2000 and was registered with SEBI in 2001. ITSL provides a wide spectrum of trusteeship services to Corporates.
Total income for FY 2024-25 is Rs. 101.67 crore and Profit for FY 2024-25 is Rs. 56.60 crore.
14. OVERSEAS OPERATIONS a) Overseas Branches:
The Corporation directly operates through its branch offices in Fiji (Suva and Lautoka), Mauritius(Port Louis and Quatre Bornes) and United Kingdom (Watford). During the year 2024-25, the Overseas Branches put together issued 9,423 policies with a New Business Premium Income of Rs. 91.98Cr. b) Overseas Subsidiaries:
Life Insurance Corporation (Nepal) Ltd.:
Life Insurance Corporation (Nepal) Ltd. is a subsidiary of LIC of India partnering with Vishal Group alongwith public share holding and was established on 1st of Sep 2001. It is a listed Company whose shares are traded on the Nepal Stock Exchange. Share holding of LIC of India in the Company is 55%. The Company sold 65,509 policies during Financial Year as on 15.07.2024 with a First Premium Income of Rs. 157.5 Cr.
The following entities have Calendar Year as their Financial Year:
Life Insurance Corporation (International) B.S.C. (c):
Life Insurance Corporation (International) B.S.C. (c) was established in Kingdom of Bahrain as a subsidiary of Life Insurance Corporation of India. Share holding of LIC of India in the Company is 99.66%. The operations commenced on 23rd of July 1989 and initially catered to the life insurance needs of Non-Resident Indians (NRIs) and later extended to the local population in the Gulf by issuing life insurance policies in US Dollars. The Company operates in 4 GCC countries of Kingdom of Bahrain, Kuwait, UAE (Dubai & Abu Dhabi), and Qatar. The Company sold 1,239 policies during Financial Year ending 31.12.2024 with a First Premium Income of Rs. 252.87 Cr.
Life Insurance Corporation (Lanka) Ltd.:
Life Insurance Corporation (Lanka) Ltd. is a subsidiary of LIC of India partnering with Bartleet Transcapital Ltd. and was established on 7th of Oct. 2002. Share holding of LIC of India in the Company is 93.75%. The Company sold 2,623 policies during Financial Year ending on 31.12.2024 with a First Premium Income of Rs. 10.77 Cr.
Life Insurance Corporation (LIC) of Bangladesh Ltd.:
Life Insurance Corporation (LIC) of Bangladesh Ltd. is a subsidiary of LIC of India partnering with Strategic Equity Management Ltd. and Mutual Trust Bank Ltd. and is incorporated under the Companies Act (Act XVIII) of 1994 of Bangladesh on 14.12.2015. Share holding of LIC of India in the Company is 83.33% The Company sold 2,927 policies during the Financial Year ending 31.12.2024 with a First Premium Income of Rs. 3.75 Cr.
c) Foreign Wholly Owned Subsidiary: Life Insurance Corporation(Singapore) Pte. Ltd.:
Life Insurance Corporation (Singapore) Pte. Ltd., a Wholly Owned Subsidiary was incorporated on 30th of April, 2012 in Singapore. The Company sold 172 policies during the Financial Year ending 31.12.2024 with a First Premium Income of Rs. 61.5 Cr.
d) Branch Office at Gift City:
Received all regulatory permissions to open an office at GIFT City, Gandhinagar. It is expected to commence operations in the FY 2025-26.
15. ENTERPRISE RISK MANAGEMENT (ERM)
Life Insurance Corporation has a robust Enterprise Risk Management framework to conduct its business in an orderly fashion. The framework considers all the risks faced by the Corporation and ensures that there are adequate systems, processes and trained personnel in place.
Organisation Structure
The department governed by Managing Director, Executive Director and Chief Risk Officer reports to Risk Management Committee of the Board, which proposes policies to be reviewed and approved by the Board.
Risk Governance Frame Work:
Based upon the recommendations of the Risk Management Committee the Board approves the Enterprise Risk Management Policy, Risk Appetite statement, ALM Policy and Business Continuity Plan of the Corporation on an annual basis. There are three lines of defence to manage the risks – Line of Defence 1 - the Departments, Zones, Divisions and Branches who own the Risks, the Risk Management Department in Line of Defence 2 to review the risks and audit in Line of Defence 3 to audit the effectiveness and reliability of risk management systems, policies, processes and Personnel.
Key Risk Management Tools: ERM Module:
An enterprise risk management module is used to assess qualitative and quantitative risks and the resultant reports are discussed in the Committee of Executives on Risk Management (CERM) and Risk Management Committee of the Board (RMCB).
Key Risk Management tools are Risk Appetite Statements, Risk Registers, Incident Management Framework (fraud monitoring), Top Risks and Key Risk Indicators. The tools are used by the three lines of defence and decisions are taken by the management to mitigate the risks.
Top Risks and Key Risk Indicators:
The top risks for the Corporation are identified by analysing the materiality / impact of key risks faced by the Corporation. The assessment of Key Risk Indicators is completed every quarter. The Top Risks and associated Key Risk Indicators are updated on an annual basis.
Business Continuity Management System (BCMS):
The Corporation has Board approved policy for business continuity. The continuity plan has been formalized to provide measures to be taken to respond to events such as natural disasters, pandemic and technical disruptions etc. The Corporation has BCMS ISO 22301 Certification, certified by British Standards Institute (BSI).
The mitigation strategies for various risks as under Enterprise Risk Management framework:
The Corporation is exposed to various risks which are categorized into 4 major risk namely Strategic, Financial, Operational and Reputational Risks. The enterprise risks are systematically identified and systems & procedures have been implemented to address these risks so that not only the policyholders funds are protected but also their reasonable expectations are met. The Corporation has a well-established Enterprise Risk Management (ERM) framework in place to actively manage material risks. The ERM framework aligns the Corporations strategy and business decisions with risk appetite of the Corporation.
16. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Corporation has institutionalised a robust and comprehensive internal control mechanism through Audit, Inspection and Vigilance across key processes to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedures, laws and regulations. The internal audit function provides independent and reasonable assurance about the adequacy and operating effectiveness of internal controls to the Board and Audit Committee. Internal Audits are conducted by an in-house Internal Audit team and by the co-sourced auditor (external Chartered Accountant Firms). The internal audit planning activity ensures coverage of the Corporation business process and transactions across all offices of the Corporation. The internal audit function also tests and reports on adequacy and operating effectiveness of internal financial controls.
The Inspection Policy approved by the Board stipulates that every office of the Corporation in India shall be inspected at least once a year by Officers of Inspection Department. The exercise of Inspection is a pre-emptive measure against systemic lapses.
More focus is on preventive Vigilance through dissemination of information in areas susceptible to fraud.
As per guidelines of CVC, Integrity Pact (IP) is being implemented in procurement processes of our organisation. As regards Stores Purchase and Building Contracts, it is being ensured that CVC guidelines are strictly followed.
Proactive and Preventive Vigilance measures were taken in identifying systemic issues and suggestions made for corrective action to the respective Controlling Departments of Central Office.
The Corporation has a well-established Enterprise Risk Management (ERM) framework in place to actively manage material risks. The ERM framework aligns the Corporations strategy and business decisions with risk appetite of the Corporation.
17. OFFICIAL LANGUAGE IMPLEMENTATION
In the year 2024-25 Central Office of the Corporation has been awarded as the best public sector undertaking by the Ashirvad Literary and Social Organisation for the remarkable implementation of the official language Hindi in the office of the Government of India.
In the year 2024-25, the Central Office of the Corporation was awarded for excellent official language implementation by the Town Official Language Implementation Committee Mumbai undertaking.
67 offices of the Corporation were honored with various official language awards by the Ministry of Home Affairs, Government of India.
There is a Hindi Version of Annual Report available in this volume itself.
18. RIGHT TO INFORMATION (RTI) ACT, 2005
To ensure easy access to information to citizens of India, officers are designated as Central Public Information Officers (CPIOs) and First Appellate Authorities (FAAs) at various levels in the organization. LIC has 130 CPIOs and 130 Appellate Authorities.
The details of CPIOs and Appellate Authorities pan-India are available on LIC website at https://licindia.in/web/guest/rti-center.
CIC has accredited LIC as Grade "A" Organisation with 100% rating in the Transparency Audit of LICs website (www.licindia.in) for disclosures under Section 4(1)(b) of the RTI Act, 2005 for four consecutive years.
During the financial year 2024-25, 8084 RTI applications, 1211 appeals and 181 CIC hearing cases have been attended.
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