Mumbai, September 28 (IANS). The government insurance company Life Insurance Corporation of India (LIC) has recorded an inflow of Rs 1,100 crore on the first day of GST reform. This information was given in reports.
This figure is quite important, as LIC gets a monthly premium income of about Rs 5,000 crore from retail policyholders.
The first day after GST 2.0 shows positive sentiment and possible incentive to the insurance sector among the inflow policy holders.
Industry experts say that the removal of GST has made traditional life insurance policies more economical and attractive to buyers, which is expected to increase sales in the coming months.
At the beginning of this financial year, LIC had a steady increase in both profit and premium income.
Under GST reforms, the government has reduced tax on health and personal life insurance policy to zero, which was 18 percent earlier.
The company recorded a consolidated net profit of Rs 10,957 crore in the April-June quarter of FY 26, which is 3.91 percent higher than the same period (first quarter of FY25) last year.
LIC’s net premium income has also increased by 4.7 percent to Rs 1,19,618 crore.
The LIC is maintaining its leadership with more than 63 percent market share in the first year premium income in the life insurance industry.
LIC CEO and MD R Dorawami said in a filing to the exchange on August 7, “During the first quarter of this financial year, our total market share was 63.51 percent on the basis of first year premium income and we have maintained our leadership position in both personal and group business.”
In the first quarter of the current financial year, the company’s standalone base increased by 5 percent to Rs 10,986.51 crore on net profit.
-IANS
ABS/