LIC’s rate of interest for various financial transaction for FY 2016-17

LIC’s rate of interest for various financial transaction for FY 2016-17

LIC, Life Insurance

Life Insurance Corporation of India (LIC) every year declares the rate of interest to charged on the various financial transaction in the coming financial year. These financial transactions include policy loan, revival, backdating of policy and many other transactions. The rate of interest in these financial transactions are declared by the actuarial department of LIC.

Rate of Interest for the various financial transaction for FY 2016-17

S No.Type of TransactionRate of Interest
1 (i)Policy Loans [under all plans except Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) and Jeevan Shikhar (Plan 837)]10.00%
1 (ii)Policy Loans under Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) and Jeevan Shikhar (Plan 837)10.50%
2(i)For policy issued on or after 01/01/1987, arrear of premiums with in six month from the date of FUP9.50% (subject to minimum int. of Rs. 5)
2(ii)For policy issued on or after 01/01/1987, for revival9.50% (subject to minimum int. of Rs. 5)
3Arrear of premiums for alterations and age proving higher9.50%
4Dating back the policies9.50%
5(i)Discount factor for commutation of instalments under Education Annuity policies.9.50%
5(ii) Discount factor for commutation of Income Benefits under Multi-purpose, Guaranteed Benefits under Annuity Policies.9.50%
5(iii)Discount factor for unpaid instalments under settlement option9.50%
6Settlement options for Maturity Claims6.00%
7(i)Advance payment of premiums under Jeevan Sneha (Plan 128)10.00%
7(ii)Advance payment of premiums under Jeevan Bharati (Plan 160) and Jeevan Bharati I (Plan 192)6.00%
8Delayed payment of claims9.00%
9Discounted value of Accumulated Vale for calculation of SSV under Jeevan Saral (Plan 165)7.50%
10Accumulation of Survival Benefit (SB) under Jeevan Bharati (Plan 160) and Jeevan Bharati-I (Plan 192)4.00%
11Discounting of claims during the last year of policy term9.00%
12Reinstatement of surrendered policies10.50%

These rates will be effective from 01/04/2016 to 31/03/2017. All the rate of Interest mentioned above will also be applicable on all the plans launched after 01/01/2014.