Investors showed huge enthusiasm for Life Insurance Corporation of India (LIC) right after the government removed goods and services tax (GST) on individual traditional life insurance policies. On that first day, LIC pulled in more than Rs 1,100 crore in fresh funds, reports say.
This surge stands out because LIC typically collects around Rs 5,000 crore each month from everyday policyholders buying retail plans. The quick jump signals strong positive vibes from customers and could give a real lift to India’s insurance sector overall.
Experts point out that ditching GST makes these traditional life insurance policies cheaper and more appealing for regular folks. They predict it’ll spark higher sales in the months ahead, helping more people get coverage without the extra tax bite.
LIC has been on a solid roll this financial year, with profits and premium income climbing steadily. In the April-June quarter of FY26, the company reported a consolidated net profit of Rs 10,957 crore—up 3.91% from the same period last year. Net premium income also rose 4.7% to Rs 1,19,618 crore, as LIC shared with stock exchanges.
The insurer keeps dominating the life insurance market, holding over 63% share in first-year premium income. “In the first quarter of this financial year, our overall market share by First Year Premium Income was 63.51%, and we held our top spot in both individual and group business,” said R Doraiswamy, LIC’s CEO and MD, in an August 7 filing. He added that key goals—like boosting the non-par share in individual plans, improving value of new business margins, and growing bancassurance partnerships—are right on schedule.
On a standalone basis, LIC’s net profit grew 5% year-over-year to Rs 10,986.51 crore. With the GST relief in play, the future looks even brighter for this insurance giant.
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