LIC has clarified that a policyholders of group insurance products will not be eligible to apply under the reservation category for the proposed IPO.
MUMBAI, Feb 22 (The CONNECT) - Life Insurance Corporation of India has clarified that a policyholder(s) having a group insurance product will not be eligible to apply under the policyholder reservation category in the proposed IPO.
The clarification comes in the wake of reports that "PMJJBY Policy Holders" can apply in the category reserved for policyholders.
Media platforms carried a report quoting news agency PTI which attributed to LIVC chairman that “Subscribers of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are eligible for LIC initial public offering (IPO) at a discount. "PMJJBY is part of that and reservation will be there (for the policyholders)," Chairman of insurance company M R Kumar said in an interaction with the media, the report said.
LIC today pointed out that its Draft Red Herring Prospectus clearly excluded non-individual policy holders from the list of eligible applicants for the IPO.
LIC in a media release said the group products offered by LIC in India as at September 30, 2021 are set out on Page 193 of the Draft Red Herring Prospectus dated February 13, 2022 (DRHP) filed with SEBI, and these are non-participating and non-linked.
- LIC’s New One Year Renewable Group Term Assurance Plan-I
- LIC’s New One Year Renewable Group Term Assurance Plan-II
- LICs Single Premium Group Insurance
- LICs Group Credit Life Insurance
- LICs One Year Renewable Group Micro Term Assurance Plan
- LICs New Group Gratuity Cash Accumulation Plan
- LIC’s New Group Leave Encashment Plan
- LICs New Group Superannuation Cash Accumulation Plan
- Group Immediate Annuity
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
“Eligible Policyholder(s)” are defined at page 5 of the DRHP, as “Policyholders (excluding such other persons not eligible under applicable laws, rules, regulations and non-Individual policy holders) of our Corporation having one or more policies of our Corporation as on the date of the DRHP and Bid / Offer Opening Date and are residents of India would be eligible to apply in this Offer under the Policyholder Reservation Portion”, and hence non-individual policyholders are not eligible to participate under the Policyholder Reservation Portion.
Eligible Policyholder(s) can Bid up to a Bid Amount of Rs 2,00,000, net of any Policyholder discount that may be offered in the IPO. Eligible Policyholder(s) bidding in the Policyholder Reservation Portion can bid through the ASBA and the UPI Mechanism.