Mumbai : LIC Nil GST inflows surged on the first day as the Life Insurance Corporation of India attracted strong investor interest following the government’s removal of GST on individual traditional life insurance policies.
The insurer drew over Rs 1,100 crore in a single day, according to reports.
This development carries significance as LIC usually collects around Rs 5,000 crore of monthly premium income from retail policyholders.
The inflows on the very first day after the tax relief reflect positive sentiment among policyholders and signal a potential boost for the insurance sector.
Industry experts said the GST removal has made traditional life insurance policies more affordable and attractive for individual buyers, which should push up sales in the coming months.
Earlier this financial year, LIC reported steady growth in both profit and premium income.
The company posted a consolidated net profit of Rs 10,957 crore in the April–June quarter (Q1) of FY26, a 3.91 per cent increase compared to the same period last year (Q1 FY25).
Its net premium income also grew 4.7 per cent to Rs 1,19,618 crore, the insurer informed the exchanges.
LIC continues to dominate the life insurance industry with a market share exceeding 63 per cent in first-year premium income.
“During the first quarter of this financial year, our overall market share by First Year Premium Income was 63.51 per cent, and we maintained our leadership in both Individual and Group Business,” R Doraiswamy, CEO and MD of LIC, said in an exchange filing dated August 7.
“Key elements of our strategy, like increasing Non-Par share in Individual business, boosting VNB margin, and expanding Banca share, remain fully on track,” Doraiswamy added.
The company increased its net profit by 5 per cent YoY on a standalone basis to Rs 10,986.51 crore.
–IANS
