Life Insurance Corporation of India के निदेशक की रिपोर्ट

Mar 31, 2024

Your Board of Directors (“Board”) is pleased to present the 67^th Annual Report of Life Insurance Corporation of India (“the Corporation” or “LICI” or “LIC”), together with the audited financial statements for the year ended March 31,2024

1. HIGHLIGHTS OF FINANCIAL PERFORMANCE:

The highlights of the standalone financial performance of the Corporation for the financial year under review, are presented below:

('' in crore)

Particulars	2023-24	2022-23	Growth (%)
New business Premium (Net of Reinsurance)
First Year Premium	39,007.99	39,054.94	-0.12
Single Premium	1,83,633.45	1,92,960.65	-4.83
Renewal Premium	2,52,428.14	2,41,989.02	4.31
Total Premium	4,75,069.58	4,74,004.61	0.22
Investment & Other income	3,78,605.26	3,14,048.03	20.56
Total Income	8,53,674.84	7,88,052.64	8.33
Profit after Tax (PAT)	40,676.00	36,397.39	11.75
Other Key Parameters:
Particulars	2023-24	2022-23	Growth (%)
Corporation’s Annual Premium Equivalent (APE) ('' in crore)	56,970.00	56,682.00	0.51
Assets under Management ('' in crore)	51,21,886.90	43,97,204.59	16.48
Embedded Value ('' in crore)	7,27,344.00	5,82,243.00	24.92
*Solvency Margin	1.98	1.87	-

*Solvency margin is calculated before considering the proposed final dividend for the FY

Your Corporation witnessed consistent performance and growth in the FY 2024. Some of the other key parameters of the Corporation are as follows:

• Gross NPA has decreased by 11.09 % from '' 12,031.36 crore in the FY 2023 to '' 10,697.53 crore in the FY 2024.

• Net NPA has decreased by 13.32 % from '' 5.93 crore in the FY 2023 to '' 5.14 crore in the FY 2024.

• Basic & Diluted EPS for the FY 2024 is '' 64.31.

• Net retention ratio for the FY 2024 is 99.86%

2. DIVIDEND AND RESERVES:

In terms of Section 28B of the Life Insurance Corporation Act, 1956 (“LIC Act, 1956”), the Board of Directors of the Corporation in its meeting held on February 08, 2024, declared 1^st interim dividend of '' 4 per equity share on 632,49,97,701 equity shares of '' 10/- each, for the FY 2023-24 involving a cash outflow of '' 2,530 crore. The same was paid on March 01,2024.

Further, the Board of Directors in its meeting held on May 27, 2024, recommended a final dividend of '' 6/- per equity share on 632,49,97,701 equity shares of '' 10/- each, for the FY 2023-24, subject to the approval by the members of the Corporation in the 3^rd Annual General Meeting. The final dividend on equity shares, if approved by the Members, would involve a cash outflow of '' 3,795 crore. The total dividend for the FY 2023-24 amounts to '' 10/- per equity share and would involve a total cash outflow of '' 6,325 crore which translates into a dividend pay-out ratio of 15.55%.

In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations” or “Listing Regulations”), the Corporation has formulated a Dividend Distribution Policy (“Dividend Policy”), which has been approved by the Board of Directors. The Dividend Policy of the Corporation is also available on the website of the Corporation at https://licindia.in/documents/20121/46602/Dividend-distribution-policy.pdf/a099808b-9f30-9c88-29cd-1d3e63d19456?t=1665744390416

The Corporation has carried forward a profit amounting to '' 36,248.29 crores during the FY 2023-24 to the Reserves. The Corporation has accumulated profit of '' 75,711.26 crores as at March 31,2024.

3. CAPITAL AND SHAREHOLDING:

The Corporation has not issued any fresh equity shares during the year. The Authorised Share Capital of the Corporation is '' 25,000 crore divided into 2,500 crore shares of '' 10/- each and the issued, subscribed and paid-up equity share capital of the Corporation as at March 31, 2024 is '' 63,24,99,77,010 comprising of 6,32,49,97,701 equity shares of the face value of '' 10/- each.

In terms of Securities Contracts (Regulation) Rules, 1957, the Corporation has received the following approvals:

• Pursuant to Rule 19A (6) of the Securities Contract (Regulations) Rules (SCRR) 1957, Department of Economic Affairs, Ministry of Finance vide Office Memorandum dated December 20, 2023 has granted one-time exemption allowing the Corporation to achieve 25% Minimum Public Shareholding (MPS) within 10 years from the date of listing i.e., till May 2032 in the public interest.

• Securities and Exchange Board of India (“SEBI”) vide its letter dated May 14, 2024 has conveyed its decision, to grant additional time of 3 years to the Corporation to achieve 10% public shareholding under Rule 19(2)(b)(iv) of the Securities Contracts (Regulation) Rules, 1957, i.e., within a period of 5 years from the date of listing, i.e., till May 16, 2027.

4. PRODUCTS:

Your Corporation offers a wide variety of products, which fulfil the needs of different customer segments of the society.

During the financial year 2023-24, the Corporation introduced six (6) new Individual Products viz. LIC’s Dhan Vriddhi, LIC’s Jeevan Kiran, LIC’s Jeevan Utsav, LIC’s Jeevan Dhara - II, LIC’s Index Plus and LIC’s Amritbaal and one (1) Group Product viz. LIC’s Group Post-Retirement Medical Benefit Plan.

In addition, the Corporation also introduced modified versions of four (4) Individual Products viz. LIC’s Cancer Cover, LIC’s Dhan Vriddhi, LIC’s New Jeevan Shanti, LIC’s Jeevan Akshay-VII and two (2) Group Products viz. LIC’s New One Year Renewable Group Term Assurance Plan-I and LIC’s New One Year Renewable Group Term Assurance Plan-II.

As at the end of the financial year 2023-24, the Corporation had forty-one (41) Individual Products, twelve (12) Group Products, seven (7) Individual Riders and one (1) Group Rider, available for sale.

5. CUSTOMER RELATIONSHIP MANAGEMENT:

(A) Policy Servicing:

Servicing of policies is one of the important aspects in the value chain for life insurance, especially due to the contracts being for long-terms. Customer service facilities start with our Branch Offices/ Satellite Offices through which the customers can avail all the required services, like nomination, assignment, change of address, loan, surrender etc. In an endeavor to provide best services to Customers we have taken many initiatives like ‘Anywhere Services’ where policy holder can avail services at branches other than servicing branch, customer portal has been created to avail most of the services online. There are many channels available for payment of premium which include digital payment through net banking, credit card, debit card, UPI, e-wallets on LIC Customer portal. Premium can also be paid through Auto Debit, NACH and Electronic Bill pay process. Offline channels where premium can be paid in cash or through Cheque are enabled at IDBI Bank, Axis Bank, City Union Bank, Common Service Centre (CSC), Suvidha Infoserve, MP Online and APT Online and Premium paying points operated by selected Agents/Development Officers/SBAs. LIC has also on-boarded Bharat Bill Payment System (BBPS) platform and the customer can pay Renewal Premium through all Operating Units of BBPS ecosystem.

LIC has centralized call center which is operational 24x7 by calling at 022-68276827. Services are available in eight Regional languages (Bengali, Gujarati, Kannada, Malayalam. Marathi, Oriya, Tamil and Telugu) in addition to English and Hindi. There are 74 Customer Zones operative across India which functions from 8.00 a.m. to 8.00 p.m. Customers can also connect now through our new WhatsApp services Number 8976862050.

An initiative called LICHELP enables policyholders to send SMS LICHELPto 9222492224 and an official from Customer Zone mapped to the servicing branch of the policy, contacts the customer and supports for any service requirement.

The Corporation has a system wherein a policyholder registered on the Customer Portal of LIC of India can register complaint online and track its status online on our website www.licindia.in. The Complaints registered under Insurance Regulatory Developement Authority of India IRDAI’s Grievance Management System-BIMA BHAROSA are synced with LIC’s Complaint Management System. The Corporation has Grievance Redressal Officers (GROs) at Branch/ Divisional/Zonal/Central Office levels to redress grievances of customers. Their names are available on our website. The respective GROs are available at their Offices for personal interaction with the customers on all Mondays between 2.30 p.m. and 4.30 p.m. Customers can meet the GROs on other days with prior appointment. Customers may also send their grievances through Post, by email etc. to the respective servicing offices / GROs.

(B) Claims Related Performance:

During the year, the Corporation has settled 221.80 lakh claims amounting to '' 2,30,272.54 Crores (Including Individual, Micro Insurance and Pension & Group Schemes) All payments were made through digital mode i.e., 100% payment through NEFT.

6. PERSISTENCY:

The 13^th month persistency for Individual Regular Premium Business, by premium, for the FY 2023-24 is 78% as against 77% for the FY 2022-23 and the 61^st month persistency for the same is 61% for the FY 2023-24 as against 62% for the FY 2022-23.

The 13^th month persistency for Individual Regular Premium Business, by number of policies for the FY 2023-24 is 67% as against 64% for the FY 2022-23 and the 61^st month persistency for the same is 49% for the FY 2023-24 as against 50% for the FY 2022-23.

7. INFORMATION TECHNOLOGY:

Technology is the key performance differentiator in today’s era. Innovations in Information Technology has already led to efficiency in LIC’s operations and Corporation is working towards adopting new digital initiatives, upgrading digital capabilities and automating LIC’s operational processes. The following technological initiatives have been undertaken to transform LIC into a tech enabled digital first organization, creating value for customers, shareholders and all other stakeholders:

(i) Core Business Application - eFEAP:

eFEAP, the in-house developed core insurance solution of the Corporation, enables all the offices of the Corporation to carry out the activities right from the start of policy life cycle at New Business stage to Policy Servicing and ultimately to Claim settlement and also HR and CRM related activities.

(ii) LIC Customer Portal and LIC ‘Digital’ mobile App:

To provide a seamless and convenient self-service experience, the Customer Portal and the LIC Digital mobile app offer a range of self-service functionalities, comprehensive informational services and a user-friendly interface. The above platforms provide service functionalities for more than 2.73 Crores registered users (Premier/ Normal) for creation and updating of profile, viewing policy and proposal images, premium payments including advance premium payments etc.

Online Service request modules such as for loan interest payments, loan repayments, change of address, mode change, ULIP fund switch, eNACH, Online PAN and NEFT data registration, etc. enable submission and fulfillment of various customer servicing requests.

(iii) Seamless Integration with Government Platforms:

To further streamline the user experience, the policy administration platforms have been integrated with government-enabled public service platforms such as Aadhaar, PAN, UMANG, and Digilocker. This integration allows seamless PAN/ Aadhaar validations, e-KYC, and e-Sign capabilities, ensuring a secure and hassle-free experience while managing insurance accounts.

(iv) AI/ML, WhatsApp Business and Communication Solutions in Customer Service:

a) AI/ML-powered LIC Mitra (Chatbot) is equipped with an extensive knowledge base encompassing a wide range of LIC products and services along with providing customers with prompt and accurate assistance.

b) Jeevan Saakshya App is an AI-driven face match and aliveness check mechanisms to enable annuitants and pensioners in submitting their existence certificates online from the comfort of their own homes.

c) WhatsApp Business solution has been incorporated to further enhance customer interactions/engagement and streamline service delivery.

d) We have also established Communication channels for productivity enhancement viz. dedicated VC Solution, SMS and email systems to provide collaboration among internal and external stakeholders.

(v) Seamless Customer On-boarding:

LIC has launched a new Digital onboarding platform for customers, optimizing the customer journey with smarter solutions, improved UI/UX, integrated with e-KYC, pre-filled forms using cKYC data and customer id along with real-time Bank Account Verification.

(vi) Modernizing Payment / Receipts:

e-NACH / NEFT offers an efficient, paperless alternative, allowing LIC customers to electronically authorize mandates for the automatic deduction of premium from their bank accounts and claim payments marking a significant step in simplifying and expediting payment transactions.

(vii) Digital Transformation (DIVE) project

LIC has kicked off an ambitious digital transformation programme named DIVE (Digital Innovation & Value Enhancement). DIVE aims to re-imagine the digital journeys and provide best-in-class experience for sales as well as customers.

8. HUMAN RESOURCE:

As on March 31, 2024, the Corporation has a total of 98,661 employees on roll which includes 23,250 female employees (constitutes more than 23.56% of total employees). The details are as under:

Particulars	Male	Female	Total
CLASS-I	22,809	7,017	29,826
CLASS-II	20,885	2,188	23,073
CLASS-III	30,632	13,691	44,323
CLASS-IV	1,085	354	1,439
Total	75,411	23,250	98,661

9. PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE:

In accordance with the Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013, the Corporation has initiated various steps to improve the status of women and worked for their economic empowerment. At every level in the Corporation, women officers/employees have contributed significantly. In the Corporation, Committees for prevention of sexual harassment at workplace are functioning effectively at Central Office, Zonal Office and Divisional Office levels. The summary of cases as at March 31,2024 are as under:

No. of cases pending at the end of previous Financial Year	No. of cases received during the year	Total cases	Cases disposed of during the year	No. of pending cases as on 31.03.2024
04	14	18	16	02*

10. ENTERPRISE RISK MANAGEMENT:

*As on the date of this Report, both the pending complaints were closed.

LIC faces considerable risk in terms of scale of operations, business and complexity and therefore the Corporation requires a robust Enterprise Risk Management (ERM) framework to manage the risk faced by the Corporation. The ERM framework has efficient mechanism for risk identification, assessing, mitigating and monitoring of the risks. There are three lines of defence to manage risk: Layer 1 - the Departments, Zones, Division and Branches who own the risks; Layer 2 - the risk management department to review the risk and Layer 3 - audit to check the Risk Management. A Risk Management module is used to ensure the same.

The Board has delegated the responsibility relating to Risk Management to Risk Management Committee of Board (RMCB). Corporation has Board approved Enterprise Risk Management Policy, Risk Appetite Statement and Business Continuity Plan. These policies are reviewed by the Risk Management Committee of the Board and the Board on yearly basis. RMCB reviews Enterprise Risk Management activities executed across the organization on quarterly basis.

Key Risk Management tools are Risk Appetite Statements, Risk Registers, Incident Management Framework & fraud monitoring, Top Risks and Key Risk Indicators.

The risks are classified in different categories like Market Risk, Liquidity Risk, Credit risk, Insurance Risk, Operational Risk, Compliance Risk, Ethics Risk and Fraud Risk.

11. INTERNAL INSPECTION:

Your Corporation has a Board approved Inspection Policy which stipulates that every office of the Corporation in India shall be inspected at least once a year by the Officers of Internal Inspection department. The exercise of Inspection is a measure to detect and rectify systemic lapses.

During the financial year 2023-24, Corporation has introduced a Performance Matrix for Divisional Offices and P&GS Units encompassing the Key Result Areas of performance aligned to the Corporate goals. The need for such a matrix was felt to sensitize all our units to have equal focus on both marketing & Customer Services which would not only enable them to align their activities with the objective of the Corporation but at the same time would also enable them to achieve “Excellent” rating in Inspection.

Keeping with the pace of improving our systems and procedures, with the intervention of technology, further development was made in the Remote Inspection Package, whereby a substantial portion of inspection job can be completed before the commencement of Inspection of Units, thereby saving on precious time.

During the year of review, your Corporation has completed the inspection of all Satellite Offices, Branch Offices, Divisional Offices, Zonal Offices and Central Office by March 15, 2024 and 61.48% Branch Offices and 96.46% of Divisional Offices were rated “Excellent”. Common Irregularities were shared with functional heads at Central Office for necessary systemic improvements.

12. INTERNAL AUDIT: 1

Your Corporation’s Internal Audit functions are overseen by the Internal Audit Department at the Central Office (CO). There are twelve Audit Centers which conduct the audit. The CO Audit department besides monitoring the operations of the Audit Centers, arranges for the audits of various Departments of Central Office.

To bring in the professional approach towards the auditing of Offices, since the FY 2022-23, 1/3^rd of the Divisional Offices and the Branches under those Divisions including P&GS units were audited by CA firms. We will be continuing auditing 1/3^rd of Divisions and its Branches including P&GS units through CA firms in the FY 2024 - 25, as a result all Divisional and Branch offices of the Corporation including P&GS units will be audited by CA firms once in the period of three years.

Audit is carried out in all the Units based on Department-wise Questionnaires developed for this purpose which include Internal Financial Control (IFC) questions in respect of each tier of the Corporation viz. Branch, Division, Zone and Central Office.

During the year, we carried out IFC audit of the Corporation and the report was discussed with the Statutory Auditors and was placed before the Audit Committee.

Major findings during the Internal Audit are regularly shared with functional heads at Central Office, who issue necessary instructions to the operating units for corrective action as well as streamline systemic controls wherever required.

Further, as per our fraud monitoring framework, the frauds reported for value of more than '' 1 crore (Rupees One crore) are placed before the Risk Management Committee through the Central Fraud Monitoring Committee and Committee of Executives for Risk Management.

13. INTERNAL FINANCIAL CONTROLS:

The Corporation’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for stakeholders in accordance with generally accepted accounting principles. The Corporation’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflects the transactions and dispositions of the assets of the Corporation, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of Management and Directors of the Corporation, and (3) provides reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Corporation’s assets that could have a material effect on the financial statements.

14. RELATED PARTY TRANSACTIONS:

During the year, the Corporation has entered into transactions with the related parties in the ordinary course of business. The details of the transactions with related parties were placed before the Audit Committee from time to time for approval. Suitable disclosure as required under applicable Accounting Standards has been made in the notes to the Financial Statements.

Pursuant to Listing Regulations, in the 2^nd Annual General meeting, the members of the Corporation have approved the material related party transactions to be entered into by the Corporation in the FY 2023-24 and upto the date of next AGM.

The Board of Directors have formulated a policy on materiality of Related Party Transactions (RPTs) and also on dealing with Related Party Transactions pursuant to the provisions of the LIC Act, 1956 and Listing Regulations. The updated Policy on dealing with RPTs as approved by the Board is uploaded on the Corporation’s website at https://licindia.in/documents/20121/46602/ Revised-RPT-Policy-Version3.pdf/8c03ebdf-e096-8cf1-6485-f58f89a14eba?t=1674020688256.

The disclosure on Related Party Transactions, drawn in accordance with applicable accounting standards and as per the requirements of Regulation 23(9) of Listing Regulations for the half year ended September 30, 2023 and March 31,2024 has been submitted by the Corporation with the Stock Exchanges as well as published on the Corporation’s website.

^r 15. IND AS IMPLEMENTATION

Ind AS 117 is yet to be notified by Ministry of Corporate Affairs (MCA). IRDAI has issued instructions/guidelines to the insurers regarding preparedness of Ind AS.

During the year, the Corporation has carried out the Gap Analysis and Impact Assessment of Indian Accounting Standards (Ind AS) implementation. Majority of the qualitative and gap analysis related work has been completed and Financial Impact assessment is in progress as per scheduled.

16. BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

As on the date of this report, the Corporation’s Board comprises of Fourteen (14) Directors viz., One (1) Government Nominee Director, Eight (8) Independent Directors and Five (5) Whole Time Directors including Chief Executive officer and Managing Director and Four Managing Directors. The ‘Directors’ Policy’ is hosted on the website of the Corporation at https://licindia.in/ documents/20121/46602/Director-s-Policv.pdf/e17d3aa6-7027-a578-9dec-f4a6bee8043e?t=1668407463609

A) Changes in Board Composition:

> Appointment of Directors/ Change in Designation:

(i) Shri Tablesh Pandey (DIN: 10119561): The Government of India, vide their notification dated March 13, 2023, has appointed Shri Tablesh Pandey as Managing Director of the Corporation w.e.f., April 01, 2023 till the date of his superannuation or until further orders, whichever is earliest. The Board of the Corporation took note of the same.

The members of the Corporation have approved the appointment of Shri Tablesh Pandey in the 2^nd Annual General Meeting of the Corporation held on August 22, 2023.

(ii) Dr. Maruthi Prasad Tangirala (DIN: 03609968): The Government of India, vide their notification dated June 28, 2023, has appointed Dr. Maruthi Prasad Tangirala as Government Nominee Director of the Corporation with immediate effect and until further orders, in place of Shri Suchindra Misra. The Board of the Corporation took note of the same.

The members of the Corporation have approved the appointment of Dr. Maruthi Prasad Tangirala in the 2^nd Annual General Meeting of the Corporation held on August 22, 2023.

(iii) Shri Sat Pal Bhanoo (DIN: 10482731): The Government of India vide their notification dated July 19, 2023, has appointed Shri Sat Pal Bhanoo as Managing Director of the Corporation w.e.f., July 20, 2023 till the date of his superannuation or until further orders, whichever is earliest.

The members of the Corporation have approved the appointment of Shri Sat Pal Bhanoo in the 2^nd Annual General Meeting of the Corporation held on August 22, 2023.

(iv) Shri Doraiswamy Ramchandran (DIN: 10358884): The Government of India vide their notification dated August 14, 2023, has appointed Shri Doraiswamy Ramchandran as Managing Director of the Corporation w.e.f., September 01,2023 till the date of his superannuation or until further orders, whichever is earliest.

The necessary resolution for appointment of Shri Doraiswamy Ramchandran as Managing Director of the Corporation along with his brief profile has been included in the notice of the 3^rd AGM, for formal approval of the members.

(v) Shri Siddhartha Mohanty (DIN: 08058830): Shri Siddhartha Mohanty, Whole Time Chairperson has been re-designated as Chief Executive Officer and Managing Director on June 30, 2024 in terms of Government of India, notification dated April 28, 2023.

The members of the Corporation have approved the appointment of Shri Siddhartha Mohanty in the 2^nd Annual General Meeting of the Corporation held on August 22, 2023.

> Cessation of Directors:

(i) Shri Suchindra Misra (DIN: 01873568): The Government of India, vide their notification dated June 28, 2023, ''

has appointed Dr. Maruti Prasad Tangirala as Government Nominee Director of the Corporation in place of

Shri Suchindra Misra with immediate effect.

(ii) Smt. Mini Ipe (DIN: 07791184): Smt. Mini Ipe ceased to hold office as Managing Director of the Corporation, with effect from August 31,2023, after close of office hours, upon her superannuation, in terms of Government of India’s Notification dated July 05, 2021.

(iii) Shri Sanjeev Nautiyal (DIN: 08075972): Shri Sanjeev Nautiyal ceased to hold the position of Independent Director on the Board of the Corporation, with effect from the close of day on May 31, 2024, upon his resignation consequent to his appointment as MD & CEO of Ujjivan Small Finance Bank Limited.

The Board acknowledges the valuable contributions made by Shri Suchindra Misra, Smt. Mini Ipe and Shri Sanjeev Nautiyal during their tenure as Government Nominee Director, Managing Director and Independent Director respectively and places its deep appreciation for their guidance to the Corporation.

The Certificate from M/s S. N. Ananthasubramanian & Co., Practicing Company Secretaries (Firm’s Registration No. P1991MH040400), confirms that none of the Directors of the Corporation are debarred or disqualified from being appointed or continuing as Director on the Board by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such authority or other authority.

B) Independent Directors:

Your Corporation has received declarations from all the Independent Directors confirming that they meet the ‘Criteria of Independence’ as laid down under Section 4(3) of the LIC Act, 1956 read with the Rules and Regulations made thereunder.

The Board is of the opinion that all the Independent Directors fulfill the conditions relating to their status as Independent Director as specified under Section 4(3) of the LIC Act, 1956 read with the Rules and Regulations made thereunder and applicable provisions of the SEBI Listing Regulations and are independent of the management.

The composition of Board during the FY 2023-24, is given in the Corporate Governance Report which is placed separately and forms part of the Annual Report.

C) Key Managerial Personnel (KMP) and changes, if any

In terms of the guidelines on Corporate Governance issued by IRDAI read with Listing Regulations, the following senior management employees of the Corporation were holding positions of KMPs as on March 31,2024:

S. No.	Name of KMP	Designation
1	Shri Siddhartha Mohanty	Whole Time Chairperson
2	Shri Jagannath M	Managing Director
3	Shri Tablesh Pandey	Managing Director
4	Shri Sat Pal Bhanoo	Managing Director
5	Shri Doraiswamy Ramchandran	Managing Director
6	Shri Dinesh Pant	Executive Director (Actuarial) & Appointed Actuary
7	Shri Pandiyan Kumaresan	Executive Director (Audit) & Chief Internal Auditor
8	Shri Sudhakar Ravindranath	Executive Director (Marketing) & Chief Marketing Officer
9	Shri Krishna Kumar Sukumaran Nair	Executive Director (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance Officer

S. No.	Name of KMP	Designation
10	Shri Sunil Agrawal	Chief Financial Officer
11	Shri Ratnakar Patnaik	Executive Director (Investment Front Office) & Chief Investment Officer
12	Smt. Bella Paul	Chief-In-charge (Board & Secretarial)
13	Shri S Sunder Krishnan	Chief Risk Officer
14	Shri Anshul Kumar Singh	Company Secretary & Compliance Officer

As on the date of this report, the Board of Directors of the Corporation, has approved the following changes in Key Managerial Personnel positions of the Corporation on the recommendation of Nomination and Remuneration Committee:

S. No.	Name of KMP	Designation/Change in Designation	Remarks
1	Shri Siddhartha Mohanty	Chief Executive officer & Managing Director	Re-designated as Chief Executive Officer and Managing Director w.e.f. June 30, 2024
2	Shri Tablesh Pandey	Managing Director	Appointed as Managing Director w.e.f. April 01,2023
3	Shri Sat Pal Bhanoo	Managing Director	Appointed as Managing Director w.e.f. July 20, 2023
4	Smt. Mini Ipe	Managing Director	Ceased to hold position of Managing Director, upon superannuation on August 31,2023
5	Shri Doraiswamy Ramchandran	Managing Director	Appointed as Managing Director w.e.f. September 01, 2023
6	Shri Pratap Chandra Paikray	Chief Risk Officer	Appointed as Chief Risk Officer w.e.f., April 01, 2023, upon elevation of Mr. Tablesh Pandey to the position of Managing Director
			Ceased to hold position of Chief Risk Officer w.e.f., December 27, 2023, upon appointment of new Chief Risk Officer
7	Shri S Sunder Krishnan	Chief Risk Officer	Appointed Chief Risk Officer w.e.f., December 27, 2023
8	Shri Pawan Agrawal	Company Secretary & Compliance Officer	Ceased to hold position of Company Secretary & Compliance Officer w.e.f., January 18, 2024, upon retirement from full time active service.
9	Smt. Bella Paul	Chief-In-charge (Board & Secretarial)	Appointed as Chief-In-charge (Board & Secretarial) w.e.f., January 18, 2024
10	Shri Anshul Kumar Singh	Company Secretary & Compliance Officer	Appointed as Company Secretary & Compliance Officer w.e.f., January 18, 2024

Performance Evaluation of the Board:

In terms of Section 19B of the LIC Act, 1956, Nomination & Remuneration Committee (NRC) will carry out the evaluation of performance of Directors appointed under section 4(2) (f) and (g) of the LIC Act, 1956. In terms of Regulation 17 of Listing Regulations, the evaluation of Independent Directors shall be done by entire Board. Further, in terms of Regulations 25 of the Listing Regulations, the Independent Directors shall review the performance of non-Independent Directors, Chairperson and the Board of Directors as a whole.

Pursuant to the foregoing provisions of LIC Act, 1956 and Listing Regulations, the entire Board including the members of NRC of the Corporation, undertook the performance evaluation of Independent Directors for the financial year ended on March 31,2024.

Further, all Independent Directors (except Dr. V.S. Parthasarthy) met separately, without the attendance of nonIndependent Directors and members of the management, and inter-alia reviewed the performance of the non-independent Directors, Board as a whole; and that of the Chairperson of the Corporation. They further assessed the quality, quantity and timeliness of the flow of information between the Corporation, Management and the Board.

The evaluation of the Individual Performance of Directors, the Board, and the Chairperson of the Board was undertaken through an iOS-based application meant for evaluation.

‘Fit and Proper’ criteria:

All the Directors of the Corporation have confirmed compliance with the ‘fit and proper’ criteria on the format prescribed under the Director’s Policy approved by the Board.

Directors & Officers Liability Insurance:

As per Regulation 25 (10) of the Listing Regulations requiring the Companies to take Directors and Officers Liability Insurance (D&O) for all its Independent Directors, the Corporation has taken D&O Insurance for all its Directors and Members of the Senior Management Team for such quantum and risks as determined by the Board.

Succession Planning:

In terms of the Board approved policy on succession planning, the NRC of the Board oversees matters related to succession planning of KMPs, Senior Management and other key executives of the Corporation. NRC also recommends the appointment of Independent Directors to fill vacancies on the Board.

Meetings of the Board and its Committees, attendance and constitution of various Committees:

The details of meetings of the Board and Committees of the Board held during the year, attendance of Directors and constitution of various Committees of the Board, form part of the Corporate Governance Report, which is placed separately and forms part of the Annual Report.

Remuneration Policy:

Pursuant to the provisions of Section 19B of LIC Act, 1956, the Board has approved the remuneration policy as recommended by the NRC of the Board. The Policy is placed on the website of the Corporation at https://licindia.in/ documents/20121/46602/Director-s-Policv.pdf/e17d3aa6-7027-a578-9dec-f4a6bee8043e?t=16684074636Q9

Further, details about remuneration to Directors including Whole-time Directors are provided under report on Corporate Governance, which is placed separately and forms part of this report.

Secretarial Standards:

The Corporation is obliged to comply with Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) in terms of provisions contained under Life Insurance Corporation Act, 1956 read with Rules and Regulations made thereunder.

17. CORPORATE GOVERNANCE:

The Corporation considers its stakeholders as partners in success, and remains committed to delivering value to stakeholders. The Corporation believes that a sound Corporate Governance Mechanism is critical to retain and enhance stakeholders’ trust. It is committed to exercise overall responsibilities rigorously and diligently throughout the organization, managing its affairs in a manner consistent with Corporate Governance requirements and expectations.

The Corporation conducts its business while adhering to various Corporate Governance practices to help ensure that there is operational transparency, information sharing, accountability and continuous dialogue with all our stakeholders. The Corporation has standard operating procedures or manuals in place that detail procedures to be followed for each function. The Corporation has several Board sub-committees that overlook Corporation’s Corporate Governance and enhance brand equity, strengthen the stakes of Shareholders and maintain a healthy working environment within the organization.

Pursuant to the provisions of the Listing Regulations, a Report on Corporate Governance along with Certificate from Auditors regarding compliance of conditions of Corporate Governance is annexed to this Annual Report.

18. LIC GOLDEN JUBILEE FOUNDATION (LICGJF):

LIC Golden Jubilee Foundation was established in the year 2006 as a part of LIC’s Community Service initiatives. The objectives of the Foundation are Relief of Poverty or Distress, Advancement of Education, Medical Relief and Advancement of any other object of General Public Utility.

During the year, the Corporation has provided '' 100/- Crore to the Foundation and as on March 31, 2024, LIC GJF’s total corpus is '' 460 Crore. The interest earned on the corpus is utilised for funding various projects for charitable purposes. Since inception, the Foundation has supported NGOs located across the country and dedicated to the above objectives through 839 projects amounting to '' 179.33 Crores. During the FY 2023-24 the Foundation has sanctioned '' 33.82 Crores for 116 projects. The Foundation has reached out to many deprived sections of the society through infrastructural support provided in the above areas. LIC Golden Jubilee scholarship Scheme provides scholarships to children from economically weaker sections of the society, amounting to '' 40,000/- p.a for students pursuing full time medical degree such as BAMS/MBBS etc., '' 30,000/- p.a for students pursuing Technical degree such as B.Tech/BE, '' 20,000/- p.a for students pursuing regular courses like B.Sc, B.A., vocational courses etc., and a special scholarship '' 15,000/- p.a for girl childern for higher secondary ( 2) education. During 2023-24, scholarship of '' 10.20 crores was disbursed. Since inception, LICGJF has disbursed scholarships of '' 69.22 crores to 27,792 students.

19. PARTICULARS OF INVESTMENT IN TERMS OF SECTION 27A OF INSURANCE ACT, 1938:

Pursuant to the provisions of Section 27A of the Insurance Act, 1938, the investments as at March 31, 2024 are mentioned at page no. 325 of the Annual Report and the investments in infrastructure and social sector for the year 2023-2024 are mentioned at page no. 326 of the Annual Report.

20. SUBSIDIARY, ASSOCIATE COMPANIES AND FOREIGN BRANCHES:

As on March 31, 2024, the Corporation has three wholly owned subsidiary companies, four subsidiary companies and six associate companies.

The Corporation does not have any material subsidiary and associate company. There were no entities which became or ceased to be the Corporation’s subsidiaries or associates during the year. The brief details about business of the wholly owned subsidiaries, subsidiaries, associates companies and foreign branches are as under:

S. No.	Name of the entity	Nature of entity	Business activity	% of shares held by LIC
1	LIC Cards Services Limited (“LICCSL”)	1Wholly owned subsidiary	LICCSL markets and distributes Credit Cards of Channel Partner Banks (IDBI Bank; Axis Bank; IDFC First Bank) to the Policyholders, Employees and Agents of the Corporation and the general public. They have co-branded with Axis Bank and IDBI Bank for issue of gift cards. The Company has also entered into an Agreement with M/s Sodexo SVC India Pvt. Ltd (SSVC) for issuing Meal Cards to employees of LIC and proposes to extend the similar arrangement to the other Public Sector Undertakings and Banks.	100%
2	LIC Pension Fund Limited (“LICPFL”)	1Wholly owned subsidiary	LICPFL carries on the business of Pension Fund for pension fund schemes as regulated by the Pension Fund Regulatory and Development Authority (PFRDA).	100%

S. No.	Name of the entity	Nature of entity	Business activity	% of shares held by LIC
3	Life Insurance Corporation (Singapore) Pte. Ltd. (“LIC Singapore”)	2Wholly owned subsidiary	LIC Singapore is engaged in the business of life insurance.	100%
4	Life Insurance Corporation (International) B.S.C. (c) (“LIC Bahrain”)	3Subsidiary	LIC Bahrain is engaged in the business of life insurance in Bahrain and GCC countries.	99.66%
5	Life Insurance Corporation (Lanka) Limited (“LIC Lanka”)	3Subsidiary	LIC Lanka is engaged in the business of life insurance.	90.91%
6	Life Insurance Corporation (Nepal) Ltd. (“LIC Nepal”)	3Subsidiary	LIC Nepal is engaged in the business of life insurance.	55%
7	Life Insurance Corporation (LIC) of Bangladesh Limited (“LIC Bangladesh”)	3Subsidiary	LIC Bangladesh is engaged in the business of, among other things, life insurance services by carrying out life and supplementary health coverage, providing accident benefit and pension insurance business under individual and group schemes and all kinds of guarantee and indemnity business.	83.33%
8	LIC Mutual Fund Trustee Private Limited (“LICMF Trustee”)	4Associate	LICMF Trustee functions as the Trustee Company to LIC Mutual Fund.	49%
9	LIC Mutual Fund Asset Management Limited (“LICMF”)	4Associate	LICMF Asset Management acts as Investment Managers for schemes of LIC Mutual fund.	44.61%
10	LIC Housing Finance Limited (“LICHFL”)	4Associate	LICHFL is engaged in the business of providing long term finance to any person or persons, company or corporation, society or association and, in particular, to holders of policies issued by LIC of India, to construct or purchase a house or flat for residential purposes, and also provides long term finance to persons engaged in the business of construction of houses or flats for residential purpose to be sold by them by way of hire purchase or on deferred payment or other similar basis.	45.24%
11	LIC HFL Asset Management Company Limited (“LICHFL AMC”)	4Associate	LICHFL Asset Management Co Ltd manages Alternative Investment Fund (AIF) / Venture Capital Fund (VCF) as investment manager.	5.38%
12	IDBI Bank Limited (“IDBI Bank”)	4Associate	IDBI Bank is engaged in the business of banking in all forms within and outside India.	49.24%

S. No.	Name of the entity	Nature of entity	Business activity	% of shares held by LIC
13	IDBI Trusteeship Services Limited (“ITSL”)	4Associate	ITSL provides a wide spectrum of trusteeship services to corporates. ITSL also extends the monitoring facility of listed pledged shares for loan against shares, escrow and facility agency services.	29.84%

¹Indian wholly owned subsidiary companies; foreign wholly owned subsidiary company; foreign subsidiary companies; and ⁴Indian associate companies

The Corporation also operates directly through its branch offices in Fiji (Suva and Lautoka), Mauritius (Port Louis) and United Kingdom (Watford)

Bifurcation of Funds:

The amended provisions of Section 24 and Section 28 of the LIC Act 1956 came into force w.e.f. 30.06.2021. Section 24 provides for the Corporation to maintain participating policyholders fund and non-participating policyholders fund and Section 28 provides that upon maintaining such separate funds:

i) in respect of participating policyholders fund, to allocate or reserve 90% or such higher percentage of surplus, for the participating policyholders and the remaining surplus to the members and

ii) in respect of non- participating policyholders fund, 100% of surplus to be allocated or reserved for the members.

The above provisions were made effective for the funds of the Corporation in India.

However, in the three overseas branches (Fiji, Mauritius and United Kingdom), a single fund is being maintained and surplus distribution pattern between the policyholders and shareholders is at 95:5.

Corporation has sought exemption/instructions from the Government of India, in this regard. As such the overseas branches of LIC in UK, Mauritius and Fiji will continue to operates with:

a. single policyholders fund, and

b. surplus distribution between the policyholders and shareholders as 95:5

The above is necessitated as the foreign branches are governed under respective local laws.

Board gave in principle approval to setup a Branch office of the corporation at International Financial Service Centre, Gift city, Gandhi Nagar, Gujarat, subject to regulatory approval(s).

Pursuant to the provisions of Listing Regulations, the Board has approved the policy for determining the materiality of subsidiaries within India and outside India. The policies are placed on website of the Corporation are as under:

Within India	https://licindia.in/documents/20121/46602/Policy-for-determining-Material-Subsidiaries-in- India.pdf/84ecdaa9-f927-7a18-26ef-f2af9430e11a?t=1668407223421
Outside India	https://licindia.in/documents/20121/46602/Policy-on-Material-Subsidiaries-outside-India.pdf/ a6377617-f33a-6dd3-9f0d-82589934140c?t=1668407278203

The financial position and performance of each of the Corporation’s Wholly Owned Subsidiary Companies, Subsidiary Companies and Associate Companies is available in the Annual Report.

21. CONSOLIDATED FINANCIAL STATEMENTS: ^

In accordance with Section 24B of the LIC Act, 1956 (As amended by Finance Act 2021) and SEBI (Listing Obligations and Disclosure Requirements), 2015, Consolidated Financial Statements (CFS) of the Corporation consisting of subsidiaries and associates have been prepared. The CFS have been prepared in accordance with the Insurance Regulatory and Development Authority of India (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 and the circulars issued thereafter and the applicable Accounting Standards i.e. AS 21: Consolidated Financial Statements and AS 23: Accounting for Investments in Associates in CFS issued by Institute of Chartered Accountants of India (ICAI) and forms part of the Annual report.

The financial statement of foreign subsidiaries (except Life Insurance Corporation (International) B.S.C. (c) “LIC Bahrain”) are consolidated for incremental three (3) months to concide with the reporting period of the Corporation.

22. RURAL AND SOCIAL SECTOR OBLIGATIONS:

As per the Regulatory requirements, the Corporation has met its Rural and Social obligations for the FY 2024. As against the minimum of 20%, the Corporation has issued 47.72% policies in the rural sector which affirms the Corporation’s approach towards life insurance inclusion. Further, 32,67,163 new lives covered (5.73% of the total new lives covered in preceding year) by the Corporation are from the underprivileged social sector as against the regulatory requirement of at least 5% of total lives covered in preceding year. Consequently, the Corporation has met the minimum social and rural regulatory norms laid down by the IRDAI.

23. MANAGEMENT REPORT:

Pursuant to the provisions of Regulation 3 of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002, the Management Report is placed separately and forms part of the Annual Report.

24. STATUTORY AUDITORS:

Pursuant to Section 25 of the LIC Act, 1956, the Corporation has appointed the Statutory Auditors of the Corporation for the FY 2024 after due recommendations and approvals. The details of the Statutory Auditors are available at page no. 328 of the Annual Report.

25. STATUTORY AUDITORS’ REPORT:

The Statutory Auditors’ Report (including annexure thereof) to the Members does not contain any qualification, reservation, adverse remark, or disclaimer hence do not call for any further comments u/s 24C(1)(f) of the LIC Act, 1956. There were no reportable frauds identified by the statutory auditors during the FY 2024.

26. SECRETARIAL AUDITORS’ REPORT:

Pursuant to Regulation 24A of the Listing Regulations, the Corporation has appointed M/s S.N. Ananthasubramanian &

Co., Practicing Company Secretary, Mumbai as the Secretarial Auditor of the Corporation. The Auditor has not made any qualification, reservation or adverse remark or disclaimer in his report for the FY 2024. The detailed report on Secretarial Audit of the Corporation for the FY 2024 is annexed and forms part of the Corporate Governance Report as Annexure ‘D’.

27. CERTIFICATE FROM CHIEF COMPLIANCE OFFICER (UNDER THE IRDAI CORPORATE GOVERNANCE GUIDELINES, 2016):

A Compliance Certificate, for complying with IRDAI Corporate Governance Guidelines, issued by the Executive Director (Corporate Governance/Regulatory Compliance/GJF), designated as the Chief Compliance Officer under the IRDAI Corporate Governance Guidelines, is annexed and forms part of the Corporate Governance Report as Annexure ‘C’.

28. MATERIAL EVENTS, CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE CORPORATION:

There have been no material changes and commitments, affecting the financial position of the Corporation, which have occurred from the end of the financial year to which the Balance Sheet relates and the date of this report.

29. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND OPERATIONS OF THE CORPORATION:

During the FY 2023-24, no significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and operations of the Corporation.

Further to the disclosures made in the Red Herring Prospectus (RHP) dated 26.04.2022 and the Prospectus dated 12.05.2022 with respect to the Civil Litigation that is Non-Quantifiable but Deemed Material. The Hon’ble Supreme Court vide its order dated 12.10.2023 in the Writ Petition 366/2022 and connected matters directed the counsels to submit all pleading and documents in the matter. These matters are currently pending to be heard before the Supreme Court of India.

30. DIRECTORS’ RESPONSIBILITY STATEMENT:

In terms of Section 24C(2) of LIC Act, 1956 and the Corporate Governance Guidelines, your Directors confirm that;

(a) in the preparation of the annual accounts for the year ended March 31,2024, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

(b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Corporation as on March 31,2024 and of the profit of the Corporation for the year ended on that date;

(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the LIC Act, 1956 for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities;

(d) they have prepared the accounts for the current financial year ended March 31,2024 on a going concern basis;

(e) the vigilance administration referred under Section 8(1)(h) of the Central Vigilance Commission Act, 2003 is in operation in the Corporation under the superintendence of the Central Vigilance Commission and in addition they have laid down internal financial controls to be followed by the Corporation and that such internal financial controls are adequate and were operating effectively; and

(f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

31. INVESTOR RELATIONS:

The Corporation has always valued its customer relationships and it is our endeavor that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. The Corporation disseminates information on its operations and initiatives on a regular basis. The Corporation’s website (www.licindia.in) serves as a key awareness facility for all its stakeholders, allowing them to access information at their convenience. It provides comprehensive information on the Corporation’s strategy, financial performance, operational performance and the latest press releases. The Corporation publishes financial results on a quarterly basis. The financial results of the Corporation are prepared and posted on its website for the current as well as previous years. The Investor Relations team organises earnings calls post each results declaration and the investors presentations, transcripts and analyst call recordings are uploaded, as required, on Corporation’s website. Also various equity conferences organized by leading securities firms are attended by senior management team members of the Corporation. During the year, in the month of June 2023, the Corporation conducted a Global Non Deal Roadshow, to convey the growth story and enhance overall awareness about LIC of India amongst international investors. Locations across Asia, Europe and United States were covered in the Global Non Deal Roadshow.

32. MANAGEMENT DISCUSSION AND ANALYSIS REPORT, REPORT ON THE CORPORATE GOVERNANCE AND BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT:

Pursuant to Regulation 34 of the Listing Regulations, Management Discussion and Analysis (MD&A) Report and Business Responsibility & Sustainability Report (BRSR) along with the report of Independent Assurance provider are presented in separate sections and form part of the Annual report.

Further, SEBI vide its circular ref: SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023 has updated the format of BRSR to incorporate BRSR core. BRSR core is a subset of BRSR, consisting of a set of Key Performance Indicators (KPIs)/ metrics under nine ESG attributes, which are subject to mandatory reasonable assurance by an independent assurance provider. Accordingly, the Corporation has appointed Batliboi & Purohit as an assurance provider.

In compliance with Listing Regulations, a Report on the Corporate Governance framework of the Corporation, with certifications as required under applicable Regulations (including guidelines on Corporate Governance issued by IRDAI) forms part of this Annual report.

33. IRDAI LICENSE:

The Insurance Regulatory and Development Authority of India (IRDAI) have renewed the annual licence of the Corporation to continue the Life Insurance Business for the FY 2025.

34. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:

The Corporation believes to conduct the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty and ethical behavior and committed to develop a culture where it is safe for all stakeholders to raise concerns about unethical and unfair practice and any event of misconduct.

• New On-Line Complaint Portal has been introduced for registering Vigilance related complaint “Satarkata Shikayat Dwar” which is available on www.licindia.in under Customer Services tab. All vigilance related complaints can be registered and tracked through the module.

• LIC has a well-established vigil mechanism for Directors and employees for adequate safeguard against victimization of Directors and employees or any other person who report genuine concerns. It has a policy for prevention, detection and investigation of frauds and protection of whistle blowers (The Whistle blower policy). It encourages employees and various stakeholders to bring to its notice any issue involving compromise/violation of ethical norms, legal or regulatory provisions , actual or suspected fraud, etc without any fear of reprisal, discrimination, harassment or victimization of any kind. The details of whistle blower complaints/concerns received and subsequent actions taken and the functioning of the whistle blower mechanism is reviewed quarterly by the Audit Committee of the Board.

• LIC has developed and implemented UDIT Module (Upgraded Disciplinary Workflow through Integration of Technology) for reducing turnaround time in disposal of disciplinary matters/vigilance cases.

The Whistle Blower Policy is hosted on the Corporation’s website at https://licindia.in/documents/20121/46602/ Whistle Blower Policv.pdf/49f509ab-c255-1506-033e-9ffeaded4680?t=1709189590811

35. AWARDS & RECOGNITIONS:

Your Corporation has received various awards and accolades during the year under review in areas of Mobile App, Digital Marketing Campaign, Customer Service, Strategies for Insurance Spreading, Leadership, Claim Service, Most preferred workplace, Project implementation, etc. Some of the key ones are listed below:

AWARDS & RECOGNITIONS 2023-24

v Banking Frontier/Innovation -Finnoviti Awards 2023 for ANANDA APP awarded by Delegate & Industry Engagement Banking

v 3^rd Edition of the Great Indian BFSI Awards given for Digital Marketing Campaign of the year awarded by Veve and

Mcanvas

v Special Jury Award awarded by FICCI Insurance Industry Awards 2022 (received in April 2023)

v 10^th Edition National Awards for Excellence in BFSI for Customer Service Excellence Awards, Best Mobile Application

and Excellence in Agency Distribution - Three awards awarded by Fun & Joy at work

s 4^th Emerging Asia Insurance Conclave & Awards, 2023 for Best Strategies for Insurance Spreading for the Year

awarded by Economic Affair & Policy, Indian Chamber of Commerce (ICC)

s ET NOW INSURANCE SUMMIT & AWARDS-10^th annual edition for Smart insurer in the life insurance-large category

for the year 2023 awarded by ET NOW

s India’s Leading Life Insurance Company (Public) awarded by Dun & Bradstreet

s 2^nd Edition Most preferred Workplace in BFSI 2023-24 Media partner Business Standard for Most preferred Workplace 2023 awarded by Team Marksmen Network Pvt Ltd.

s 7^th Annual Insurance Conclave & Awards for India’s Best Insurance Company award given by Insurance Alerts

s InsureNext & InsureTech Conclave and Awards 2024 for Best Life Insurance Company of the Year awarded by

Banking Frontiers

s PSU’s and PSB - Silver Category for Excellence in display at the PSU and PSB pavilion during 42^nd India International

Trade Fair - 2023 awarded by IITF 23

s SAP ACE Awards 2023 for Successful Project Implementation of Investment Dept

s Two awards awarded by Fun & Joy at work in the category for 1. Insurance Company of the Year -LIFE, 2. Claims Service Leader -LARGE - in Financial Services Marketing Summit and Awards

s Navabharat BFSI Awards 2023 for Certificate of excellence awarded to LIC of India-Most Customer Friendly Life Insurance Company awarded by Navabharat

s DHANAM for LIFE INSURER OF THE YEAR 2023 presented to LIC OF INDIA awarded by Dhanam Business Media Accolades:

Brand Ranking 2023-24

S. No.	Ranking	Brief Details
1	1st	LIC of India is the WORLD’s no.1 strongest Insurance Brand as per the Brand Finance Insurance 2024 report published on March 25, 2024
2	1st	LIC of India is the “Best Insurance Company of the Year” and “Best PSU Insurance Company” as per Collector’s Edition with Dalal Street Investment Journal May 2024 Edition.
3	3rd	LIC of India has been ranked 3rd amongst largest Indian Companies as per Fortune India December 2023 issue.
4	3rd	Third amongst top 15 companies listed by Business World in the BW Real 500 list-LIC is the only Insurance company in the list
5	4th	Life Insurance Corporation of India (LIC) was ranked the fourth largest insurer in the world, based on life and accident & health reserves of companies in 2022 by S&P Global Market Intelligence. (Received in 2023)
6	9th	LIC of India secured the ninth rank as per the TRA Brand Trust Report 2024 an annual unveiling of India’s 1000 Most Trusted Brands
7	11th	LIC has been ranked 11th as per the Kantar Brandz 2023-Most Valuable India Brands.

Achievements:

> LIC moves up in AM Best ranking of global insurers - The Life Insurance Corporation of India (LIC) has moved up in the rankings of insurers in terms of non-bank assets despite the depreciation of the rupee, LIC is at the 12^th position on the global list compiled by AM Best on January 02, 2024.

> Life Insurance Corporation of India (LIC) continues to be identified as Domestic Systemically Important Insurers (D-SIIs) by the Insurance Regulatory and Development Authority of India (IRDAI).

36. BOARD POLICIES:

The details of the policies approved and adopted by the Board of Directors of the Corporation as mandated under the LIC Act, 1956 and Securities and Exchange Board of India (SEBI) Regulations are annexed as Annexure I to this report.

37. ACKNOWLEDGEMENTS AND APPRECIATIONS:

The Directors express their sincere thanks to the Hon’ble Parliamentary Committees which visited its offices, the Hon’ble Union Finance Minister, Hon’ble Union Minister of State for Finance (Expenditure, Banking and Insurance), the Insurance Division of the Ministry of Finance, Department of Economic Affairs for their active support, advice and co-operation on various issues.

The Directors are grateful to the Insurance Regulatory and Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and Government of India (GOI) for their continued co-operation, support and advice. The Directors would also like to take this opportunity to express their sincere gratitude to the valued Policyholders and Shareholders for their continued trust and patronage.

The Directors also express their gratitude for the advice, guidance and support received from time to time, from the Auditors, and Statutory Authorities. The Directors express their deep sense of appreciation to all the Employees, Agents, Corporate Agents and Brokers, Distributors, Re-insurers, Bankers and the Registrars who continue to display outstanding professionalism and commitment, enabling the organization to retain market leadership in its business operations.

For and on behalf of the Board of Directors

Siddhartha Mohanty (Doraiswamy Ramchandran) (Muthu Raju Paravasa Raju Vijay Kumar)

Chief Executive Officer & Managing Director Independent Director

Managing Director (DIN: 10358884) (DIN: 05170323)

(DIN: 08058830)

Date: 15^th July, 2024 Place: Mumbai

---

Mar 31, 2023

Your Board of Directors (Board) are pleased to present the 66^th Annual Report of Life Insurance Corporation of India (“the Corporation”/ “LICI”/"LIC"), together with the audited financial statements for the year ended March 31, 2023.

1. HIGHLIGHTS OF FINANCIAL PERFORMANCE:

The Highlights of the Standalone financial performance of the Corporation for financial year under review, are presented below:

(? in crore)
Particulars	2022-23	2021-22	Growth
New business Premium (Net of Reinsurance)
First Year Premium	39,054.94	36,615.35	6.67%
Single Premium	1,92,960.65	1,62,282.83	18.90%
Renewal Premium	2,41,989.02	2,28,521.03	5.90%
Total Premium	4,74,004.61	4,27,419.21	10.90%
Investment & Other income	3,14,048.03	2,93,683.36	6.93%
Total Income	7,88,052.64	7,21,102.57	9.28%
Profit after Tax (PAT)	36,397.39	4,043.12	800.23%
Other Key Parameters:
Particulars	2022-23	2021-22	Growth
Corporation''s Annual Premium Equivalent (APE) (? in crore)	56,682.00	50,390.00	12.49%
Assets under Management	43,97,204.59	40,84,600.65	7.65%
Embedded Value (? in crore)	5,82,243.00	5,41,492.00	7.52%
* Solvency Margin	1.87	1.85	-

• Solvency margin is calculated before considering the proposed final dividend for the FY, which is subject to shareholders’ approval in AGM.

Your Corporation witnessed consistent performance and growth in FY2023. Some of the other key financial parameters of the Corporation are as follows:

• Gross NPA has decreased by 55.58% from ?27,087.11 crore in FY 2022 to ?12,031.36 crore in FY 2023.

• Net NPA has decreased by 96.63% from ?175.81 crore in FY 2022 to ?5.93 crore in FY 2023.

• Basic & Diluted EPS for the FY 2023 is ?57.55.

• Net retention ratio for the FY 2023 is 99.86%

COVID - 19:

In view of the changed claim experience during last two years and uncertainty of change in claim experience, additional COVID reserve was provided for, in the valuation for the years ended March, 2021 and March, 2022. However, with the COVID related claims now significantly coming down and in view of improving overall claim experience, no additional COVID reserve has been provided for the valuation as at March, 2023, as the mortality assumptions are adequate.

2. DIVIDEND AND RESERVES:

The Board of Directors of the Corporation has recommended a final dividend of ?3/- per equity share of the face value of ?10/-each, subject to approval of the members of the Corporation in Annual General Meeting. This translates into a dividend pay-out ratio of 5.22%.

The Corporation has formulated a ''Dividend Distribution Policy'', which has been approved by the Board of Directors. In terms of Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''SEBI Listing

RegulationsV''SEBI(LODR) Regulations, 2015'') the ''Dividend Distribution Policy'' is hosted on the website of the Corporation at https://^ licindia.in/documents/20121/46602/Dividend-distribution-policy.pdf/a099808b-9f30-9c88-29cd-1d3e63d19456?t=1665744390416

The Corporation has carried forward a profit amounting to ?35,448.64 crores during the FY2023 to the Reserves. The Corporation has accumulated profit of ?39,462.97 crores as at March 31, 2023.

The Corporation has uploaded the details of unpaid and unclaimed dividend of FY 2021-22 as on March 31, 2023 on the Corporation''s website at https://licindia.in/documents/d/guest/lic unclaimed-dividend-fy-2021-22 31-03-2023

3. CAPITAL AND SHAREHOLDING:

The Authorised Share Capital of the Corporation is ? 25,000 crore divided into 2,500 crore shares of ? 10/- each.

The issued, subscribed and paid-up equity share capital of the Corporation as at March 31,2023 is ? 63,249,977,010 comprising of 6,324,997,701 equity shares of the face value of ? 10/- each.

During the year ended March 31, 2023, the Corporation had made an Initial Public Offering (IPO), of 221,374,920 equity shares of ? 10 each at a price of ? 949 per share (including Share Premium of ? 939) through an offer for sale by the President of India, acting through the Ministry of Finance, Government of India (''selling shareholder'').

The above offer included a reservation of 1,581,249 equity shares for subscription by eligible employees and a reservation of 22,137,492 equity shares, for subscription by eligible policyholders of the Corporation. The equity shares, under employee reservation portion and policyholders reservation portion were offered to eligible employees and policyholders at a discount of ? 45 per share and of ?60 per share respectively. A discount of ? 45 per share was also offered to retail shareholders. Post public issue, shareholding of President of India as on March 31, 2023 was 96.50%.

Pursuant to Regulation 32 of the SEBI (LODR) Regulations, 2015, no monitoring agency was appointed to monitor utilization of funds as the offer was an offer for sale and the entire proceeds were transferred to selling shareholder after deducting the offer expenses and relevant taxes thereon. The Corporation has not received any proceeds from the offer.

The shares of the Corporation have been listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE) w.e.f. May 17, 2022.

4. PRODUCTS:

Your Corporation offers a wide variety of products, which fulfil the needs of different customer segments of the society.

During the financial year 2022-23, the Corporation introduced seven (7) new Individual products viz LIC''s Bima Ratna, LIC''s Dhan Sanchay, LIC''s New Pension Plus, LIC''s Dhan Varsha, LIC''s New Tech -Term, LIC''s New Jeevan Amar, LIC''s Jeevan Azad and one (1) Group Rider viz. LIC''s Group Accident Benefit Rider.

In addition, the Corporation also introduced modified versions of five (5) Individual Products viz; LIC''s Aadhaar Stambh, LIC''s Aadhaar Shila, LIC''s New Jeevan Shanti, LIC''s Jeevan Akshay -VII and LIC''s Saral Pension.

As at the end of the financial year 2022-23, the Corporation had thirty seven(37) Individual Products, eleven (11) Group Products, seven (7) Individual Riders and 1 Group Rider available for sale.

5. CUSTOMER RELATIONSHIP MANAGEMENT:(A) Policy Servicing:

Servicing of policies is one of the important aspects in the value chain of life insurance, due to the nature of its long-term contract. Our customer service facilities start with our Branch Offices/ Satellite Offices through which the customers can avail all the required services, like nomination, assignment, change of address, loan, surrender etc. In an endeavour to provide best services to our Customers we have taken many initiatives like ''Anywhere Services'' where policy holder can avail services at branches other than servicing branch, customer portal has been created to avail online facility of premium paid certificate, online loan, change in address, mode of paying premium, NEFT Registration and validation of E-NACH. There are many alternate channels available for payment of premium which includes digital payment through net banking, credit card,

debit card, UPI, e-wallets on LIC Customer portal, Premium can also be paid through Auto Debit, NACH and Electronic Bill pay process. Offline channels where premium can be paid in cash or through Cheque are enabled at IDBI Bank, City Union Bank, Common Service Centre (CSC), Suvidha Infoserve and APT Online and Premium paying points operated by selected Agents.

LIC has centralized call center which is operational 24x7 by calling at 022-68276827. Services are available in eight Regional languages (Bengali, Guajarati, Kannada, Malayalam, Marathi, Oriya, Tamil and Telugu) in addition to English and Hindi. There are 74 Customer Zones operative across India which functions from 8.00 AM to 8.00 PM. Customer can also connect now through our new WhatsApp services No.8976862050.

An initiative called LICHELP, where policyholders can SMS LICHELP on 9222492224. An official from Customer Zone mapped to the servicing branch of the policy, contacts the customer and support for any service requirement.

The Corporation has an online system wherein a policyholder registered on the Customer Portal of LIC of India can register complaint and track its status through LIC''s e-services available on our website www.licindia.in The Complaints registered under IRDAI''s Grievance Management System-BIMA BHAROSA are synced with LIC''s Complaint Management System. The Corporation has Grievance Redressal Officers (GROs) at Branch/ Divisional/Zonal/Central Office levels to redress grievances of customers. Their names are available on our website. The respective GROs are available at their Offices for personal interaction with the customers on all Mondays between 2.30 PM to 4.30 PM. Customers can meet the GROs on other days with prior appointment. Customers may also send their grievances through Post, by email etc. to the respective servicing offices / GROs.

(B) Claims Related Performance:Settlement of Claims:

LIC''s Claims Settlement ratio has been the best in post COVID Era, both in Maturity as well as in Death Claim and there is a declining trend in unclaimed amounts.

During the year, the Corporation has settled 225.51 lakh claims amounting to '' 2,09,938.63 Crore (Including Individual, Micro Insurance and Pension & Group Schemes). All payments were made through digital mode i.e., 100% payment through NEFT. All Claims reported under COVID Claims were settled. The figures in respect of settlement of claims for the last three years are provided in the Management Discussion & Analysis report which forms part of the annual report.

I. INFORMATION TECHNOLOGY:

Technology is the key differentiator in today''s era. Technological innovation in the insurance sector has led to efficiency gains in LIC''s operations. Information Technology vertical of the Corporation is working towards imbibing new digital initiatives, upgrading digital capabilities and automating LIC''s operational processes. The Corporation has launched customized mobile Applications for our customers, intermediaries and supervisory officials, for on boarding of customers, Agents'' performance monitoring, Performance Review for Line Managers, Pre-recruitment App for agents, Artificial Intelligence (AI) Powered App for submission of Existence Certificate for availing annuities.

Customer Portal and LIC Digital mobile app provide service functionalities for more than 210 lakh registered users (Premier/ Normal) for creation and updating of profile, viewing policy and proposal images, premium payments including advance premium payments. Online Service request modules such as for loan Interest payments, loan repayments, change of address, mode change, ULIP fund switch, eNACH, Online PAN and NEFT data registration, register and track a grievance, etc. enable submission and fulfillment of various customer servicing requests.

eFEAP, the core insurance solution of the Corporation developed in-house, enables all the offices of the Corporation to carry out activities right from the start of policy life cycle at New Business stage to Policy Servicing and ultimately to Claim settlement and also HR & CRM related activities.

Upgradation of the infrastructure of the core insurance solution (eFEAP-Next) was undertaken successfully with consolidation of hardware infrastructure of 113 Mini Data Centers and various Non-DC setups using the HCI based technologies and setting up private-cloud at four professionally managed Co-location Data Centers spread geographically in east, west, north and south Tier III Co-location data centers. Two Disaster Recovery (DR) setups were also created as part of this exercise.

Artificial Intelligence (AI) powered 24x7 Chatbot ''LIC Mitra'' and ''Jeevan Saakshya mobile application facilitate the submission of digital existence life certificate for Individual Pension Plan (IPP) Annuitants and Staff Pensioners of LIC.

Apart from these, Corporation could enable seamless integration with outside platforms like Aadhaar, PAN, UMANG, Digilocker, etc., for the benefit of our customers, Electronic Document Management System (EDMS) allows upload and archive images of policy/agency docket and is integrated with eFeap for docket view, endorsement capturing. eFeap archival also enables viewing of policy document thus enabling anywhere / anytime servicing of policy.

LIC has implemented a robust network through two service providers for uninterrupted network availability using MPLS. For seamless connectivity and availability of services through internet, the internet outbreak links have been procured at multiple locations through multiple service providers. We have also established Communication channels for productivity enhancement viz. dedicated VC Solution and email setup to provide collaboration among internal and external stakeholders.

To ensure a secure environment, the infrastructure and access controls are managed through an enterprise level Anti-virus, Active Directory, Biometric /OTP based authentications. The internal systems and resources are protected from external attacks using state-of-art firewalls.

To optimize the utilization as well as allocation of resources for multiple applications and services, private cloud technology has been implemented.

Corporation is also planning many initiatives for supporting the stakeholders ranging from internal users, intermediaries to the prospective customers. Thus, information technology acts as a key enabler for the Corporation resulting in efficiency, security and transparency thereby achieving the Digital India mission.

7. PERSISTENCY:

The 13^th month persistency for Individual Regular Premium Business, by premium, for 2022-23 is 77% as against 76% for 2021-22 and the 61^st month persistency for the same is 62% for 2022-23 as against 61% for 2021-22

The 13^th month persistency for Individual Regular Premium Business, by number, of policies for 2022-23 is 64% as against 63% for 2021-22 and the 61^st month persistency for the same is 50% for both 2022-23 and 2021-22.

8. HUMAN RESOURCE:

As on March 31, 2023, the Corporation has a total of 98,463 employees on roll which includes 23,157 female employees (constitutes approx. 23.52% of total employees). The details are as under:

Particulars	Male	Female	Total
CLASS-1	23,244	7,085	30,329
CLASS-2	17,863	1,142	19,005
CLASS-3	32,971	14,552	47,523
CLASS-4	1,228	378	1,606
Total	75,306	23,157	98,463

9. PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE:

In accordance with the Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act 2013, the Corporation has initiated various steps to improve the status of women and worked for their economic empowerment. At every level of the Corporation, women officers/employees have contributed significantly. In the Corporation, Committees for prevention of sexual harassment at workplace are functioning effectively at Central Office, Zonal Office and Divisional Office level. The summary of cases as at March 31, 2023 are as under:

No of cases pending at the end of previous Financial Year	No of cases received during the year	Total cases	Cases disposed off during the year	No of pending cases as on 31.03.2023
04	14	18	14	04

10. ENTERPRISE RISK MANAGEMENT:

LIC has robust Enterprise Risk Management framework to conduct business in an orderly fashion taking into account the risks faced by the Corporation and controlling its business effectively with defined responsibilities and adequate risk management procedures. Board has delegated the responsibility relating to Risk Management to Risk Management Committee of the Board (RMCB). The ERM framework has robust and efficient mechanism for the identification, assessing, mitigation and monitoring the risks. RMCB reviews Enterprise Risk Management activities executed across the organization on quarterly basis.

Key Risk Management Tools are Risk Appetite Statements, Risk Registers, Incident Management Framework & Operational Loss database, Top Risks and Key Risk Indicators. The mitigation strategy with respect to various risks as covered under the current Enterprise Risk Management framework is: Market Risk, Liquidity Risk, Credit risk, Insurance Risk, and Operational Risk.

11. INSPECTION:

Your Corporation has a Board approved Inspection Policy which stipulates that every office of the Corporation in India shall be inspected at least once a year by Officers of Inspection department. The exercise of Inspection is a measure to detect and rectify systemic lapses.

During the financial year 2022-23, we introduced a Performance Matrix for Branch Offices encompassing the Key Result Areas of performance aligned to the Corporate goals. The need for such a matrix was felt to sensitize all our units to have equal focus on both marketing & Customer Services which would not only enable them to align their activities with the objectives of the Corporation but at the same time would also enable them to achieve “Excellent” rating in Inspection.

Keeping with the pace of improving our systems and procedures, with the intervention of technology, further development was made in the Remote Inspection Package, whereby a substantial portion of inspection job can be completed before the commencement of Inspection of Units, thereby saving on precious time.

During the year of review, your Corporation has completed the inspection of all Satellite Offices, Branch Offices, Divisional Offices, Zonal Offices and Central Office by March 15, 2023 and 82% Branch Offices and 96.5% of Divisional Offices were rated “Excellent”. Common Irregularities were shared with Heads of Departments of Central Office for necessary systemic improvement.

12. INTERNAL AUDIT AND COMPLIANCE FRAMEWORK:

Your Corporation''s Internal Audit functions are overseen by the Internal Audit Department at the Central Office (CO). There are twelve Audit Centers which conduct the audit. The CO Audit department besides monitoring the operations of the Audit Centers, arranges for the audits of various Departments of Central Office.

To bring in professional approach towards the auditing of Offices, during the year 2022-2023, 1/3^rd of the Divisional Offices and the Branches under those Division including P&GS units were audited by CA firms. We will be continuing auditing 1/3^rd of Divisions and its Branches including P&GS units through CA firms in the coming years so that in three years period all Divisions and all Branches of the Corporation including P&GS units will be audited by CA firms.

Audit is carried out in all the Units based on Department-wise Questionnaires developed for this purpose which includes IFC questions in respect of each tier of the Corporation viz. Branch, Division, Zone and Central Office.

Major findings during the Internal Audit are regularly shared with Departments concerned of Central Office, which issue necessary instructions to the operating units and also introduce further systemic controls wherever required.

Further, as per our fraud monitoring framework, the fraud reported for value of more than '' 1 Crore is placed to the Risk Management Committee through the Central Fraud Monitoring Committee and Committee of Executives for Risk Management.

Each Auditee Unit is audited every year. The audit activities is reported to the Audit Committee on bi-monthly basis. A summary of the reports of the auditors is placed before the Audit Committee after the close of the financial year.

13. INTERNAL FINANCIAL CONTROLS:

The Corporation''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Corporation''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflects the transactions and dispositions of the assets of the Corporation, (2) provides reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and directors of the Corporation, and (3) provides reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Corporation''s assets that could have a material effect on the financial statements.

14. RELATED PARTY TRANSACTIONS:

The Corporation has a Board approved Policy on Related Party Transactions (RPTs). The Policy intends to ensure that proper reporting, approval and disclosure processes are in place for all related party transactions. During the year, pursuant to notification of amendments to Listing Regulations, amongst other changes, the scope of related party transactions has been widened significantly and the said Policy was amended to align it with all the applicable amendments. The updated Policy on dealing with RPTs as approved by the Board is disseminated on the Corporation''s website at https://licindia.in/documents/20121/46602/Revised-RPT-Policy-Version3.pdf/8c03ebdf-e096-8cf1-6485-f58f89a14eba?t=1674020688256 All RPTs are placed before the Audit Committee for approval and review. Prior omnibus approval is obtained for RPTs that are of repetitive nature and / or entered in the ordinary course of business and are at arm''s length. Details of material related party transaction(s) which require approval of the shareholders of the Corporation have been detailed in the notice convening the 2^nd AGM.

The details of related party transaction during the FY 2022 - 23 are available at page no. 438-451 of the Annual Report.

15 Ind AS IMPLEMENTATION

Ind AS 117 is yet to be notified by MCA. Insurance Regulatory and Development Authority of India (IRDAI) has issued instructions/ guidelines to the insurers regarding preparedness of Ind AS including engagement of professionals to facilitate the process of implementation of Ind AS.

The Corporation has floated the Request for Proposal (RFP) for engagement of Consultant for GAP analysis and its impact assessment on implementation of Ind AS and evaluation for the same is under process.

16. BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

As on date of this report, the Corporation''s Board comprises of fifteen (15) Directors viz., One (1) Government Nominee Director, Nine (9) Independent Directors and five (5) Whole Time Directors including Whole Time Chairperson and four Managing Directors. The ''Directors'' Policy'' is hosted on the website of the Corporation at

https://licindia.in/documents/20121/46602/Director-s-Policv.pdf/e17d3aa6-7027-a578-9dec-f4a6bee8043e?t=1668407463609 A) Changes in Board Composition:

• Appointment of Directors:

(i) Mr. Siddhartha Mohanty (DIN: 08058830): The Government of India, vide its letter dated March 11, 2023, had entrusted financial and administrative powers and functions of Chairperson of Life Insurance corporation of India in the interim to Mr. Siddhartha Mohanty, Managing Director in addition to his own duties, for a period of three months w.e.f., March 14, 2023, or till assumption of the charge by the regular appointee to the said post, or until further orders, whichever is the earliest.

Further, the Government of India, vide its notification dated April 28, 2023, has appointed Mr. Siddhartha Mohanty, Managing Director & in-charge as Whole Time Chairperson of Life Insurance Corporation of India w.e.f., April 29, 2023 till June 29, 2024 and thereafter, as Chief Executive Officer and Managing Director of the Corporation till June 07, 2025, i.e., upto the date of his attaining the age of 62 years or until further orders, whichever is earliest. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Mr. Siddhartha Mohanty as Whole Time Chairperson of the Corporation along with his brief profile has been included in the notice of the 2^nd AGM, for formal approval of the members.

(ii) Mr. Jagannath M. (DIN 10090437): The Government of India vide their notification dated March 13, 2023, had appointed Mr. Jagannath M. as Managing Director of the Corporation w.e.f., March 13, 2023 till the date of his superannuation or until further orders, whichever is earliest. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Mr. Jagannath M. as Managing Director of the Corporation along with his brief profile has been included in the notice of the 2^nd AGM, for formal approval of the members.

(iii) Mr. Tablesh Pandey (DIN 10119561): The Government of India, vide their notification dated March 13, 2023, had appointed Mr. Tablesh Pandey as Managing Director of the Corporation w.e.f., April 01, 2023 till the date of his superannuation or until further orders, whichever is earliest. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Mr. Tablesh Pandey as Managing Director of the Corporation along with his brief profile has been included in the notice of the 2^nd AGM, for formal approval of the members.

(iv) Dr. Maruthi Prasad Tangirala (DIN: 03609968) : The Government of India, vide their notification dated June 28, 2023, had appointed Dr. Maruthi Prasad Tangirala as Government Nominee Director of the Corporation with immediate effect and until further orders, in place of Mr. Suchindra Misra. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Dr. Maruthi Prasad Tangirala as Government Nominee Director of the Corporation along with his brief profile has been included in the notice of the 2^nd AGM, for formal approval of the members

(v) Mr. Sat Pal Bhanoo (DIN: *Not Applicable): The Government of India vide their notification dated July 19, 2023, has appointed Mr. Sat Pal Bhanoo as Managing Director of the Corporation w.e.f., the date of assumption of charge and upto the date of his superannuation (i.e., December 31, 2025), or until further orders, which ever is earlier. Mr. Sat Pal Bhanoo took charge as Managing Director of the Corporation on July 20, 2023. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Mr. Sat Pal Bhanoo as Managing Director of the Corporation along with his brief profile has been included in the notice of 2nd AGM, for formal approval of the members.

(*Section 153 of the Companies Act, 2013 and the rules thereunder pertaining to holding of DIN by a Director are not applicable to the Corporation. However, Mr. Bhanoo will be obtaining DIN in due course of time.)

• Cessation of Directors:

(i) Mr. Raj Kumar (DIN: 06627311): Mr. Raj Kumar ceased to hold office as Managing Director of the Corporation, with effect from the close of business hours on January 31, 2023, upon expiry of his extended service and term beyond superannuation, in terms of Government of India''s earlier notification dated January 30, 2022.

(ii) Mr. M. R. Kumar (DIN: 03628755): Mr. M. R. Kumar ceased to hold office as Whole Time Chairperson of the Corporation, with effect from the close of business hours on March 13, 2023, upon completion of his term, in terms of Government of India''s notification dated January 30, 2022 read with letter dated March 11, 2023.

(iii) Mr. Bishnu Charan Patnaik (DIN: 08384583): Mr. Bishnu Charan Patnaik ceased to hold office as Managing Director of the Corporation, w.e.f. March 31, 2023, after close of office hours, upon his superannuation, in terms of Government of India''s Notification dated July 05, 2021.

(iv) Mr. Suchindra Misra (DIN: 01873568): The Government of India, vide their notification dated June 28, 2023, had appointed Dr. Maruthi Prasad Tangirala as Government Nominee Director of the Corporation with immediate effect and until further orders, in place of Mr. Suchindra Misra. Accordingly, Mr. Suchindra Misra ceased to be a Government Nominee Director of the Corporation w.e.f, June 28, 2023

The Board acknowledges the invaluable contributions made by Mr. M.R. Kumar, Mr. Raj Kumar, Mr. Bishnu Charan Patnaik and Mr. Suchindra Misra during their tenure as Whole Time Chairperson, Managing Directors and Government Nominee Director respectively and places its deep appreciation for their guidance and leadership to the Corporation.

The Corporation has obtained a Certificate from M/s S.N. Ananthasubramanian & Co., Practicing Company Secretaries (Firm''s Registration No. P1991MH040400), confirming that none of the Directors of the Corporation are debarred or disqualified from being appointed or continuing as Director on the Board by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such authority or other authority.

• Independent Directors:

Your Corporation has received declarations from all the Independent Directors confirming that they meet the ''Criteria of Independence'' as laid down under Section 4(3) of the LIC Act, 1956 read with the Rules and Regulations made thereunder.

The Board is of the opinion that all the Independent Directors fulfill the conditions relating to their status as Independent Director as specified under Section 4(3) of the LIC Act, 1956 read with the Rules and Regulations made thereunder and applicable provisions of the SEBI Listing Regulations and are independent of the management.

The current Board Composition as well composition of Board during FY 2022-23, are furnished in the Corporate Governance Report annexed to this report.

B) Key Managerial Personnel (KMP''s) and changes, if any

In terms of the guidelines on Corporate Governance issued by IRDAI, the following senior management employees of the Corporation were holding positions of KMPs as on March 31, 2023 and July 20, 2023:

KMP''s holding positions (as on July 20, 2023)
S. No.	Name of KMP	Designation
1	Mr. Siddhartha Mohanty	Whole Time Chairperson
2	Ms. Mini Ipe	Managing Director
3	Mr. Jagannath M	Managing Director
4	Mr. Tablesh Pandey	Managing Director
5	Mr. Sat Pal Bhanoo	Managing Director
6	Mr. Pawan Agrawal	Company Secretary & Compliance Officer
7	Mr. Sunil Agrawal	Chief Financial Officer
8	Mr. P Kumresan	Executive Director (Audit) & Chief Internal Auditor
9	Mr. R. Sudhakar	Executive Director (Marketing) & Chief Marketing Officer
10	Mr. Dinesh Pant	Executive Director (Actuarial) & Appointed Actuary
11	Mr. Krishna Kumar. S	Executive Director (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance Officer
12	Mr. Ratnakar Patnaik	Executive Director (Investment Front Office) & Chief Investment Officer
13	Mr. Pratap Chandra Paikray	Executive Director (ERM) & Chief Risk Officer

KMP''s holding positions (as on March 31, 2023)
S. No.	Name of KMP	Designation
1	Mr. Siddhartha Mohanty	Managing Director & In-charge
2	Ms. Mini Ipe	Managing Director
3	Mr. Bishnu Charan Patnaik	Managing Director
4	Mr. Jagannath M	Managing Director
5	Mr. Pramod Ranjan Misra	Executive Director (Investment Front Office) & Chief Investment Officer
6	Mr. Tablesh Pandey	Executive Director (ERM) & Chief Risk Officer
7	Mr. Pawan Agrawal	Company Secretary & Compliance Officer
8	Mr. Sunil Agrawal	Chief Financial Officer
9	Mr. P. Kumresan	Executive Director (Audit) & Chief Internal Auditor
10	Mr. S Thiruvenkatachari	Executive Director (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance Officer
11	Mr. R. Sudhakar	Executive Director (Marketing) & Chief Marketing Officer
12	Mr. Dinesh Pant	Executive Director (Actuarial) & Appointed Actuary

Performance Evaluation of the Board:

In terms of Section 19B of the LIC Act, 1956, Nomination & Remuneration Committee (NRC) will carry out the evaluation of performance of Directors appointed under section 4(2) (f) and (g) of the LIC Act 1956. In terms of Regulation 17 of SEBI (LODR) Regulations, 2015, the evaluation of Independent Directors shall be done by entire Board. Further, in terms of Regulations 25 of the SEBI (LODR) Regulations, 2015, the Independent Directors shall review the performance of non-Independent Directors, Chairperson and the Board of Directors as a whole.

Pursuant to the foregoing provisions of LIC Act, 1956 and SEBI (LODR) Regulations, 2015, the entire Board including the members of NRC of the Corporation, undertook the performance evaluation of Independent Directors for the financial year ended on March 31,2023.

Further, Independent Directors met separately, without the attendance of non-Independent Directors and members of the management, and inter-alia reviewed the performance of the non-independent Directors, Board as a whole; and that of the Chairperson of the Corporation. They further assessed the quality, quantity and timeliness of the flow of information between the Corporation, management and the board.

The evaluation of the Individual Performance of Directors, the Board, and the Chairperson of the Board was undertaken by circulation of questionnaires through an iOS-based application meant for evaluation.

‘Fit and Proper'' criteria:

All the Directors of the Corporation have confirmed compliance with the ''fit and proper'' criteria on the format prescribed under the Director''s Policy approved by the Board.

Directors & Officers Liability Insurance:

As per Regulation 25 (10) of the SEBI (Listing Obligations & Disclosure Requirement) Regulations 2015 requiring the Companies to take Directors and Officers Liability Insurance (D&O) for all its Independent Directors, the Corporation has taken D&O Insurance for all its Directors and Members of the Senior Management Team for such quantum and risks as determined by the Board.

Succession Planning:

In terms of the Board approved policy on succession planning, the Nomination & Remuneration Committee of the Board oversees matters related to succession planning of KMPs, Senior Management and other key executives of the Corporation. Nomination & Remuneration Committee also recommends the appointment of Independent Directors to fill vacancies on the Board.

Meetings of the Board and its Committees, attendance and constitution of various Committees:

The details of meetings of the Board and Committees of the Board held during the year, attendance of Directors and constitution of various Committees of the Board, forms part of the Corporate Governance Report, which is annexed to this report.

Remuneration Policy:

Pursuant to the provisions of Section 19C of LIC Act, 1956, the Board has approved the remuneration policy as recommended by the Nomination & Remuneration Committee of the Board. The Policy is placed on the website of the Corporation at https://licindia.in/documents/20121/46602/Director-s-Policy.pdf/e17d3aa6-7027-a578-9dec-f4a6bee8043e?t=1668407463609.

Further, details about remuneration to Directors including Whole-time Directors are provided under report on Corporate Governance, which is annexed and forms part of this Annual Report.

Secretarial Standards:

The Corporation is obliged to comply with Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India (ICSI) in terms of provisions contained under Life Insurance Corporation Act, 1956 read with Rules & Regulations made thereunder.

17. CORPORATE GOVERNANCE:

The Corporation considers its stakeholders as partners in success, and remains committed to delivering value to stakeholders. The Corporation believes that a sound corporate governance mechanism is critical to retain and enhance stakeholders'' trust. It is committed to exercise overall responsibilities rigorously and diligently throughout the organisation, managing its affairs in a manner consistent with corporate governance requirements and expectations.

The Corporation conducts its business while adhering to various corporate governance practices to help ensure that there is operational transparency, information sharing, accountability and continuous dialogue with all our stakeholders. The Corporation has standard operating procedures or manuals in place that detail procedures to be followed for each function. The Corporation has several Board sub-committees that overlook Corporation''s corporate governance and enhance brand equity, strengthen the stakes of Shareholders and maintain a healthy working environment within the organisation.

Pursuant to the provisions of the SEBI (LODR) Regulations, 2015, a Report on Corporate Governance along with Certificate from Auditors regarding compliance of conditions of Corporate Governance has been appended to this report and forms part of this Annual Report.

18. LIC GOLDEN JUBILEE FOUNDATION (LICGJF):

LIC Golden Jubilee Foundation (LICGJF) was established in the year 2006 as a part of LIC''s Community Service initiatives. The objectives of the Foundation are Relief of Poverty or Distress, Advancement of Education, Medical Relief and Advancement of any other object of General Public Utility.

During the year, your Corporation has provided ? 100/- crore to the foundation and as on March 31,2023, LICGJF''s total corpus was of ? 360 Crore. The interest earned on the corpus is utilised for funding various projects for charitable purposes. Since inception, the Foundation has supported NGOs located across the country and dedicated to the above objectives through 723 projects amounting to ? 145.52 Crores. During 2022-23, the Foundation has sanctioned ? 18.49 Crore for 77 projects. The Foundation has reached out to many deprived sections of society through infrastructural support provided in the above areas. LIC Golden Jubilee scholarship Scheme provides scholarships to children from economically weaker sections of the society, amounting to ? 20,000/- p.a for regular students for pursuing higher education and ?10,000/- p.a to special girl child for pursuing 10 2 education. During 2022-23, scholarship of ? 10.04 crore was disbursed. Since inception, LICGJF has disbursed scholarships of ? 59.02 crore to 24,875 students.

M9. PARTICULARS OF INVESTMENT IN TERMS OF SECTION 27A OF INSURANCE ACT, 1938:

Pursuant to the provisions of Section 27A of the Insurance Act, 1938, the investments as at March 31, 2023 are mentioned in Table No. 6 and the investments in infrastructure and social sector for the year 2022-2023 are mentioned in Table No. 7 at page no. 316-317 of the Annual Report.

21. CONSOLIDATED FINANCIAL STATEMENTS:

In accordance with Section 24B of the LIC Act, 1956 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Consolidated Financial Statements (CFS) of the Corporation consisting of subsidiaries and associates have been prepared. The CFS have been prepared in accordance with the Insurance Regulatory and Development Authority of India (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002 and the circulars issued thereafter and the applicable Accounting Standards i.e. AS 21: Consolidated Financial Statements and AS 23: Accounting for Investments in Associates in CFS issued by Institute of Chartered Accountants of India (ICAI) and forms part of Annual report.

22. RURAL AND SOCIAL SECTOR OBLIGATIONS:

As per the regulatory requirements, the Corporation has met its Rural and Social obligations for FY 2023. As against the minimum of 20%, the Corporation has issued 22.25% policies in the rural sector which affirms the Corporation''s approach towards life insurance inclusion. Further, 75,36,725 new lives covered (14.05% of total new lives covered in preceding year) by the Corporation are from the underprivileged social sector as against the regulatory requirement of at least 5% of total lives covered in preceding year. Consequently, the Corporation has met the minimum social and rural regulatory norms laid down by the IRDAI.

23. MANAGEMENT REPORT:

Pursuant to the provisions of Regulation 3 of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations, 2002, the Management Report is placed separately and forms part of the Annual Report.

24. STATUTORY AUDITORS:

Pursuant to Section 25 of the LIC Act, 1956, the Corporation has appointed the Statutory Auditors of the Corporation for the FY 2023 after due recommendations and approvals. The details of the Statutory Auditors are annexed at page no.319 of the Annual Report.

25. STATUTORY AUDITORS'' REPORT:

The Statutory Auditors'' Report (including annexure thereof) to the Members does not contain any qualification, reservation, adverse remark, or disclaimer hence do not call for any further comments u/s 24C(1)(f) of the LIC Act, 1956. There were no reportable frauds identified by the statutory auditors during the FY2023.

26. SECRETARIAL AUDITORS'' REPORT:

Pursuant to Regulation 24A of SEBI (LODR) Regulations, 2015, the Corporation has appointed M/s S.N. Ananthasubramanian & Co., Practicing Company Secretary, Mumbai as the Secretarial Auditor of the Corporation. The Auditor has not made any qualification, reservation or adverse remark or disclaimer in his report for FY 2023. The detailed report on Secretarial Audit of the Corporation for FY 2023 from part forms part of this Annual Report.

27. CERTIFICATE FROM COMPLIANCE OFFICER (UNDER THE IRDAI CORPORATE GOVERNANCE GUIDELINES, 2016):

A Compliance Certificate, for complying with IRDAI Corporate Governance Guidelines, issued by the Executive Director (Corporate Governance/GJF/Regulatory Compliance), designated as the Chief Compliance officer under the IRDAI Corporate Governance Guidelines, is annexed and forms part of the Corporate Governance Report is appended to this Annual Report.

28. MATERIAL EVENTS, CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE CORPORATION:

There have been no material changes and commitments, affecting the financial position of the Corporation, which have occurred from the end of the financial year to which the Balance Sheet relates and the date of this report.

29. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND OPERATIONS OF THE CORPORATION:

During FY 2022-23, no significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and operations of the Corporation.

30. DIRECTORS'' RESPONSIBILITY STATEMENT:

In terms of Section 24C(2) of LIC Act, 1956 and the Corporate Governance Guidelines, your Directors confirm that;

(a) in the preparation of the annual accounts for the year ended March 31, 2023, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

(b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Corporation as on March 31,2023 and of the profit of the Corporation for the year ended on that date;

(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the LIC Act, 1956 for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities;

(d) they have prepared the accounts for the current financial year ended March 31, 2023 on a going concern basis;

(e) the vigilance administration referred under Section 8(1)(h) of the Central Vigilance Commission Act, 2003 is in operation in the Corporation under the superintendence of the Central Vigilance Commission and in addition they have laid down internal financial controls to be followed by the Corporation and that such internal financial controls are adequate and were operating effectively; and

(f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

31. INVESTOR RELATIONS:

The Corporation has always valued its customer and stakeholders'' relationships and it is our endeavour that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. The Corporation disseminates information on its operations and initiatives on a regular basis. The Corporation''s website (www.licindia.in) serves as a key awareness facility for all its stakeholders, allowing them to access information at their convenience. It provides comprehensive information on the Corporation''s strategy, financial performance, operational performance and the latest press releases.

The Corporation publishes financial results on a quarterly basis. The financial results of the Corporation are prepared and posted on the website of the Corporation for the current as well as previous years.

32. MANAGEMENT DISCUSSION AND ANALYSIS REPORT, REPORT ON THE CORPORATE GOVERNANCE AND BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT:

Pursuant to Regulation 34 of the SEBI Listing Regulations, Management Discussion and Analysis (MD&A) Report and Business Responsibility & Sustainability Report (BRSR) are presented in separate sections and form part of Annual report.

In compliance with SEBI Listing Regulations, a Report on the Corporate Governance framework of the Corporation, with certifications as required under applicable Regulations (including guidelines on Corporate Governance issued by IRDAI) is annexed hereto and forms part of this Annual report.

33. IRDAI LICENSE:

The Insurance Regulatory and Development Authority of India (IRDAI) have renewed the annual licence of the Corporation to continue the Life Insurance Business for the FY 2024.

34. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:

The Corporation believes to conduct the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty and ethical behavior and committed to develop a culture where it is safe for all stakeholders to raise concerns about any poor or unacceptable practice and any event of misconduct.

In accordance with the provisions of LIC Act, 1956, IRDAI Corporate Governance Guidelines, 2016 and Regulation 22 of SEBI Listing Regulations, the Corporation is required to establish a Vigil Mechanism for Directors and employees for adequate safeguard against victimization of Directors, Employees or any other person who report genuine concerns. The Corporation has a Policy for Prevention, Detection and Investigation of Frauds and Protection of Whistle Blowers (“the Whistle Blower Policy”), which also encourages its employees and various stakeholders to bring to its notice any issue involving compromise/ violation of ethical norms, legal or regulatory provisions, actual or suspected fraud etc., without any fear of reprisal, discrimination, harassment or victimisation of any kind. The details of Whistle Blower complaints/ concerns received, if any, and subsequent actions taken and the functioning of the Whistle Blower Mechanism is reviewed quarterly by the Audit Committee of the Board.

The complaints received through CVC-CMS portal (Complaint Management System) are being redressed through portal itself.

The Whistle Blower Policy is hosted on the Corporation''s website at https://licindia.in/documents/20121/46602/Whilstblower-policy.pdf/6b7b20c3-9f37-8a16-1bd2-789c4a2f920d?t=1668407087077.

35. AWARDS & RECOGNITIONS:

Your Corporation has received various awards and accolades during the year under review in areas of Customer Service, Claim Service, Training etc., including the awards for Most Trusted Brand in insurance. Some of the key ones are listed below:

• National award for leadership & excellence in BFSI under four categories namely Insurance Company of the year-Life, Claims services leader-large, Customer Service Excellence & Best persistency award.

• ET Ascent Presents - National Award for Excellence in CSR and Sustainability under two categories namely Brand Excellence Award and Award for Customer Service and Loyalty.

• Berkshire Media - India''s Best Company of the year.

• IBC Infomedia - India''s Most trusted Brand.

• Kantar - Most Purposeful Non-FMCG Brand in India.

• ASSOCHAM - Moment of Truth (Claims Experience) Life Insurance.

• Navbharat BFSI Awards 2022 - Best Life Insurance Company in Claims settlement.

• World BFSI Congress and Awards under three categories namely Insurance Company of the year, Excellence in Claims Service and Customer Service Excellence award.

• Golden Peacock National Training Award

LIC of India is the top ranked Indian Firm on latest Fortune Global 500 list- ranked 98^th - as per August/September 2022 issue.

36. BOARD POLICIES:

The details of the policies approved and adopted by the Board of Directors of the Corporation as mandated under the LIC Act, 1956 and Securities and Exchange Board of India (SEBI) regulations are annexed to this report.

37. ACKNOWLEDGEMENTS AND APPRECIATIONS:

The Directors express their sincere thanks to the Hon''ble Parliamentary Committees which visited its offices, the Hon''ble Union Finance Minister, Hon''ble Union Minister of State for Finance (Expenditure, Banking and Insurance), the Insurance Division of the Ministry of Finance, Department of Economic Affairs for their active support, advice and co-operation on various issues.

The Directors are grateful to the Insurance Regulatory and Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and Government of India (GOI) for their continued co-operation, support and advice. The Directors would also like to take this opportunity to express their sincere gratitude to the valued Policyholders and Shareholders for their continued trust and patronage.

The Directors also express their gratitude for the advice, guidance and support received from time to time, from the Auditors, and Statutory Authorities. The Directors express their deep sense of appreciation to all the Employees, Agents, Corporate Agents and Brokers, Distributors, Re-insurers, Bankers and the Registrars who continue to display outstanding professionalism and commitment, enabling the organization to retain market leadership in its business operations.

For and on behalf of the Board of Directors

(Siddhartha Mohanty) (Mini Ipe)

Whole Time Chairperson Managing Director

(Muthu Raju Paravasa Raju Vijay Kumar)

Independent Director

---

Mar 31, 2022

Your Directors are pleased to present the 65^th Annual Report of Life Insurance Corporation of India ("the Corporation"/ "LIOV''LIC), together with the audited financial statements for the year ended March 31, 2022

1. SUMMARY OF FINANCIAL PERFORMANCE:

The summary of the financial performance of the Corporation for FY 2022 is presented below:

('' in crore)
Particulars	FY 2021-22	FY 2020-21
New business Premium (Net of Reinsurance)
First Year Premium	36,615.35	33,901.04
Single Premium	1,62,282.83	1,50,498.69
Renewal Premium	2,28,521.03	2,18,444.62
Total Premium	4,27,419.21	4,02,844.35
Investment & Other income	2,93,683.36	2,79,360.65
Total Income	7,21,102.57	6,82,205.00
Profit after Tax (PAT)	4,043.12	2,900.57
Other Key Parameters:
Particulars	FY 2021-22	FY 2020-21
Corporation''s Annual Premium Equivalent (APE) ('' in crore)	50,390.00	42,170.00
Assets under Management	40,84,600.65	36,76,178.77
Embedded Value ('' in crore)	5,41,492.00	95,605.00
Solvency Margin	1.85	1.76

2. HIGHLIGHTS OF FINANCIAL PERFORMANCE AND STATE OF AFFAIRS OF THE CORPORATION:

The Corporation witnessed a growth and consistent performance in FY 2022. The key financial parameters of the Corporation are as follows:

^ Total Premium Income has increased by 6.10% from '' 4,02,844.35 Crore in FY 2021 to '' 4,27,419.21 Crore in FY 2022.

^ Income from Investment & Other Income has increased by 5.13% from '' 2,79,360.65 Crore in FY 2021 to '' 2,93,683.36 Crore in FY 2022.

^ Total Income has increased by 5.70% from '' 6,82,205.00 Crore in FY 2021 to '' 7,21,102.57 Crore in FY 2022.

^ Net retention ratio for the FY 2022 is 99.86%

^ Solvency ratio is 1.85 for the FY 2022

^ Gross NPA has reduced by 22.89% from '' 35,129.89 Crore in FY 2021 to '' 27,087.11 Crore in FY 2022.

^ Net NPA has decreased by 9.80% from '' 194.92 Crore in FY 2021 to '' 175.81 Crore in FY 2022.

^ Basic & Diluted EPS for the FY 2022 is '' 6.39

3. INDUSTRY AND CORPORATION OUTLOOK

The COVID-19 pandemic, combined with the geopolitical tension caused by the Russia-Ukraine war has put forth real time challenges before the countries all over the world. Inflation rose sharply across advanced economies (AEs) and emerging market and developing economies (EMDEs) during 2021, reflecting pandemic related supply and logistics disruptions, a rebound in global commodity prices and a release of pent-up demand. Further in early 2022, as a result of intensified geopolitical risks, the global supply chain disruptions and its spillovers affected the global outlook, with Fitch Ratings cutting its world GDP growth forecast for 2022 to 3.5% and world growth in 2023 to 2.8%.

In India, unlike in the first wave, the economic impact of the second wave of the pandemic was contained due to the localised nature of lockdowns and better adherence to pandemic protocols. During 2021-22 the calibrated monetary and fiscal policy support to aggregate demand and structural reforms, both by the Government of India and the RBI, helped shore up confidence and boost consumption spending amongst people. However as a result of the Russia''s invasion of Ukraine, rising global oil prices and commodity prices largely contributed to the increase in inflation and a widening in the current account deficit. As per the provisional estimates released by the National Statistical Office (NSO), the Indian economy has registered a real GDP growth of 8.7 per cent in 2021-22, up from a contraction of 6.6 per cent in the previous year. In view of the tightening of the United States federal funds and elevated oil prices, the industry is expecting the RBI to hike the policy rates while maintaining an accommodative monetary policy.

The life Insurance Industry has demonstrated resilience in adapting to the post pandemic situation. While the global insurance market in terms of life premium volume grew by 3.8% in 2020 with premium collection of USD 4, 89,307 million, the Indian life Insurance industry witnessed a growth of 12.93% Y-o-Y in terms of First Year Premium with '' 3, 14,263 crore as on 31.03.2022 .Over the past two years, the Industry has undergone a paradigm shift in the usage of modernised technology to offer better and more personalized digital services to its customers.

While the Indian life Insurance penetration has increased in India to 3.2% (closer to the global 3.3%) in 2020, there is an urgent need to increase the life insurance penetration in the country. Both the Government of India and the Indian Insurance Regulator have taken numerous steps in this direction for creating awareness about the importance of life insurance amongst the people and have introduced various initiatives for enhancing the quality of services being offered to the customers.

The Corporation strategy focuses on the following:

1. After COVID-19, there has been a considerable change in the needs and expectations of the customer. Designing technology that offers options to the customers to compare and choose products suitable to their needs, would aid in enhancing the real-time experience of our customers. This in turn would foster greater engagement as well as retention of the customers in the long run.

2. Raising the sales capabilities in every channel and bolstering the profitability of the Organisation in terms of better sales, service and product mix strategies.

3. For a sustained growth and to remain the dominant market leader, developing a solid customer base by leveraging the use of data analytics, etc. both for sales / service.

4. There is an increased thrust on the Risk Management as well as Cyber Security with the advent of technology in all the operational spheres of the work.

4. COVID - 19:

The COVID-19 is an ongoing global pandemic as declared by World Health Organization on March 11, 2020. Its spread across the globe including India has resulted in significant impact on global and India''s economic environment. The Corporation since the onset of pandemic has experienced increase in death claims including claims arising due to COVID 19 pandemic. Accordingly, the additional death strain on account of COVID 19 pandemic and its impact on the policy liabilities and solvency is closely monitored and considered in reserving. Available information in public domain does not conclusively suggest need for any long term change in the expected future mortality experience on account of COVID 19. It is however, considered prudent that a separate reserve is kept as COVID-19 reserve without need for changing long term mortality assumptions. Considering the national statistics as available from Government of India statistical sources on Indian Population, duly adjusted and applied on the Corporation''s data and experience and after adding margin for prudence, a separate reserve for COVID 19 related deaths has been estimated and provided for under both individual and group insurance lines of businesses.

This COVID 19 reserve is in addition to the long term mortality reserve provided each year while determining and providing for the policy liabilities. The COVID reserve as at 31^st March 2022 is '' 7420 crores.

5. DIVIDEND AND RESERVES:

The Board of Directors of the Corporation has recommended a final dividend of '' 1.50 per equity share of the face value of '' 10/- each, subject to approval of the members of the Corporation in Annual General Meeting. This translates into a dividend pay-out ratio of 15%.

The Corporation has formulated a ''Dividend Distribution Policy'', which has been approved by the Board of Directors. In terms of Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''SEBI Listing Regulations'') the ''Dividend Distribution Policy'' is hosted on the website of the Corporation at https://licindia.in/getattachment/Investor-Relations/Policies-and-Code-of-Conduct/Dividend-distribution-policy.pdf.aspx

The Corporation has carried forward '' 4,01,726.72 lakhs (Life business '' 4,01,433.30 lakhs and CRAC business '' 293.42 Lakhs) to its Reserves & Surplus, and had accumulated balance of '' 4,01,72 6.72 lakh (Life business '' 4,01,433.30 lakhs and CRAC business '' 293.42 Lakhs) as at March 31, 2022.

6. CAPITAL AND SHAREHOLDING:

The Authorised Share Capital of the Corporation is '' 25,000 crore divided into 2,500 crore shares of '' 10/- each.

During the year, the Corporation has allotted 6,324,997,701 equity shares to President of India which includes 6,224,997,701 Bonus shares.

The issued, subscribed and paid-up equity share capital of the Corporation as at March 31, 2022 is '' 63,249,977,010 comprising of 6,324,997,701 equity shares of the face value of '' 10/- each.

7. AWARDS & RECOGNITIONS:

The Corporation has received various awards and accolades during the year under review in areas of Customer Service, Claim Service, technology, digital marketing including the awards for most trusted brand in insurance, etc. Some of the key ones are listed below:

• Reader''s Digest Trusted Brand Category Insurance (Life)

• National Awards for Excellence in BFSI in three categories namely Insurance Company of the Year, Digital Marketing Digital Advertising Award and Claim Service Leader

• FICCI Insurance Industry Award in two categories-Special Jury Award and Best Insurance Campaign -Life Category

• World BFSI Congress & Awards in 5 categories namely-Insurance Company of the year, Customer Service Excellence Award, Excellence in Claim Service , Technology Initiative of the Year Jeevan Sakshya''and Operations excellence Initiative of the year ''ANANDA''

Also Corporation was recognized as the 3^rd strongest brand and 10^th Most Valuable Brand amongst Global Insurance Brands 2021 by Asia Insurance Post based on their Brand Finance Report 2021.

8. PRODUCTS:

LIC offers a wide variety of products, which fulfill the needs of different customer segments of the society.

During the financial year 2021-22 the Corporation introduced five new products including four Individual Products viz. LIC''s Saral Jeevan Bima, LIC''s Saral Pension, LIC''s Arogya Rakshak, LIC''s Dhan Rekha and one Group Product viz. LIC''s Group Assurance Plan.

In addition, the Corporation also introduced modified versions of eight products including six Individual Products LIC''s Bima Jyoti, LIC''s Jeevan Akshay VII, LIC''s New Jeevan Shanti, LIC''s Saral Pension, LIC''s Bhagya Lakshmi, LIC''s New Jeevan Mangal and two Group Products, viz., LIC''s New One Year Renewable Group Term Assurance Plan I and LIC''s New One Year Renewable Group Term Assurance Plan II.

As at the end of the financial year 2021-22, the Corporation had 33 Individual Products, 16 Group Products and 7 Individual Riders available for sale.

9. CUSTOMER RELATIONSHIP MANAGEMENT:

(A) Policy Servicing

Servicing of policies is one of the most important aspects in the life insurance value chain, especially due to the nature of long term contract. LIC has made most of the services available as close to the customer as possible as part of our ''Anywhere Service'' initiative.

The Corporation has Grievance Redressal Officers at Branch/ Divisional/ Zonal/ Central Office to redress grievances of customers. IT enabled support system is operationalized to reduce manual interventions and minimize grievances. For ensuring quick redressal of customer grievances, the Corporation has in place Customer friendly online system-''Integrated Complaint Management System'' (ICMS) through ''LIC''s e-services'' available on our website: www.licindia.in, where a registered policyholder can directly register complaint and track its status. Customers can also contact at e-mail id [email protected] for redressal of any grievances.

Also LIC has a centralized call center through which all customers can reach out for any kind of services 24X7. This is equipped with eight regional languages in addition to English and Hindi.

(B) Claims Related Performance Settlement of Claims:

During the year, the Corporation has settled 272.19 lakh claims for '' 2,38, 681.36 Crore (Including Micro Insurance and Pension & Group Schemes) and the 100% claims payments were made by NEFT. The figures in respect of settlement of claims for the last three years are given below:

Year	Maturity Claims Settled			Death Claims Settled
	No. (in Lakhs)	Amount ('' Crs.)	Percentage paid (in number)	No. (in Lakhs)	Amount ('' Crs.)	Percentage paid (in number)
2019-20	206.66	1,42,350.76	87.66	9.32	17,419.57	95.44
2020-21	222.76	1,61,031.20	89.83	11.47	24,195.01	98.27
2021-22	256.47	2,02,083.84	91.09	15.72	36,597.52	98.50

Annuity Payments

LIC has over 60 lakh annuitants receiving annuity out of Individual Pension Policies and Group schemes. For annuity payment related services Individual Pension Plan (IPP) Cells have been set up at eleven centres across India and annuity payments are made direct to the Bank account of the annuitants through NEFT/ECS.

Claims Dispute Redressal Committee

The Corporation settles a large number of death claims every year and in case of fraudulent suppression of material information the claim is repudiated. The Claimant is given an opportunity to make a representation for consideration before the Claims Dispute Redressal Committees which are formed at Zonal Office and the Central Office level.

10. INFORMATION TECHNOLOGY:

Technology is the key differentiator in today''s era. Technological innovation in the insurance sector has led to immeasurable efficiency gains in LIC''s day to day operations. Information Technology - Software Development (IT SD) vertical of the Corporation is working towards imbibing new initiatives, upgrading digital capabilities and automating LIC''s processes. LIC''s online portals, mobile applications for customers and agents have been enhanced with innumerable features to facilitate online services in terms of service request submissions and digital transactions.

Several major initiatives have been undertaken recently by the Corporation like implementation of e-Governance portal digitizing the day to day working, state-of-the-art hardware for the core business solution, range of online services from new policy purchase to availing various services during the course of the policy term, timely data analytics for decision making, etc. The Corporation has also launched customised mobile Applications for our customers, intermediaries and supervisory officials, for on boarding of customers, Agents'' performance monitoring, Performance Review for Line Managers, Pre-recruitment App for agents, Artificial Intelligence (AI) Powered App for submission of Existence Certificate for availing annuities. Apart from these, Corporation could also enable seamless integration with outside platforms like UMANG, Digilocker, etc., for the benefit of our customers.

Corporation is also planning many additional initiatives for supporting the different stakeholders ranging from internal users, intermediaries to the prospective customers. Thus, technology would act as a key enabler for the Corporation resulting in efficiency, security and transparency thereby achieving the Digital India mission.

11. PERSISTENCY:

Premium Business by Premium for 2021-22 is 76% as against 79% for 2020-21 and the 61^st month persistency of the same is 61% for 2021-22 as against 59% for 2020-21.

The 13^th month persistency of Individual Regular Premium Business by number of policies for 2021-22 is 63% as against 67% for 2020-21 and the 61^st month persistency of the same is 50% for 2021-22 as against 48% for 2020-21.

12. HUMAN RESOURCE:

As on March 31, 2022, the Corporation has a total of 1,04,036 employees on roll which includes 24,094 female employees (constitutes more than 23% of total employees). The details are as under:

	Male	Female	Total
CLASS-1	23,883	7,191	31,074
CLASS-2	19,369	1,191	20,560
CLASS-3	35,256	15,318	50,574
CLASS-4	1,434	394	1,828
Total	79,942	24,094	1,04,036

13. PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE:

In accordance with the Sexual Harassment of Women at Work Place (Prevention Prohibition and Redressal) Act 2013, the Corporation has initiated various steps to improve the status of women and worked for their economic empowerment. At every stage in the Corporation, women officers/employees have contributed significantly. In the Corporation, Committees for prevention of sexual harassment at workplace are functioning effectively at Central Office, Zonal Office and Divisional Office level.

THE SUMMARY OF CASES AS AT MARCH 31, 2022 ARE AS UNDER:

No of cases pending	No of cases received	Total cases	Cases disposed off	No of pending cases
at the end of previous Financial Year	during the year		during the year	as on 31.03.2022
03	06	09	05	04

14. ENTERPRISE RISK MANAGEMENT:

LIC has robust Enterprise Risk Management framework to conduct business in an orderly fashion taking into account the risks faced by the Corporation and controlling its business effectively with defined responsibilities and adequate risk management procedures. Board has delegated the responsibility relating to Risk Management to Risk Management Committee of the Board (RMCB). The ERM framework has robust and efficient mechanism for the identification, assessing, mitigation and monitoring the risks. RMCB reviews Enterprise Risk Management activities executed across the organization on quarterly basis.

Key Risk Management Tools are Risk Appetite Statements, Risk Registers, Incident Management Framework & Operational Loss database, Top Risks and Key Risk Indicators. The mitigation strategy with respect to various risks as covered under the current Enterprise Risk Management framework is: Market Risk, Liquidity Risk, Credit risk, Insurance Risk, and Operational Risk.

15. INSPECTION:

The exercise of Inspection is a pre-emptive measure against systemic lapses. All the units of the Corporation including Central Office were physically inspected during 2021-22 despite the Pandemic.

Keeping with the practice of improving our systems and procedures, with the use of Information Technology, the Remote Inspection Package was developed in FY 2021-22 as a part of Business Continuity Plan.

A list of persisting Major Irregularities was shared at Corporate Office level for necessary systemic improvement.

16. INTERNAL AUDIT AND COMPLIANCE FRAMEWORK:

The Internal Audit functions of the Corporation are overseen by the Internal Audit Department at the Central Office (CO). There are twelve Audit Centers which conduct the audit. The CO Audit Department besides monitoring the operations of the Audit Centers, arranges for the audit of various Departments of the Central Office.

Audit is carried out in all the Units based on Department-wise Questionnaires developed for this purpose in respect of each tier of office viz. Branch, Division, Zone and Central Office.

The Auditee units furnish their compliance to the queries raised in the Audit Reports through their Controlling Office for consideration of the Audit Department. The entire process of publication of Audit Reports, the posting of compliances to the queries raised and closure thereof, is done through the Audit portal.

Any irregularity of serious nature like failure of control system, regulatory matter, etc. is brought to the notice of the CO Head of the Department (HOD) by way of special reports.

Also, cases of financial irregularity or suspected fraud having vigilance angle are immediately informed to the Vigilance Department.

Further, as per our fraud monitoring framework the fraud reported for value of more than Rs. one crore is placed to the Risk Management Committee through the Central Fraud Monitoring Committee

Each Auditee Unit is audited every year keeping in view the periodicity, Mandays allocation, sampling and reporting.The deviations or weaknesses noticed during the audit are brought to the notice of concerned CO HOD by way of special reports and periodical discussions.

A summary of the reports of the auditors is placed before the Audit Committee after the close of the financial year.

17. INTERNAL FINANCIAL CONTROLS:

The Corporation''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Corporation''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflects the transactions and dispositions of the assets of the Corporation, (2) provides reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and directors of the Corporation, and (3) provides reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Corporation''s assets that could have a material effect on the financial statements.

18. RELATED PARTY TRANSACTIONS:

LIC of India has provided e-life package (software) to LIC International BSC (c), LIC of Bangladesh Ltd, LIC (Nepal) Ltd., LIC (Lanka) Ltd., LIC (Singapore) Pte. Ltd. and Kenindia Assurance Company Ltd., wherein LICI''s share in Capital is 99.66%, 83.33%, 55%, 80%, 100% and 10.21% respectively. LICI has contracts with these entities for providing maintenance services in respect of e-life package against consideration of a technical fee (Annual Maintenance Charges) as mentioned in respective contracts/agreements. The transactions completed in F Y 2021-22 have been approved by Audit Committee. The amendments in LIC Act 1956 came into effect from June 30, 2021 and the provisions of Listing Regulations were not applicable on the Corporation as on March 31, 2022. However, in terms of Section 4(C) of the LIC Act, 1956 read with Regulation 23 of Listing Regulations, a Board approved policy on Related Party Transactions is in place and is disclosed on the website at https://licindia.in/getattachment/Investor-Relations/Policies-and-Code-of-Conduct/Revised-RPT-Policv-01062022.pdf.aspx

The details of related party transaction during the FY 2021 - 22 are available at page no. 423 of the Annual Report.

19 IND AS IMPLEMENTATION

As per the initial roadmap given by Ministry of Corporate Affairs (MCA), insurance companies were required to implement Ind AS from April 2018. Insurance Regulatory & Development Authority of India (IRDAI) deferred the implementation of Ind AS since International Accounting Standard Board (IASB) had taken a considered view to amend IFRS 17. The IASB has amended IFRS 17 and made it effective from annual reporting periods beginning on or after 1^st January 2023. Exposure Draft of amendments to Ind AS 117 (Insurance Contracts), consistent with IFRS 17 was issued by the Accounting Standard Board (ASB) of ICAI on 24^th December, 2020. On finalization, Ind AS 117 will be notified by MCA.

Core teams to ascertain and evaluate the requirements of new Accounting Standards, for implementation of Ind AS are formed in concerned departments. An integral Actuarial software system "prophet" capable of performing actuarial calculations required under IFRS 17 (Ind AS 117) was purchased in March 2021. All the products have been integrated into prophet software system required for valuation as at 31^st March, 2022.

Corporation awaits guidelines from IRDAI and other professional bodies on implementation ofthese standards. Appropriate changes in the system and processes will be carried out once these guidelines are in place.

20. BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

As on date of this report, the Corporation''s Board comprises of fifteen (15) Directors viz., One (1) Non-Executive Director, Nine (9) Independent Directors and five (5) Executive Directors including Whole Time Chairperson and four Managing Directors. The ''Director''s Policy'' is hosted on the website of the Corporation at https://licindia.in/getattachment/Investor-Relations/Policies-and-Code-of-Conduct/Director-s-Policy.pdf.aspx A) Changes in Board Composition:

Changes in the Board Composition during FY 2021-22 along with the proposed changes, are furnished in the Corporate Governance Report annexed to this report.

B) Key Managerial Personnel (KMP''s) and changes, if any

In terms of the guidelines on Corporate Governance issued by IRDAI, the following senior management employees of the Corporation were holding positions of KMPs as on March 31, 2022:

S. No.	Name of KMP	Designation
1	Shri D.P. Mohanty	Executive Director (Audit) & Chief Internal Auditor
2	Shri Tablesh Pandey	Executive Director (Investment RMR) & Chief Risk Officer
3	Shri A.K. Anand	Executive Director (Investment Operations) & Chief Investment Officer
4	Shri P. Muraleedharan	Executive Director (Marketing/PD) & Chief Marketing Officer
5	Smt. S.S. Soman	Executive Director (F&A) & Chief Finance Officer
6	Shri D.P. Pattanaik	Chief (In-Charge) (Corp.Gov./GJF/Reg.Comp.) & Chief Compliance Officer
7	Shri Dinesh Pant	Appointed Actuary & Chief (In-Charge) (Actuarial)
8	Shri Pawan Agrawal	Company Secretary & Compliance Officer

Performance Evaluation of the Board and its Committees:

In terms of Section 19B of the LIC Act, 1956, Nomination & Remuneration Committee will carry out the evaluation of performance of Directors appointed under section 4(2) (f) and (g) of the LIC Act 1956. In terms of Regulation 17 of SEBI (LODR) Regulations, 2015, the evaluation of Independent Directors shall be done by entire Board. Further, in terms of Regulations 25 of the SEBI (LODR) Regulations, 2015, the Independent Directors shall review the performance of non-Independent Directors, Chairperson and the Board of Directors as a whole. Since, majority of Independent Directors were appointed on the Board only on January 29, 2022 and have completed the tenure of only two months and 2 days in the FY 2021-22, the performance evaluation of Independent Directors and other Directors by Independent Directors for FY 2021-22 was not possible.

''Fit and Proper'' criteria:

All the Directors of the Corporation have confirmed compliance with the ''fit and proper'' criteria on the format prescribed under the Director''s Policy approved by the Board.

Directors & Officers Liability Insurance:

As per Regulation 25 (10) of the SEBI (Listing Obligations & Disclosures Requirement) Regulations 2015 requiring the Companies to take Directors and Officers Liability Insurance (D&O) for all its Independent Directors, the Corporation has taken D&O Insurance for all its Directors and Members of the Senior Management Team for such quantum and risks as determined by the Board.

Succession Planning:

In terms of the Board approved policy on succession planning, the Nomination & Remuneration Committee of the Board oversees matters related to succession planning of KMPs, Senior Management and other key executives of the Corporation. Nomination & Remuneration Committee also recommends the appointment of Independent Directors to fill such vacancies on the Board

Meetings of the Board and its Committees, attendance and constitution of various Committees:

The details of meetings of the Board and Committees of the Board held during the year, attendance of Directors and constitution of various Committees of the Board, forms part of the Corporate Governance Report, which is annexed to this report.

Remuneration Policy:

Pursuant to the provisions of Section 19C of LIC Act, 1956, the Board has approved the remuneration policy as recommended by the Nomination & Remuneration Committee of the Board. The Policy is placed on the website of the Corporation at https://licindia.in/getattachment/Investor-Relations/Policies-and-Code-of-Conduct/Director-s-Policy.pdf.aspx

Further, details about remuneration to Directors including Whole-time Directors are provided under report on Corporate Governance, which is annexed and forms part of this report.

Secretarial Standards:

The Corporation is obliged to comply with Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India (ICSI) in terms of provisions contained under Life Insurance Corporation of India General Rules, 1956.

21. CORPORATE GOVERNANCE:

The Corporation considers its stakeholders as partners in success, and remains committed to delivering value to stakeholders. The Corporation believes that a sound corporate governance mechanism is critical to retain and enhance stakeholders'' trust. It is committed to exercise overall responsibilities rigorously and diligently throughout the organisation, managing its affairs in a manner consistent with corporate governance requirements and expectations.

The Corporation conducts its business while adhering to various corporate governance practices to help ensure that there is operational transparency, information sharing, accountability and continuous dialogue with all our stakeholders. The Corporation has standard operating procedures or manuals in place that detail procedures to be followed for each function. The Corporation has several Board sub-committees that overlook Corporation''s corporate governance and enhance brand equity, strengthen the stakes of Shareholders and maintain a healthy working environment within the organisation. The Corporate Governance report is annexed to this report.

22. GOLDEN JUBILEE FOUNDATION:

LIC Golden Jubilee Foundation was established in the year 2006 as a part of LIC''s Community Service initiatives. The objectives of the Foundation are Relief of Poverty or Distress, Advancement of Education, Medical Relief and Advancement of any other object of General Public Utility. As on 31.03.2022, LIC has provided a corpus of '' 260 Crore to the Foundation and the interest earned is utilised for funding various projects for charitable purposes. Since inception, the Foundation has supported NGOs located across the country and dedicated to the above objectives through 646 projects amounting to '' 127 Crores. During 2021-22 the Foundation has sanctioned '' 18.31 Crore for 57 projects. The Foundation has reached out to many deprived sections of society through infrastructural support provided in the above areas. LIC Golden Jubilee scholarship Scheme provides scholarship to children from economically weaker sections of the society, amounting to '' 20,000/- p.a for regular students for pursuing higher education and '' 10,000/- p.a to special girl child for pursuing 10 2 education. During 2021-22, scholarship of? 7.60 crore was disbursed. Since inception, LICGJF has disbursed scholarship for '' 49 crore to 22,586 students.

23. PARTICULARS OF INVESTMENT IN TERMS OF SECTION 27A OF INSURANCE ACT, 1938:

Pursuant to the provisions of Section 27A of the Insurance Act, 1938, the investments as at March 31, 2022 are mentioned in Table No. 6 and the investments in infrastructure and social sector for the year 2021-2022 are mentioned in Table No. 7 at page no. 301-302 of the Annual Report.

24. SUBSIDIARY, JOINT VENTURES AND ASSOCIATE COMPANIES: Indian Operations:

S. NO.	Name of the Company	Brief Detail
1	LIC Cards Services Ltd.	LIC Cards Services Ltd., (LIC CSL) is a wholly owned subsidiary of LIC. As at 31st March 2022, the total Credit Card portfolio has increased to 4,07,957 reflecting a growth of 17.30% over last year. The Total Income for F.Y. 2021-22 is '' 18.19 crore while Net Profit after tax is '' 2.60 crore.
2	LIC Pension Fund Ltd.	LIC Pension Fund Ltd is a wholly owned subsidiary of LIC, and is one of the three Companies appointed as pension fund sponsor to manage Government pattern schemes of NPS viz Central Govt Scheme, State Govt Scheme, NPS Lite Scheme, Corporate CG and Atal Pension Scheme. Besides, LIC Pension Fund Ltd manages 8 schemes under Private Sector Pension Funds. As at 31st March 2022, the total Assets under Management (AUM) rose to '' 2,09,386.28 crore, showing a growth of 28.15% and market share of 28.43%. The Company has recorded a net profit after tax of '' 46.32 crore for FY 2021-22.
3	LIC Mutual Fund Trustee Pvt Ltd	LIC Mutual Fund Trustee Private Ltd. is an Associate of LIC, jointly promoted by LIC of India-49%, LIC HFL-35.3% and GIC HFL-15.7%. LIC MF Trustee has posted profit after tax of '' 4.63 lakhs for FY 2021-22.
4	LIC Mutual Fund Asset Management Ltd.	The Company is an Associate with LIC having a stake of 45%; LIC HFL - 39.30%; GIC HFL- 11.70%; and Union Bank of India -4%. As at 31st March 2022, LIC Mutual Fund Asset Management Ltd has 5,49,971 investors and with AUM of '' 18,682 crore as at 31st March 2022. The company reported a profit after tax of '' 1.83 crore.
5	LIC Housing Finance Limited	LIC HFL is an Associate company with LIC currently holding a 45.24% stake. As at 31st March 2022, the Company’s loan book stood at '' 2,51,120 crore showing an increase of 8.24%. The Capital Adequacy ratio stood at 16.95% of which Tier I capital was 15.63%.LIC HFL reported a profit after tax of '' 2287.28 crore.
6	LIC HFL Asset Management Company Ltd	LIC HFL AMC Ltd. is an Associate of LIC, jointly owned by LIC with 5.38% stake and LIC HFL having 94.62%. The Company presently manages three funds (i) LICHFL Urban Development Fund (ii) LICHFL Housing & Infrastructure Fund (iii) LICHFL Real Estate Debt Opportunities Fund-I. The profit after tax of LIC HFL AMC stood at '' 6.59 crore during FY 2021-22.
7	IDBI Bank	IDBI Bank is an Associate Company and also the leading Bancassurance partner. As at 31st March 2022, Advances of IDBI Bank Ltd. stood at '' 1,45,772 crore and total Deposits were '' 2,33,134 crore. The Bank reported a profit after tax of '' 2439 crore as against '' 1359 crore in the previous year, showing an increase of 79%. The Capital Adequacy Ratio stood at 19.06% of which Tier I capital was 16.68%.
8	IDBI Trusteeship Services Ltd (ITSL)	ITSL is an Associate of LIC, jointly promoted by IDBI Bank Ltd- 54.70%, LIC of India-29.84%, GIC of India-14.92% and Others 0.54%. It is a SEBI registered intermediary engaged in trusteeship services mostly to corporates. The Company posted a profit after tax of '' 51.66 crore during the financial year ended March 2022 as against '' 40.09 crore for the financial year ended March 2021.

Overseas Operations:

LIC of India has overseas presence through its Branches, Subsidiaries and equity participation as shown below: Branches:

(1) London (UK); (2) Suva (Fiji); and (3) Port Louis (Mauritius).

Foreign Subsidiaries:

(1) LIC (International) BSC (c), Bahrain,

(2) LIC (Nepal) Ltd,

(3) LIC (Lanka) Ltd and

(4) LIC of Bangladesh Ltd.

Wholly Owned Subsidiary: LIC (Singapore) Pte Ltd Presence through equity participation:

(1) Kenindia Assurance Company Ltd

(2) Saudi Indian Company for Co-operative Insurance.

The brief description of the subsidiaries/Joint Venture/Wholly Owned Subsidiaries are provided at page no 174 & 198 of the Annual Report.

Pursuant to the provisions of Listing Regulations, the Board has approved the policy for determining the materiality of subsidiaries within India and outside India. The Policies are placed on the website of the Corporation are as under:

Within India	https://licindia.in/getattachment/Investor-Relations/Policies-and-Code-of-Conduct/Policy-
	for-determining-Material-Subsidiaries-in-India.pdf.aspx
Outside India	https://licindia.in/getattachment/Investor-Relations/Policies-and-Code-of-Conduct/Policy-
	on-Material-Subsidiaries-outside-India.pdf.aspx

25. CONSOLIDATED FINANCIAL STATEMENTS:

In accordance with Section 24B of the LIC Act, 1956 and SEBI Listing Regulations, Consolidated Financial Statements of the Corporation consisting subsidiaries viz., LIC Pension Fund Limited, LIC Cards Services Limited, LIC Singapore Pte Ltd., LIC (International) B.S.C. (C ) Bahrain, LIC (Nepal) Ltd., LIC (Lanka) Ltd. and LIC Bangladesh Ltd. have been prepared in accordance with the applicable Accounting Standards issued by Institute of Chartered Accountants of India ("the ICAI") and forms part of Annual report.

26. RURAL AND SOCIAL SECTOR OBLIGATIONS:

As per the regulatory requirements, the Corporation has met its Rural and Social Sector obligations for FY 2022. As against the minimum requirement of 20%, the Corporation has issued 20.73% policies in the rural sector which affirms the Corporation''s approach towards life insurance inclusion. Further, 60,45,424 new lives covered (11.51% of total new lives covered in preceding year) by the Corporation are from the underprivileged social sector as against the regulatory requirement of at least 5% of total lives covered in preceding year. Consequently, the Corporation has met the minimum social and rural regulatory norms laid down by the IRDAI.

27. MANAGEMENT REPORT:

Pursuant to the provisions of Regulation 3 of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor''s Report of Insurance Companies) Regulations 2002, the Management Report is placed separately and forms part of the Annual Report.

28. STATUTORY AUDITORS:

Pursuant to Section 25 ofthe LIC Act, 1956, the Ministry of Finance has appointed the Statutory Auditors of the Corporation for the FY 2022, as recommended by the Audit Committee and the Board. The details of the Statutory Auditors are annexed at page no. 305 of the Annual Report.

Statutory Audit and other fees paid to Joint Statutory Auditors for FY 2022 as below:

Particulars	Amount ('' In Crore)
Joint Statutory Audit Fees	2.34
Other Certification Fees	0.09

29. STATUTORY AUDITORS'' REPORT:

The Statutory Auditors'' Report (including annexure thereof) to the Members does not contain any qualification, reservation, adverse remark, or disclaimer hence do not call for any further comments u/s 24C(1)(f) of the LIC Act, 1956. There were no reportable frauds identified by the statutory auditors during the FY2022.

30. SECRETARIAL AUDITORS'' REPORT:

Pursuant to Section 24A of SEBI (LODR) Regulations, 2015, the Corporation has appointed M/s S.N. Ananthasubramanian & Co., Practicing Company Secretary, Mumbai as the Secretarial Auditor of the Corporation. The Auditor has not made any qualification, reservation or adverse remark or disclaimer in his report for FY 2022. The detailed report on Secretarial Audit of the Corporation for FY 2022 is annexed as Annexure to the Board report.

31. CERTIFICATE FROM COMPLIANCE OFFICER (UNDER THE IRDAI CORPORATE GOVERNANCE GUIDELINES, 2016):

A Compliance Certificate, for complying with IRDAI Corporate Governance Guidelines, issued by the Executive Director (Corporate Governance/Regulatory Compliance/GJF), designated as the Chief Compliance officer under the IRDAI Corporate Governance Guidelines, is annexed and forms part of the Corporate Governance Report as Annexure to this report.

32. MATERIAL EVENTS, CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE CORPORATION:

There have been no material changes and commitments, affecting the financial position of the Corporation, which have occurred from the end of the financial year to which the Balance Sheet relates and the date of this report.

33. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND OPERATIONS OF THE CORPORATION:

During FY 2021-22, no significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Corporation''s operations in future except the following orders passed by Commissioner of Income Tax (Appeals) against LIC of India during the FY 2021-22, for which LIC filed appeals:

Sr. No.	Date of Order	Order Passed by	Assessment Year (AY)	Tax Effect ('' in Crore)	Appeal filed with
1	27.03.2022	Commissioner of Income Tax (Appeals)	2012-13	3460.47	Income Tax Appellate Tribunal
2	12.03.2022	Commissioner of Income Tax (Appeals)	2018-19	1858.97	Income Tax Appellate Tribunal
3	10.03.2022	Commissioner of Income Tax (Appeals)	2019-20	1755.34	Income Tax Appellate Tribunal
			Total	7074.78

34. DIRECTOR''S RESPONSIBILITY STATEMENT:

In terms of Section 24C(2) of LIC Act, 1956 and the Corporate Governance Guidelines, your Directors confirm that;

(a) in the preparation of the annual accounts for the year ended March 31, 2022, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

(b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Corporation as on March 31, 2022 and of the profit of the Corporation for the year ended on that date;

(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the LIC Act, 1956 for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities;

(d) they have prepared the accounts for the current financial year ended March 31, 2022 on a going concern basis;

(e) the vigilance administration referred under Section 8(1)(h) of the Central Vigilance Commission Act, 2003 is in operation in the Corporation under the superintendence of the Central Vigilance Commission and in addition they have laid down internal financial controls to be followed by the Corporation and that such internal financial controls are adequate and were operating effectively; and

(f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

35. INVESTOR RELATIONS:

The Corporation has always valued its customer relationships and it is our endeavor that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. The Corporation disseminates information on its operations and initiatives on a regular basis. The Corporation''s website (www.licindia.in) serves as a key awareness facility for all its stakeholders, allowing them to access information at their convenience. It provides comprehensive information on the Corporation''s strategy, financial performance, operational performance and the latest press releases.

The Corporation publishes financial results on a quarterly basis. The financial results of the Corporation are prepared and posted on the website of the Corporation for the current as well as previous years.

36. MANAGEMENT DISCUSSION AND ANALYSIS REPORT, REPORT ON THE CORPORATE GOVERNANCE AND BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT:

Pursuant to Regulation 34 of the SEBI Listing Regulations, Management Discussion and Analysis (MD&A) Report and Business Responsibility & Sustainability Report (BRSR) are presented in separate sections and form part of Annual report.

In compliance with SEBI Listing Regulations, a Report on the Corporate Governance framework of the Corporation, with certifications as required under applicable Regulations (including guidelines on Corporate Governance issued by IRDAI) is annexed hereto and forms part of this Annual report.

37. IRDAI LICENSE:

The Insurance Regulatory and Development Authority of India (IRDAI) have renewed the annual licence of the Corporation to continue the Life Insurance Business for the FY 2022.

38. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:

The Corporation believes to conduct the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty and ethical behavior and committed to develop a culture where it is safe for all stakeholders to raise concerns about any poor or unacceptable practice and any event of misconduct.

In accordance with the provisions of LIC Act, 1956, IRDAI Corporate Governance Guidelines, 2016 and Regulation 22 of SEBI Listing Regulations, the Corporation is required to establish a Vigil Mechanism for Directors and employees for adequate safeguard against victimization of Directors, Employees or any other person who report genuine concerns. The Corporation has a Policy for Prevention, Detection and Investigation of Frauds and Protection of Whistle Blowers ("the Whistleblower Policy"), which also encourages its employees and various stakeholders to bring to its notice any issue involving compromise/ violation of ethical norms, legal or regulatory provisions, actual or suspected fraud etc., without any fear of reprisal, discrimination, harassment or victimisation of any kind. The details of Whistle Blower complaints/ concerns received, if any, and subsequent actions taken and the functioning of the Whistle Blower Mechanism is reviewed periodically by the Audit Committee of the Board.

The Whistle Blower Policy is hosted on the Corporation''s website at https://licindia.in/getattachment/Investor-Relations/Policies-and-Code-of-Conduct/Whilstblower-policy.pdf.aspx

39. ACKNOWLEDGEMENTS:

The Directors are grateful to the Insurance Regulatory and Development Authority of India (IRDAI), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Government of India (GOI) for their continued co-operation, support and advice. The Directors would also like to take this opportunity to express their sincere gratitude to the valued policyholders and shareholders for their trust and patronage.

The Directors also express their gratitude for the advice, guidance and support received from time to time, from the auditors, and statutory authorities. The Directors express their deep sense of appreciation to all the employees, agents, corporate agents and brokers, distributors, re-insurers, bankers and the Registrars who continue to display outstanding professionalism and commitment, enabling the organization to retain market leadership in its business operations. The Directors also wish to express their gratitude to all stakeholders for their continued support and trust.

For and on behalf of the Board of Directors

^{(M R Kumar)} (Raj Kumar)

WHOLE TIME CHAIRPERSON MANAGING DIRECTOR

(M P Vijay Kumar)

INDEPENDENT DIRECTOR