LIC IPO: Here is a list of LIC policies not eligible under policyholders’ special quota

• LIC issued a clarification saying group insurance policies of LIC including Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are not eligible to apply under the policyholder quota.
• This comes after the LIC Chairman recently said in a conference that even PMJJBY subscribers are eligible for the special quota.
• Policyholders applying for LIC IPO may get some discounts on issue price for applying under the policyholder quota.

While investors and policyholders of Life Insurance Corporation (LIC) are awaiting the country’s largest initial public offering (IPO), here are some important clarifications made by the life insurance company ahead of the IPO.

LIC on late Tuesday evening issued a clarification saying people who have subscribed to group insurance policies of LIC including Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are not eligible to apply under the policyholder reservation category proposed in the IPO.

LIC has created a reservation quota for policyholders and employees wherein they can get a special preference in IPO allotment. Such investors may also get some discounts for applying under the policyholder quota.

However, the LIC has not yet announced any plan for offering discounts to the policyholders.

The insurer came out with a clarification after its Chairman M R Kumar reportedly said at a virtual media interaction that PMJJBY subscribers are also eligible for the benefits available for policyholders.

This means only individual and joint policyholders can avail benefit under the special quota category.

Here is a list of policies that will not be allowed under the ‘policyholder reservation category’:

• LIC’s New One Year Renewable Group Term Assurance Plan-I
• LIC’s New One Year Renewable Group Term Assurance Plan-II
• LICs Single Premium Group Insurance
• LICs Group Credit Life Insurance
• LICs One Year Renewable Group Micro Term Assurance Plan
• LICs New Group Gratuity Cash Accumulation Plan
• LIC’s New Group Leave Encashment Plan
• LICs New Group Superannuation Cash Accumulation Plan
• Group Immediate Annuity
• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Investors holding other LIC policies can bid up to ₹2 lakh under the ‘Policyholder Reservation Portion’ through the applications supported by blocked amount (ASBA) and the unified payments interface (UPI) mechanism.

LIC has reserved 10% of the issue size for its army of policyholders and also plans to give some discount to such investors in the IPO.

Not only policyholders, employees of the insurance company also have a quota for themselves with 5% of issue size as reservation.

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