LIC chairman T.S. Vijayan flanked by managing directors D.K. Mehrotra (left) and Thomas Mathew T in Mumbai on Friday. A Telegraph picture

Mumbai, Sept. 14: The Life Insurance Corporation of India (LIC) today announced higher bonuses for many of its traditional policies.

LIC chairman T.S. Vijayan today said the aim was to ensure an “even mix” between these schemes and unit-linked insurance plans.

Announcing the valuation results for 2006-07, the LIC today declared a bonus of Rs 70 per Rs 1,000 sum assured under all whole life plans for the year, against Rs 66 in the previous fiscal.

This came after the valuations disclosed a surplus of Rs 15,127.21 crore compared with Rs 12,404.82 crore in the previous year, representing a growth of 22 per cent.

Around 95 per cent of the surplus, amounting to Rs 14,370.85 crore, has been allocated as bonus to “with profit” policy-holders. The balance 5 per cent, or Rs 756.36 crore, is for the government.

Life insurance companies distribute their annual profits among policy-holders in bonuses, which are a percentage of the sum assured.

Bonuses are credited to the account of the policy-holder and paid at the time of maturity. The bonus for Jeevan Tarang policy-holders, who have chosen an accumulation period of 20 years, has been increased to Rs 48 per Rs 1,000 sum assured from Rs 32 last fiscal.

Jeevan Anurag policy-holders, who have got a policy for more than 20 years, will get a bonus of Rs 44 per Rs 1,000 sum assured compared with Rs 35 in the previous year.

For its micro-insurance plan, Jeevan Madhur, a bonus of 2.5 per cent has been declared for policies with a term of 11 to 15 years.

The bonus is 2 per cent for policies with terms of 10 years and less.

Under endowment policies, including Jan Raksha, the bonus is Rs 48 per Rs 1,000 sum assured (previous year, Rs 46) for policies of more than 20 years.

For 16-20 years, the bonus is 4.2 per cent; for 11-15 years it is 3.8 per cent; and for 10 years or less it is Rs 34 per Rs 1000 sum assured.

In money back plans, the bonus is Rs 44 (Rs 42) per Rs 1,000 sum assured for policies of less than 25 years. It is 3.9 per cent for 20-year policies and 3.2 per cent for 12-15 year policies.

For Jeevan Surabhi, a bonus of 5 per cent (4.7 per cent) will be paid for 25-year policies, 4.1 per cent (3.9 per cent) for policies under 20 years and 3.4 per cent (3.2 per cent) for policies under 15 years.

The corporation also declared final additional bonus and loyalty addition for those who keep their long-term plans in force.

Loyalty additions have been declared in the range of Rs 20 to Rs 150 per Rs 1,000 sum assured under Jeevan Shree, New Jeevan Shree, Bima Nivesh 2002, Nav Prabhat, Jeevan Samriddhi and Komal Jeevan plans.