Companies & Sectors
LIC to invest about Rs2.5 lakh crore in markets this fiscal

Increase in exposure to the equity market, secondary or primary, would depend on market conditions, LIC chairman, SK Roy said, adding that the Corporation has been investing in stock markets in the past few weeks as there are opportunities

Unfazed by volatile stock markets, insurance behemoth Life Insurance Corporation of India (LIC) proposes to invest nearly Rs2.5 lakh crore in both equity and bonds this year.


“We made an aggregate investment of Rs2.25 lakh crore last year. This year it would increase by 10%,” LIC chairman, SK Roy said.


Thus, the country’s largest insurer is expected to pump in Rs2.47 lakh crore in shares and bonds.


Increase in exposure to the equity market, secondary or primary, would depend on market conditions, he said, adding that the Corporation has been investing in stock markets in the past few weeks as there are opportunities.


On its earnings, LIC expects to achieve a 15% growth in the first year premium income in the current financial year as against a contraction in the last fiscal.


During 2012-13, the country’s only state-run life insurer registered a 6.5% fall in new premium collection at Rs76,200 crore compared to Rs81,500 crore during the earlier fiscal.


Apart from urban areas, the company intends to focus on rural areas and Tier II and Tier III cities as it sees a lot of business opportunities in these pockets.


To increase its presence, LIC recently opened 300 mini offices across various smaller cities in the country.


These offices have one LIC official posted, who provides basic insurance services, with agents helping these offices in collecting premiums.


Simultaneous opening of these offices is part of a plan to set up 1,700 such offices in locations with population of 10,000 and above by December.


In his budgetary speech for 2013-14, finance minister, P Chidambaram, had said insurance companies will be empowered to open branches in Tier II cities and below without prior approval of Insurance and Regulatory Development Authority (IRDA).


“All towns of India with a population of 10,000 or more will have an office of LIC and an office of at least one public sector general insurance company. I propose to achieve this goal by 31 March 2014,” he had said.


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The Cashback Wave: Another player is an online portal that benefits the consumer through cashback and coupon services. How enthusiastic should you be about it?

What more would you want from online shopping than getting some of your money back when purchasing through a certain website? Yes, online cashback and coupon sites are meant to give you exactly that—coupons for making purchases online and a discount or a combo offer and cashback on every purchase you make through the site.


We, at Moneylife, review these websites and services in consumer interest because we want you to make sound decisions and buy intelligently. This time we picked for review and analysis, it’s a cashback service. is an online cashback and coupon portal that helps you save money when you visit the online retail websites through the links given on Cashkaro. The retailer marks that you have visited its website through cashkaro and returns a part of your upfront payment to your cashkaro’s account, as your discount, which gets transferred to your bank account once the amount crosses Rs250.


The cashback entry starts showing in your account 72 hours after your have made the purchase. To check, I purchased goods worth Rs180 from Snapdeal through Cashkaro, but neither Snapdeal nor Cashkaro intimated me for accepting my request for discount. I, as a user, expected that at least an SMS, a mail or a pop-up would intimate me that my cashback request has been accepted and is being processed, the results of which would be intimated to me overtime. I had to wait for 72 hours before I get my first intimation/entry through my cashback account. It would be better if the website at least shows the transaction in pending mode. The cashback, waiting retailer approval, also shows ‘nil’ amount. At least this field could be updated if not others, according to Cashkaro’s process.


In addition to this, websites which have their own timeline of paying to the retailer, it will take even longer of a Cashkaro user to get his cashback confirmation and even longer to get the actual cashback. For example, Snapdeal pays its retailers only after getting a ‘satisfied’ confirmation from the user. Snapdeal waits for seven days for customer nod before making the payment, after completion of which payment is automatically released to the customer. Add these seven days to the 72 hours that Cashkaro will take to indicate the transaction and imagine the time that it would take for cash to actually come into your account, not to forget the number of days that your bank will take to complete the transaction!


You won’t be able to use the cash directly from your cashkaro account to make further purchases. You will have to necessarily get it transferred to your bank account to re-use it. I have come across online systems, where the company retains the monies, but you can use the money directly from that account to make future purchases, being one example.


The good thing about the portal is the range of opportunities it gives to you as a user. Other than caskback on purchase, it provides you a range of coupons to earn discounts from. Besides that, it also provides users with an opportunity to earn additional cashback on referring the portal to friends. You would get 10% of the cashback that your friend, who you referred cashkaro to, gets. On the whole, the offer seems to be promising enough for substantial savings. Since membership is free, you do not have anything to lose. However, you should not expect cash to ‘comeback’ to you anytime soon.


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