Life Insurance Corporation of India

Dear Members,

Your Board of Directors ("Board") is pleased to present the 68^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, 2025

Your Corporation consistently delivers strong financial performance with robust solvency margin and significant investments, playing vital role in promoting financial security, literacy and inclusion contributing to India's Economic Development. Corporation is the largest life insurer in India, renowned for its financial stability and extensive reach by offering a diverse range of Life Insurance Products and Services catering the needs of million of Policyholders.

1. Highlights of Financial Performance:

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

Other Key Parameters:

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

Your Corporation witnessed consistent performance and growth in FY 2024-25. Some of the other key parameters of the Corporation are as follows:

Gross NPA has decreased by 21.08 % from Rs. 10,697.53 crore in FY 2023-24 to Rs. 8442.89 crore in FY 2024-25.

Basic & Diluted EPS for the FY 2024-25 is Rs. 76.13 as against Rs. 64.31 FY 2023-24.

Net retention ratio for the FY 2024-25 is 99.86%

2. Dividend and Reserves:

The Board of Directors of your Corporation has recommended a final dividend of Rs. 12/- per equity share on 632,49,97,701 equity shares of Rs. 10/- each, for FY 2024-25, subject to the approval by the members of the Corporation in the 4^th Annual

General Meeting. The final dividend on equity shares, if approved by the Members, would involve a cash outflow of Rs. 7589.99 crore which translates into a dividend pay-out ratio of 15.76%.

In terms of Regulation 43A of the of 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 and the link to the Dividend policy is provided in Annexure I at page no. 222 of this Annual Report.

The Corporation has carried forward a profit amounting to Rs. 44,356.17 crores during the FY2024-25 to the Reserves. The Corporation has accumulated profit of Rs. 1,20,067.43 crores as at March 31, 2025.

3. Capital and Shareholding:

The Corporation has not issued any fresh equity shares during the year. The Authorised Share Capital of the Corporation is

Rs. 25,000 crore divided into 2,500 crore shares of Rs. 10/- each and the issued, subscribed and paid-up equity share capital of the Corporation as at March 31, 2025 is Rs. 63,249,977,010 comprising of 632,49,97,701 equity shares of the face value of

Rs. 10/- each.

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 2024-25, the Corporation introduced a total of Six (6) new Insurance products. These include:

In addition to launching new products, the Corporation introduced modified versions of thirty-two (32) existing Individual Products during the financial year 2024-25. These modifications were undertaken to enhance product features, improve customer value propositions and align with evolving market needs and regulatory requirements. The modified products fall under the following categories:

As at the end of the financial year 2024-25, the Corporation had following products available for sale:

5. Persistency:

High persistency leads to strong customer loyalty and LIC has always been working to improve the persistency by various customer contact/loyalty programs, educating the customers the need for insurance and also the need to keep the policies in force.

Persistency for Individual Regular Premium Business by premium and number of policies is as under:

The 13thmonth persistency for 2024-25 stands at 75%, compared to 78% in 2023-24, indicating a slight decline of 3%.

The 61stmonth persistency improved to 63% in 2024-25, up from 61% in 2023-24, reflecting a 2% increase.

The 13thmonth persistency decreased from 67% in 2023-24 to 64% in 2024-25, a drop of 3%.

The 61stmonth persistency showed a modest improvement, rising from 49% in 2023-24 to 50% in 2024-25.

6. Research, Strategy and Planning:

Your Corporation's dedicated Research & Strategy team continues to play a pivotal role in driving informed and strategic decision-making across the Corporation. Over the year, the team has undertaken comprehensive analyses of industry trends, customer preferences, and regulatory developments, assessing their impact on the business environment. These insights have been instrumental in evaluating market potential, benchmarking against industry best practices, and forecasting business growth, thereby contributing meaningfully to long-term strategic planning.

As part of the strategic approach, the Corporation's Business Plan is being developed by factoring in the Corporation's needs along with insights into industry dynamics, regulatory environment, and evolving customer expectations. The plan is formulated through a collaborative effort between the research team and Actuarial and Marketing functions. A robust system is in place for the continuous monitoring and implementation of the Business Plan, ensuring its sustained alignment with the Corporation's strategic objectives.

In support of agile and responsive operations, the research team also engages in ongoing presentation of business projections to relevant stakeholders. This facilitates timely course corrections and strategic interventions at various levels throughout the financial year.

Additionally, your Corporation's research team is responsible for the consolidation of the Business Responsibility and Sustainability Report (BRSR) on the basis of inputs provided by various user departments. The BRSR offers a structured framework to evaluate the Corporation's performance on Environmental, Social and Governance (ESG) parameters, reinforcing its commitment to sustainable and responsible business practices.

To promote knowledge sharing and transparency, the team also maintain a centralized data repository and publish a quarterly e-magazine, ‘Envoscan', offering valuable insights to support data-driven decision-making across the organization.

Servicing of policies is the most important characteristics in the value chain for life insurance policies. Your Corporation is actively engaged in providing the best customer experience to its Policyholders.

With the Branches and Satelite Offices presence through out the nook & corner of the Country, the customers are having access to in preson services at the branches. The agents and other market intermediaries are spread over to make the ease of access to the service.

Customers can also access LIC services online through LIC Digital App or through Customer portal at www.licindia.in. For ease of online premium payments, LIC has provided a range of options like Net Banking, Credit Card, Debit Card, UPI and e-wallets. Customers can also opt for Auto Debit, e-NACH and Unified Presentment Management System (UPMS). In addition to the above, premium is payable digitally through Banks, Third Party Apps using payment platform of NPCI Bharat BillPay Limited (NBBL) as operating units under Bharat Connect ecosystem.

The policyholders can remit the premium at LIC's Branch Offices and Satellite Offices through Cash, Cheque and using card swiping machine (in selected branches) at the cash counter. In addition to that the other offline channels available for premium payment in cash or cheque are Premium Collection Centers operated by eligible Agents, Development Officers and Senior Business Associates (SBAs). Other entities like IDBI Bank, Axis Bank, City Union Bank, Suvidha Infoserve, MP Online and APT Online also accept LIC premium. Premium can be paid in Cash at Common Service Centre (CSC).

LIC has a centralized 24x7 Call Center which is reachable at 022-68276827. Information through the call centre is provided in eight regional languages namely Bangla, Gujarati, Kannada, Malayalam, Marathi, Oriya, Tamil and Telugu in addition to English and Hindi.

LIC's Service related information is also available through SMS, Customers can send SMS in the format LICHELP<POLICYNO> to mobile no. 9222492224 and an LIC official from the Customer Zone will get in touch with the customer and offers customer support for any service requirement. Customers can also avail LIC services through WhatsApp at contact No. 8976862090.

To ensure customer authentication and fraud prevention, LIC has integrated with various repositories. This helps in reducing the turnaround time and provides effective servicing. The Customer can experience digital engagement through the various initiatives taken up by LIC.

LIC has in place an easy feedback and complaint resolution mechanism for its registered customers. A customer can lodge and track complaints online. Complaints registered under Insurance Regulatory Development Authority of India

(IRDAI)'s Grievance Management System, ‘Bima Bharosa' are also synced with LIC's Complaint Management System. The Corporation has a Grievance Redressal Officer (GRO) at Branch, Divisional, Zonal and Central Office levels to redress grievances of the customers. The names of GROs are readily available on LIC's website. The respective GROs are available at their offices for personal interaction on all Mondays between 2:30 PM and 4:30 PM, without prior appointment and on other working days with prior appointment.

LIC has a wide physical presence with 2048 Branch offices and 1584 Satellite offices across the country. Further, LIC has undertaken initiatives like ‘Anywhere Services' where customers can walk-in and avail services at any branch of LIC.

LIC's Customer Zones are a single point contact for all customer resolutions. LIC has 74 Customer Zones operative across India which function from 8:00 a.m. to 8:00 p.m.

LIC constantly strives to better customer engagement and provide superior customer experience to its policyholders at all touch points.

Effective Customer service helps to retain Clients, fosters long terms relationship and enhances the Corporation's reputation. By leveraging technology, your Corporation is continuously pursuing to enhance the trust and enable the policyholder feel supported in the journey with the Corporation. Your Corporation continuously engages in communication with the policyholders by the way of updating them the details and addressing the queries and concern with empathy and professionalism and personalized interaction to provide seamless and responsive service.

During the financial year 2024-25, the Corporation has settled 229.31 lakh claims amounting to Rs. 2,69,243.59 Crore (Including Individual, Micro Insurance and Pension & Group Schemes). All payments were made through digital mode i.e., 100% payment through NEFT.

The summary of benefits paid to the policyholders of the Corporation are provided in the Management Discussion and Analysis at page no. 191 to 192 of this Annual Report.

8. Information Technology:

Your Corporation has strategically launched its digital transformation, shifting from legacy systems and manual processes to advanced, end-to-end digital solutions. A series of technological initiatives, listed below, have been implemented to position LIC as a digitally-driven, future-ready organization. These efforts are designed to create value for customers, shareholders, and all stakeholders by enabling seamless, scalable, and agile digital-first operations.

i. Core Business Application: eFEAP, the Corporation's indigenously developed core insurance solution, allows all its offices to manage activities throughout the entire policy lifecycle—from the New Business stage to CRM functions and all the way through to the Claim settlement process.

To offer a smooth and convenient self-service experience, the Customer Portal and the LIC Digital Mobile App feature an intuitive interface with a variety of self-service options. These include viewing policy and proposal images, making premium and loan interest payments, and managing loan repayments. Additionally, the platforms support service requests like address changes, mode changes, ULIP fund switches, eNACH, and online registration of PAN and NEFT data and also facilitate the submission and fulfilment of various customer service requests. Over 2.60 crore users have registered for services through these online channels. Jeevan Saakshya, the mobile application for pensioners and annuitants has also been integrated with Mobile App for face recognition and existence verification using AI, allowing annuitants and pensioners to submit their existence certificates online and conveniently from the comfort of their homes.

To enhance the user experience, the policy administration platforms have been integrated with government-enabled public service platforms like Aadhaar, PAN, UMANG, and Digilocker. This integration enables seamless PAN/Aadhaar validation, CKYC, e-KYC, and e-Sign functionalities, providing a secure and hassle-free way to manage insurance accounts.

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

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

Established Communication channels for productivity enhancement viz. dedicated VC Solution, SMS and email systems to provide collaboration among internal and external stakeholders.

LIC has introduced a new digital onboarding platform i.e., Atma Nirbhar Agent New business Digital Application (ANANDA) that enhances the customer journey with smarter solutions with an improved user interface/user experience (UI/UX). The platform is integrated with e-KYC, pre-filled forms using C-KYC data and customer ID, as well as real-time bank account verification, streamlining the onboarding process.

vi. Modernizing Payment / Receipts: e-NACH / NEFT provides an efficient, paperless solution that enables LIC customers to electronically authorize mandates for automatic premium deductions from their bank accounts and also facilitating claim payments. This marks a significant advancement in simplifying and speeding up payment transactions.

The comprehensive DIVE (Digital Innovation and Value Enhancement) initiative will encompass several strategic pillars for Digital Transformation. The Sales Stack will be delivering a virtual office on mobile and web platforms for sales intermediaries, facilitating new business and renewal, customer services and administrative functions. The Customer Stack will be serving as a one-stop solution for insurance and servicing needs of the customers. This initiative will be ensuring a seamless end-to-end customer on-boarding journey through digital marketing (D2C), agent (A2C), and Bancassurance & Alternate Channels (B&AC).

Adopting advanced technologies such as cloud computing, artificial intelligence, and data analytics to drive innovation.

Enhancing operational agility to respond swiftly to evolving market demands.

Re-engineering legacy systems for greater scalability and performance.

Delivering a 360-degree customer view for better service delivery as well as hyper-personalised communications for customer engagements.

Enabling data-driven decision-making across all levels of the Corporation.

LIC's relentless pursuit of digital innovation underscores its commitment to providing world-class services to its stakeholders. As the digital ecosystem continues to evolve, LIC remains steadfast in its mission to empower customers, agents, and employees through seamless, secure, and user-friendly digital solutions, reinforcing its position as a future-ready, digitally empowered insurance leader.

9. Human Resource:

As on March 31, 2025, the Corporation has a total of 91,606 employees on roll which includes 21,866 female employees

(constituting 23.86% of total employees). The details are as under:

The Corporation continues to demonstrate a strong commitment to gender equity and a safe, inclusive, and respectful work environment. In accordance with the provisions of the Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act 2013, the Corporation has implemented a range of initiatives aimed at improving the status of women and supporting their economic and professional empowerment.

Women officers and employees have made valuable contributions across all levels of the LIC, playing an integral role in the Corporation's sustained growth and success. To ensure a safe and respectful workplace, the Corporation has constituted Internal Complaint Committee at the Central Office, Zonal Offices and Divisional Offices for rendering all reasonable assistance to the aggrieved.

These committees operate in line with the statutory framework of the Act, ensuring the prompt and fair redressal of complaints, if any. In addition to grievance redressal, the Committees also organize regular awareness and sensitization programs to educate employees and promote a culture of dignity, mutual respect, and inclusion in the workplace. The summary of cases as at March 31, 2025 are as under:

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

The Corporation's Internal Audit function is overseen by the Internal Audit Department at the Central Office, Mumbai ("CO"). There are (13) thirteen Audit Centres across the country that carry out audits under the supervision and monitoring of the Central Office. In addition to this oversight, the CO Audit Department also arranges and conducts audit of various departments within the Central Office itself.

To enhance professionalism and objectivity in the auditing process, the Corporation introduced a revised audit approach from the FY 2022 23, under which one-third of the Divisional Offices and their corresponding Branch Offices, including P&GS units, are audited by Chartered Accountant ("CA") firms annually. This practice was continued in FY 2024–25, thereby ensuring that all Divisional Offices and all Branch Offices (including P&GS units) are audited by CA firms at least once in every three years.

Audit exercises across units are conducted using department-specific audit questionnaires, which are updated annually to incorporate the latest circulars, policy changes, and operational developments. These questionnaires also include checks related to Internal Financial Controls ("IFC") for each organizational level, i.e., Branch, Division, Zone, and Central Office. Key audit findings are regularly shared with the relevant functional heads at the Central Office, who, in turn, issue corrective instructions to operational units and implement systemic control enhancements wherever necessary.

In FY 2024–25, the Corporation conducted:

Internal Financial Control (IFC) Audit, and

Information System (IS) Audit

The findings from these audits were discussed with the Statutory Auditors and subsequently placed before the Audit Committee for review and guidance.

Additionally, under the Corporation's Fraud Monitoring Framework, all fraud cases involving amounts exceeding Rs. 1 crore are reported to the Risk Management Committee of the Board ("RMCB") through the Central Fraud Monitoring Committee and the Committee of Executives for Risk Management.

The Corporation has in place a Board-approved Inspection Policy, which mandates that every office in India including Satellite Offices, Branch Offices, Divisional Offices, Zonal Offices, and the Central Office must be inspected at least once a year by officers from the Inspection Department.

This inspection process serves as a critical tool to identify, report, and rectify systemic lapses, and plays a key role in maintaining operational efficiency, compliance, and accountability across all levels of the Corporation.

During the year under review, inspections of all offices were successfully completed by March 07, 2025 and 68.58% of Branch Offices and 99.11% of Divisional Offices were awarded a performance rating of "Excellent".

In addition to individual office assessments, common irregularities identified during the inspection process were consolidated and shared with the Heads of Departments at the Central Office. This was done to facilitate systemic improvements and ensure preventive measures are implemented across the Corporation.

The Corporation continues to strengthen its inspection and monitoring processes to uphold transparency, governance standards, and service quality across its vast network of offices.

The Corporation's internal financial control over financial reporting is a structured 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 (GAAP). The Corporation's internal control framework includes a set of 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.

The Corporation has received various awards and accolades during the year 2024-25 in the areas of Mobile Campaign, Innovative product, Most Preferred Workplace, Insurance Inclusion in Rural Areas at affordable price, Rural Expansion, e-Business, Claims settlement, Insurance Penetration, Digital Transformation, Customer Service, Corporate Communications, Women empowerment, etc. These accolades underscore our unwavering commitment to excellence, innovation, and strengthening stakeholder trust. Some of the key awards & recognitions received during the year:

Guinness World RecordTM title - Your Corporation has earned a Guinness World Record title for the "Most Life Insurance

Policies sold in 24 hours" (sold on January 20, 2025), recognizes the extraordinary performance of the Corporation's dedicated agency network. The Great Indian BFSI Mobile Campaign Award of the year 2024 awarded by Veve

Awarded honor Roll for Most Impactful Campaign by Success at Quoraverse: Unlocking knowledge for Impact Awarded at 13^th Edition of Finnoviti Conclave Awards 2024 by Banking Frontier for Innovative Product-JEEVAN UTSAV Most Preferred Workplace 2024-25 by Team Marksmen Daily: LIC is recognized as "Most preferred workplace 2024-25" by Team Marksmen Daily Awarded in categories at the Golden Star Awards for Excellence in Banking, Financial Services & Insurance (BFSI) by CMO Asia:

Insurance Inclusion in Rural Areas at Affordable Price

E-Business Leader Large category

Excellence in Claims Service

Awarded in two categories at ASSOCHAM 16^th Global Insurance Summit & Awards:

Most Effective Insurance Penetration

Best Practices in Rural Expansion

Awarded in three categories at National Awards for Excellence in Banking, Finacial Services & Insurance (BFSI) by CMO Asia:

Digital Transformation

Customer Service Excellence Award

Insurance Company of the year (Life)

Awarded by Brand Storyz Award for the Best in Content Marketing for the Best in Content Marketing under category of ‘BEST USE OF QUORA".

Recognised as Smart Insurer in the Life Insurer-Large Category for the year 2024 at 11^th Edition of ET NOW Insurance Summit by ET NOW

LIC recognized at Greentech Corporate Communications & Public Relations Summit, Awards & Expo 2024 for Excellence in Corporate Communications Awarded in two categories by NavaBharat BFSI Conclave & Awards-2024, i.e., Best Performance in Claims Settlement and Excellence in Women Empowerment Recognised as Best Life Insurance Company at 4^th InsureNext & InsureTech Conclave and Awards from Insurance Companies (Life) by Banking Frontier Brand Ranking:

As on March 31, 2025, the Corporation has three wholly owned subsidiary companies, four subsidiary companies and six associate companies. The Corporation does not have any material subsidiary.

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 and associates are as under:

6 Life Insurance Corporation ³Subsidiary LIC Nepal is engaged in the business of life insurance. 55% (Nepal) Ltd. ("LIC Nepal")

7 Life Insurance Corporation ³Subsidiary LIC Bangladesh is engaged in the business of, among 83.33% (LIC) of Bangladesh Limited other things, life insurance services by carrying out ("LIC Bangladesh") 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.

8 LIC Mutual Fund Trustee ⁴Associate LICMF Trustee functions as the Trustee Company to 49% Private Limited ("LICMF LIC Mutual Fund.Trustee")

9 LIC Mutual Fund ⁴Associate LICMF Asset Management acts as Investment 44.61% Asset Management Managers for schemes of LIC Mutual fund. Limited ("LICMF Asset Management")

10 LIC Housing Finance Limited ⁴Associate LICHFL is engaged in the business of providing long 45.24% ("LICHFL") 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 purpose, 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.

11 LIC HFL Asset Management ⁴Associate LICHFL AMC manages Alternative Investment Fund 5.38% Company Limited ("LICHFL (AIF) / Venture Capital Fund (VCF) as investment AMC") manager.

12 IDBI Bank Limited ("IDBI ⁴Associate IDBI Bank is engaged in the business of banking in all 49.24% Bank") forms within and outside India.

13 IDBI Trusteeship Services ⁴Associate ITSL provides a wide spectrum of trusteeship services 29.84% Limited ("ITSL") to corporates. ITSL also extends the monitoring facility of listed pledged shares for loan against shares, escrow and facilitate agency services.

The Corporation also operates directly through its branch offices in Fiji (Suva and Lautoka), Mauritius (Port Louis) and United Kingdom (Watford). The LIC Branch situated in United Kingdom (Watford) has ceased to sale new policies, i.e., under run off mode, w.e.f., June 21, 2024.

The amended provisions of Section 24 and Section 28 of the LIC Act, 1956, came into force on June 30, 2021. Section 24 mandates the Corporation to maintain separate funds for participating and non-participating policyholders. Section 28, which comes into effect with the maintenance of these funds, outlines the allocation of surpluses as follows:

i. Participating Policyholders Fund: 90% or a higher percentage of surplus to be allocated or reserved, for the participating policyholders, with the remaining surplus going to the members; and

ii. Non-Participating Policyholders Fund:100% of the surplus is 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 policyholders fund is maintained, and the surplus distribution between policyholders and shareholders is set at a 95:5 ratio. The Corporation has sought exemption or instructions from the Government of India regarding these provisions for its overseas operations, as these branches are governed by local laws.

In line with the above, the overseas branches of the Corporation in UK, Mauritius, and Fiji will continue to operate under following framework:

a. a single policyholders fund, and

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

The Branch Office of the Corporation situated at International Financial Service Centre (IFSC) in GIFT City, Gandhinagar, Gujarat, has received the necessary regulatory approvals. The operations of this branch are set to commence in the FY 2025-26.

In accordance with the provisions of Listing Regulations, the Board of the Corporation has approved a policy for determining the materiality of subsidiaries, both within India and outside India. These policies can be accessed on the Corporation's website, and the link of these policies are available in Annexure l at page no. 222 of this Annual Report.

Details regarding financial position and performance of the Corporation's wholly owned subsidiaries, subsidiary companies and associate companies is available in the annual report.

LIC Golden Jubilee Foundation (LIC GJF), as the name suggests, was established to commemorate LIC's Golden Jubilee in the year 2006. The LIC GJF is the arm through which LIC undertakes community development activities and is registered with the Charity Commissioner under Bombay Public Trust Act 1950.

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. The LIC GJF supports capital-oriented projects aimed at infrastructural development, which include construction of class rooms, hospital wards, medical equipment, ambulances, school buses, solar panels etc., to name a few.

Some of the consistent contributions made by the Foundation are for the treatment of children affected with cancer, bone marrow transplant, pediatric heart surgeries, and cochlear implant surgeries for poor patients/children. In 2024-25, among other activities, assistance for procuring medical equipment was provided to reputed Charitable/Government run Hospitals in

Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad and Thiruvananthapuram, mostly for treatment of cancer. As at March 31, 2025, GJF has disbursed more than Rs. 283 Crores under 926 projects across the length and breadth of the country.

The Foundation also runs the LIC Golden Jubilee Scholarship Scheme wherein Scholarships are awarded to meritorious students from economically weaker sections of the society, to provide them opportunities for higher education. In 2024-25, Rs. 11.40 Crores was disbursed to 10,006 students by way of scholarship. Since inception of the scheme, a total of 30,835 students have benefited and a total of Rs. 80.62 Crores has been disbursed as scholarship.

As on the date of this report, the Corporation's Board comprises of Thirteen (13) Directors viz., Chief Executive Officer &

Managing Director; One (1) Government Nominee Director; Three (3) Managing Directors; Eight (8) Independent Directors including One (1) Woman Director.

The composition of the Board reflects a balanced mix of executive and non-executive directors, in line with the LIC Act,

1956 read with rules and regulations made thereunder, Listing Regulations and IRDAI (Corporate Governance for Insurers)

Regulations, 2024 (to the extent applicable).

The Policy for Directors' Qualification, Nomination, Appointment, Remuneration, Evaluation and Board Diversity (Directors' Policy) which outlines the appointment criteria, roles, responsibilities, and evaluation mechanism of the Board is hosted on the website of the Corporation. A link to this policy is provided in Annexure I at page no. 222 of this Annual Report.

Appointment of Directors/Change in Designation:

(i) Dr. Parshant Kumar Goyal (DIN: 08652921): The Government of India, vide their notification dated April 17, 2025, has appointed Dr. Parshant Kumar Goyal as Government Nominee Director of the Corporation with immediate effect and until further orders, in place of Dr. Maruthi Prasad Tangirala. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Dr. Parshant Kumar Goyal as Government Nominee Director of the Corporation along with his brief profile has been included in the notice of the 4^th Annual General Meeting, for formal approval of the members.

(ii) Shri Dinesh Pant (DIN: 11134993): The Government of India, vide their notification dated May 14, 2025, has appointed Shri Dinesh Pant as Managing Director of the Corporation with effect from the date of assumption of charge of office on or after 01.06.2025 and upto the date of his superannuation (i.e., 31.05.2027) or until further orders, whichever is earlier. Shri Dinesh Pant took charge as Managing Director of the Corporation on June 01, 2025. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Shri Dinesh Pant as Managing Director of the Corporation along with his brief profile has been included in the notice of the 4^th Annual General Meeting, for formal approval of the members.

(iii) Shri Ratnakar Patnaik (DIN: 10283908): The Government of India, vide their notification dated May 14,

2025, has appointed Shri Ratnakar Patnaik as Managing Director of the Corporation with effect from, the date of assumption of charge of office on or after 01.06.2025 and upto the date of his superannuation (i.e., 31.03.2028) or until further orders, whichever is earlier. Shri Ratnakar Patnaik took charge as Managing Director of the Corporation on June 01, 2025. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Shri Ratnakar Patnaik as Managing Director of the Corporation along with his brief profile has been included in the notice of the 4^th Annual General Meeting, for formal approval of the members.

(iv) Shri R Doraiwsamy (DIN: 10358884): The Government of India, vide their notification dated July 14, 2025, has appointed Shri R Doraiswamy as Chief Executive Officer & Managing Director of the Corporation, for a period of three years w.e.f. July 14, 2025 and up to the date of his attaining the age of 62 years (i.e., August 28, 2028), or until further orders, whichever is earlier. Shri. R Doraiswamy took charge as Chief Executive Officer & Managing Director of the Corporation on July 14, 2025. The Board of the Corporation took note of the same.

The necessary resolution for appointment of Shri R Doraiswamy as Chief Executive Officer & Managing Director of the Corporation along with his brief profile has been included in the notice of the 4^th Annual

General Meeting, for formal approval of the members.

(i) Dr. Maruthi Prasad Tangirala (DIN: 03609968): The Government of India, vide their notification dated April 17, 2025, has appointed Dr. Parshant Kumar Goyal as Government Nominee Director of the Corporation in place of Dr. Maruthi Prasad Tangirala with immediate effect.

(ii) Shri Jagannath M (DIN: 10090437): Shri Jagannath M ceased to hold office as Managing Director of the

Corporation, with effect from May 31, 2025, upon his superannuation, in terms of Government of India's

Notification dated March 13, 2023.

(iii) Shri Tablesh Pandey (DIN: 10119561): Shri Tablesh Pandey ceased to hold office as Managing Director of the Corporation, with effect from May 31, 2025, upon his superannuation, in terms of Government of India's

Notification dated March 13, 2023.

(iv) Shri Siddhartha Mohanty (DIN: 08058830): Shri Siddhartha Mohanty ceased to hold office as Chief Executive Officer & Managing Director of the Corporation, with effect from June 07, 2025, upon completion of his term, in terms of Government of India's Notification dated April 28, 2023.

The Board acknowledges the valuable contributions made by Shri Siddhartha Mohanty, Dr. Maruthi Prasad Tangirala, Shri Jagannath M. and Shri Tablesh Pandey during their tenure and places its deep appreciation for their guidance to the Corporation.

The Certificate from M/s Mehta & Mehta, Company Secretaries (Firm's Registration No. P1996MH007500), 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 ("SEBI"), Ministry of Corporate Affairs ("MCA") or any such other Statutory Authority.

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 FY 2024-25, is given in the Corporate Governance Report which is placed separately and forms part of the Annual Report.

Pursuant to the provisions of IRDAI (Corporate Governance for Insurers) Regulations, 2024 read with circular issued thereunder and Listing Regulations, the following senior management employees of the Corporation were holding positions of KMPs as on March 31, 2025:

During the year and upto 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 & Remuneration Committee:

Pursuant to the provisions of the LIC Act, 1956, read with the rules and regulations made thereunder, the SEBI (Listing

Obligations and Disclosure Requirements) Regulations 2015, and the IRDAI (Corporate Governance for Insurers)

Regulations, 2024 along with the applicable circulars issued thereunder, the Board conducted its annual performance evaluation, covering the Board as a whole, its Committees, individual Directors, and the Chairperson.

Independent Directors reviewed the performance of non-Independent Directors, the overall functioning of the Board, and the effectiveness of the Chairperson. They also assessed the quality, quantity, and timeliness of information shared between the Corporation's Management and the Board.

The performance evaluations were facilitated through an iOS-based application specifically developed to circulate structured questionnaires aimed at assessing the effectiveness of the Board, its Committees, individual Directors, and the Chairperson. The questionnaires were designed based on broad evaluation parameters recommended in the guidance notes issued by SEBI and the Institute of Company Secretaries of India (ICSI).

The evaluation of the Board focused on areas such as the fulfilment of roles and responsibilities, strategic oversight, quality of decision-making, and adherence to governance standards. Individual Directors were assessed on their level of engagement in meetings, quality of contributions, ability to provide strategic guidance, and their commitment to upholding the Corporation's values and governance framework. The evaluation of Committees considered their composition, clarity of roles, independence, and overall effectiveness in supporting the Board's functioning. In the case of the Chairperson, the evaluation included general criteria applicable to all Directors, in addition to specific aspects such as leadership abilities, the facilitation of effective Board discussions, and the timely resolution of matters raised by Directors.

‘Fit and Proper' criteria:

In accordance with IRDAI (Corporate Governance for Insurers) Regulations, 2024 read with circular issued thereunder,

Directors of insurer have to meet ‘Fit and Proper' criteria prescribed by IRDAI. Accordingly, all the Directors of the Corporation have confirmed the compliance with ‘fit and proper' criteria/norms, prescribed under the above-mentioned regulation issued by the IRDAI.

Directors & Officers Liability Insurance:

Pursuant to Regulation 25 (10) of the Listing Regulations the Corporation has taken D&O liability Insurance for all its Directors and Members of the Senior Management Team for such quantum and risks as determined by the Board.

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.

The details of meetings of the Board and its Committees held during the year, including the attendance of Directors and the composition of various Committees, are provided in the Corporate Governance Report, which is presented separately and forms an integral part of this Annual Report.

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 available on the Corporation's website, and the link to the policy is provided in Annexure l at page no. 222 of this Annual Report.

Further, details relating to the remuneration to the Directors including Whole-time Directors, are disclosed in the Corporate Governance report, which is presented separately and forms an integral part of this Annual report.

Your 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 General Rules, 1956.

Your Corporation views its stakeholders as essential partners in its journey toward success and remains deeply committed to delivering long-term value to them. Recognizing that robust corporate governance is the foundation of stakeholder trust, the Corporation diligently fulfills its responsibilities across all levels of the organization. It ensures that business operations consistently align with the highest standards of governance, transparency and ethical conduct.

To promote accountability and continuous stakeholders' engagement, the Corporation adheres to well-established corporate governance practices, supported by standard operating procedures and function-specific manuals that guide day-to-day operations and reinforce consistency of the organisation.

Governance is further strengthened through various dedicated Board level committees, which provide strategic oversight, safeguard shareholder interests, enhance brand equity, and foster a positive and productive working environment.

Through these comprehensive measures, the Corporation strives to uphold trust, support sustainable growth, and maintain its reputation as a responsible, resilient and forward-looking organisation.

In compliance with Listing Regulations, a Report on the Corporate Governance framework of the Corporation, along with Certificate from Auditors regarding compliance of conditions of Corporate Governance is annexed as Annexure E to Corporate Governance Report which forms part of the Annual Report.

During the year, your 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 3^rd 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 2024-25 and upto the date of next AGM.

The Board of Directors have formulated a policy on materiality of Related Party Transactions 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 and the link of policy is available in Annexure l at page no. 222 of this Annual Report.

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, 2024 and March 31, 2025 has been submitted to the Stock Exchanges by the Corporation and published on the Corporation's website.

The Corporation has completed a comprehensive Gap Analysis for implementation of Indian Accounting Standards (IND AS), and the report has been submitted to Insurance Regulatory and Development Authority of India ("IRDAI").

In line with regulatory requirements, the Corporation is making steady progress in the preparation of IND AS compliant Proforma Financial Statements to ensure readiness for transition.

The Audit Committee and the Board of Directors are being regularly updated on the status and developments related to IND AS implementation, and necessary steps are being taken to align systems, process, and policies with the new accounting framework.

Pursuant to the provisions of Section 27A of the Insurance Act, 1938, the Corporation's investments as at March 31, 2025, are mentioned at page no. 331 of the Annual Report and the investments made in the infrastructure and social sector for the financial year 2024-25 are mentioned at page no. 332 of the Annual Report.

In accordance with Section 24B of the LIC Act, 1956 read with rules and regulations made thereunder and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Corporation has prepared its Consolidated Financial Statements (CFS), which include the financials of its subsidiaries and associate companies. The CFS have been prepared in compliance with the provisions of Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, and the relevant circulars issued thereafter. The CFS also adhere to 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). The CFS forms an integral part of this Annual report.

Pursuant to the provisions of Schedule II - Financial Functions of the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, the Management Report is placed separately and forms an integral part of this Annual Report.

Pursuant to Section 25 of the LIC Act, 1956, the Corporation has appointed the Statutory Auditors of the Corporation for the FY 2024-25 after due recommendations and approvals. The details of the Statutory Auditors are available at page no. 334 of the Annual 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 FY2024-25.

Pursuant to Regulation 24A of the Listing Regulations, the Corporation has appointed M/s Mehta & Mehta, Company Secretaries, as the Secretarial Auditor of the Corporation for FY 2024-25. The Auditor has not made any qualification, reservation or adverse remark or disclaimer in his report for FY 2024-25. The detailed report on Secretarial Audit of the Corporation for FY 2024-25 is annexed as Annexure ‘D' to Corporate Governance Report and forms an integral part of this Annual Report.

A Compliance Certificate, for complying with IRDAI (Corporate Governance for Insurers) Regulations, 2024, submitted by the Chief Compliance Officer under the IRDAI (Corporate Governance for Insurers) Regulations 2024, is annexed and forms part of the Corporate Governance Report as Annexure ‘C' to this report.

Management Discussion and Analysis (MD&A) Report for the year under review as stipulated under Regulation 34 of Listing Regulation, is presented in a separate section, which forms an integral part of this Annual Report.

Pursuant to Regulation 34(2)(f) of listing regulation, mandates the inclusion of Business Responsibility & Sustainability Report (BRSR) as part of the Annual Report for Top 1000 listed entities based on market capitalization (calculated as on 31^st March of every financial year) at BSE and NSE. Accordingly, BRSR along with the report of Independent Assurance provider (i.e., Choksi and Choksi LLP), is placed separately and forms an integral part of this Annual Report.

There have been no material events, 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.

During FY 2024-25, 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.

A civil litigation matter along with connected issues, is currently sub-judice before the Honorable Supreme Court vide Writ Petition No. 366/2022. Although, the matter is non-quantifiable in financial terms, it has been deemed material and was accordingly disclosed in the Red Herring Prospectus dated April, 2022. As on date of this report, the matter remains pending and is yet to be heard by the Honorable Supreme Court of India.

The Insurance Regulatory and Development Authority of India (IRDAI) has renewed the annual registration of the Corporation to continue the Life Insurance Business for the FY 2025-26.

In terms of Section 24C (2) of LIC Act, 1956 and the IRDAI (Corporate Governance for Insurers) Regulations, 2024, your

Directors confirm that;

(a) in the preparation of the annual accounts for the year ended March 31, 2025, 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, 2025 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, 2025 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.

The Corporation is committed to conducting its affairs in a fair, transparent, ethical manner, guided by highest standards of professionalism and integrity. The Corporation has developed a strong culture that encourages stakeholders to raise concerns about unethical and unfair practices, misconduct, or violation of legal and regulatory provisions without fear of reprisal, discrimination, or victimization.

To facilitate vigilance related reporting, Corporation has introduced an online complaint portal named "Satarkata Shikayat Dwar", accessible under the Customer Services tab at www.licindia.in. All vigilance related complaints can be registered and tracked through the portal.

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. All whistle blower complaints and concerns are reviewed on quarterly basis by the Audit Committee of the Board, which also oversees the functioning and effectiveness of the mechanism.

To enhance efficiency and transparency in disciplinary processes, LIC has developed and implemented the UDIT Module (Upgraded Disciplinary Workflow through Integration of Technology). This digital initiative aims to reduce turnaround time in disposal of disciplinary and vigilance cases. The Corporation is also in the process of integrating the UDIT module with HRMS (Human Resource Management System) to further improve operational efficiency.

During the review period, no personnel was denied access to the Audit Committee.

The Whistle Blower Policy is hosted on the Corporation's website. The link to the policy is provided in Annexure I at page no. 222 of this Annual Report.

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.

The Corporation places the highest value on its relationships with customers and stakeholders. Committed to transparency, it strives to ensure that all stakeholders have access to complete and timely information to accurately assess the Corporation's performance and future potential. To support this, the Corporation regularly disseminates updates on its operations, financials and key initiatives. The Corporation's official website, (www.licindia.in) serves as a central hub of information, offering stakeholders easy access to a wide range of resources at their convenience. The site features detailed insights into the Corporation's strategy, financial and operational performance, as well as the latest press releases. Financial results are published quarterly and are made available on the website for both the current and previous years.

Following each results announcement, the Investor Relations team hosts earnings calls, with accompanying investor presentations, transcripts, and call recordings uploaded to the website for public access. Additionally, members of the senior management team actively participate in various equity conferences organized by leading securities firms, reinforcing the Corporation's commitment to open dialogue with the investor community.

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), Department of Financial Services, Ministry of Finance, Government of India (GOI), for their active support, advice and co-operation on various issues.

The Directors are deeply grateful to the Insurance Regulatory and Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and other government and regulatory agencies 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. Lastly, the Directors express their deep sense of appreciation to all the Employees, Agents, Corporate Agents and Brokers, Bancassurance Partners, Distributors, Re-insurers, Bankers and the Registrars. Their dedication, professionalism, and commitment have been instrumental in enabling the Corporation to maintain its leadership position in the insurance industry.