Dear Members,

Your Board of Directors ("Board") is pleased to present the 67th 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)

*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 1st 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 3rd 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 LICHELP<POLICYNO>to 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 13th 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 61st month persistency for the same is 61% for the FY 2023-24 as against 62% for the FY 2022-23.

The 13th 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 61st 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:

f 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:

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

10. ENTERPRISE RISK MANAGEMENT:

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: ^

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, 1/3rd of the Divisional Offices and the Branches under those Divisions including P&GS units were audited by CA firms. We will be continuing auditing 1/3rd 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 2nd 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 2nd 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 2nd 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 2nd 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 3rd 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 2nd 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:

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:

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:

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/Policv-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 3rd 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 10th 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 4th 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-10th 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 2nd 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 7th 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 42nd 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

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 12th 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