 "Deficit monsoon hits LIC's new premium income")
Owing to poor rainfall this year, LIC’s new premium income dipped by over 20% during April-July 2015 compared to the same period last year.
Against new premium income of Rs 837 crore during April-July 2014 clocked by LIC in the two states, the corresponding figure this year stands at Rs 666 crore. The corresponding pan-India figures are Rs 6,580 crore and Rs 5,323 crore for April-July 2014 and April-July 2015 respectively.
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Likewise, the share of new premium collected by LIC in UP and Uttarakhand also decreased from 12.7% to 12.5%.
“The dip in new premium income is possibly the direct impact of sub-optimum rainfall this year and the delay in sugarcane payments in UP,” LIC senior divisional manager Aditya Gupta told Business Standard here.
The sugarcane arrears in UP, stand at almost Rs 8,000 crore, despite stern directives by the Allahabad High Court for settling dues at the earliest. The business contribution of urban and rural areas to LIC is roughly in the ratio of 60:40%.
Gupta, however, added the premium income was expected to improve in the next couple of months.
There are about 1,50,000 LIC agents across UP and Uttarakhand even as the company has launched a campaign to add new agents to reach out to more people and geographies.
LIC is celebrating ‘Insurance Week’ to commemorate 59 years of its existence.
LIC services 300 million live policies. It has Rs 18 lakh crore and Rs 20 lakh crore worth of life fund and assets respectively. Despite tough competition from the private sector, LIC still commands 77.85% and 69.21% market share in number of policies and premium income respectively.