LIC group sales offset drop in single premium income

The Life Insurance Corporation of India (LIC) sold 2.7 crore policies in fiscal 2004 against 2.45 crore policies in the previous year. This together with 3.33 lakh policies sold under Varishtha Pension Bima Yojana during the year showed a growth of over 11 per cent in total sales on individual lives. This is in addition to the 27.72 lakh new lives covered under the various group insurance schemes.

New premium income under individual business stood at Rs 8,567 crore while premium under group schemes amounted to Rs 3,612 crore and Rs 6,070 crore under Varishtha Pension Bima Yojana. "Growth in fiscal 2004 fell largely on account of drop in sale of single premium and short-term policies of less than five years maturity," said S B Mathur, chairman.

Group schemes made good the deficit in single premium income of Rs 1,845 crore compared to the previous year, as the corporation managed to secure a premium of Rs 1,165 crore under single premium plans.

LIC's group business reached new heights in fiscal 2004 recording a 119 per cent growth in new premium income and 50 per cent increase in the number of lives covered. This exemplifies the trust reposed by corporate houses in LIC's effective and efficient management of large superannuation funds, said Mathur.

The management stated that the significant performance achieved by the corporation in fiscal 2004 has been possible because of the enormous trust and confidence reposed by the insuring public.

At the same time, LIC recorded overwhelming response to its unit-linked plan "" Bima Plus. The premium collected under the plan is to the tune of Rs 373 crore with the sale of under 1.70 lakh policies. This is despite LIC's aggressive drive to market Bima Plus started late in January.

LIC's pension plans equally saw a robust growth rate. Individual pension plans "" Jeevan Suraksha, Jeevan Dhara and Single Premium Jeevan Akshay "" saw a growth of 35 per cent in number of policies sold and 43 per cent in terms of first premium income, mopping up Rs 468 crore.