LIC sees 12% rise in new policies in fiscal 2004

The Life Insurance Corporation of India (LIC) closed fiscal 2004 with a marginal growth in first premium income, and a 12 per cent growth in the number of new policies at around 2.85 crore.

The state life insurance company closed the year with a marginally higher premium income on the back of its unit-linked plan "" Bima Plus "" and the sale of group policies.

Its sale of unit-linked plans is likely to exceed that of any private sector player. "Our new premium income will be marginally higher than last year at around Rs 9,900 crore," said LIC chairman S B Mathur.

Growth in fiscal 2004 fell largely on account of a drop in the sale of single premium and short-term policies of less than five-year maturity, he added.

Though LIC's drive to market Bima Plus started late in January only, it managed to garner a premium income of Rs 300 crore, said Mathur. It sold 1.4 lakh unit-linked plans, and market sources say the income from this business is likely to exceed that of most private sector players.

According to figures given by the insurance regulator, the individual unit-linked business underwritten by the private sector amounted to Rs 486.71 crore as on December 31, 2003.

During this period, LIC had mopped up a premium income of Rs 58.69 crore under its plan. With the rise in stock markets, LIC managed to raise its investment yield by 1 per cent through secondary market operations, both in the debt and equity markets.