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LIC's policies growth at all-time high

Written by: Staff

Mumbai, Apr 14 (UNI) Insurance major Life Insurance Corporation of India (LIC) set a new record in FY 06 with its new business policies growing at 31.77 per cent and crossing the three-crore mark for the first time at 3,15,72,547 which is the highest growth in policies since its inception in 1956.

Addressing journalists here today, LIC's chairman and managing director, Mr. A. K. Shukla, said that the company, which is in its golden jubilee year, has achieved another all-time high with its first premium income (individual) growing by 48.56 per cent at Rs 18,085.48 crore as against Rs 12,000 crore the previous year.

''Our growth of over 48 per cent is over the 42 per cent growth we achieved last year,'' said Mr. Shukla, adding that LIC's Bima Gold launched by Prime Minister Dr Manmohan Singh in September 2005, has also been 'a runaway success'.

Launched as a special scheme to mark LIC's golden jubilee year, it has sold over 1,03,42,935 policies in just seven months of its launch. ''Never in the history of LIC has any new launch achieved such a stupendous performance,'' Mr Shukla remarked.

The total linked business first premium and non-linked first premium stood at Rs 7,631.77 crore and Rs 10,453.7 crore respectively with the ratio of linked to non-linked first premium at a healthy 42.20:57.80.

LIC set another new record with its total sum assured recording a growth of 57.24 per cent at Rs 2,87,530.24 crore, overtaking the earlier growth record of 54.36 per cent set in FY 02.

In group business, the number of lives covered increased by 30 per cent and stood at 51,26,954, up from the figure of 39,29,570 of last year.

Pointing out that the new business premium at Rs 3,919 crore exceeded last year's figure by more than Rs 250 crore, Mr Shukla highlighted the fact that ''this increase was achieved in spite of the FBT imposed by the government.'' LIC's business from alternate channels and bancassurance also registered a healthy growth of 109.6 per cent in policies and 81.34 per cent in first premium income with Mr Shukla confident that ''this business is bound to do well in FY 07 as well.'' Stating that ''growth should be both manageable and sustainable'', Mr Shukla said that LIC was targeting a growth of 15 per cent in policies and around 30-to-35 per cent in premium income this fiscal.

He also announced that another product which would be a different version of Bima Gold and with new features was under consideration for launch. ''Besides, we are planning to launch another four-to-five products this year,'' he stated.

On setting up subsidiaries for health insurance, micro-insurance and credit cards businesses, Mr Shukla said that the subject was under the active consideration of the management. Management consultancy firm KPMG will be making a presentation to LIC on the credit cards subsidiary this month-end, he revealed.

The company was also looking at setting up operations in overseas markets such as Syria, Egypt, Australia and New Zealand, ''but we will move very carefully and only after sorting out all regulatory issues,'' Mr Shukla averred.

As a part of its golden jubilee celebrations, LIC will be flagging off its LIC Zindagi Express from Delhi which would cover 40 places across the country, he announced.


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