LIC's Money Plus fetches Rs 14,000 crore premium

Shimla, Aug 6 (UNI) Life Insurance Corporation's ''Money Plus'' Unit Link Insurance Plan (LIC), closing on August 14, has earned a premium income of Rs 14,000 crore during the past seven months since the scheme was launched in December 2006.

As many as 1.40 crore polices were sold under the plan and the Shimla division earned premium amounting to Rs 14,000 crore, Senior Divisional Manager M K Kemmu said said at a press conference here.

He said the plan was so popular that it created a record of sorts by earning maximum premium revenue in first 100 days and hoped that the Shimla Division would earn additional premium of Rs 200 crore from the plan before its closure.

The LIC had launched BIMA PLUS, FUTURE PLUS and JEEVAN PLUS plans and the results were very encouraging and nearly 80 per cent premium was coming from Unit Linked Insurance Plans due to better and stable market conditions, he said.

Mr Kemmu said Shimla division earned premium income of Rs 660 crore during 2006-07 as against a target of Rs 265 crore and the target for the current financial year was Rs 760 crore, which would exceeded by about Rs 250 crore.

He said the entry of private companies in insurance sector had not affected the LIC and it had been able to increase its market share from 72 to 74 per cent last year.

The LIC was managing a total fund of Rs 52,000 crore under the Unit Linked Portfolio and its ULIP investers numbered 2.12 crore, he said.

Replying to a question, he said bonus on LIC policies had gone down due to a reduction in interests but there was possibility of increase due to better market condition and improved interest rates.

UNI