The sum assured for the new policies has expanded by 21.11 per cent to Rs 91,213.42 crore during the year. The institution's executive committee, which met on Thursday, has approved the business performance of 1999-2000.LIC's 45-year monopoly in the life insurance sector has effectively come to an end as the Centre has notified the Insurance Regulatory and Developmemt Act (IRDA) on Thursday. IRDA has announced it is planning to invite aplications from the new players within next three to four months.

LIC chairman G Krishnamurthy said that the robust performance of the institution was reflected in the growing confidence of the insuring public in the organisation in an era of competition and aded that this would spur the LIC to greater heights in the coming years.

In absolute terms, the institution has generated total new business including pension and group schemes and single premium policies amounting to Rs 4,393.90 crore during the previous fiscal. The individual policies sold during the year totalled 169.77 lakhs. More than 50 per cent of its business came from the rural market. LIC has record performance in the area of pension and group schemes. The individual pensions schemes registerede 223345 new policies(increasing by a whopping 111 per cent ) bringing in a first premium income of Rs 311.80 crore which registered a leap of 181 per cent over the figures for the previous fiscal.

However, analysts have pointed out the existing small base in terms of number of polices and pension premium amount over which LIC has achieved its fresh growth in the massive pension market.

Under the group insurance portfolio, the organisation insured 13.93 lives by collecting a premium of Rs 598.42 crore, the growth rates being 10 per cent and 35 per cent respectively.

The contributions of the eastern, southern and south-central zones to the good performance were significant with Eastern zone occupying the top position. The institution will announce its bonus rate and growth of the life fund and assets during September.

It is expected that the life fund of the LIC will reach Rs 1,50,000 crore from Rs 1,28,000 crore during 1999-2000. This means the institution will have a fresh fund of Rs 32,000 crore for investing in 2000-2001. Basically, the fresh accretion of fund is generated from the institution's investment income and premium income.

Sources point out the institution is gearing up its technological network in view of the ensuing competition. The top managment believes that along with the right kind of technology, its extensive reach will ensure its leading position in coming days.