LIC bags Rs 9,204 crore biz premium in first quarter

Mumbai, July 26 | Updated: Jul 27 2006, 05:30am hrs
The countrys largest life insurance player, Life Insurance Corporation of India (LIC) has posted a whopping growth of about 217% in their new business premium for the first quarter of the financial year 2006-07. The new business premium for the first quarter has been around Rs 9,204 crore against Rs 2,899 crore in the first quarter of previous year.

At a banassurance tie-up with Bank of Maharashtra (BoM), LIC chairman TS Vijayan said, "We have witnessed a good growth in our new business premium, this is basically because of sale of old ULIP policies." Out of the total premium nearly 80%-90% has been contributed by the ULIPs, he added.

For the first quarter, LIC had earned individual premium worth Rs 8,192 crore (Rs 2,300 crore last year first quarter) and group premium of Rs 1,012 crore (Rs 599 crore first quarter last year).

He further stated that LIC would see a slowdown in ULIP growth with the new IRDA regulations coming into picture.

Currently, LIC has only one ULIP product i.e., Market Plus, however, it is working for replacing its old ULIP policy Jeevan Plus. He also said that nearly 70% of the total business was from the single premium products.

On the settlement of claims in the recent Mumbai bomb blasts, Vijayan said LIC has settled 78 claims of the total 200 people who had lost their lives. Vijayan also stated that LIC targets nearly Rs 700 crore from the banassurance in this year. Through a tie up with BoM, LIC expects to tap the customers in Maharashtra. The bank has managed to sell nearly 1120 policies for premia of nearly Rs 140 lakh in a single day. At the sidelines of the press meet, MD Mallaya, CMD of BoM said they would be targeting an credit growth of 29% and a deposit growth of 23%.