The Hindu Business Line : LIC first premium income up 30 pc

LIFE Insurance Corporation of India (LIC) has announced a 30-per cent increase in first premium income of Rs 15,840.67 crore in 2004-05 over Rs 12,179 crore last year. Of this, Rs 12,174 crore came from individual business, where the company sold 2.39 crore policies.

The company settled 1.07 crore claims during 2004-05 of which 1.03 crore were policies that had matured while 4 lakh were claims after death. The outstanding claims ratio is about 0.11 per cent. The average size of the policy in terms of sum assured is Rs 76,320 and first premium per policy is Rs 5,081.

LIC's market share has fallen by almost 10 per cent in the past one year to about 78 per cent. Speaking to media persons here on Wednesday, Mr R.N. Bhardwaj, Chairman, LIC, said this was inevitable with new entrants joining the fray.

The pension and group business has contributed Rs 3,666 crore to the kitty. This accounts for 17 per cent of LIC's total business. First premium income during March was Rs 6,282 crore.

For LIC, 35.25 per cent of its first premium business came from two of its Unit Linked Plans (ULIPS). Bima Plus brought in Rs 2,183.5 crore and Future Plus, the unit linked pension plan, Rs 2,107.75 crore.

LIC's total income amounts to Rs 1,06,540 crore , a growth of 14.45 per cent and the total assets stand at Rs 4,62,000 crore, a growth of 26 per cent. The total value of investments is about Rs 32,000 crore, up from last year's Rs 25,300 crore. The market value of this investment is about Rs 60,624 crore.

Mr Bhardwaj said the target for this year was to touch 3.33 crore policies and first premium income of Rs 16,895 crore in individual business alone.

He said that LIC would introduce six policies in the current year and once the guidelines on micro-insurance are finalised by the IRDA, they would also introduce products in this area.

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