Special drive to promote social security schemes
Mumbai, Oct. 3
Life Insurance Corporation of India has registered a 150 per cent growth in new premium income for the period April to September 15.
The first premium income touched Rs 12,309 crore, a growth of 150 per cent over the previous year. The corporation raked in first premium of Rs 8,192 crore in the first quarter, buoyed by the rush for ULIPs, ahead of the guidelines for revised products from July 1.
The guidelines specify that ULIPs should have a minimum lock-in period of three years and the death benefit payable or sum assured under the single-premium product has to be at least 125 per cent of the premium paid.
Mr T.S. Vijayan, Chairman of LIC, said the unprecedented growth in June was not sustained in July, August and September. Around 50 per cent of the first premium income came from ULIPs, he said.
During April-September 15 period, the corporation has raked in Rs 2,927 crore under group schemes.
Mr Vijayan hoped to raise the contribution of bancassurance to 5 per cent of the overall premium this fiscal against 2.74 per cent last year.
He said that LIC's total investment across markets would be around Rs 95,000 crore by the end of the fiscal against Rs 85,000 crore last year.
As on August 31, 2006, LIC has invested Rs 17,669 crore in central government securities, Rs 1,115 crore in state government securities, Rs 1,820 crore in infrastructure, Rs 3,340 crore in debentures, bonds and term loans and Rs 3,550 crore in equity shares.
LIC has not received any proposal from SEZs, said Mr Vijayan. "The IRDA regulation is not clear as to whether such investments would fall in the approved or unapproved category," he added.
LIC today launched a special drive to celebrate October as social security month. Mr Vijayan said it hoped to cover more lives under the `Janashree Bima Yojana (JBY)' by spreading awareness among NGOs, Panchayats and self-help groups. JBY provides insurance cover to the economically weaker sections such as fishermen, beedi workers and plantation workers.
LIC has, so far, covered over 1.73 crore people under social security schemes.