New Delhi: Life insurance industry logged a 21 per cent increase in premium collections during the first seven months of the current fiscal compared to the same period last year, indicating recovery in the sector.
The growth momentum is evident as the industry grew 18 per cent in the first 6 months, while premium collections in the first seven months rose 21 per cent at Rs 1,20,503 crore from Rs 99,310 crore in the April–October period last year.
Commenting on the performance the Council Secretary General S B Mathur said, "the growth in the industry is propelled by low commission single premium policies."
As per the data compiled by the Life Insurance Council, an industry association comprising of 22 players in the sector, renewal premiums increased by around 24 per cent to Rs 73,952 crore compared to same period last year, while new business premiums increased by around 18 per cent to Rs 46,551 crore on year-on-year basis.
At the same time, total renewal premiums for regular Unit Linked Insurance Plans (ULIPs) witnessed a growth of 42 per cent to Rs 29,738 crore compared to Rs 20,878 crore in th same period last year, while non-linked premium increased by 14 per cent at Rs 44,214 crore from Rs 38,897 crore in the same period last year. Gurumurthy alleged PSU General Insurance Companies had been collecting more premium from big industrial houses and collected less premium from the poor and middle class people through Cross subsidy.Now government had withdrawn that facility,he said.
He said the New India assurance Company, which was the topmost among the General insurance Companies in the country was without a Chairman for the past two months.
Gurumurthy said AIIEA had decided to secure from the policy holders and general public 20 lakh post cards addressed to Prime Minister demanding withdrawal of two Insurance bills in national interest.
On wage talks, Life Insurance Corporation unions had already decided to stage "One-hour-Walk-out" strike preceding lunch recess tomorrow after rejecting the wage offer of 17.5 per cent.
"The government should not compare banks with the Insurance sector while negotiating the wage revision asthe workload in insurance sector was heavy," Gurumurthy said.
Delegates from 150 districts from southern states participated in the conference. The conference also demanded recruitment and upgradation of Part time employees.
He opposed the Tamil Nadu Government`s Health Insurance Scheme which had only ``benefitted Staralliance health Insurance,``.
The state Government instead of spending a Rs.2068 crore on paying premium,could spend the amount on Primary Health centres,`he said.