LIC sees degrowth on ULIP this fiscal: FinMin

The government Tuesday said Life Insurance Corporation of India (LIC) has seen a degrowth in sales of unit linked insurance plans (ULIP) in the current financial year.

New Delhi: The government Tuesday said Life Insurance Corporation of India (LIC) has seen a degrowth in sales of unit linked insurance plans (ULIP) in the current financial year.

"There is a degrowth on Unit Linked Insurance Plan (ULIP) which is a trend among the whole insurance industry," Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha.

To a question on sales of various products of LIC, Meena said, "On the conventional plans there is growth rate of 11 percent in policies and 22 percent in premium till end of February 2012."

Dispelling the rumour that some of the agents have quit following cut in commission and strict guidelines set for them by LIC, Meena said, "The corporation has reported that there is no instance of quiting of agents in the LIC due to reduced commission or strict guidelines to agents set for them by LIC."

"The commission rates for the new products are also approved by Insurance Regulatory and Development Authority of India (IRDA," he added.

PTI