Kolkata, Apr 12: LIC is expecting its income to grow at more modest rates than very high compounded annual growth of 20 per cent that was recorded in previous few years, S B Mathur, the LIC chairman, said today. "We expect a 10-15 per cent growth in new premium income during the financial year 2002-03 from Rs 49,000 crore mobilised in 2001-02, but it will be difficult to maintain the compounded annual growth of 20 per cent recorded during the past few years," Mathur told reporters here.
He said the last two years were an aberration and there was spurt in premium income from single premium policies. In view of the government deciding to withdraw certain benefits, the premium income might come down.
Earlier, addressing the 101st annual general meeting of Merchants' Chamber of Commerce Mathur said LIC's total income in 2001-02 was Rs 73,000 crore and the total payout by way of benefits to policyholders was Rs 17,000 crore.
The growth of operations in recent years had ensured that the penetration of life insurance increased from 1.41 per cent in 1995 to 2.15 per cent in 2001, he said.
The share of life insurance premium in gross domestic financial savings increased from 7.2 per cent in 1995 to 12.2 per cent in 2001. Bureau Report