The data released by the Insurance Regulatory and Development Authority shows that this much growth in premium income of new life insurance policies is a surprise, as the income for same category, during the month of September, was recorded as Rs 8,006 crores, with the decline of 1.75 per cent.

 

Within this total growth rate, the maximum is accounted by Life Insurance Corporation's first premium income growth. During the current month, LIC has posted the rise of 35.21 per cent in its first premium income. Its total premium income from new policies is estimated as Rs 25,814 crores. The company had generated the total premium income of Rs 7,879 crores from its individual single premium policies. This value is a third of the total first premium income generated by the company.

 

The income of Rs 9,997.79 crore is also recorded by the company on account of group-single premium policies. This amount is 40 per cent of the total premium collected through the new insurance policies.

 

LIC's individual non single premium policies which added the income of Rs 7,937 crores, has also helped the company in achieving this desired growth rate. These policies include term covers as well as unit-linked plans.

 

However, the drop of 14.67 per cent in the first premium income of private insurance companies is reported during this month. This drop is mainly because private players are not involved in selling single-premium policies.

 

The premium income of Rs10,285 crores is posted on the account of non-single premium policies by private insurers. This has added a total 77 per cent of premium income collected by private insurance companies during the initial six months of current financial year.

 

According to the Chief Executive Officer and Managing Director of IDBI Fortis, GV Nageswara Rao, the single-premium policies accounts for less rate of commission but an agent can earn well with its larger ticket size.