(a) whether Life Insurance Corporation (LIC) of India has posted a massive slump in
sales with the first premium income during April- June, 2002;
(b) if so, the details thereof and the reasons for the same; and
(c) the steps taken/proposed to be taken by the Government to increase the sale and
income premium?
MINISTER OF STATE IN THE MINISTRY OF FINANCE & COMPANY AFFAIRS (SHRIANANT G. GEETE)
(a) & (b): The Life Insurance Corporation of India(LIC) has informed that the First
Premium Income collected/received by them during 1 st April, 2002 to 30th June, 2002
is Rs.905.88 crore. During the corr~sponding period in 2000 and 2001, the Corporation
received a First Premium Income dfRs. 657.51 crore and Rs. 2,961.03 crore respectively.
LIC has mentioned that the previous financial year (2001-2002) was an exceptionally good
year from the point of view of growth of business registering an increase of 137.03% compared
with the increase in business of64.98% during the year 2000-2001 which itself was a record
growth. Some of the schemes of the Corporation with guaranteed returnS
were very popular which resulted in exceptional growth of business last year.
Consequent to the decline in interest rates in the economy, some of these Plans
have been modified or withdrawn. This has resulted in a temporary set back to the business.
(c) : The Corporation has been taking various steps to increase the sale of new policies
and thereby increase the premium income. These include strengthening of the marketing force
by recruitment of new Agents, regular training sessions and renewed publicity activities
through various media. Corporation has also taken steps to recruit Corporate
Agencies for exploiting bulk business potential available in various segments.