Government insurance company LIC is not taking the name of reducing the difficulties. The premium income of the life insurance company has registered a decline of seven percent on year-on-year basis in the June quarter of the financial year. During this, a growth of 11 percent has been registered in the collective premium of private insurance companies. Due to the weak performance of LIC, the new business premium (NBP) of the life insurance industry decreased by about one percent on an annual basis to Rs 73,005 crore.
According to the data released by the Life Insurance Council, the collective new business premium of 26 private sector life insurance companies increased by 10.58 percent year-on-year to Rs 28,167.66 crore during the first quarter. LIC’s new business premium saw a decline of 6.98% and stood at Rs 44,837.20 crore. Except for the annual renewal premium of the company, there has been a decrease in the income of all categories.
Sharp fall in single premium
However, in the month of June, LIC’s New Business Premium (NBP) stood at Rs 24,970.82 crore after an increase of about 21%. The premium income of the company had declined significantly in April and May. In April 2023, where the NBP of the entire life insurance industry saw a decline of 30 percent on an annual basis, the NBP of LIC alone had come down by 50.41 percent year-on-year to Rs 5,810.1 crore. The main reason for this decrease was attributed to the sharp decline in group single premium. LIC’s personal single premium fell 23.1 per cent to Rs 1,014.5 crore in April, while group single premium fell 65.8 per cent to Rs 2,899.6 crore.
Let us tell you that in this year’s budget, the government had abolished the tax exemption under section 80-C on non-ULIP insurance premium above Rs 5 lakh, the effect of which is visible on the insurance business. At the same time, after being listed in May last year, LIC’s stock is continuously getting beaten in the stock market. After being listed in the market, LIC’s share has fallen by 34 percent.
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