New Delhi, June 24 Renewal premium collection from unit-linked insurance policies (ULIPs) has almost doubled to Rs 46,239 crore for the fiscal ended March 2008-09, according to Mr S. B. Mathur, Secretary-General, Life Insurance Council. In the previous fiscal, it was Rs 22,380 crore. This is out of the total premium collection of Rs 2.20 lakh crore of the entire industry ” a 10 per cent increase in the same period over the previous fiscal.

ULIP offers a risk cover along with an investment plan. While the share of ULIPs in the total premium income for companies varies from 70 to 90 per cent for most players, in actual numbers they constitute a much smaller proportion of the total policies sold.

In the last fiscal, of the Rs 9.31 lakh crore of total assets managed by the life insurance industry, Rs 7 lakh crore was in the traditional space and Rs 2 lakh crore in ULIPs.

"The growth in ULIPS began the year before last. But the base was small. It was only last year that it showed such a phenomenal growth. Companies have realised that the growth in renewal premium income is greater,  "mr  Mathur said at a media interaction. The reason being, renewal premium collection grew 24 per cent at a time when new business premium income dipped by 7 per cent on a yearly basis.