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Wednesday, 23 June 2010 06:06 |
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Life insurers’ premium up 63% amid Ulip row
By Dipak Mondal Jun 22 2010 , New Delhi
Despite the controversy surrounding the regulation of unit-linked insurance policies (Ulips), new business premium of life insurance companies grew 63 per cent to Rs 8,218 crore in May 2010, compared with Rs 5,050 crore in the same month last year.
Public sector insurer Life Insurance Corporation (LIC) registered 82 per cent jump in new business premium, growing from Rs 3,241 crore in May 2009 to Rs 5,907 crore in 2010.
Private life insurers saw new premium grow from Rs 1,809 crore in May 2009 to Rs 2,311 crore in 2010, a growth of 28 per cent.
The controversy over the regulation of Ulips started after the Securities and Exchange Board of India (Sebi) in April barred 14 life insurance companies from selling Ulips, calling them investment products and asking insurers to seek approval from it before launching such products.
Following the controversy, most companies kept the launch of new unit-linked products on hold.
However, now that the government has made it clear that Ulips will continue to be regulated by the Insurance Regulatory and Development Authority (Irda), the industry hopes to launch new Ulips soon.
Among private life insurers, ICICI Prudential collected new premium of Rs 460 crore in May 2010 compared with Rs 346 crore a year ago, a jump of 36 per cent.
SBI Life garnered Rs 442 crore new business premium during the same month, posting a 37 per cent increase over last year’s.
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