The Life Insurance Corporation of India, the country's largest insurer, outperformed private life insurance companies in new premium growth during the April 1-February 29 period of FY16. LIC collected first year premiums of Rs 74,142 crore during this period, against Rs 62,635 crore a year ago, showing a growth of 18 per cent.
Private insurers collected premiums of Rs 33,026 crore in FY16, up from Rs 28,216 crore a year ago. The life insurance sector, as a whole, collected new premiums worth Rs 1.07 lakh crore during the period under review, 18 per cent more than Rs 90,580 crore in the year-ago period.
Life insurance companies have seen a healthy growth in the December 2015 quarter, which is considered the most crucial quarter because it is the period when most people buy insurance products to save tax. In the first few months of FY16, LIC had shown a fall in premium growth, owing to the lack of adequate products in their portfolio. In August, it launched a unit-linked plan, a product that was missing from its product suite for a long time.