First year premium underwritten by life insurance companies during the year ending March, 2012, declined 5.7 per cent in the case of public sector Life Insurance Corporation (LIC) to Rs 81,514.49 crore and 16.91 per for all the private sector life insurers to Rs 32,718.25 crore.
In 2010-11, LIC and private insurers collected Rs 86,444.72 crore and Rs 39,381.3 crore in first year premium, respectively. The combined negative growth of first year premium underwritten by both LIC and private players is -10.79 per cent.
However, the business of non-life companies continued to grow in 2011-12 with the private sector posting a 25.01 per cent growth in first year premium to Rs 24,230.36 crore, compared with Rs 19,382.68 crore in the previous year. The same for the public sector companies grew 21.88 per cent to Rs 34,113.79 crore (Rs 27,990.1 crore).
In the life insurance segment, private companies increased the business in group single premium products to Rs 5,023.33 crore from Rs 3,467.58 crore in the previous year while there was a decline in all the other three product segments, namely individual single premium, individual non-single premium and group non-single premium. In contrast, LIC reported a steep decline in first year premium in individual single premium to Rs 13,386.18 crore, compared with Rs 27,620.15 crore in the previous year.
The figures were released by the Insurance Regulatory and Development Authority (Irda) on Wednesday.