Private insurance company Kotak Mahindra Old Mutual Life Insurance today said that the heavy redemption witnessed by country's mutual funds in view of volatility in stock market would have 'favourable impact' on the insurance industry from next month.

Also Read   News Now Paper Specials - Budget hopes boost Sensex - Wkly Tech Analysis: Sensex rally seen beyond 15,100 - New Cos Bill to be more clear on role of independent directors - CPI(M) leader expresses scepticism over several rail projects - Reservation in pvt sector no answer for the future: Khurshid - Satyam: Govt moves application in CLB to recall nominated directors More     Also Read   News Now Paper Specials - No cap on executive pay: Khurshid - Novartis loses battle for cancer drug patent - Food chains hit the road - RNRL moves SC to restrain RIL from supplying gas - GMR Infra plans Rs 2,500 crore Vemagiri Power expansion More   Also Read   News Now Paper Specials   - Q3 FY09 Results: Earnings Season - Saving Satyam: Govt gets into action - India-Pakistan Tensions: Fallout of Mumbai Terror Attack - Your Money: Where to invest - Market Crash: Global worries weigh - Time Out: Books, fashion, food, travel, sports, health...  More

"There will be a good impact on country's life insurance industry from next month as people will now be inclined to invest their surplus money in the insurance segment which is a safe bet compared to equity market," said Yog Raj Sharma, National Sales Head, Kotak Mahindra Old Mutual Life Insurance.

He informed that the country's mutual fund industry has witnessed heavy redemption amounting to Rs 22,500 crore in last one month.

"This surplus money, which is available in the market will also go to post offices and banks, besides insurance sector," he said.

Admitting that the recent stock market crash amid global turmoil has also hit the Unit Linked (ULIP) Schemes of the life insurance industry, he said that investors would now like to invest in debt and guaranteed securities of ULIP schemes in a bid to prevent the erosion of their funds due to fall in stock market.

Other Stories      - Budget hopes boost Sensex - Wheat futures rise after govt lifts export ban - 50,000 in south China evacuated after rains causes floods - Orders on lie detection plea on July 9 - BSP to launch state-wide protest against fuel price hike - Centre has failed to tackle naxalite problem: BJP   Read Business news in  Advertisements   The most passionate motoring online website for motoring enthusiasts   Smart IT Strategies for Uncertain Times   Renew Your Car Insurance with Tata-AIG AutoSecure   Choose smart affordable IT solutions and meet customer expectations   Required : Sales executive at Bangalore, Click here to apply   Unique Maritime Investment opportunity - U.S. based Group dealing in piracy protection force   Download the E-book on the Future of Business Intelligence   Learn Best Practices for improving customer satisfaction   Know your customers better... download the free e-book on CRM