LIC south central zone premium up 114%

The south central zone (Andhra Pradesh and Karnataka) of Life Insurance Corporation of India (LIC) has announced that it has achieved a growth of 114 per cent in first premium income as on August 31, 2006, as compared with the corresponding period last year.

The zone's premium collection as on August 31, 2006, stood at Rs 1,209 crore as compared with Rs 563 crore in the corresponding period last year.

The number of policies sold during the period, however, declined by 1.8 per cent from 12.47 lakh as on August 31, 2005, to 12.25 lakh as on August 31, 2006.

The zone has, therefore, registered high growth in premium because of greater contribution from single premium income. Of around Rs 1,209 crore premium collected this year, Rs 893.07 crore was single first premium income and Rs 316.17 crore non-single first premium income.

The zone is also the first among the seven zones of LIC to achieve the annual target in new business premium for pension and group schemes. The target set for the year in terms of new business premium was Rs 500 crore. As on August 31, 2006, the zone achieved Rs 664.6 crore on this count.

The bancassurance and alternative channels department contributed Rs 1,367.33 lakh in single premium and Rs 264.91 lakh in non-single premium as on August 15, 2006. LIC has 27 bancassurance partners in the country, including Andhra Bank, which is contemplating foray into life insurance.

Once the bank gets a license to operate in the insurance segment it will have to discontinue its tie-up with LIC. T Chattopadhyay, zonal manager, LIC south central zone, told mediapersons on the sidelines of a press conference that Andhra Bank had not intimated discontinuation of the partnership as yet.

On a nationwide basis, bancassurance channel contributed Rs 353 crore in terms of premium income in 2005-06, out of which Andhra Bank contributed Rs 14 crore (about four per cent). The bank had set a target of Rs 100 crore for last year. This year, it has already contributed Rs 4.5 crore so far.

The press conference was organised to announce the launch of new Bima Gold, a money-back plan where premiums paid over the term of the plan are paid back during the policy term.