Mumbai: The Indian Life Insurance Industry, contrary to overall economic slowdown, has recorded a robust growth of more than 16 per cent for the nine-month period ended 31 December 2008, collecting total premium (new business + renewals) of Rs131,400 crore, up from Rs113,000 crore during the corresponding nine months in 2007.

As per data released by the Life Insurance Council, the industry body for all the life insurance companies in India, renewal premiums for regular unit-linked insurance plans (ULIPs) witnessed phenomenal growth of 216 per cent to Rs26,600 crore for the nine-month period ended December 2008 compared to Rs8,400 crore in the same period last year. Non-linked premium stood at Rs52,500 crore, up from Rs50,200 crore last year.

The council, the industry body for all the life insurance companies in India, shares quarterly data for 21 life insurance firms including public sector Life Insurance Corporation (LIC).

It said non-linked premiums from single premium policies doubled to Rs10,000 crore from Rs4,900 crore, whereas premiums from ULIPs decreased from Rs15,400 crore to Rs10,400 crore.

New premium from regular linked policies was down from Rs25,200 crore to Rs21,400 crore whereas non-linked policies grew from Rs8,700 crore to Rs10,400 crore.

"Despite the slowdown in the economy, the life insurance industry has continued to grow as policyholders are realizing the value of insurance," said S B Mathur, secretary, General, Life Insurance Council.

Mathur said, "We continue to be optimistic about the future of the insurance business in India and expect the industry to grow at 20 per cent. We stand committed to achieve a target of Rs240,000 crore total premium for FY09," while disclosing the cumulative data for the nine-month period ended December 2008.

Benefits paid to policyholders was worth Rs36,900 crore compared to Rs33,700 crore last year of which death benefit amounted to Rs5,000 crore.

During the last nine-month period, the life insurance industry has continued to significantly raise its contribution to the infrastructure sector with a cumulative investment of Rs95,000 crore as on 31 December 2008, up from Rs90,200 crore for the full year till 31 March 2008, and helped maintain the country's overall economic growth, in an uncertain economic scenario and global slowdown.

Commission expenses in the industry decreased to 6.8 per cent during the nine-month period as compared to 7.5 per cent in the preceding year.

Life Insurance companies have set-up a total of 11,043 branches of which 8,331 branches were set-up by private sector life insurance companies.

The capital deployed at Rs23,200 crore by life insurance companies has seen almost 66-per cent jump from Rs13,900 crore last year.

Since privatisation of the insurance sector in 2000, the life insurance industry in India has witnessed phenomenal growth. Total assets of life insurance companies have grown to Rs8,568 billion as on 31 December 2008.

The Life Insurance Council is a statutory body under the Insurance Act 1938 and the council is the industry association representing 21 life insurance companies operating in India. Since nationalisation of life insurance industry in 1956 there was no felt role for the Council. On the opening up of the sector the Council was revived through an order from the IRDA.

Highlights:

• 216 per cent growth in renewal premiums from regular ULIPs
• Targets total premium of Rs240,000 crore for FY09
• Cumulative Investment of Rs95,000 crore in Infrastructure sector
• Disburses Rs 369 billion policyholder benefit, including Rs 50 billion towards death claims

See: General insurance premium set to gross Rs1 trillion by 2015