Life insurance policies rise 11 per cent, premiums up 22 per cent in April-February FY12
20 Mar 2012
Life insurance companies in India saw an 11 per cent increase in policies and a 22 per cent increase in premiums paid during the first 11 months of the current financial year (April-February 2011-12) whereas unit-linked insurance policies (ULIPs) reported a decline in business during the period.
This trend was witnessed across the industry, minister of state for finance Namo Narain Meena informed the Rajya Sabha in a written reply today.
The minister said the number of agents is related to the business potential in the insurance market and that commission to agents are paid as per Section 40(A) (1) of the Insurance Act, 1938.
Further, he said, commission rates for any new products are also approved by the Insurance Regulatory and Development Authority (IRDA).
The minister also refuted reports of agents quitting Life Insurance Corporation of India (LIC) en masse over reduced commission or strict guidelines set by LIC.
The total number of LIC agents, however, has declined to 13,05,430 as of 31 January 2012, from 13,37,064 during the year 2010-2011, he said.
