According to the Insurance Regulatory and Development Authority (Irda),around 9.1 million policies lapsed in 2009 and some private sector insurershave shown a lapse ratio as high as 50% or even more. In fact, for the private players, the value of lapsed policies almost doubled in2009.
The lapse ratio for ICICI Prudential Life Insurance Co. Ltd, the life insurance arm of India’s largest private sector lender ICICI Bank Ltd, stood at 53% in 2009, up from 40% in the previous year.
In terms of lapse ratio, Aviva Life Insurance Co. India Ltd, leads the list with 59% policies lapsed.
The Reliance-Anil Dhirubhai Ambani Group-controlled Reliance Life Insurance Co. Ltd saw its lapse ratio almost double—40% in 2009 against 21% a year ago.
The lapse ratio for India’s largest and the only state-owned life insurer Life Insurance Corp. of India (LIC) declined to 4% for 2009 from 6% in the previous year.