LIC beats private insurers, posts 35% growth in Apr-Feb

LIC holds a Market Share of 70.39%

Next nearest competitor (SBI Life, the leader of Private Cos.!) holds just 5.63% 

Bajaj Allianz, Reliance Life, Birla Sunlife, Met Life, Aviva, ING Vysya, Future Generali, Bharti Axa Life and Sahara Life have posted negative growth

Source: The Financial Express

Public sector insurer Life Insurance Corporation of India (LIC) continued to maintain its market share for the 11-month period ended February 2011.

LIC has notched up a total premium of R73,122 crore as against R54,320 crore reported during the same period in the previous financial year, recording a growth of 35%. On the other hand, private sector companies together recorded a meagre growth of 4% during the same period with a total premium of R30,756 crore. The insurance major notched a total premium of R5,986 crore in February 2011 and holds a total market share of 70.39%, according to a latest data.

However, the ticket size (calculated on individual non-single premium basis) of LIC stood at R7,597 for the period ended February, the data said.

Private sector companies together hold a market share of 29.61%. For the month of February 2011 alone the total premium notched up by the 22 companies was estimated to be around R2.891.50 crore, the data maintained.

In total, life insurance companies together as an industry, reported a healthy growth of 24% for the 11-month period of the current financial year to R103,878 crore when compared with R83,891 crore achieved during the same period in the previous financial year.

On the private sector side, except companies such as Bajaj Allianz, Reliance Life, Birla Sunlife, Met Life, Aviva, ING Vysya, Future Generali, Bharat Axa Life and Sahara Life, other companies reported a positive growth during the said 11-month period.

Among the private sector, SBI Life is leading the pack with a total premium of R5,845.31 crore for the 11-month period ended February 2011 when compared with R5,266 crore achieved during the same period of the previous financial year, witnessing a growth of 11%. The company holds a market share of 5.63% as of February 2011. Next in the line is ICICI Prudential with a total premium of R5,710.54 crore (R4,972.23 crore) with a growth of 14.85% and with a market share of 5.5%.

Claims Data

DEATH CLAIM DETAILS OF ALL LIFE INSURERS FOR THE YEAR 2008-09, 2009-10 AND 2010-11.

Download here

Compiled by: Mr.Raghavan, Jodhpur (raghavan.g52@gmail.com)

LIC's New Business as at 15.3.2011

Pvt insurance firms ‘launder’black money

I-T dept says these companies are getting involved in murky transactions in a bid to capture market share

Source: Bangalore Mirror

Two days ago, when the Lokayukta sleuths raided a few officials, they found Bescom assistant executive engineer B N Rajanna paying insurance premiums worth Rs 15 lakh.

 This, however, did not tally with his salary. But the taxmen see a pattern. According to them, private insurance is emerging as a conduit for diverting black money.

“Private insurance companies are big-time into the business of pushing black money into the market, all because of cut-throat competition. In a bid to grab a sizeable chunk of the market share, these firms are entering into murky transactions,” said an I-T department official.

The official said such transactions do not happen with government-backed insurance companies as they insist on ‘know your customer’ kind of information, in which a potential customer is expected to provide all details about himself before he can buy an insurance policy.

He said a recent audit of the accounts of

LIC collections make up for others' slack

In February, LIC’s new premium collection was up by 12.9 per cent on a year-on-year basis, whereas for its private peers the collection dipped by five per cent.

Source: Business Standard

Premium collection in January was down by 14.5 per cent

On the back of a surge from the Life Insurance Corporation of India (LIC), the first-year premium collection by life insurance companies increased by 23.8 per cent to Rs 1,03,878 crore in the April-February period of the current financial year.

Click here to visit SME Buzz

Also Read   Related Stories News Now - Weekly Report: Markets have a topsyturvy week - ACE announces final settlement price of 4 future contracts - Close Indo-US ties 'defining partnership' of 21st century: US - Kemin Industries to double capacity at Chennai plant - UAE's Etisalat walks away from $12 bn Zain deal More

In this period, LIC collected Rs 73,122 crore by selling new policies, up 34.6 per cent compared to Rs 54,320 crore collected in the corresponding period last year.

During April-February 2009-10, the total first-year premium collected by the industry was Rs 83,891 crore.

According to data collected by the Insurance Regulatory and Development Authority (Irda), during the first 11 months of this financial year, private insurers posted a marginal four per cent rise in premium collection to Rs 30,756 crore, compared to Rs 29,571 crore in the corresponding period last year.

The industry recorded seven per cent growth in premium collection on a month-on-month basis in February to Rs 8,344 crore, compared to Rs 8,301 crore collected in January 2011.

Industry sales took a hit after new norms were introduced in September and most of the growth in terms of premium income happened in the first six months of 2010-11.

The premium collection in January was down by 14.5 per cent, compared to Rs 9,709 crore in December. The new business income in November 2010 was Rs 7,282 crore.

In February, LIC’s new premium collection was up by 12.9 per cent on a year-on-year basis, whereas for its private peers the collection dipped by five per cent.

SBI Life, the largest private life insurer in terms of new business premium income, collected premiums worth Rs 5,845 crore during the first 11 months of 2010-11, up by 1.9 per cent compared to Rs 5,267 crore collected in the corresponding period a year earlier.

  

Bajaj Allianz indicted for unfair trade practices

Source: The Times of India

Companies often lure consumers with attractive schemes, but later try to renege on their commitment. In a significant ruling, the Central Mumbai District Forum bench, comprising president Nalin Majithia and Bhavana Pisal, came down heavily on Bajaj Allianz and directed the insurance company to pay penal and deterrent compensation, which is rarely, if ever, done.

"The consumer forum noted that
Bajaj Allianz had misled the consumers
by offering an attractive policy,
but refusing to honour its commitment,
after collecting nearly Rs 30 lakh as premium"

'Bajaj Allianz informed the policyholder that 

the company had made a mistake

in stating the benefits under the policy'

Onkar Prasad Dixit, a senior official of Sahara Commercial Corporation, had taken a policy known as Bajaj Allianz Swarna Vishranti Pension Plan from Bajaj Allianz General Insurance. The policy was

Death Claim Settlement Ratio 2009-10

Max New York Life—Max fall in claims settlement ratio

Source: Moneylife

The claims settlement ratio for Max New York Life (MNYL) has fallen from 90% (2008-09) to 65% (2009-10). As usual, LIC is the topper. Look out for key ratios of claims settlement, repudiation and pending cases before buying insurance 

(Download this table)

The claims settlement ratio for Max New York Life (MNYL) has fallen from 90% (2008-09) to 65% (2009-10). The 'claims settlement ratio' is the number of claims settled with respect to claims received. 

MNYL has settled 3,943 claims out of the 6,019 claims it had received in 2009-10. 

The 'claims repudiated ratio' is the number of claims rejected with respect to claims received. MNYL has rejected 12% claims (741 out of 6,019). The 'claims pending ratio' is the number of claims pending (not settled, nor rejected) with respect to claims received. MNYL has 22% pending claims (1,335 out of 6,019).

Claims experience has to be one of the

New Business of LIC upto 28.12.2010