Life insurance policy sales fall 8.22 pc in FY'12: Government

NEW DELHI: The government today said there was a 8.22 per cent fall in the number of new life insurance policies sold during 2011-12 compared to the previous fiscal.

"Insurance Regulatory and Development Authority ( IRDA) has informed that the life insurance industry witnessed 8.22 per cent decline in number of new policies issued during the last financial year 2011-12 as against policies issued in financial year 2010-11," Minister of State for Finance Namo Narain Meena said in a written reply to Lok Sabha.

In terms of premium income generated through sale of new policies, he said, the decline during 2011-12 was 14.01 per cent.

The decline in the number of policies sold may be attributed to IRDA's bringing out new regulations on the design of ULIP products in the interests of policyholders' welfare and general market conditions prevailing in the country, he said.

The government has reviewed the performance of life insurance industry with the insurance companies and the regulator, he said.

In order to give a boost to the life insurance industry, he said, certain measures have been identified for action which include taxation benefits and regulatory issues relating to product design, distribution and investment.

In a response to another question, he said, IRDA has informed that all Insurance Companies functioning in the country are selling their policies online except Agriculture Insurance Company of India Limited (AICIL), Export Credit and Guarantee Corporation (ECGC), L&T General Insurance, Raheja QBE General Insurance, SBI General Insurance and Shriram General Insurance.