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companies would also come down thus affecting the profits, because the investment income has been offsetting the underwriting lossess of the insurers so far.

Performance in the first quarter of 2008-09

(i) Life insurance:

The life insurers underwrote a premium of Rs.14320.20 crore during the first quarter in the current financial year as against Rs.12511.80 crore in the comparable period of last year recording a growth of 14.45 per cent. Of the total premium underwritten, LIC accounted for Rs.7524.56 crore and the private insurers accounted for Rs. 6795.64 crore. The premium underwritten by LIC declined by 12.31 per cent while, that of private insurers increased by 72.88 per cent, over the corresponding period in the previous year. The number of policies written at the industry level declined by 7.78 per cent. While the number of policies written by LIC declined by 23.36 per cent, in the case of private insurers they grew by 44.00 per cent. Of the total premium underwritten, individual business accounted for Rs.10995.90 crore and group business for Rs.

    • 3324.30

      crore. In respect of LIC, individual business was Rs.

    • 5275.71

      crore and group business was Rs.2248.85 crore. In

the case of private insurers, they were Rs.5720.19 crore and Rs.1075.45 crore respectively. The market share of LIC was 52.55 per cent in the total premium collection and 63.88 per cent in number of polices underwritten, lower than 68.58 per cent and 76.87 per cent respectively reported in the previous year. Under the group scheme 56.13 lakh lives were covered recording a growth of 8.51 per cent over the previous period. Of the total lives covered under the group scheme, LIC accounted for 38.96 lakh and private insurers 12.77 lakh. The life insurers covered 12.50 lakh lives in the social sector with a premium of Rs.17.10 crore and underwrote 13.53 lakh policies with a premium of Rs.1275.78 crore in the rural sector.

(ii) Non-Life Insurers

During the first quarter of current financial year, the non-life insurers underwrote a premium of Rs.8778.18 crore recording a growth of 17.85 per cent over Rs.7448.74 crore underwritten in the same period of last year. The private non-life insures witnessed higher growth of 22.43 per cent by underwriting premium to the tune of Rs.3541.78 crore as against

Rs.2892.89 crore underwritten in the same quarter of the last year. The public non-life insurers underwrote a premium of Rs.5236.40 crore, higher by 14.94 per cent in the first quarter of 2007-08. The market shares of public and private insurers were 59.65 and 40.35 per cent respectively. ECGC underwrote credit insurance of Rs.164.70 crore as against Rs.88.09 crore in the previous year resulting in a significant growth of 86.98 per cent.

Segment-wise, the premium underwritten in the Fire, Marine, Motor, Health and Miscellaneous segments by the non-life insurers were Rs.1208.15 crore, Rs.572.99 crore, Rs.3624.23 crore, Rs.1772.57 crore and Rs.1600.24 crore respectively. The Health segment recorded the highest growth (49.67 per cent) in the first quarter of the current financial year over the corresponding quarter of 2007-08. The Fire segment witnessed negative growth (-13.80 per cent) over in the same period.

In terms of number of policies, Fire and Marine, recorded negative growth rates (-5.14 per cent and -4.37 per cent respectively) over the one year period. In the Motor segment,

the public insurers witnessed positive growth rate (23.09 per cent) in the premium underwritten despite issuing lesser number of policies. The premium underwritten in the Motor segment in the first quarter of the current financial year was Rs.3624.23, constituting 41.29 per cent in the total premium underwritten. The contribution from the Public and Private life- insurers in the total Motor premium was Rs.2151.19 crore (59.36 per cent) and Rs.1473.04 crore (40.64 per cent) respectively.

The premium collection in the Health segment went up to Rs.1772.57 in the first quarter of the current year, constituting for 20.19 per cent in the total premium. The number of policies, issued in this quarter, as a ratio of total number of policies worked out to 12.20 per cent. The shares of public and private non-life insurers in the Health segment remained similar to the Motor segment, which constituted 58.72 per cent (Public) and 41.28 per cent (Private) respectively in the first quarter of the current financial year. In terms of number of policies issued Health segment recorded a growth of 12.95 per cent. This growth was sharper in the public insurers with 20 per cent.


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