Premium collected by life insurance companies dropped 3.45 per cent in the April-October period due to various factors that are influencing the financial sector as a whole.
As per the data released by the Insurance Regulatory and Development Authority of India (Irda), premiums collected by 23 private sector companies and lone state-owned LIC totaled Rs 53,814.09 crore during the period.
They together had collected Rs 55,737.84 crore in the April-October 2011 period. India's largest life insurer LIC reported a drop of 2.88 per cent in its premium collection, while the decline in private companies was 5.07 per cent.
LIC's premium collection stood at Rs 40,069.84 crore in April-October as against Rs 41,259 crore in the year-ago period.
Private insurers netted Rs 13,744.25 crore as against Rs 14,479 crore in the corresponding period of 2011-12. Life insurance companies collect premium under four segments -- individual single, individual non-single, group single and group non-single.
Reliance Life's premium collection dropped by 14.78 per cent, that of ICICI Prudential by about 6.9 per cent and of HDFC Standard Life by approximately 5 per cent.
Last week, the Finance Ministry had said in Parliament that the reasons for a negative growth in the premium collections are various factors that are influencing the financial sector as a whole.