What slowdown? LIC well in line to cross 25mn policy sales in FY20

LIC says it will cross its 25 million policy sales target well before March 31. The Coronavirus outbreak and subsequent slowdown has led to uncertainty among Indian companies about their ability to meet sales targets for FY20.

M Saraswathy

March 18, 2020 / 11:59 IST

While a slew of companies are dealing with the coronavirus outbreak and the subsequent impact on sales, India’s largest insurer Life Insurance Corporation of India (LIC) said that it was well in line to meet its annual policy sale targets.

LIC said that it had sold 21.42 million policies as of March 17, 2020 as against 21.40 million sold in FY19.

“We are confident of crossing the target of 25 million policies well before March 31,” said LIC in a statement.

However, it is to be noted that monthly business data showed that LIC had a 13.7 percent decline in new premium collection in February 2020 (compared to February 2019) to Rs 10,4040.7 crore. This was due to a 39.2 percent drop in the number of policies/schemes sold.

Industry experts say that the numbers could be down because of companies cutting down on group insurance.

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