Total life insurance premium crosses Rs2 60,000 crore

Mumbai: According to the FY 09-10 provisional data released by Life Insurance Council, the industry body for life insurers in India, the total life insurance premium collected grew by 18 per cent in Fy09-10 to Rs261,025 crore, up from Rs221,791 crore in the previous year.

New business premium increased by 25 per cent to Rs109,213 crore in FY 09-10 from Rs87,006 crore last year, while renewal premium grew by 13 per cent to Rs151,812 crore.

The council said that of the 11,927 branches set up by life insurers, 70 per cent  were in semi-urban or rural areas.

Financial payouts to policy holders  rose 42.82 per cent to Rs83,327 crore in FY 09-10, up from Rs58,343 crore in the corresponding period last year.

''Life insurance companies have been adhering to rural and social sector obligations by covering more than 1.93 crore lives in the social sector in FY 2008-09," said S B Mathur, secretary general, Life Insurance Council.

Life insurers have also sold over 2.8 crore policies in rural areas in FY08 and FY09.