LIC sees de-growth on ULIP this fiscal: FinMin

The government today said Life Insurance Corporation of India (LIC) has seen a de-growth in sales of unit linked insurance plans (ULIP) in the current financial year.

“There is de-growth on Unit Linked Insurance Plan (ULIP) which is a trend among the whole insurance industry,” Minister of State for Finance Mr Namo Narain Meena said in a written reply to the Rajya Sabha.

To a question on sales of various products of LIC, Mr Meena said, “On the conventional plans there is growth rate of 11 per cent in policies and 22 per cent in premium till end of February 2012.”

Dispelling the rumour that some of the agents have quit following cut in commission and strict guidelines set for them by LIC, Meena said, “The Corporation has reported that there is no instance of quitting of agents in the LIC due to reduced commission or strict guidelines to agents set for them by LIC.”

“The commission rates for the new products are also approved by Insurance Regulatory and Development Authority of India (IRDA),” he added.