Page 38 - Life Insurance Today March 2018

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Daily SIP option from LIC Life insurer's premium grows marginally in November

MF First year premium of life insurers grew marginally by 5.8% to Rs 16,994.95
crore in November. Total Rs. 16,061.40 crores were raised
To shore up the Assets Under Man- by all 24 life insurers - one state-owned and 23 private
ag ement sector players. State-owned LIC registered a fall of over 1.5
(AUM), LIC per cent in new premium collection at Rs 12,336.53 crore
has intro- during the month, as per the data released by the Insur-
duced daily ance Regulatory and Development Authority of India.
systematic
investment The private players together clocked Rs 4,658.42 crore
plans. The minimum investment op- during November, up 32 % from Rs 3,533.33 crore a year ago, including SBI
tion is of Rs. 300 daily and would be Life's growing to 20.6 % to Rs 880.99 crore; HDFC Standard Life Rs 854.47 crore
available for 5 equity and 2 hybrid (up 64 %) and ICICI Prudential Life Rs 783.88 crore (up 5.8 %).
plans of the asset management
company. It is expected to increase LIC registers 11.5% growth in premium income upto
the SIP inflow from Rs. 23 crores to December 2017
Rs. 30 crores with this scheme. LIC reported an over Rs 2,23,854 crore in premium income for the nine months
"Most asset management compa- through December 2017, up 11.47 per cent from Rs
nies today offer monthly SIPs. At LIC, 2,00,818 crore a year ago. New business performance
we are trying to encourage investors grew 19.47 per cent to Rs 99,783.33 crore, chairman VK
to build a habit of investing daily. Sharma told. LIC has already achieved its single premium
The daily SIP option is available on target for the FY18 as on December 2017, he added.
equity funds and hybrid funds. A Talking about pensions and group superannuation businesses, he said, the com-
sum of Rs 300 invested daily across pany has collected Rs 62,385 crore as new premium income against Rs 51,004
22 working days means the monthly crore a year ago, showing a growth of 22 per cent. This vertical has covered 5.96
investment works out to around Rs
6,600. With the market giving an crore lives under the social security schemes, he added. Total policy payouts in-
overall good return, investors could creased 8.73 per cent to Rs 1,21,986 crore for the period. This includes a payout
of Rs 59,671.50 crore for claims outgoes covering 1,39,45,571 claimants, com-
consider SIP on a daily basis," said
Rajesh Patwardhan, the chief mar- pared to Rs 55,359.52 crore and 1,19,23,937 claimants, respectively.
keting officer of LIC Mutual Fund. Total assets grew 16.75 per cent to Rs 28,51,190 crore, Sharma added. "Our
performance is in line with our expectations. We have recorded healthy results
With investment in SIPs, an individual
can buy units at a given date and take based on our strong fundamentals and core values. Trusted customers have sup-
advantage of compounding returns. IT ported and enabled us to report robust numbers," Sharma said. LIC has over 11
lakh agents, of which 1.30 lakh were added during this financial year. "As we have
gained popularity among Indian mu-
tual fund investors as it encourages in- put an age- limit, we are able to attract young talents now," Sharma said.
vesting in a disciplined manner with- During the reporting period, the Corporation has pumped Rs 70,000 crore into
out worrying about market volatility equities, much higher that the target of Rs 50,000-60,000 crore for the full fis-
and the timing the market. cal year, he added.

38 March 2018 Life Insurance Today