Fall in life insurance forces govt to think up solutions
December 14, 2012  14:36
The Insurance Regulatory and Development Authority has said the life insurance industry witnessed an 8.22 per cent decline in the number of new policies issued during the financial year 2011-12 as against the policies issued in the previous financial year. 

This was stated by the minister of state for finance, Namo Narain Meena, in a written reply to a question in the Lok Sabha today. 

In terms of premium income generated through sale of new policies, the decline during the financial year 2011-12 was 14.01 pc. The decline in the number of policies sold could be attributed to IRDA's new regulations on the design of ULIP products in the interests of policyholders' welfare and general market conditions prevailing in the country. 

The government has reviewed the performance of life insurance industry with the insurance companies and the regulator. In order to give a boost to the life insurance industry, certain measures have been identified for action which include taxation benefits and regulatory issues relating to product design, distribution and investment.
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