LIC Premium Collection Falls by 21% in April – December 2014

The country’s largest insurance company, LIC or Life Insurance Corporation of India has reported a sharp slide in their market share from 77 % to 70 % mainly due to fall in premium collections in the first nine months of the year that in ended December 2014.

Get ₹1 Cr. Life Cover at just
Term Insurance plans
Online discount
upto 10%#
Claim Support
Policybazaar is
Certified platinum Partner for
Claim Settled

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

Get ₹1 Cr. Life Cover at just
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
We are rated
58.9 million
Registered Consumers
26.4 million

The management is confident of company’s bounce back in the last quarter of the year expecting a steady rise in premium collections during the last quarter. Mr. SK Roy, chairman of LIC told us that they are confident that company will deliver a stellar performance as they have witnessed an increase in premium collections by 180 % and 161 % in January and February respectively during the previous year. He further gave guidance about products to be in demand during the next quarter and indicated that traditional products will remain in demand as their returns are linked to their bonus.

According to IRDA data, industry is witnessing slow growth with major players in the industry have registered drop in premium collections during first nine months of the year. Drop in premium collections was visible across the sector and led by LIC with drop by 21 % whereas industry saw a slump of 12 %. The figures stood at INR 51,667 crores for LIC whereas industry figures stood at INR 73,777 crores.

As per analysis, LIC’s loss of market share has proven a boon for major private players in the industry as they gained market share while some industry experts has attributed to rise of these private players to stock market. Stock markets have gained more than 20 % after new government came into power and optimism all around which has direct correlation with performance of private players. Private players have aggressively marketed ULIPs which are directly linked to markets and that is how some of them have gained market share over the last few quarters. The market share of HDFC Standard Life, ICICI Prudential and SBI’s market share stood at 4.66, 4.88 and 4.5 from 2.98, 3 and 3.5 percent respectively.

It is believed that these private players will further give a fight to LIC as stock market is expected to do well due to governments favorable policies said Karthick Srinivasan, Vice President, ICRA, the rating company. However, LIC disagreed with this analysis and said that the reasons for decline in premium collection is due to sluggishness in the economy, weak global macro environment, regulatory restrictions and taxation issues. Mr. SK Roy further said that too much credit is given to ULIPs as well. He also said that LIC expects business to grow very soon as it awaits approval for offering ULIPs and other products.

In an another interview, one of the spokesman from HDFC Standard Life attributed growth of market share to innovative product launches, demand for ULIPs and thrust on distribution channels. He further said that business will continue to grow as we are witnessing growth rate of more than 20% in our premium collections especially in the health segment of the insurance business. But market situations like economy and results from LIC will also make a mark on our performance in the last quarter, he added.

(Source: This article has been adapted from the article "LIC premium collection falls 21% in April-December; Market share slides to 70%" that appeared on February 12, 2015 in

Different types of Plans

Life insurance articles

Recent Articles
Popular Articles
Life Insurance for Gig Economy

16 Mar 2023

A gig economy is a free marketplace in which temporary positions
Read more
Is Life Insurance Mandatory for a Home Loan?

16 Mar 2023

Due to the increase in housing costs, it is now nearly difficult
Read more
SBI Life Insurance 40000 per year Plan for 10 years

06 Mar 2023

A SBI Life Insurance 40000 per year Plan for 10 years is a life
Read more
SBI Life Insurance 50000 per year Plan for 10 years

06 Mar 2023

SBI Life Insurance company offers a comprehensive range of life
Read more
SBI Life Insurance 7-year Plan Maturity Calculator

28 Feb 2023

An SBI life insurance can not only help you create a corpus in
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However
Read more
How to Cancel SBI Life Insurance Policy?
As per the Insurance Regulatory and Development Authority, you can cancel a life insurance policy taken within 15
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is not only about the financial protection of the family but also about working for life’s
Read more
Life Insurance Claim Settlement Ratio
Claim settlement ratio is one of the important parameters that one should consider while deciding on the insurer
Read more
PLI Santosh Maturity Calculator
Maturity calculators have proven to be one of the simple tools for digital-savvy insurance buyers. Postal Life
Read more

View Plans
Download the Policybazaar app
to manage all your insurance needs.