Of late, in a written reply to Parliament on the dwindling number of life insurance policies in the country, Minister of State for Finance, N.N. Meena said, “IRDA has informed that there has been a decline in terms of number of policies in the last three years.
The decline can be attributed to fall in the sale of (Life Insurance) policies in ULIP (Unit Linked Insurance Plan) segment, which contributed to the growth earlier and other general prevailing market conditions in the country.” Statistically speaking, in 2011-12, the number of policies dipped by 8.2% to 4.41 Crore, whereas during the first nine months of the financial year 2012-13, i.e. upto December 2012, the number of polices were down by 0.1% at 2.69 Crore.
A few weeks earlier, while delivering his budget speech on 28th Feb, 2013 the Finance Minister P. chidambaram said, “All towns in India with a population of 10,000 or more will have an office of LIC and an office of at least one public sector General Insurance Company.” He has set a deadline of March 2014 for achieving this target. [..]