During FY16, the life insurers issued 267.4 lakhs new policies as compared to 259.1 lakh policies in FY15. As a result, the total number of new policies issued grew by 3.2% in FY16 as compared to a decline of 36.6% in FY15. Of the total new life insurance policies issued, LIC alone issued 205.5 lakh new policies, accounting for 76.8% of the new policies, while the private insurers issued 61.9 lakh new policies accounting for 23.2% of all the new policies issued during FY16.
New Policies issued by Life Insurers
New Policies Issued in FY15 (in Lakh)
New Policies Issued in FY16 (in Lakh)
Type of Insurer
Growth in FY15 (%)
Growth in FY16 (%)
1.9 7.9 3.2
Source: IRDA Annual Report 2015-16
Life Insurance Industry claim settlement ratio for individual policy holders improves slightly in FY16 as compared to FY15 In FY16, the life insurance industry paid benefits of ` 2,011.7 bn constituting almost 55% of the gross premiumunderwritten during the period. During FY15, the life insurance industry had paid benefits of ` 2,109.2 bn, thereby constituting 64.3% of the gross premium underwritten during the period. The benefits paid by the private insurers in FY16 stood at ` 605.7 bn, constituting 60.3% of the premiums underwritten. LIC, on the other hand, paid benefits of ` 1,412.0 bn in FY16 constituting almost 53% of the premium underwritten. With respect to claims settled, in FY16, the life insurance companies settled 8.54 lakh claims on individual policies amounting to ` 126.4 bn. Further in FY16, the life insurance companies rejected 15,157 claims on individual policies amounting to ` 7.4 bn. The claim settlement ratio of LIC was better than that of the private insurers. During FY16, the claim settlement ratio of LIC increased to 98.3% as against 98.2% recorded during the previous year. The percentage of claim rejection by LIC also came down to 0.98% in FY16 as compared to 1.15% in FY15. For the private sector insurance companies, the settlement ratio increased by 2.1%, growing from 89.4% in FY15 to 91.5% in FY16. The percentage of claim rejection by the private life insurers also came down to 6.7% in FY16 as against 7.8% in FY15. The overall life insurance industry’s settlement ratio increased slightly from 96.97% in FY15 to 97.43% in FY16, while the claim rejection ratio decreased from 2.08% in FY15 to 1.73% in FY16. The number of offices of life insurance companies increased to 11,071 in FY16 as compared to 11,033 in FY15. The majority of offices of the life insurance companies are located in semi-urban towns which have a population between 10,000 and 99,000. Around 49% of the offices of the life insurance companies are located in these semi-urban towns. The urban towns with population between 100,000 and 999,999 accounted for second highest number of offices of the life insurance companies. In total, both LIC and private insurers together covered 95.3% of all districts of India. The number of districts in India with no presence of life insurance offices stood at 30. Indian General Insurance Industry In FY16, the total direct premium underwritten by the non-life insurers in India stood at ` 963.8 bn as against ` 846.9 bn in FY15, registering a growth of 13.8% as against 9.2% recorded in the previous year. The public sector general insurers underwrote a premium of ` 476.6 bn in FY16 as compared to ` 425.5 bn in FY15, growing at a pace of 12.1% in FY16 as compared 10.2% in FY15. On the other hand, the total premium underwritten by private general insurers (including standalone health insurers) stood at ` 438.5 bn in FY16 as compared to ` 380.3 bn in FY15, growing by 13.1% during FY16 as against 9.6% in the previous year.
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