Life insurance premium drops by 2.33 percent

Last Updated: Fri, Nov 23, 2012 13:00 hrs

New Delhi, Nov 23 (IANS) Money collected by life insurance companies as premiums dropped by 2.33 percent during the quarter ended Sep 30, 2012, largely due to the slowdown in economic growth, Minister of State for Finance Namo Narain Meena said Friday.

In written reply to a question in the Lok Sabha, Meena said various factors were responsible for the decline in life insurance premiums. However, the minister did not specify the factors.

"The reasons for a negative growth in the premium collections are various factors that are influencing the financial sector as a whole," Meena said.

Finance Minister P. Chidambaram said recently that slowdown in economic growth had negatively impacted the performance of banks and other financial institutions.

Non−performing assets (NPAs) of the public sector banks have risen sharply in the recent quarters due to the poor economic growth.

More from Sify: