IRDA Annual Report ...

The much awaited IRDA annual report for 2009-2010 has been released on 15th December 2010. The following are the key find-outs from the report:

1. The cumulative losses of private insurance companies stood @ 20,143 crores
2. LIC has shown an increase of 10.8% in profits
3. None of the private players have given dividends to their share-holders yet (only if something is there, they can give!)
4. LIC has paid a dividend of a whopping 1,031 crores to Government of INDIA. For your information, Govt has just invested on LIC a 5 crores rupees in 1956 & look @ the dividend it received in just one single year!
5. Private companies have shut their offices owing to cost cutting measures - the number of offices stood @ 8768 from 8785 in 2008-2009.
6. LIC has opened 220 new offices suggesting a strong growth
7. Operating expense ratio of LIC stood @ a mere 6.58%
8. Operating expenses of Private insurers stood @ 20.86%
9. Private insurers have settled just 84.88% of the claims - 7.60% have been rejected & 7.48% are pending still. 
10. LIC has settled 96.54% of claims - 1.21% of the claims were only rejected & 1.41% is still pending.

Over-all, the lapsation of policies are also well contained by LIC when compared to private players reflecting the fact that in long-run, the profitability is only bound to increase! For more news on the IRDA report, visit www.irdaindia.org