Life insurance premium drops 2.33 percent

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

In written reply to a question in the Lok Sabha, Meena said there were various factors responsible for the decline in the life insurance premium. However, the minister did not specify those 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 had said recently that slowdown in economic growth has 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.