NEW DELHI - Money collected by life insurance companies as premiums dropped by 2.33% during the quarter ended Sep 30, 2012, largely due to the slowdown in economic growth, minister of state for finance Namo Narain Meena said on 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.
Be Part of Quality Journalism
Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.