LIC’s new-business premium rose 45.26% in August 2026, more than twice the 19.99% growth recorded by private life insurers. The sales gap was driven partly by LIC’s group single-premium business, while claims, product mix, persistency, complaints and servicing provide the sharper buyer comparison.
India’s life insurers collected ₹41,197.78 crore in new-business premium in August, up 33.07% from a year earlier. LIC accounted for ₹23,275.43 crore, up 45.26%, while private insurers collected about ₹17,922 crore, up 19.99%. LIC’s group single-premium business rose 71.9% to ₹17,141 crore during the month and was the largest contributor to its August premium growth. Across the industry, group single premiums rose 56.1% to ₹23,887 crore, while individual non-single premiums grew 13.4% to ₹10,349 crore.
Large Insurers Report High Death-Claim Settlement Ratios
For protection products such as term insurance, the individual death-claim settlement ratio provides a direct comparison of claims paid by number. Claim amounts and repudiation data add context where insurers have materially different policy volumes and average sums assured.
Product Mix Separates LIC From Major Private Insurers
Participating products accounted for 64.89% of LIC’s individual annualised premium equivalent in FY26, while non-participating products, including linked business, accounted for 35.11%. LIC’s non-par individual APE rose 43.78% during the year.
ULIPs remained the largest product category at several major private insurers. They accounted for 60% of SBI Life’s APE, 44% of HDFC Life’s individual APE and 48% of ICICI Prudential Life’s APE in FY26. Protection represented 9% at SBI Life, 7% at HDFC Life and 17.9% at ICICI Prudential Life.
The distinction changes the economics of the policy. Participating policies share in declared bonuses, while non-participating policies do not participate in insurer profits. ULIPs carry investment risk linked to the underlying funds.
Compare Persistency and Complaint Ratios Across Insurers
Persistency measures how much regular- and limited-premium individual business remains in force at specified stages, making it particularly relevant for multi-year savings and investment-linked products.
LIC’s premium-based persistency stood at 74.64% at the 13th month and 59.31% at the 61st month in FY26, compared with 74.84% and 63.12%, respectively, a year earlier. SBI Life reported 87.9% 13th-month persistency and 58.1% at the 61st month for FY26.
LIC launched the My LIC app in April 2026 with policy management, premium payments, online policy updates, revival of lapsed policies and online purchases. The insurer also resolved more than 57.46 lakh queries through its call centre and IVRS in FY26.
HDFC Life offers online premium payments, document downloads, bank and nominee updates, policy revival and claim tracking through its digital service channels. SBI Life reported 5.4 million unique users on its Smart Care platform in FY26.
LIC leads the August growth numbers, while major private insurers carry materially different product mixes and servicing records. Claim settlement is central to protection products; persistency becomes more relevant for long-duration savings policies; and complaint ratios and digital servicing provide additional evidence on post-sale performance.
For buyers comparing an LIC policy with a private-sector alternative, experts from MyRupia can help assess the product structure alongside the insurer’s claims, persistency and servicing record. MyRupia does not sell insurance or earn insurer commissions. Talk to a MyRupia expert for independent insurance guidance
Also read: How Insurance Works in India
Disclaimer: This MyRupia article is for informational purposes only and is based on publicly available government, regulatory and industry sources. It should not be treated as investment, financial, tax, insurance, or legal advice. Information, examples, market data, and expert views mentioned in the article may change over time and should not be considered a recommendation to buy, sell, invest in, or surrender any financial product. Readers should evaluate their individual circumstances and consult a qualified financial professional before making decisions.