The life insurance industry grew by over 65 per cent to Rs 5,436 crore (Rs 54.36 billion) in September compared to Rs 3,291 crore (Rs 32.91 billion) premium income from new business in July, mainly due to the success of Life Insurance Corporation of India's Varishtha Pension Bima Yojana.

LIC, which collected over Rs 2,281 crore (Rs 22.81 billion) from the subsidised pension plan, offering 9.0 per cent assured return, mopped up a total Rs 4,841 crore (Rs 48.41 billion) in premium income in the first half of this fiscal, official sources said in New Delhi.

The PSU insurer sold 82.42 lakh (8.24 million) policies, of which 13.10 lakh (1.31 million) were in group insurance schemes.

LIC accounted for 89 per cent of the premium income of the 13 life insurance companies, which together mopped up Rs 5,436 crore (Rs 54.36 billion) in the first half of this fiscal, the sources said.

Despite the higher growth, LIC's market share slipped by over 1.0 per cent in a month from 90.12 per cent till July.

ICICI Prudential Life was the largest private insurer with a market share of 3.41 per cent after it mopped up Rs 185 crore (Rs 1.85 billion) in premium income till September this fiscal, its CEO Shikha Sharma said.

Birla Sunlife edged past HDFC Standard Life to secure 1.52 per cent of the pie collecting Rs 82 crore (Rs 820 million) in premium.

HDFC Standard Life, which was in the third position till July, mopped up Rs 66 crore (Rs 660 million) in premium and secured 1.22 per cent of the market, a company official said.

Tata AIG was in the fourth position collecting Rs 63 crore (Rs 630 million) in premium and cornering 1.16 per cent of the market size. Other players had less than 1.0 per cent of the market size.