KOLKATA: Amid disconcerting news of a fall in loan disbursement, production cuts and job losses following the shortage of currency supply, the insurance companies and mutual fund houses emerge as the possible bright spot. Premium collection of life insurance companies has more than doubled in November while investment in mutual funds grew by a three-fourth. Gross written premium for general insurance companies rose 29% year-on-year last month. Prime Minister Narendra Modi’s demonetisation drive has actually helped these financial services companies to attract massive investment while banks were compelled to cut deposit rates amid a deluge of deposits in old Rs 500 and Rs 1000 currency notes. That fact that premium collection and mutual fund payment are mostly done in cheques also helped, while the cash-driven sectors are facing collateral damage. Premium collection for all life insures taken together rose to Rs 16,061 crore from Rs 7,553 crore a year ago, and according to Life Insurance Council secretary general V Manickam, this was largely driven by the success of Life Insurance Corporation of India’s single-premium annuity plan Jeevan Akshay. LIC amassed a total of Rs 12,528 crore worth of premium in November, compared with Rs 5,182 crore in same month last year, after banking barometer State Bank of India slashed bulk deposit rates by nearly 200 basis points. The pension scheme offered an average return of 7.5%, attracting investors in droves after LIC announced the new Jeevan Akshay scheme with average return of 7% from December. The highest deposit rate SBI offers at present is 7%, after the latest cut in the middle of last month. Meanwhile, investment in mutual fund has shot up 75% to Rs 1,399419 crore last month compared with Rs 801,483 crore in the year-ago period. Motilal Oswal Asset Management Company managing director Aashish Somaiyaa said he expects demonetisation to positively impact mutual fund business following sharp fall in deposit rates. The fall in consumption and production would also leave people with idle money. The general insurance sector has recorded a 29% rise in gross written premium to Rs 9147 crore. However, general insurance, which acts as a proxy to industrial activities, may not sustain this momentum. Car premium, which accounts for more than half of general insurance business, may trigger the fall with a 5.5% dip in car sales in November. “There could be 2-3% impact on general insurance business,” said Tapan Singhel, managing director of Bajaj Allianz General Insurance Company.