LIC Responds to USTR's Allegations of Favoritism
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Synopsis
LIC has denied claims from the USTR that it receives special treatment from the Indian government, asserting its equal treatment under regulatory frameworks and emphasizing its commitment to governance and service excellence.
Key Takeaways
- LIC operates without any preferential treatment from the government.
- The USTR's report is based on a limited perspective.
- LIC has a legacy of over 69 years serving 30 crore customers.
- It recorded a significant increase in premiums in FY25.
- LIC is committed to financial inclusion and policyholder protection.
New Delhi, April 4 (NationPress) The Life Insurance Corporation of India (LIC) stated on Friday that it does not receive any special treatment from the government or any regulatory body, following a report from the United States Trade Representative (USTR) that suggested LIC was being given preferential treatment by the government.
The largest insurer in the country clarified in a statement that it is treated equally to other insurance providers by both the government and regulators, urging the USTR to consider a more balanced and factual assessment of its operations.
The company emphasized that the guarantee established during its founding in 1956 is a statutory measure aimed at fostering public trust during the initial years of nationalization. This guarantee has never been exploited for marketing purposes or provided any unfair advantage to LIC,” the firm explained.
Siddhartha Mohanty, the CEO and MD of LIC, asserted that the organization remains devoted to maintaining the highest standards of governance, service, and customer trust.
Over the last 25 years, LIC has functioned in a fully competitive environment alongside 24 private life insurance companies. It is governed by IRDAI and SEBI and does not receive any preferential treatment from either the government or any regulatory authority.
LIC attributed its leadership in the insurance industry to the trust of its policyholders, its commitment to excellence in service, and its financial robustness and transparency.
With a legacy spanning over 69 years, LIC continues to serve more than 30 crore customers across India with dedication and professionalism.
“We firmly believe that the USTR’s opinions stem from a limited understanding of Indian insurance regulations and the operations of LIC. We call for a more balanced and factual recognition of LIC’s contributions to financial inclusion and policyholder protection in India,” the LIC statement concluded.
LIC achieved a remarkable 28.29 percent increase in group yearly renewable premiums and a 7.9 percent growth in individual premiums during the first 11 months of FY25, according to the latest industry data.
As of February 2025, LIC’s total premium collection reached Rs 1.90 lakh crore, reflecting a 1.90 percent rise from the Rs 1.86 lakh crore collected during the same period in FY24.
