LIC CEO Defends Affordable Insurance Amid Rule Changes
LIC of India CEO and MD Siddhartha Mohanty stated on Thursday that the country's largest insurance company has never lost sight of covering rural parts of the country and economically and socially backward classes. A day after a LIC agent delegation called on the Lok Sabha Leader of Opposition Rahul Gandhi and complained of recent rule changes making insurance less affordable for the very poor, the LIC CEO dismissed such claims, stating, "We try to provide financial protection to each insurable individual at an affordable price".
"We wish to make it clear that LIC has launched products as per the New Product Regulations of IRDA, which are effective from October 1, 2024, with policyholders' interests in mind", Mohanty stated.
Emphasizing that LIC is dedicated to expanding life insurance coverage, Mohanty added that with a diversified portfolio for different customer segments and different sections of society, LIC is fully in line with all regulatory norms.
"For instance, our 'Micro Bachat' product has a minimum sum assured of Rs 1 lakh and is GST-free to make it affordable. After changes in product regulations, the commission has not been cut for agents, it has been provided in a phased manner," he told.
Mohanty further stated that LIC is committed to providing financial security to its policyholders while taking care of its agency force's welfare.
During his interaction with LIC agents, Rahul Gandhi informed that the LIC was established in 1956 with the purpose of making insurance cheap and available for all Indians. The Congress leader promised that he would take up this matter in Parliament.
During the same time, LIC posted a 28.29 per cent jump in group annual renewable premiums and a 7.9 per cent increase in individual premiums in the first 11 months of FY25, as per the recent industry data.
As of February 2025, LIC's premium collection aggregated to Rs 1.90 lakh crore, which was a 1.90 per cent increase from the Rs 1.86 lakh crore collected during the same period of FY24.
