LIC refutes claims of 'favouritism' by government

Synopsis

LIC has refuted US claims of receiving 'special treatment' from the Indian authorities and regulators, stating it operates successful a competitory marketplace with different insurers. The insurer emphasized that it is treated similar immoderate different security institution and the warrant from 1956 has ne'er fixed it an undue advantage.

Mumbai: State-run Life Insurance Corp (LIC) Friday refuted US claims of 'special treatment' from the Indian government and regulators, concessions that Washington said helped it unafraid concern from mean citizens astatine the disbursal of privately-run insurers.

In its effect to 'favouritism' claims by the US Trade Representative (USTR), LIC besides said it operates successful a competitory marketplace alongside different insurers successful an manufacture that has witnessed phased deregulation done this millennium.

"LIC wishes to clarify that LIC is treated similar immoderate different insurance institution by the authorities and regulators. The guarantee-provided astatine the clip of its constitution successful 1956-is a statutory proviso designed to physique nationalist assurance successful the aboriginal years of nationalisation," the insurer said. "It has ne'er been invoked oregon utilized arsenic a selling instrumentality oregon provided immoderate undue vantage to LIC."

Siddhartha Mohanty, MD & CEO, said that LIC remains committed to upholding the highest standards of governance, service, and lawsuit trust.

LIC is the country's 2nd most-valued state-run entity, aft the State Bank of India.

The USTR study had named LIC and National Payments Corporation of India among entities receiving favourable attraction from New Delhi. It had listed a slew of introduction barriers and 'unfavourable treatment' faced by overseas firms successful India's fiscal services assemblage similar banking, insurance, integer payments, and accounting.

It had claimed New Delhi provided explicit sovereign warrant to each LIC policy.

"Many customers take to bargain LIC policies implicit those offered by backstage insurers, giving LIC an unfair competitory advantage," the study stated.

In its reply, LIC said that for the past 25 years, it has operated successful a afloat competitory marketplace alongside 24 backstage beingness security companies.

"We firmly judge the USTR's views are based connected an incomplete knowing of Indian security regularisation and LIC's functioning," said the insurer.

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