In its response to ‘favouritism’ claims by the US Commerce Consultant (USTR), LIC additionally stated it operates in a aggressive market alongside different insurers in an trade that has witnessed phased deregulation by way of this millennium.
“LIC needs to make clear that LIC is handled like every other insurance coverage firm by the federal government and regulators. The guarantee-provided on the time of its institution in 1956-is a statutory provision designed to construct public confidence within the early years of nationalisation,” the insurer stated. “It has by no means been invoked or used as a advertising and marketing software or supplied any undue benefit to LIC.”
Siddhartha Mohanty, MD & CEO, stated that LIC stays dedicated to upholding the best requirements of governance, service, and buyer belief.
LIC is the nation’s second most-valued state-run entity, after the State Financial institution of India.
The USTR report had named LIC and Nationwide Funds Company of India amongst entities receiving beneficial therapy from New Delhi. It had listed a slew of entry obstacles and ‘unfavourable therapy’ confronted by overseas companies in India’s monetary companies sector like banking, insurance coverage, digital funds, and accounting.It had claimed New Delhi supplied specific sovereign assure to each LIC coverage.”Many shoppers select to purchase LIC insurance policies over these provided by personal insurers, giving LIC an unfair aggressive benefit,” the report said.
In its reply, LIC stated that for the previous 25 years, it has operated in a completely aggressive market alongside 24 personal life insurance coverage corporations.
“We firmly imagine the USTR’s views are based mostly on an incomplete understanding of Indian insurance coverage regulation and LIC’s functioning,” stated the insurer.