IRDA's Chief calls raising investment ceiling for LIC imprudent
LIC’s Chairman Mr. J Hari Narayan does not favour the
government’s decision to let it invest up to 30% in a company. He stated that
this is also under the legal agenda as per the Government of India which is of
the view that LIC cannot be treated as the other private insurers as there are
certain provisions, which is in accordance with the LIC Act.
As against the existing norm which states that the LIC can
invest up to 10% in a company, under the Insurance Act, 1999, after the
Government of India stated that the LIC act 1959 supersedes the Insurance act,
1999, the LIC of India will now be allowed to invest up to 30% in a company.
The Chief of IRDA stated that the regulator has enough
autonomy and the issue in question about the LIC holds a legal angle too. The
new product designs and guidelines will be discussed in a meeting of the board
of the Advisory Council. It is a matter of huge concern for the country that
the management expenses in the insurance industry is highest in the world.
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