Extending affordable financial protection to every insurable individual: LIC CEO

IANS March 20, 2025 189 views

LIC's CEO Siddhartha Mohanty has assertively defended the organization's commitment to providing affordable insurance across all social segments. He specifically highlighted the 'Micro Bachat' plan as an example of their strategic approach to financial inclusion. The statement comes after LIC agents met with Rahul Gandhi to discuss recent regulatory changes potentially impacting insurance accessibility. Despite concerns, LIC reports a positive financial trajectory with increased premium collections and a continued focus on serving diverse customer needs.

"We aim to extend financial protection to every insurable individual at an affordable cost." - Siddhartha Mohanty, LIC CEO
New Delhi, March 20: Siddhartha Mohanty, CEO and MD of Life Insurance Corporation of India (LIC), said on Thursday that the nation's largest insurer has consistently focused on reaching rural areas and economically and socially disadvantaged sections.

Key Points

1

LIC introduces 'Micro Bachat' plan with minimum Rs 1 lakh assured

2

Agency commissions restructured under new IRDA regulations

3

Premium collection rises 1.90% to Rs 1.90 lakh crore

4

Rahul Gandhi pledges to raise insurance affordability in Parliament

A day after a delegation of LIC agents met the Leader of Opposition in the Lok Sabha, Rahul Gandhi, and raised issues regarding recent changes in rules which make insurance less affordable for the poorest, the LIC CEO denied such concerns, saying, "We aim to extend financial protection to every insurable individual at an affordable cost."

"We want to clarify that LIC has introduced products that align with the New Product Regulations set by IRDA, effective from October 1, 2024, keeping policyholders' interests at the forefront," Mohanty said in a statement.

Stressing that LIC is committed to broadening life insurance coverage, Mohanty said that with a diverse portfolio catering to various customer segments and different strata of society, LIC fully complies with all regulatory requirements.

"As an example, our 'Micro Bachat' plan offers a minimum sum assured of Rs 1 lakh and is exempt from GST, ensuring accessibility. Post changes in product regulations, the commission has not been reduced for agents, it has been given in a staggered manner," he informed.

Mohanty added that LIC remains dedicated to providing financial security to its policyholders while supporting its agency force's well-being.

In his meeting with LIC agents, Rahul Gandhi said that the LIC was formed in 1956 to provide affordable insurance to all Indians. The Congress leader assured that he would raise this issue in Parliament.

Meanwhile, LIC recorded a 28.29 per cent surge in group yearly renewable premiums and a 7.9 per cent rise 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 stood at Rs 1.90 lakh crore, reflecting a 1.90 per cent increase from the Rs 1.86 lakh crore collected in the corresponding period of FY24.

Tags:
LIC Insurance Siddhartha Mohanty Rahul Gandhi Financial Inclusion IRDA Regulations
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