LIC Refutes USTR Claims, Asserts No Special Treatment from Government or Regulators

The Government and regulatory authorities have denied Life Insurance Corporation of India (LIC) preferential treatment, despite reports that a report by the United States Trade Representative (USTR) leveled against it.

In a statement issued on Friday, LIC made it clear that it is subject to the same regulatory regime as any other insurance firm. "LIC is treated equally like any other insurer by the Regulators and Government," the statement said, asking the USTR to make a more balanced and fact-based understanding of its role.

Response to USTR's Allegations
Adressing the favoritism claim, LIC clarified that the government guarantee, which was issued upon its incorporation in 1956, was made to instill public confidence in the initial years of nationalization. Even so, the company said this guarantee has not been invoked at all, nor has it been utilized as a marketing ploy and to secure undue advantage.

Siddhartha Mohanty, MD and CEO of LIC, reiterated the resolve of the organization to sound governance, excellent service, and holding on to its customers' confidence.

Competitive Market and Regulatory Oversight
For the past 25 years, LIC has operated in an open and competitive market alongside 24 private life insurers. The company is regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and the Securities and Exchange Board of India (SEBI), ensuring compliance with the same rules as other insurers.

LIC credited its market leadership to the confidence of its policyholders, focus on service excellence, and fiscal transparency and not any special privileges. With a background of almost seven decades, LIC has over 30 crore customers in India.

Industry Performance and Growth
Brushing aside the USTR's assertions as founded on a partial understanding of Indian insurance rules, LIC called for a more balanced appreciation of its efforts towards financial inclusion and policyholder protection in India.

Based on recent industry information, LIC achieved a 28.29% growth in group annual renewable premiums and a 7.9% growth in individual premiums for the first 11 months of FY25.

As of Feb 2025, the company's total premium collection remained at ₹1.90 lakh crore, which is a rise of 1.90% from ₹1.86 lakh crore during the same period of FY24.