Life Insurance Corporation of India (LIC) on Friday refuted observations by the United States Trade Representative that the State-owned insurer gets preferential treatment from the Government of India.
LIC said it is treated like any other insurer by the government and regulators. Responding to an observation in USTR 2025 national trade estimate report on foreign trade barriers that many customers choose LIC policies because Indian government maintains an explicit sovereign guarantee on them, the life insurer said the guarantee is a statutory provision designed to build public confidence in the early years of insurance nationalisation. It has never been invoked or used as a marketing tool or provided any undue advantage to LIC.
For the past 25 years, LIC has operated in a fully competitive market alongside 24 private life insurance companies. It is regulated by IRDAI and SEBI and receives no special treatment from the government or any regulatory authority, the insurer said.
Its leadership in the insurance sector is entirely due to the trust of its policyholders, its commitment to service excellence, and its financial strength and transparency.
“We firmly believe the USTR’s views are based on an incomplete understanding of Indian insurance regulation and LIC’s functioning. We urge for a more balanced and factual appreciation of LIC’s role and contribution to financial inclusion and policyholder protection in India,” the company said.
CEO and MD Siddhartha Mohanty said “LIC remains committed to upholding the highest standards of governance, service, and customer trust.”
On insurance services, the USTR said India maintains an unlevel playing field in the insurance market. State-owned companies are not subject to the same law and prudential supervision as private firms and enjoy various guarantees from the government.
Published – April 04, 2025 10:05 pm IST