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The Insurance Regulatory and Development Authority has relaxed the debt investment limit for Life Insurance Corporation of India.
The Government on Wednesday said it has relaxed the debt investment norms for Life Insurance Corporation of India. “We have settled for 20 per cent and in special circumstances, we can go up to 25 per cent. So, we are reasonably happy. In case LIC wants, the board can take this to 25 per cent with special approval,” Financial Services Secretary Rajiv Takru told newspersons at the CII Insurance Summit here.
LIC, the country’s largest life insurance company, is expected to invest around Rs 2.25-lakh crore, including equity investment of around Rs 40,000 crore, this year.
Speaking at the summit,IRDA Chairman T. S. Vijayan said the regulator has decided to increase LIC’s debt limit in sectors such as banking, housing finance and infrastructure.
However, Takru pulled up insurance companies for mis-selling products to customers. “ Insurance companies should be fair and there shouldn’t be premium payment denial. They should not betray the trust,” he said.
On the new guidelines on bancassurance, which allow banks to sell products of multiple insurance companies, Takru said insurers have to comply with the norms of both regulators - the IRDA and the RBI.
“There is no case for a rise in mis-selling due to this new norm,” Takru said.
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