LIC said in its statement that there is “no formal proposal” to enter the health insurance sector. Currently, life insurance companies are not allowed to underwrite health insurance policies.
The country’s government-owned insurance company Life Insurance Corporation of India (LIC) has issued a statement amid reports of entry into the health insurance market. LIC said in its statement that there is “no formal proposal” to enter the health insurance sector. At present, life insurance companies are not allowed to underwrite health insurance policies. Such policies are sold only by general insurers or standalone health insurance companies.
Information given in regulatory filing
Life Insurance Corporation of India said in a regulatory filing, “We clarify that at present, no such formal proposal (for health insurance through a private health insurer) has been initiated.” However, LIC generally evaluates and investigates various strategic opportunities and also investigates inorganic options for the development and expansion of its business, including strategic partnerships and investment opportunities.”
Parliamentary panel had suggested one license for all insurance
Let us tell you that in February this year, a parliamentary panel had suggested introducing a comprehensive license for an insurance company to do life insurance, general insurance or health insurance under one unit to expand insurance in the country. The panel headed by BJP leader Jayant Sinha had suggested the government to introduce a licensing provision for insurance companies and make related amendments in the law as soon as possible.
IRDAI can change the rules
In such a situation, it is being speculated that the Insurance Regulatory Development Authority of India (IRDAI) can allow one license for all types of insurance by making changes in the act related to insurance. Let us tell you that at present, the Insurance Act, Under the 1938 Act, no insurance company is allowed to sell life insurance, general insurance or health insurance under one unit.
LIC shareholders made huge profits last week
Let us tell you that after this news came out, LIC shares have seen a lot of growth. In Friday’s trading session, LIC shares jumped 6 percent and touched the level of Rs 1068. Talking about the whole week, LIC’s market valuation increased by Rs 46,425.48 crore to Rs 6,74,877.25 crore.
