The Life Insurance Corporation of India (LIC) has responded to a claim made by the United States Trade Representative (USTR) report that it receives special treatment from the government or regulatory authorities. LIC has denied this claim, stating that it is treated in the same way as any other insurance company. According to LIC, the guaranteed provision provided at its inception in 1956 is a statutory provision designed to build public confidence and has never been used as a marketing tool or to give LIC an undue advantage.
LIC CEO and MD Siddhartha Mohanty emphasized the company’s commitment to maintaining high standards of governance, service, and customer confidence. LIC has worked in a competitive market with 24 private life insurance companies for the last 25 years, regulated by IRDAI and SEBI, and does not receive special treatment from the government or regulatory authorities. The company attributes its leadership in the insurance sector to the trust of its policyholders, commitment to excellent service, financial strength, and transparency.
LIC has requested the US agency to make a more balanced and factual assessment of its role, instead of making unfounded claims. The company has emphasized that its position is based on its performance and customer confidence, and not on any special treatment it receives. By responding to the claim, LIC aims to clarify the situation and ensure that there is no misrepresentation or misconception about the company’s treatment by the government or regulatory authorities.