After the Corona pandemic, the general public has become very health conscious. Now, when people think about buying insurance, the first thing that comes to mind is a health policy. Meanwhile, the Life Insurance Corporation of India (LIC) has made a big announcement regarding health insurance. The company has said it has no formal proposal to enter the health insurance sector. Currently, life insurance companies cannot issue health insurance policies. The health insurance policy can only be sold by a general insurance company or a health insurance company.
The company provided information.
LIC said in the information provided to the stock market that we have clarified that no such formal proposal (for health insurance through a private health insurance company) has been made so far. In addition to this, the country’s largest insurance company said that LIC generally evaluates various strategic opportunities and also evaluates new options for the growth and expansion of its business, including strategic partnerships and investment opportunities.
What does the norm say?
An insurance license can be granted by amending the Insurance Law. As per the Insurance Act, 1938 and the Insurance Regulatory Development Authority of India (IRDAI) rules, not all insurers are permitted to be licensed to issue life, general or health insurance under a single unit. This means you can get a license for only one segment and LIC sells life insurance policies.
The company’s currency runs in the insurance sector
Life Insurance Corporation of India’s (LIC) share of monthly new business premium (NBP) in the life insurance sector decreased to 58.50 percent in September 2023, down from 68.25 percent in September 2023. 2022. That means there was a drop of 975 basis points. However, there was a slight increase in market share from 57.37 percent recorded in August this year. From this you can guess how important LIC is in the market. The GDP of the life insurance industry had declined by about 13 percent to about Rs 1.59 trillion during the first six months of 2023.
