LIC not being privatised, no job loss from IPO

NEW DELHI: The government assured the Lok Sabha on Monday that it is not intending to privatise Life Insurance Corporation (LIC).

It has only planned an IPO to raise the market share of the largest life insurer in the country and bring more investment for better prospects of its policy holders.

Reminding the opposition that his government introduced a moratorium on loan repayments to banks when the pandemic hit the country, similarly, if there are problems faced by people in continuing payments of LIC premiums, the insurer may consider providing relief.

“We are just bringing an IPO,” junior finance minister Anurag Thakur said while responding to questions on LIC disinvestment. The extent of share dilution is not yet decided, he said. He said no one is losing jobs in LIC because of the proposed IPO.

He said in 2017-18, the insurer had generated Rs 48,436 crore surplus out of which Rs 46,014 crore was shared with policy holders and Rs 2,421 crore with the government. In 2019-20, the surplus generated was Rs 53,954 crore out of which Rs 51,257 crore was given to policy shareholders and rest Rs 2,697 crore to the government.

Source: The Times of India

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