CORPORATE
LIC will decide on buying stake in health insurer in FY25: CEO Siddhartha Mohanty
- IBJ Bureau
- Nov 09, 2024
Life Insurance Corporation of India (LIC) MD and CEO Siddhartha Mohanty has said that the State-owned company will take a call on buying a stake in a standalone health insurer in the current financial year.
“The ground work is going on...search for suitable health insurance company is going on...we will finalise stake within this financial year,” he said during the post-results media conference on Friday.
Asked about the quantum of stake that LIC will have in health insurance company, he said that it would depend on various factors, including valuation.
Once all the groundwork is done, he said, LIC would approach the board for its approval to foray into the health insurance segment.
In February 2024, a parliamentary committee had recommended the implementation of composite insurance licences to reduce expenses and regulatory burdens for insurance providers.
At present, life insurance companies are restricted to offering extended health insurance benefits.
Enabling life insurance companies to furnish hospitalisation and indemnity coverage would necessitate an amendment to the Insurance Act.
The panel had suggested the government to introduce a provision of composite licensing for insurance companies and make the related amendment in legislation at the earliest.
Observing that allowing composite licensing could provide further impetus to the insurance sector, owing to its various benefits, the panel report had said it can cut costs and compliance hassles for insurers, as they can run different insurance lines under one roof.
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