New Delhi: The Chief Executive Officer and Managing Director of Life Insurance Corporation of India (LIC), Siddhartha Mohanty, reiterated on Thursday that the country’s largest insurance provider remains committed to reaching rural areas and economically disadvantaged sections of society.
As per agency report, a delegation of LIC agents met with Leader of Opposition in the Lok Sabha, Rahul Gandhi, to discuss concerns regarding recent regulatory changes that they believe have made insurance less affordable for the poorest segments of the population. However, Mohanty dismissed these concerns, emphasizing that LIC’s primary goal is to provide financial security at affordable costs to every insurable individual.
In a statement, Mohanty clarified that LIC has introduced new products that comply with the regulations set by the Insurance Regulatory and Development Authority of India (IRDAI), which came into effect on October 1, 2024. These regulations prioritize policyholders’ interests while ensuring compliance with all regulatory requirements. He highlighted that LIC offers a diverse portfolio catering to various customer segments, with specific plans designed to enhance accessibility and affordability.
Mohanty pointed out that LIC’s ‘Micro Bachat’ plan provides a minimum insurance cover of ₹1 lakh and is exempt from GST, making it more accessible to the underserved population. He also addressed concerns regarding commissions for agents, stating that there has been no reduction in their earnings, as commissions are now structured to be provided in phases.
During his meeting with LIC agents, Rahul Gandhi emphasized that LIC was established in 1956 to ensure affordable insurance for all Indians and assured the delegation that he would raise their concerns in Parliament.
Meanwhile, according to the latest industrial data, LIC recorded a 28.29 percent increase in group yearly renewable premiums and a 7.9 percent rise in individual premiums in the first 11 months of the 2025 financial year. By February 2025, LIC’s total premium collection had reached ₹1.90 lakh crore, reflecting a 1.90 percent increase compared to the ₹1.86 lakh crore collected during the same period in the previous fiscal year.
