Visakhapatnam: LIC clocks record performance

Visakhapatnam: The All India Insurance Employees’ Association (AIIEA) announced that the LIC has closed its books for the year 2022-23 with yet another remarkable performance.

According to the AIIEA representatives, LIC collected a record first year premium income of Rs 2.31 lakh crore, recording a growth of 16.75 per cent. It garnered Rs 58,632 crore through individual business and a record of Rs 1.73 lakh crore through group business.

It sold 2.4 crore policies. The public sector general insurance companies have also done remarkably well, recording a growth of 10.33 per cent. The remarkable performance has come in the background of a tight macro-economic environment and budgetary proposals.

There are reports that the government would table a Bill to further amend the Insurance Laws in the Monsoon Session of the Parliament. Through these amendments, the government intends to change the minimum capital requirement, commission structure and allow issuance of composite licenses.

In simple words, the government is taking the insurance sector to the pre 1956 era which would make this sector vulnerable to fraudulent practices endangering the savings of the people. The IRDAI is also planning to crowd the market by announcing that it is likely to issue licenses to nearly twenty more companies both in life and non-life business, general secretary of AIIEA Shreekant Mishra said.

The AIIEA demands that the government should take steps towards merger of public sector general insurance companies to enable them to derive economies of scale and ensure greater profitability.