LIC headquarters in Mumbai
File image of the Life Insurance Corporation of India headquarters in Mumbai | Photo: licindia.in
Text Size:

Mumbai: Refuting claims of its weak financial position, national insurer Life Insurance Corporation (LIC) on Wednesday assured its millions of policyholders that their money is safe and secure as its “financial health is sound.’

The clarification came after messages on social media claimed that the Corporation is in heavy losses, raising concerns over the safety of money of tens of millions of policyholders.

“We refute such false rumours and we would like to assure our policyholders about its sound financial health and urges them not to take cognizance of such misleading news,” LIC said in a statement.

The insurer said the news on social media are factually incorrect, uncorroborated and intend to tarnish its image and also create panic in the minds of the policyholders.

Messages also wrongly speculate about LIC’s financial health and attempt to portray the largest life insurer in poor light in the eyes of its stakeholders, it said.

During 2018-19, LIC had declared the highest-ever bonus amounting to Rs 50,000 crore and upwards to its policyholders.

As of August 31, the insurer’s market share, in terms of number of policies is 72.84 percent and in terms of first year premium it is 73.06 percent, the statement said.

LIC’s market share in first year premium has grown from 66.24 percent in March 2019 to 73.06 percent in August 2019, the Corporation said.

The social media messages came in after media reports said LIC has take a severe beating in his marker play to the tune of tens of thousands of crore in market value as most of the companies it has invested are trading much below its investment value.

Being the largest financial institution, LIC is also the largest investor in the equities and debt market valued at trillions of rupees.


Also read: LIC has lost more than Rs 20,000 crore in just 5 PSU stocks Modi govt made it buy in 2 yrs


 

ThePrint is now on Telegram. For the best reports & opinion on politics, governance and more, subscribe to ThePrint on Telegram.

Subscribe to our YouTube channel.

3 Comments Share Your Views

3 COMMENTS

  1. Rumours might have been spread by private sector companies to get some business of LIC. Atleast LIC agents don’t hide any details whereas private sector insurance agents try to hide and befool customer to get the business. We have faith in LIC , long live LIC with profits.

  2. The crash of an institution like LIC can bring Indian middle classes on the streets against the current Govt, creating a 1975 like situation.

  3. This image of the LIC headquarters is one of my memories as a five year old. These are Crown Jewels created over our existence as a free nation. It would be thoughtless to allow a few years of fiscal profligacy to undo these rock solid financial institutions. Tapping into their pool of accumulated resources – not entirely profits, a lot of it future obligations – in a responsible manner, for long gestation but profitable projects one can understand. Not killing golden geese for a meal of roast duck.

LEAVE A REPLY

Please enter your comment!
Please enter your name here