Plans to list the largest life insurer of India

Taking a company public brings in financial and operational discipline with an increased scrutiny by the public shareholders. In the Budget speech 2020, the Finance Minister mentions of disinvestment in Life Insurance Corporation (LIC) through IPO.

LIC is an Indian state-owned insurance group and the investment corporation, owned by Government of India. The Life Insurance Corporation of India was founded in 1956 when Parliament of India passed the Life Insurance of India Act, nationalising the insurance industry in India. Over 245 insurance companies and provident societies were merged to create a state-owned LIC of India.

As of 2019, LIC of India had a total life fund of Rs 28.3 lakh crore. The total value of sold policies in the year 2018-19 is Rs 2.14 crore. Life Insurance Corporation of India settled 2.6 crore claims in 2018-19. It has 29 crore policy holders. Earlier, employees of LIC threatened to go on a flash strike if the Centre announces listing of LIC in the Budget proposals. LIC has saved the government several times in the past with the government’s disinvestment targets taking stake in many PSUs. LIC listing is a huge step. With listing, the public will be able to invest in the largest life insurer of India.