28 September, 2020

The FM Has An Insurance Policy

Has LIC become the UPA’s disinvestment bailout agent? Should policyholders be worried?

A Prabhakar Rao; Jitender Gupta
The FM Has An Insurance Policy
outlookindia.com
-0001-11-30T00:00:00+05:53

 

Pros

  • Will allow greater leeway to increase investments in better stocks
  • LIC should be able generate better returns for policyholders
  • Should allow LIC to exit investments in unlisted firms

Cons

  • GoI will continue using LIC as last minute saviour for disinvestments
  • Increased risk for LIC’s already large investments in individual firms, PSUs
  • Government’s agenda undermines policyholder interest, regulator

***

As millions of Indians know well, the Life Insurance Corporation (LIC) is in the business of insuring lives and, for most, generating safe returns. But of late, it’s...

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