LIC Denies Entry into Health Insurance Amid Calls for Composite Licensing

Life Insurance Corporation (LIC) clarified it has no formal proposal to enter the health insurance sector. Under current regulations, life insurers are not allowed to underwrite health insurance policies. However, the idea of composite licensing, allowing one entity to handle life, general, and health insurance, is under consideration.

PTI | New Delhi | Updated: 14-06-2024 18:16 IST | Created: 14-06-2024 18:16 IST
LIC Denies Entry into Health Insurance Amid Calls for Composite Licensing
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In a recent development, the Life Insurance Corporation (LIC) has stated unequivocally that there is no formal proposal for its foray into the health insurance domain. This clarification comes amidst speculations and regulatory constraints which prevent life insurers from underwriting health insurance policies.

Currently, health insurance policies are the domain of general insurers or standalone health insurance companies. LIC's regulatory filing made it clear that, although they continually evaluate strategic growth opportunities, there has been no move towards entering the health insurance market.

Expectations for composite licenses, which would allow insurers to manage life, general, and health insurance under a single entity, are growing. A parliamentary panel led by BJP's Jayant Sinha has recommended legislative amendments to foster this change, which could increase insurance access and lower costs for consumers.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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