LIC Refutes USTR Allegations of Preferential Treatment

Synopsis: The Life Insurance Corporation of India (LIC) has firmly denied claims made in the U.S. Trade Representative's (USTR) report alleging that LIC receives preferential treatment from the Indian government, which purportedly creates barriers for foreign firms in India's financial sector.

In a recent statement, the Life Insurance Corporation of India (LIC) addressed allegations presented in the U.S. Trade Representative's (USTR) report, which suggested that LIC benefits from favorable treatment by the Indian government, thereby hindering foreign firms' entry into India's financial industry.

The USTR report highlighted concerns regarding entities like LIC and the National Payments Corporation of India (NPCI), indicating that such organizations receive government support that may disadvantage foreign competitors.

LIC responded emphatically, stating that it operates on a level playing field with other insurance companies and does not receive any special advantages from governmental or regulatory bodies. The corporation emphasized that the statutory guarantee provided during its establishment in 1956 was intended solely to build public confidence during the early years of nationalization and has never been utilized as a marketing tool or to gain undue advantage.

Siddhartha Mohanty, CEO and Managing Director of LIC, reiterated the organization's dedication to maintaining high standards of governance, service, and customer trust. He urged the USTR to adopt a more balanced and factual perspective regarding LIC's role and its contributions to financial inclusion and policyholder protection in India.

The USTR report also raised issues about India's data localization requirements, asserting that mandates for local storage of electronic payment data impede foreign firms' abilities to combat fraud and ensure global network security.

In conclusion, LIC maintains that it has been competing fairly in the market alongside 24 private life insurance companies over the past 25 years, adhering strictly to regulations set forth by the Insurance Regulatory and Development Authority of India (IRDAI) and the Securities and Exchange Board of India (SEBI), without any preferential treatment from the government or regulatory authorities.

Disclaimer: This article is based on publicly available information and statements from the Life Insurance Corporation of India. The perspectives presented reflect the positions of the respective entities involved.