The Life Insurance coverage Company of India (LIC) said on Friday that it doesn’t obtain preferential treatment from the federal government or any regulatory authority, in response to a report from america Commerce Consultant (USTR) alleging that LIC is being favored by the Indian authorities.
In accordance to the USTR report, LIC and the Nationwide Funds Company (NPCI) had been cited as entities receiving beneficial treatment from the Indian authorities, which the US claims is creating obstacles for international corporations wanting to enter India’s monetary business.
The report additionally highlighted considerations in regards to the requirement for digital cost information to be saved regionally, stating that this impedes international corporations’ potential to fight fraud and guarantee community safety globally.
The 2025 Nationwide Commerce Estimate Report revealed by the USTR emphasised that international corporations consider the information storage mandate hinders their potential to shield towards fraud and preserve the safety of their networks.
“International corporations assert that the information storage requirement hampers the power of service suppliers to detect fraud and make sure the safety of their world networks,” stated the 2025 Nationwide Commerce Estimate Report revealed by the Workplace of the US States Commerce Consultant (USTR).
Within the assertion launched by LIC, it stated that the insurer is taken into account to be handled equally to different insurance coverage corporations by authorities and regulatory our bodies. They’re calling on the US company to have a extra honest and correct understanding of their function.
“The assure — offered on the time of its institution in 1956 — is a statutory provision designed to construct public confidence within the early years of nationalisation. It has by no means been invoked or used as a advertising and marketing instrument or offered any undue benefit to LIC,” stated the corporate.
In accordance to Siddhartha Mohanty, CEO and MD of LIC, “it stays dedicated to upholding the very best requirements of governance, service, and buyer belief”.
“We firmly consider the USTR’s views are primarily based on an incomplete understanding of Indian insurance coverage regulation and LIC’s functioning. We urge for a extra balanced and factual appreciation of LIC’s function and contribution to monetary inclusion and policyholder safety in India,” LIC stated in its assertion.
The report highlighted {that a} vital variety of prospects favor buying LIC insurance policies over these offered by personal insurers, leading to an advantageous aggressive place for LIC. Moreover, it famous that international accounting corporations encounter challenges when trying to enter the Indian accounting providers sector, as solely entities organized as partnerships in accordance to Indian legislation are permitted to provide monetary auditing providers.
LIC has been a participant in a aggressive marketplace for the final 25 years, working alongside 24 personal life insurance coverage corporations. It’s topic to regulation by IRDAI and SEBI and doesn’t obtain any preferential treatment from the Authorities or regulatory authorities.
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