(a) whether the LIC is under severe pressure to comply with the solvency margin
standards mandated by the Insurance regulatory authority IRDA;
(b) whether the LIC has sought a bail-out package from the Centre including
waiver of its distributable surplus payable to the Government every year; and
(c) if so, the details thereof and the reaction of the Government thereto?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S. S. PALANIMANTCKAM)
(a): The Life Insurance Corporation of India (LIC) has to comply with the Solvency
Margin Requirements prescribed under the Insurance Regulatory and Development Authority
(IRDA) Regulations. LIC was given a time frame by IRDA to comply with it ir a phased manner.
As on 31.03.2004 LIC has provided 110.7% Solvency Margin.
(b): No, Sir.
(c): Does not arise.