(a) whether the Insurance Regulatory Development Authority have notified the liberalised investment norms for LIC and GIC;
(b) if so, the details thereof and the total amount invested by these companies in Government securities after the liberalisation;
(c) whether LIC and General Insurance Company have finalised their plan of investment for the year 2000-2001; and
(d) if so, the expected amount of investment proposed to be made by these companies during the above year?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SH. BALASAHEB VIKHE PATIL)
(a): The Insurance Regulatory Development Authority has notified the Investment Regulations on 14th August, 2000. These regulations cover investment by all insurers carrying on life business, general business and re-insurance business.
(b): Investment guidelines relating to life insurance and general insurance business as notified in Insurance Regulatory and Development Authority (Investment) Regulations, 2000 is at Annexure. The amount invested by LIC in Government securities in the month of September and October, 2000 is Rs.2226 crores and the GIC and the subsidiary companies is Rs.214.97 crores..
(c) & (d): Yes Sir. According to the provisional investment budget, the expected amount of investment by LIC for the year 2000-2001 is Rs.34,425 crores and for the GIC and the subsidiary companies is Rs.3060 crores.
Annexure to Starred Question No. 197 to be answered on 1st December, 2000 in Lok Sabha
Investment Guidelines relating to Life Insurance and General Insurance Business as
notified in Insurance Regulatory and Development Authority (Investment) Regulations, 2000
Life Insurance Business
S.No Type of Investment Percentage
i) Government Securities 25%
ii) Govt. Securities or other approved securities (including (I) above) Not less than 50%
iii) Approved Investments as specified in Schedule I
a) Infrastructure and Social Sector
Explanation: For the purpose of this requirement, Infrastructure and Not less than 15% Social Sector shall have the meaning as given in regulation 2(h) of Insurance Regulatory and Development Authority (Registration of Indian Insurance Companies) Regulations, 2000 and as defined in the Insurance Regulatory and Development Authority (Obligations of Insurers to Rural and Social Sector)Regulations, 2000 respectively b) Others to be governed by Exposure/ Prudential Norms specified in Not exceeding 20% Regulation 5
iv) Other than in Approved Investments to be governed by Exposure Not exceeding 15% Prudential Norms specified in Regulation 5
Pension and General Annuity Business
S.No. Type of Investment Percentage
i) Government securities, being not less than 20%
ii) Government Securities or other approved securities inclusive of (I) 40% above, being not less than
iii) Balance to be invested in Approved Investments as specified in Not exceeding 60% Schedule I and to be governed by Exposure/Prudential Norms specified in Regulation 5
General Insurance Business
S.No Type of Investment Percentage
i) Central Government Securities being not less than 20%
ii) State Government securities and other Guaranteed securities 30% including(I) above being not less than
iii) Housing and Loans to Sate Government for Housing and Fire Fighting 5% equipment, being not less than
iv) Investments in Approved Investments as specified in Schedule II
a) Infrastructure and Social Sector
Explanation: For the purpose of this requirement, Infrastructure Not less than 10 % and Social Sector shall have the meaning as given in regulation 2(h) of Insurance Regulatory and Development Authority(Registration of Indian Insurance Companies) Regulations, 2000 and as defined in the Insurance Regulatory and Development Authority (Obligations of Insurers to Rural and Social Sector) Regulations, 2000 respectively
b) Others to be governed by Exposure/ Prudential Norms specified Not exceeding 30% in Regulation 5
v) Other than in Approved Investments to be governed by Exposure/ Not exceeding 25% Prudential Norms specified in Regulation 5