LIC Eyes Stake in Health Insurance Sector Amid Legislative Shifts

Siddhartha Mohanty, MD and CEO of Life Insurance Corporation (LIC), announced plans to invest in a standalone health insurer within the current financial year. This move awaits board approval following groundwork completion. The shift follows legislative discussions on composite insurance licenses to ease regulatory burdens.

Siddhartha Mohanty, the Managing Director and CEO of Life Insurance Corporation, has expressed the company's interest in acquiring a stake in a standalone health insurer by the end of this financial year. He disclosed this during a post-result media conference on Friday, emphasizing that groundwork is currently underway.

The discussion on the stake's quantum remains unresolved, hinging largely on company valuations, according to Mohanty. Once preliminary preparations are completed, LIC plans to seek board permission to enter the health insurance sector.

The move aligns with February 2024 recommendations by a parliamentary committee for composite insurance licenses, anticipated to alleviate expense and compliance pressures for insurers. This amendment could modify the Insurance Act, enabling life insurance firms to extend health coverage more comprehensively.

(With inputs from agencies.)