New Delhi: A bill to increase the paid-up capital of state-run Life Insurance Corporation to Rs100 crore from the current Rs5 crore and to bring it at par with private insurers, will be tabled in Parliament.
“LIC (Amendment) Bill, 2008 is being tabled...This is one short bill that raises equity from Rs5 crore to Rs100 crore,” Finance Minister P Chidambaram told reporters while briefing on decision taken in the Cabinet last night.
The bill will be tabled in the Lok Sabha on the recommendations made by the Group of Ministers, an official statement said.
It will be tabled separately from other insurance bills like Insurance (amendment) Bill, 2008, General Insurance Business (nationalisation) Act, 1972, and Insurance Regulatory and Development Authority (IRDA) Act, 1999.
Currently, insurers have to maintain minimum paid-up capital of Rs100 crore as per the IRDA Act, but LIC was the exception since it is covered by a separate Act.
LIC policies are also guaranteed by the government, which also raises objections from the private players for not creating level-playing field vis-a-vis government-run company.
The Parliament session, which was suspended on 24 October, would be reconvened on 10 December.