Life Insurance Company LIC: The country’s largest government insurance company is going to make a big change in the new year. Life Insurance Corporation of India has also got the amendment bill passed regarding this change and now its composite license clause is being considered.
According to sources, this change of LIC can be of great benefit to the customers. Explain that there is a provision in the proposed bill that if any applicant can register and apply for one or more categories of insurance business of any category.
If any company has a composite license, then in this situation it can offer both general and health insurance services through the same company. For this, they will not have to do separate insurance. According to the agency, in the event of the passing of the LIC Insurance Amendment Bill, the composite license and all other issues related to insurance will be considered keeping in mind the Life Insurance Corporation Act, 1956.
At the same time, re-insurance companies are prohibited from getting registered for any other category of insurance business. Composite licensing will enable insurance companies to offer general and health insurance services through a single entity. It is believed that to amend the Insurance Act 1938 and the Insurance Regulatory and Development Authority Act, 1999, this bill can be tabled in the budget this year. The Finance Ministry is currently planning to make major changes in the insurance law.
Customers will get good returns
The Finance Ministry is planning to make large-scale changes in the insurance law to promote the policyholders and keeping in mind their interests. With this, apart from getting good returns to the policyholders, new employment opportunities will also be created in the market, which will also boost economic growth. At present, there are 24 life insurance companies and 31 non-life or general insurance companies operating in the country.
