LIC, pvt insurers to be treated equally on equity cap: Irda
As per the LIC Act, the state-run life insurer could invest up to 30% of its total funds in a single entity. In a notification on its website on Friday, Irda confirmed that insurance companies can raise their equity investment cap for insurers to 12-15% from the earlier 10% cap, depending on their controlled fund.
Hari Narayan said only insurers with a controlled fund above R50,000 crore could go beyond the 10% investment cap. “There are about four or five insurance players including LIC and ICICI Prudential who have controlled funds above R50,000 crore,” he said. Players who have a controlled fund between R50,000 crore and R2,50,000 crore, will be allowed to raise their equity stake in a company to 12%. Insurers with controlled fund above R2,50,000 crore will be allowed to take up to 15% equity stake in