State-run Life Insurance Corporation of India, popularly known as LIC, is reportedly planning to foray into health insurance space. The insurance behemoth has already done some “internal ground work” in this regard, according to a report published in ‘The Times of India’.
LIC is exploring potential acquisition opportunities, the report said quoting LIC chairman Siddharta Mohanty.
In February this year, a parliamentary panel suggested composite licensing for insurance companies. A composite licence will allow insurers to operate both life and non-life insurance products, including health, term and vehicle insurance plans.
Health insurance segment foray: LIC starts internal ground work
Composite licences are expected to be allowed by the new government and “we have done some internal groundwork”, Mohanty was quoted as saying in the report.
Stating that the company lacks expertise in general insurance, he said LIC is interested in health insurance business and looking at “opportunities for inorganic growth”.
Currently, IRDAI allows life companies to offer only long-term benefit covers under health insurance. For them to provide hospitalisation and indemnity cover, the Insurance Act will have to be amended.
The parliamentary panel, which recommended composite licensing for insurance companies in February this year, also proposed lowering the GST rates from the current 18% level for health and term insurance policies.
LIC Q4 results
Meanwhile, the insurance behemoth on Monday posted its March quarter (FY24) results. LIC’s net profit rose by a marginal 2% to Rs 13,673 crore year-on-year.
Total income during the March 2024 quarter jumped to Rs 2.51 lakh crore from Rs 2 lakh crore in the corresponding period of the previous fiscal year.
LIC earned Rs 77,368 crore from renewal premiums during the three months ended March 2024 against Rs 76,009 crore in the same period of the previous financial year.