LIC refutes USTR Report On Preferential Treatment

Hyderabad: Life Insurance Corporation of India (LIC) has rejected allegations by the United States Trade Representative (USTR) that it receives preferential treatment from the Indian government.

LIC clarified that it is treated like any other insurance company by the Government and Regulators.

USTR in its National Trade Estimate 2025 report, claims that the Indian government’s explicit sovereign guarantee on every LIC policy results in customers choosing LIC over private insurers, giving the state-owned company an unfair competitive advantage.

In a statement, LIC said that the guarantee - provided at the time of its establishment in 1956, is a statutory provision designed to build public confidence in the early years of nationalisation. It has never been invoked or used as a marketing tool or provided any undue advantage to LIC.

“For the past 25 years, LIC has operated in a fully competitive market alongside 24 private life insurance companies. It is regulated by IRDAI and SEBI and receives no special treatment from the Government or any regulatory authority,” the insurer said.

“We firmly believe that USTR’s views are based on an incomplete understanding of Indian insurance regulation and LIC’s functioning. We urge for a more balanced and factual appreciation of LIC’s role and contribution to financial inclusion and policyholder protection in India. LIC remains committed to upholding the highest standards of governance, service, and customer trust,” Siddhartha Mohanty, CEO and Managing Director, LIC, said.

The CEO further said that LIC’s leadership in the insurance sector is entirely due to the trust of its policyholders, its commitment to service excellence, and its financial strength and transparency. “With a legacy of over 69 years, LIC continues to serve over 30 crore customers across India with dedication and professionalism,” he added.