LIC exposure issue: A matter of legal interpretation, says IRDA

Insurance Regulatory and Development Authority (IRDA) today said the government's recent move to allow LIC to own up to 30 per cent in a listed company is a matter of legal interpretation.

"The issue is a matter of legal interpretation. Our view is that LIC should be treated at par with all other private insurers. But the government was of the view that there were certain provisions, only applicable to LIC (as per LIC Act)," IRDA Chairman J Hari Narayan said here on the sidelines of 15th Global Conference of Actuaries by Institute of Actuaries of India.

Talking about expectations from Budget, he said IRDA has recommended Exempt Exempt Exempt (EEE) for long-term products and tax authorities allowing general insurance companies to maintain reserves.

Narayan, who will retire this week, said the regulator is looking at the issue on SKS Microfinance.

"SKS Microfinance was a group manager of group insurance polices. The amount they charged under administrator cost was higher. It was a lack of adequate communication and we are looking in to it," he added.