LIC counters Rahul Gandhi, says it's committed to policyholders, agents

Refuting claims of Leader of Opposition Rahul Gandhi, Life Insurance Corporation of India (LIC) has said that it remains dedicated to providing financial security to its policyholders, while also supporting the well-being of its agents.

The clarification came a day after some of the LIC agents met the Leader of Opposition and raised certain issues regarding recent changes in rules by IRDAI and LIC, which make insurance less affordable for the poorest and most marginalised communities and weaken the position of agents.

"We want to clarify that LIC has introduced products that align with the New Product Regulations set by Irdai, effective from October 1, 2024, keeping policyholders' interests at the forefront," LIC CEO & MD Siddhartha Mohanty said in a statement.

LIC has consistently focused on reaching rural areas and economically and socially disadvantaged sections as it is committed to broadening life insurance coverage, he said.

"Our aim is to extend financial protection to every insurable individual at an affordable cost," he said.

With a diverse portfolio catering to various customer segments and different strata of society, LIC fully complies with all regulatory requirements, he said.

As an example, he said, LIC's Micro Bachat plan offers a minimum sum assured of Rs 1 lakh and is exempt from GST, ensuring accessibility.

Post changes in product regulations, the commission has not been reduced for agents, it has been given in a staggered manner, he emphasised.

"LIC remains dedicated to providing financial security to its policyholders, while also supporting the well-being of its agency force," he added.

Gandhi after meeting a delegation of LIC agents from around the country at Parliament House on Wednesday had posted on social media that they spoke candidly about their concerns regarding recent changes in rules by IRDAI and LIC, which make insurance less affordable for the poorest and most marginalised communities and weaken the position of agents.

"When LIC was formed in 1956, the aim was to provide affordable insurance to all Indians, especially the poorest who had no other social security. I will raise this issue to ensure that the inclusive vision of LIC is protected," Gandhi had said on his WhatsApp channel.