Lic Seeks 5 Yrs To Meet Solvency Margin

The Life Insurance Corporation of India (LIC) has sought a five-year time frame to meet the additional 50 per cent solvency margin as asked by the Insurance Regulatory and Development Authority (Irda).

In keeping with the Irda Act, LIC will meet the 100 per cent solvency margin of Rs 10,796 crore by the end of fiscal 2004, said the corporation chairman S B Mathur.

The additional 50 per cent solvency margin needs to be met by the end of 2005.

The solvency margin for LIC works out to Rs 10,796 crore, of which sources stated that the state life insurer has been able to meet this figure to the extent of Rs 9,025.03 crore.

 

The insurance regulator however, on a more cautious note, has advised LIC to maintain 150 per cent solvency margin, pushing the required solvency margin (RSM) to Rs 15,909.41 crore.

This is in accordance with LIC