Bill to raise minimum capital of LIC
A Bill seeking to amend the over 50-year old Life Insurance Corporation Act was introduced in the Lok Sabha on Friday to raise the minimum capital from Rs 5 crore to Rs 100 crore and empower LIC to make regulations in respect of agents and employees, including their recruitment. Finance Minister Pranab Mukherjee introduced the Life Insurance Corporation (Amendment) Bill, 2009, which also says that the minimum capital can be further enhanced to such amount as the Central government may, by notification, determine.
The bill would also empower LIC to make regulations in respect of terms and conditions of the agents, including method of recruitment of employees and agents.
The amendment would provide sovereign guarantee to the policies of LIC to “the extent to be determined by order, by the Central Government, from time to time”.
The new Act would allocate 90 per cent or more such surplus, as the Central government may approve, for life insurance policy-holders .
