The recent controversies regarding LIC Housing Finance and the investment arm of LIC had hogged the limelight in the financial circles and elsewhere. LIC (Life Insurance Corporation of India) is one of the most trusted brands in India and any negative news is bound to attract attention just as it was in this case. And CBI making arrests makes the news all the more concerning.
Thomas Mathew, MD of LIC Speaking to Financial Express, Managing Director of LIC, Mr. Thomas Mathew has stated that LIC is very clear that there has been no wrong doing as far as the investment arm goes. The investment division is manned by 200 officials and the managing committee overseas all investments. In addition to this, IRDA conducts regular system audits to ensure things are in place. He also adds that the investigation is about exposure to 8 companies totalling to Rs. 388 crores which is a small amount compared to the overall book size.
He also goes on to mention that LIC investments have got only a small amount as exposure to the real estate sector. Out of 11,00,000 crores as assets, the exposure to real estate is only 0.68%. Even on the equity side, the total exposure to real estate companies is only 0.66%. He adds that all loans are backed by securities and that no loans are classified as NPA (Non Performing Assets).
LIC has undertaken a massive drive to communicate with its staff and agents on the pro-active moves being taken and the processes which are in place to ensure that there is no lack of transparency.
The company is confident there would be no impact on guaranteed returns products also as LIC has enough surplus to absorb any notional losses also, in the worst case scenario.
The 27 crore policyholders of LIC would surely be hoping that all is well at LIC.
You can protect your family with adequate financial stability in your absence. Visit MyInsuranceClub to compare and get the best Life Insurance Plans that suits your requirements.
