LIC Likely To Take a Call On Composite License: Report A composite license will allow insurers to undertake general and health insurance via a single entity

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

LIC Twitter handle

The country's largest insurer LIC may take a call on composite licence clause after the passage of Insurance Laws Amendment Bill in Parliament, stated a PTI report citing sources.

As per the proposed Bill, stated in the report, an applicant may apply for registration of one or more classes/sub-classes of insurance business of any category or type of insurer. However, reinsurers are prohibited from seeking registration of any other class of insurance business. A composite license will allow insurers to undertake general and health insurance via a single entity.

Sources said LIC would take a call on composite license and other issues emanating out of passage of the Bill in a comprehensive manner taking into consideration Life Insurance Corporation Act, 1956, said the report. It also added that the Bill, with proposed amendments to the Insurance Act 1938 and Insurance Regulatory and Development Authority Act, 1999, is expected to be tabled in Parliament in the upcoming Budget session starting next month.

As per available reports, the finance ministry has recently circulated for wider consultation the amendment in insurance law, including reduction in minimum capital requirement, with a view to enhancing insurance penetration, improve0 efficiency, and enable product innovation and diversification.

As per the market studies, currently, there are 24 life insurance companies and 31 non-life or general insurance firms, including specialised players like the Agriculture Insurance Company of India Ltd and ECGC Ltd. Last year, the government brought an amendment in the Insurance Act to allow increasing foreign holding in insurers from 49 per cent to 74 per cent.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

Google Launches its Largest Office in India to Fuel AI Innovations

The new campus in Bengaluru marks a significant milestone in Google's journey, marking the technological paradigm shift underway with AI

News and Trends

Healthfab Secures USD 1 Mn Funding to Advance Sustainable Menstrual Care

The brand plans to use the fresh capital to expand its reach across metro and Tier II cities while strengthening its R&D efforts.

Business Solutions

Get a Lifetime of Powerful PDF Tools That Won't Give You a PDF Headache

Banish frustrating PDF issues forever and just breeze through all of the old problems with editing, formatting, converting, annotating and more.

Thought Leaders

24 Signs You're Destined to Become a Millionaire

Start making money at a young age. Warren Buffett sold packets of gum to his neighbors at age six!

News and Trends

Probus Smart Things Closes USD 5 Mn Funding Led by Unicorn India Ventures

With the fresh funds, Probus aims to scale its smart grid communication tech, integrate AI into networking solutions, and expand dual communication modules for smart metering across multiple Indian states.