LIC to complete stake buy in health insurance company by FY25-end, says Chairperson Siddhartha Mohanty

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26 Aug, 2025 12:21

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Life Insurance Corporation of India (LIC) is expected to complete the stake buy in a health insurance company by the end of current financial year, Chairperson Siddhartha Mohanty said on November 8.

“The groundwork is on. By the end of this financial year, I am expecting that we will have some stake in a standalone health insurance company, after receiving clearances from regulatory authorities,” Mohanty said during the post-earnings conference call.

Mohanty refrained from giving name of the company where the company is planning to buy a stake.

ALSO READ: LIC Q2 net profit falls nearly 4% to Rs 7,729 crore

Previously, during the post-earnings call for Q1 FY25, Mohanty had said the state-owned insurer is looking to acquire a standalone health insurance company in FY25 to enter the health insurance business.

Further, on the surrender value norms, which got implemented from October 1, Mohanty said LIC has redesigned its products and they are fully compliant with the regulations. “We have struck a balance between the interests of customers and market intermediaries,” he added.

The new surrender value rules ensure better exit payouts for life insurance policyholders who are unwilling or unable to continue paying for their insurance. Surrender value is the amount a policyholder receives when they decide to terminate their policy before maturity. Insurers deduct a certain amount as ‘surrender charges’ based on the plan's terms.

Previously, no payout was made if a policy was surrendered in the first year, with benefits (30 percent of total premiums) starting from the second year. The new rules introduce benefits from the first year itself, applying to policies with a payment tenure of less than 5 years and single premium policies.