The questions raised on the country’s largest insurance company LIC now rest directly on the public’s savings of Rs 55 lakh crore. Every Indian family has some part of it associated with LIC – hence the latest stir regarding the company’s investment decisions has raised the heartbeats of crores of policyholders.
After all, on what basis is the country’s most trusted insurance company taking its big investment decisions? And is the public’s hard-earned money really at risk?
In fact, the country’s most trusted insurance company LIC has suddenly come into the center of political and social media debate these days. Reason: Allegation that LIC is investing its investors’ money in big corporate groups like Adani and Reliance as ‘risky investments’. But the company has not only rejected these allegations, but has also stated with concrete data that the reality is exactly the opposite. Let us tell you that LIC manages the savings of Rs 55 lakh crore in the country.
LIC’s counterattack: Allegations without evidence, but we have data LIC clearly said that the people accusing it neither present any facts nor any real data. While the company does detailed analysis before every investment it makes, IRDAI follows rules and the final decision comes with board approval – not at the whim of any single official or leader.
How successful was LIC’s bet? Statistics tell the whole story: 10 times return in 11 years The company said that its equity portfolio was Rs 1.5 lakh crore in 2014, which has increased to Rs 15.5 lakh crore today.
Investment not in just one or two groups LIC currently invests in over 300 Indian companies – across sectors ranging from Tata, Birla, Adani, Reliance and many more.
Investing in Adani Group – in profit, not in loss Since 2017, LIC had invested about Rs 31,000 crore in Adani Group, whose current value has increased to Rs 65,000 crore. That means this investment is not a loss, but has more than doubled.
When foreign companies invest then it is right, if LIC invests then it is wrong? LIC also said that at the time it invested about Rs 5,000 crore in Adani Group, at the same time the leading US insurance companies – MetLife and Athene Life – were investing about Rs 6,700 crore.
The company’s question was – how is this a smart move for foreign investors, and how is it risky for LIC? Why does LIC investment matter? LIC claims that every investment is made keeping in mind the future of common Indian policyholders, strong returns and the economic growth of the country. It is this disciplined strategy that has kept LIC consistently profitable and given confidence to crores of investors.