All is well that ends well

Chennai: On its 47th anniversary, Life Insurance Corporation of India (LIC) has brought down the curtains on its solvency controversy.

LIC zonal manager (south) R R Nair says the corporation has provided Rs 12,329 crore till 31 March 2003 to meet the 100-per cent solvency margin norm stipulated by the Insurance Regulatory and Development Authority (IRDA).

Doubts about LIC's solvency were raised in some quarters sometime back (See ).

As the IRDA regulations stipulate that the provision should be 150 per cent of the minimum solvency margin, the corporation has written to IRDA asking for five years' time to provide for the balance Rs 5,000-odd crore. IRDA chairman C S Rao says the matter is under consideration and a final decision is yet to be taken (See Sharing responsibilities).

The surplus for the year ended 31 March 2003 after provisions amounts to Rs 9, 647 crore, which will be divided between the Indian government (5 per cent) and policyholders (95 per cent).