Lok Sabha passes Bill to hike LIC's paid-up capital to Rs 100 cr

Lok Sabha on Monday passed a Bill to increase the paid-up capital of Life Insurance Corporation of India (LIC )from Rs 5 crore to Rs 100 crore and make it conform to the same regulatory requirements as other life insurers.

"The Bill provides for raising the minimum capital of LIC from Rs 5 crore to Rs 100 crore...," according to the statement of objects and reasons of the LIC Amendment Bill, 2009.

LIC: The big daddy

Ahead of the passage of Bill, there were some tense moments for the government as a division was sought by the Opposition on an amendment moved by an Opposition member.

The amendments are in line with the recommendations of the Insurance Regulatory and Development Authority (IRDA), which had suggested that the LIC Act should be changed in order to bring it in consonance with the Insurance Act, 1938.

The bill was introduced in the Lok Sabha in 1999 and referred to the Standing Committee on Finance.