By Admin 
Lic Health Insurance: India’s government insurance company Life Insurance Corporation of India (LIC) on Tuesday informed the stock exchanges that it is in the final stages of negotiations to buy a ‘important’ stake in a standalone health insurance to increase its reach in the Health Insurance Segment. However, this stake will not be a mazority stake.
What did LIC say?
LIC Managing Director (MD) and Chief Executive Officer (CEO) Siddharth Mohanty told during an event that this deal is expected to be announced by the end of this financial year. He also clarified that no binding agreement has been reached so far. The deal will depend on LIC’s board of directors, regulatory approval and other approval.
Mohanty did not mention the name of the company, but made it clear that LIC would not buy more than 51 percent stake in any company. He said, “Our plans are. Discussion is in the final stages. Getting down in health insurance is a natural step for LIC. Since regulatory approval takes time, I hope that the decision can be taken by the end of this financial year.”
Status of Standalone Health Insurance in India
There are currently seven standalone health insurance in India-
- Star Health and Allied Insurance
- Neeva Bhupa Health Insurance
- Care Health Insurance
- Aditya Birla Health Insurance
- Manipal sign health insurance
- Narayan Health Insurance
- Galaxy Health Insurance
LIC sought 100 -year bond approval from RBI
Mohanty also informed that LIC has requested the Reserve Bank of India (RBI) to issue additional long-term bonds, including 100 years of bonds. He said, “We are long-term investors. We have contractual options, so we have to do asset liability management properly. Western countries have long-term bonds.” In November 2023, the RBI released a 50 -year bond, which was well liked by the Insurers and Pension Funds.
A look at the condition of health insurance in India
According to Forbes reports, in 2021, around 514 million people in India were covered under health insurance, which is only 37 percent of the country’s population. At the same time, about 400 million people have no facility of health insurance. 70 percent of the population is a cover under public or private health insurance, while 30 percent are without insurance.
In 2021, the Indian Health Insurance Industry gross Rit’s premium was more than Rs 637 billion. Talking about the states, Maharashtra topped the range of Rs 183 billion with a 32 per cent stake with a premium of Rs 183 billion. At the same time, according to the Economic Survey of 2022-23, the Government of India had 2.1 percent of GDP spent on Healthcare. In 2019, 48 percent of the total healthcare expenditure came from out-off-pocket payments, which is less than 64.2 percent in 2014.
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