LIC Chairman Siddhartha Mohanty announced plans for the insurer to enter the health insurance market, with potential exploration of inorganic growth opportunities.
Current regulations under the Insurance Act, 1938, and IRDAI prohibit composite licenses that would allow insurers to offer life, general, and health insurance under one entity.
There are expectations that composite licences may be permitted by amending the Insurance Act.
LIC is not an expert in general insurance like fire and engineering but it can do health insurance, he said while sharing financial numbers for FY24.
"Internal work is going on...we will explore inorganic growth in health insurance," he said.
However, a parliamentary panel led by BJP’s Jayant Sinha recently recommended amending the Act to permit composite licenses, which could streamline costs and compliance for insurers while providing consumers with more comprehensive options.
Meanwhile, LIC posted a 2% increase in net profit to ₹13,763 crore for Q4 FY24, up from ₹13,428 crore the previous year.
Total income rose to ₹2,50,923 crore, driven by first-year premium income of ₹13,810 crore and renewal premiums of ₹77,368 crore.
For the full fiscal year,LIC reported a profit of ₹40,676 crore and total premium income of ₹4,75,070 crore, selling over 2.03 crore policies.
The board recommended a final dividend of ₹6 per share, adding to an earlier interim dividend of ₹4 per share, totaling ₹10 for the year.
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