India’s largest insurer LIC has not made any investment in cigarette and gutka manufacturing companies since April 2011,government today said.
“The Life Insurance Corporation of India (LIC) has informed that they have not made any investment in cigarette and gutka companies since April 1,2011,” the Minister of State for Finance Namo Narain Meena told Lok Sabha in a written reply.
He said that all the investments by LIC were made as per the norms laid down under the regulations of Insurance Regulations and Development Authority (Investment) Regulations,2000.
Further in another reply to the house,Meena said that total number of life insurance policies has increased to 32.92 crore in 2010-11 from 31.89 crore in 2009-10.
Also,with the opening up of the insurance sector in 2000,number of companies in life insurance sector has increased from 1 to 24 and in non-life sector it has increased from 4 to 25 as of 2010-11,he added.
The insurance sector regulator,IRDA,has issued guidelines to companies so that “all insurance advertisements are comprehensible in the light of the complexity of the product being sold”.
IRDA is also creating awareness among public through its multi-media campaign on relevance and importance of insurance,policyholders’ rights and responsibilities,the minister said.
The regulator also clears the sales literature of the insurance products,he said.