Irda gives LIC clean chit on transfer of profits

Hari Narayan explained that is this is not a real cash shortage. “The actual cash disparity is about Rs 300-400 crore. Since LIC generates a lot of surplus and this surplus technically belongs to the shareholder,which is used to meet the shortfall,it is entirely possible in the years to come that this imbalance is rectified. So,at the moment,it is not a cause of concern.” Hari Narayan said on the sidelines of a convocation of the Institute of Insurance and Risk management (IIRM) on Friday. “These figures are exposed in their annual accounts and are part of their NPA,which is less than 1 per cent of the asset base,precisely at about 0.75 per cent. So there is no need for anxiety on this one,’’ he reiterated. Meanwhile,Hari Narayan said that the guidelines for portability and the IPO guidelines for life insurance companies are expected shortly.