New Delhi: The Finance Ministry on Monday clarified that the government does not interfere in or direct the investment decisions of the Life Insurance Corporation of India (LIC). The ministry stated that LIC’s investment strategy is formulated by its own Board and investment committee, in strict accordance with regulatory guidelines.
According to the ministry, LIC invests policyholders’ funds based on a well-defined framework that ensures safety, returns and compliance with the Insurance Regulatory and Development Authority of India (IRDAI). “LIC functions as an independent institution. The government does not influence its investment decisions,” the ministry emphasised.
The clarification comes amid ongoing public debate and speculation regarding LIC’s exposure to certain business groups and sectors. The Finance Ministry added that LIC maintains a diversified portfolio and follows a long-term investment approach that has consistently delivered returns for policyholders.
LIC, India’s largest insurance company and institutional investor, is known for its significant presence in equity and debt markets. The ministry reiterated that all investment decisions taken by LIC are based on professional evaluation, risk assessment and market analysis.
Industry experts say the clarification aims to reassure policyholders and investors that LIC’s decisions remain autonomous and are not influenced by government policy objectives.