After a notional loss of Rs 1,400 crore was reported in three pension schemes of the country’s largest insurance company, Life Insurance Corporation of India (LIC), the Insurance Regulatory and Development Authority (Irda) has examined the pension liabilities of all life insurance companies. “We want to ensure that life insurance companies have provided enough resources to take care of their long-term liabilities. So, we investigated pension liabilities of all insurance companies,” said a senior Irda official. However, the regulator found that all insurers had provided enough resources for their pension products.
P Nandagopal, CEO, Reliance Life, said it was a usual inspection, as India First Life Insurance had been in the business for one year and did not have long-term liabilities.
Generally, Irda examines investments of insurance companies every year. It is a week-long procedure. A five-six member team from Irda visits companies and carries out the inspection. LIC had formed a sub-committee after the deficit was reported. The three-member panel has finalised the report and may submit it any time.
“The sub-committee will submit the report to the chairman. It will also be made available to various departments such as audit, investment, etc,” said a senior LIC executive. The losses had occurred in three guaranteed-return annuity policies — Jeevan Dhara, Jeevan Suraksha and Jeevan Akshay — launched in 1980 and 1990 with an assured return of 11-12 per cent. Irda had clarified that it was a notional loss.