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Will, LIC, the largest insurance company of India shut down?

Congress says Union government is misusing the funds of Life Insurance Corporation

Will, LIC, the largest insurance company of India shut down?

New Delhi [India]: Attacking the Centre on the prevailing economic situation in the country, Congress party on Wednesday alleged that the Union government is misusing the funds of Life Insurance Corporation.

Addressing a press conference, Congress Senior Spokesperson Ajay Maken stated that the government has used around Rs 30,000 crore to bail out IDBI bank while referring to a report from the State Bank of India and the Reserve Bank of India.

“In 2018, LIC increased its shares by 51 per cent by infusing Rs 21,000 crore in IDBI. This month, again the Union Cabinet has approved an infusion of Rs 9,300 crore. Despite this, IDBI posted a loss of Rs 3,800 crore in June this year,” Maken stated.

Maken further added that LIC has 28.84 crore investors and total assets are around Rs 31.11 lakh crore.

“The household liability has increased to Rs 7.40 lakh crore which is a matter of concern. The economy has to be managed on both the micro and macro level. The reason behind this is that disposable income is reducing. The ratio of saving has decreased to 6 per cent,” Maken said.

“Congress is concerned with the state of the economy. The issue in the country is the slowdown of economy and unemployment,” he added.

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