On Monday, Lok Sabha passed the LIC?(Amendment) Bill, 2009.
The Bill seeks to raise the paid-up capital of LIC to Rs. 100 crore from Rs. 5 crore besides and making the public sector insurer comply with the same regulatory rules as other life insuring companies.
The act will put LIC on equal footings with private insuring companies. The amendments in the bill were recommended by IRDA.
Several members of Lok Sabha emphasized the need to secure the interests of employees and customers of LIC under the new law.
Minister of state for finance assured the members that the new law will not have an effect on present policyholders, and the government will keep on to providing the sovereign guarantee to the policies sold by LIC.
The Bill was first introduced in December 2008 in Lok Sabha, but couldn't be put to vote. It was reintroduced by FM Pranab Mukherjee in year 2009.
Once passed by both the houses of Parliament, it will be sent to President for her approval before becoming a law.