Irda's rural biz norms put LIC on backfoot

The stringent norms of Insurance Regulatory & Development Authority (Irda) on rural business has put the state-owned Life Insurance Corporation (LIC) on the back foot in expanding its rural business . Irda norms make it mandatory for the life insurers to generate at least 25% of total business from the rural regions. The norms alternatively say that the life insurers have to each year improve their rural business by 2%. The life insurers who fail to comply with the regulations have to pay a penalty of Rs 5 lakh. LIC which has already achieved the mandatory 25% target in rural ...

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