New Delhi, April 4 (PTI) Life Insurance Corporation of India (LIC) said on Friday that it has been working in the competitive market for 25 years and has not received any special treatment from the government, as it has rejected the report of the US trade representative.
The insurance firm said in a statement, “We strongly believe that the views of USTR are based on the incomplete understanding of Indian insurance regulation and LIC functioning.”
For the past 25 years, LIC has operated a fully competitive market with 24 private life insurance companies, stating that it is regulated by IRDAI and SEBI and does not receive any special treatment from the government or any regulatory authority.
Further from the mutual tariff steps of the Donald Trump administration on Wednesday, the US trade representative (USTR) said that in addition to implementing non-warts’ obstacles in India, “high” import duties have been maintained on a wide range of American goods, drug formulations and American goods.
The report also states that LIC gets favorable treatment from the government, causing foreign insurance companies to become unpredictable in the Indian market.
The 2025 National Trade Estimate (NTE) report published by USTR said, “Many customers choose to buy LIC policies on those introduced by private insurers, giving inappropriate competitive advantage to LIC.”
However, LIC clarified that it is considered by the government and regulators like any other insurance company.
“We urge LIC’s role and contribution in financial inclusion and policyholder protection in India,” said this.
Guarantee – Granted at the time of its establishment in 1956 – is a statutory provision designed to create public belief in the early years of nationalization. It has never been applied or used as marketing tools or LIC has been provided any undue advantage.
Siddharth Mohanty, CEO and MD of the company, said, “LIC is committed to maintaining the highest standards of governance, service and customer trusts.”
The statement further states, the LIC’s leadership in the insurance sector is completely due to the trust of its policyholders, its commitment to service excellence and its financial strength and transparency.
With a legacy of over 69 years, LIC continues to serve more than 30 million customers across India with dedication and professionalism.
As part of a mutual tariff on about 60 countries to combat high duties on US products globally, US President Donald Trump on Wednesday announced a 26 percent mutual tariff on India, described the country as a “tariff king” that incorrectly implements duties on American goods.
The move is expected to affect India’s exports to the US. However, experts say that India is better than its rivals, which face increased levy.
Along with the United States, in India in 2023–24 goods were a 35.32 billion USD trade surplus (difference between imports and exports). It was USD 27.7 billion in 2022-23, USD 32.85 billion in 2021-22, USD 22.73 billion in 2020-21 and US $ 17.26 billion in 2019-20.