Insurance behemoth Life Insurance Corporation of India (LIC) is planning to enter the health insurance segment through a private health insurer, Livemint reported on Friday. LIC is looking at acquiring one of the five private standalone health insurance firms, people associated with the company said. For the LIC, a public sector undertaking, to enter the health insurance market, the existing insurance legislation would likely have to be amended. Under the current laws, the regulatory body Insurance Regulatory Development Authority of India (IRDAI) and the Insurance Act of 1938 do not allow composite licensing for an insurer to undertake life, general, or health insurance under one entity. For this, a parliamentary panel had suggested introducing a composite licence to undertake all three segments under one entity, a move aimed at increasing insurance penetration in India.
