Today, the insurance regulator IRDA has expressed the danger over the domination of pension market over the Life Insurance Corporation (LIC). It also said that the need of other insurance companies to take part in the pension market.

It has been unveiled by the IRDA that the domination of pension market over LIC could affect the regulator, the industry and can have dire effects on the country. It has come to light that about 90% of all the pensions fall under the authority of LIC. IRDA Chairman, J Hari Narayan, said, “I think it is too much of a risk to be allowed to continue. Therefore, we must build up mechanisms which allow other companies also to participate actively in the pension market”.

Narayan is of the opinion that pension funds should offer life annuity and companies that sell pension products should have a guaranteed capital. Explaining the problems being faced by the LIC, Narayan said that although the LIC provides benefit to many people, there are some issues which are needed to be tackled.

The foremost problem faced by the LIC is that premium offered to LIC is unfair to the bank as to which product they will be selling at branch level.