LIC Rejects USTR Report on Unfair Advantage

New Delhi, Apr 4 (PTI) Life Insurance Corporation of India (LIC) on Friday said it has been operating in a competitive market for 25 years and has not received any special treatment from the government, as it rejected US Trade Representative's report.

"We firmly believe the USTR's views are based on an incomplete understanding of Indian insurance regulation and LIC's functioning," the insurance firm said in a statement.

For the past 25 years, LIC has operated in a fully competitive market alongside 24 private life insurance companies, the statement said, adding, it is regulated by IRDAI and SEBI and receives no special treatment from the government or any regulatory authority.

Ahead of the Donald Trump administration's reciprocal tariff move on Wednesday, the US Trade Representative (USTR) in a report had said India maintains "high" import duties on a wide range of American goods such as agricultural items, drug formulations, and alcoholic beverages, besides imposing non-tariff barriers.

The report also said that LIC gets favourable treatment from the government, making foreign insurance companies uncompetitive in the Indian market.

"Many customers choose to buy LIC policies over those offered by private insurers, giving LIC an unfair competitive advantage," the 2025 National Trade Estimate (NTE) Report published by the USTR said.

LIC, however, clarified that it is treated like any other insurance company by the government and regulators.

"We urge for a more balanced and factual appreciation of LIC's role and contribution to financial inclusion and policyholder protection in India," it said.

The guarantee -- provided at the time of its establishment in 1956 -- is a statutory provision designed to build public confidence in the early years of nationalisation. It has never been invoked or used as a marketing tool or provided any undue advantage to LIC.

"LIC remains committed to upholding the highest standards of governance, service, and customer trust," the company CEO & MD Siddhartha Mohanty said.

The statement further said, LIC's leadership in the insurance sector is entirely 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 over 30 crore customers across India with dedication and professionalism, it added.

As part of reciprocal tariffs on about 60 countries to counter higher duties on American products imposed globally, US President Donald Trump on Wednesday announced 26 per cent reciprocal tariffs on India, describing the country as the "tariff king" that imposes duties on American goods unfairly.

The move is expected to impact India's exports to the US. However, experts say that India is better-placed than its competitors who also face increased levies.

With America, India had a trade surplus (the difference between imports and exports) of USD 35.32 billion in goods in 2023-24. This was USD 27.7 billion in 2022-23, USD 32.85 billion in 2021-22, USD 22.73 billion in 2020-21, and USD 17.26 billion in 2019-20.