According to a finance ministry official, Life Insurance Corp of India (LIC) won't be allowed to increase its stake to more than 10 percent in Indian firms. But yes, where LIC already holds more than 10 percent, it will be allowed to retain the stake in companies.

As per the guidelines by the Insurance Regulatory and Development Authority (IRDA), the insurers aren’t allowed to hold more than 10 percent stake in any firm. Because they feel, it can lead to market speculations that the state-run insurer might be asked to pare its existing stakes.

According to a close source of IRDA: "The IRDA has not asked them (LIC) to pare it down. But they may do it for commercial reasons.”

"However, they have been asked not to buy more than 10 percent treasury stake in future."

Whatever, the good news for insurance industry is shinning on as like never before. The insurer's investment in debt and equity is likely to go up to 2.5 trillion rupees ($54 billion) in 2010/11 from about 2 trillion rupees expected in the current fiscal year ending March.

Now, if you want to understand the nuances of different types of policies and its price, feel free to seek the help of InsuranceMall to select the right products based on your need.

InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy.

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