'No special treatment from govt...': LIC responds to USTR's report on non-tariff barriers 

The Life Insurance Corporation of India (LIC) stated on Friday that it does not receive preferential treatment from the government or any regulatory authority, in response to a report from the United States Trade Representative (USTR) alleging that LIC is being favored by the Indian government.

According to the USTR report, LIC and the National Payments Corporation (NPCI) were cited as entities receiving favourable treatment from the Indian government, which the US claims is creating barriers for foreign firms looking to enter India's financial industry.

The report also highlighted concerns about the requirement for electronic payment data to be stored locally, stating that this impedes foreign firms' ability to combat fraud and ensure network security globally.

The 2025 National Trade Estimate Report published by the USTR emphasized that foreign firms believe the data storage mandate hinders their ability to protect against fraud and maintain the security of their networks.

"Foreign firms assert that the data storage requirement hampers the ability of service suppliers to detect fraud and ensure the security of their global networks," said the 2025 National Trade Estimate Report published by the Office of the US States Trade Representative (USTR).

In the statement released by LIC, it said that the insurer is considered to be treated similarly to other insurance companies by government and regulatory bodies. They are calling on the US agency to have a more fair and accurate understanding of their role.

“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,” said the company.

According to Siddhartha Mohanty, CEO and MD of LIC, “it remains committed to upholding the highest standards of governance, service, and customer trust”.

"We firmly believe the USTR’s views are based on an incomplete understanding of Indian insurance regulation and LIC’s functioning. We urge for a more balanced and factual appreciation of LIC’s role and contribution to financial inclusion and policyholder protection in India," LIC said in its statement.

The report highlighted that a significant number of customers prefer purchasing LIC policies over those provided by private insurers, resulting in an advantageous competitive position for LIC. Additionally, it noted that foreign accounting firms encounter challenges when attempting to enter the Indian accounting services sector, as only entities organized as partnerships according to Indian law are permitted to offer financial auditing services.

LIC has been a participant in a competitive market for the last 25 years, operating alongside 24 private life insurance companies. It is subject to regulation by IRDAI and SEBI and does not receive any preferential treatment from the Government or regulatory authorities.