Bill to increase paid up capital of LIC passed in LS

New Delhi, Dec 12 (PTI) A bill which seeks to increase the paid up capital of Life Insurance Corporation of India and make the insurer conform to the same regulatory requirements as other life insurers was passed in the Lok Sabha today. Ahead of the passage of the Life Insurance Corporation (Amendment) Bill, 2009, there were some tense moments for the government as a division was sought by the opposition on an amendment moved by an opposition member. The amendment moved by Bansa Gopal Chawdhary (CPI-M) was negated with 17 Ayes and 107 Noes. Members from the Left parties staged a walk out. Several members, including Raghuvansh Prasad Singh (RJD) and Ravindra Kumar Pandey (BJP) stressed the need to ensure that the interests of LIC employees and the customers are protected. Tarun Mandal (Ind) opposed the bill. Minister of State for Finance Namo Narain Meena said once the bill is enacted, it will not have any effect on the present policy holders. The amendments are in line with the recommendations of the Insurance Regulatory and Development Authority (IRDA), which had suggested that the LIC Act should be changed in order to bring it in consonance with the Insurance Act, 1938. The bill was introduced in the Lok Sabha in 1999 and referred to the Standing Committee on Finance. The Government, Meena clarified, will continue to provide sovereign guarantee to the policies sold by LIC. PTI NAB CS AKK