LIC's much-awaited mega IPO was completed last week. And today, the insurance giant listed its shares in the stock market in what turned out to be a disappointing debut for India's biggest life insurance company.
While this has become a concern for the investors, the details from LIC IPO documents that were filed during its IPO filing process in Feb-March 2022, reveal another aspect of India’s insurance industry.
The amount of money lying unclaimed with insurance giant LIC, i.e. ₹21,539.5 crores, is bigger than the entire budget of not just one but multiple ministries of our country! Yes, you read that right.
. The largest amount due is because of policies matured but where the money hasn’t reached the investor. They account for ₹19,285.6 crores or nearly 90% of the total amount.
. It is larger than the budget for the Ministry of Civil Aviation (₹ 10,667 crores), the Ministry of Electronics and Information Technology (₹ 14,300 crores), the Ministry of External Affairs (₹ 17,250 crores) and the Ministry of Environment, Forests and Climate Change (₹ 3,030 crores), as per a Business-Standard report.
As per the close to ₹10,000 crore budget of the first mission of spaceflight Gaganyaan, LIC’s unclaimed funds of over ₹21,000 crores is enough to fund two of such human spaceflight missions of Gaganyaan, as per a TimesofIndia report.