While LIC was required to maintain a solvency margin of Rs 10,796 crore at the end of March 2002, the company could provide only Rs 5,525 crore by way of Rs 5 crore share capital, Rs 85 crore of general reserves and Rs 5,435 crore of other available reserves.
The Insurance Regulatory and Development Authority (IRDA) had asked the state-owned life insurer to comply with the solvency requirement by the end of the current financial year.
