Life Insurance Corporation (LIC) chairman S B Mathur has written to zonal managers stating that the insurer faced a Rs 5,400 crore shortfall in the solvency margin which is to be met by March 2004, as prescribed by Insurance Regulatory Development Authority (Irda).
While LIC was required to maintain a solvency margin of Rs 10,796 crore at the end of March 2002, the company had only Rs 5,525 crore contributed by share capital of Rs 5 crore, general reserves of Rs 85 crore and other available reserves of Rs 5,435 crore, Mathur said in a communiqu