LIC to Review Regulatory Forbearance Ahead of IFRS Implementation

Life Insurance Corporation of India Considers Regulatory Forbearance for IFRS Adoption

The Life Insurance Corporation of India (LIC) is reviewing the option of regulatory forbearance before implementing International Financial Reporting Standards (IFRS). A top official stated that the company is evaluating the transition framework available under the regulations.

LIC has already engaged with the regulator on the matter and is studying the provision for flexibility during the transition phase. The Insurance Regulatory and Development Authority of India (IRDAI) had granted a 12-month forbearance to insurers transitioning to the new Indian Accounting Standards (Ind AS). This forbearance was approved on March 30, 2023, during the 135th Authority meeting, which mandated insurers to prepare financial statements under Ind AS from April 1, 2026. However, it allowed a one-year regulatory forbearance for companies unable to immediately comply with the new framework.

A final decision on migrating to the new system will be taken after securing board approval. The company clarified that any formal announcement on the adoption timeline would follow internal governance processes, including approval from its board. The record date for its recently announced bonus share issue will be finalised only after shareholders grant the necessary approvals. Earlier this week, the company said its board has approved a bonus issuance of equity shares in a 1:1 ratio. The bonus issue will be undertaken by capitalising Rs 6,325 crore from the reserves and surplus available with LIC as of December 31, 2025.

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Timeline for IFRS Adoption and Bonus Share Issue

Note: The exact dates for the record date and bonus share issue are yet to be finalised.