New Delhi: Dismissing all the social media rumours of its weak financial position, national insurer Life Insurance Corporation (LIC) had assured its millions of policyholders about the safety of their money. Further, the LIC clarified that its ‘financial health is sound.’

“We refute such false rumours and we would like to assure our policyholders about its sound financial health and urges them not to take cognizance of such misleading news,” according to an official statement of LIC quoted by news agency PTI.

The news on social media was termed as ‘factually incorrect’ and ‘uncorroborated’ by LIC. Besides, the insurer said that such messages were sent with the intention to tarnish its image and create panic in the minds of the policyholders. Therefore, in an effort of damage-control, LIC clarified that all the speculations about its financial health were attempts to portray the life insurer in a bad light to its stakeholders.

It must be noted that the insurer had declared a highest-ever bonus of Rs 50,000 crore to its policyholders during the 2018 to 2019 time period.mAs of August 31, LIC’s market share, in terms of the number of policies was reported to be 72.84 per cent and in terms of the first-year premium, it was 73.06 per cent, according to an official statement. The Insurance Corporation further claimed that the market share of LIC in terms of the first-year premium had increased from 66.24 per cent in March 2019 to 73.06 per cent in August 2019.

Messages of LIC’s poor financial health flooded the social media after media reports suggested that the insurer has suffered a severe loss to the tune of tens of thousands of crore in market value as most of the companies it has invested in were trading much below the investment value.