Ethical Corporate Governance for sustainable development of Life Insurance Corporation of India: A study from IRDA compliance perspective

Abstract

Corporate governance has gained momentum due to globalization and the ethical transformation of countries' economies at the global prospect. This mechanism is mainly concerned with steams the issues relating to corporate crises and formulation of ethical standards on the separation of ownership from control. In India, the Life Insurance Corporation (LIC) is guided by the governance guidelines issued by the Insurance Regulatory Development Authority of India (IRDAI). These guidelines mainly cover governance structure, board of directors, control & delegation of function, senior management, disclosures, outsourcing, and relationship with stakeholders, interaction with supervisors, and whistleblowing policy of LIC for sustainable business continuity and hedging uncertain risk of policyholder life in an efficient manner. We have used a secondary source of data to measure the governance mechanisms followed by the LIC as per IRDAI guidelines of corporate governance principles. The result of the study reveals that the corporate governance guidelines issued by IRDAI were significantly followed by the Life Insurance Corporation in India for sustainable survival and to meet the interest of stakeholders.