The insurer has been granted permission to begin operations in Bangladesh as a joint venture.
The joint venture will be named LIC Bangladesh with a paid-up capital of BDT1bn.
LIC will hold half of the paid-up amount. The remaining of the paid-up capital will be owned by its Bangladeshi partners raising the amount from the capital market and local entrepreneurs.
Bangladesh Insurance Development and Regulatory Authority (IDRA) chief M Shefaq Ahmed was quoted as saying by the BDNews24 said: "We have given LIC a letter of consent upon certain conditions. They will be able to start operations once they are fulfilled."
The Indian state-owned insurer also has operations in Nepal, Sri Lanka and Singapore, apart from India.