About LIC Of India - History, Establishment, Functions, Objectives, Mission, Chairman And Details
Feb 27 2024
About LIC Of India: A public sector life insurance provider with its headquarters in Mumbai is called Life Insurance Corporation of India (LIC). It is both the largest institutional investor and the largest insurance firm in India. It is governed administratively by the Ministry of Finance and owned by the Government of India. The Life Insurance of India Act, which nationalized the insurance sector in India, was approved by the Indian Parliament on September 1st, 1956, leading to the establishment of the Life Insurance Corporation of India. There have been mergers involving more than 245 provident societies and insurance businesses. Yogakshemam Vahamyaham, which translates to "Your welfare is our responsibility," is the main slogan of LIC. It is in Sanskrit and is taken from the ninth chapter's verse 22 of the Bhagavad Gita. Shri. Siddhartha Mohanty is the chairman of Life Insurance of India. According to LIC, there were 290 million policyholders as of 2019, a total life fund of 28.3 trillion, and a total value of 21.4 million for policies that were sold during the 2018–19 fiscal year. Additionally, the business stated that 26 million claims were resolved in 2018–19. With revenue of $775,283 crore (US$97 billion) and a profit of $4,415 crore (US$550 million), it was rated 98th in the 2022 Fortune Global 500 list.
One of the first Indian companies to use information technology for company operations and policy servicing was LIC. Beginning in 1964, microprocessor-based computers gradually replaced the unit record machines that were first introduced in the late 1950s. In the 1980s, computers were also installed in Branch and Divisional Offices for Back Office functions. Standard computer packages for Ordinary and Salary Savings Scheme (SSS) Policies were created and put into use in the 1990s. Over the years, we have been updating our systems with appropriate and pertinent technologies. LIC of India currently offers touchpoint services to consumers in 74 Customer Zones(CZEEs) located throughout the nation. These CZEEs operate in shifts in various areas to provide policyholders with services. Candidates can proceed further for more details about LIC Of India, about LIC Company, l i c full form, lic founded, lic establishment, life insurance corporation founded, life insurance corporation founder, lic founder, lic history, about lic, lic established, information about LIC of India, about LIC Of India Zonal Office, and about Life Insurance Company.
History Of LIC: About LIC Company
The information about LIC Of India along with its history is added below.
About LIC Of India: In the year 1818, life insurance as we know it now was introduced to India from England. The first life insurance firm on Indian soil was Oriental Life Insurance firm, founded in Calcutta by Europeans. Indian nationals were not covered by any of the insurance firms founded during that time because they were all created with the intention of serving the needs of European society. Later on, nevertheless, thanks to the efforts of notable individuals like Babu Muttylal Seal, foreign life insurance companies began covering Indian lives. However, Indian lives were classified as second-class lives and were subject to significant premium increases. In 1870, Bombay Mutual Life Assurance Society became the first life insurance provider in India, and it offered standard rates for coverage of Indian lives. Insurance companies were founded as Indian businesses with strong nationalistic goals to spread awareness of insurance and social security through insurance across diverse societal groups. Proceed further for more details about LIC Company.
Information About LIC Of India: One of these nationalist-inspired businesses was the Bharat Insurance Company, founded in 1896. More insurance businesses were founded as a result of the Swadeshi movement in 1905–1907. Established in 1906 were United India in Madras, the National Indian and National Insurance in Calcutta, and the Co-operative Assurance in Lahore. Hindustan Co-operative Insurance Company was founded in 1907 in a chamber of the Jorasanko, the famed poet Rabindranath Tagore's residence in Calcutta. During this time, businesses including the Indian Mercantile, General Assurance, and Swadeshi Life (later Bombay Life) were founded. India did not have any legislation governing the insurance industry before 1912. The Provident Fund Act and the Life Insurance Companies Act were both passed in 1912. The Life Insurance Companies Act of 1912 mandated that an actuary certify the premium rate tables and periodic company valuations. However, the Act disadvantaged Indian enterprises by making numerous distinctions between international and domestic businesses.
Objectives Of LIC: Information About LIC Of India
Candidates can check the details about LIC Of India along with the objectives here.
- Spread life insurance extensively, paying special attention to the rural areas and the economically and socially disadvantaged sectors, to reach all eligible citizens and offer them enough death insurance at a fair price.
- Maximise savings mobilization by making insurance-linked savings sufficiently alluring.
- Keep in mind, when investing funds, the primary duty to the policyholders whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of investors and the community at large, keeping in mind national priorities and duties of attractive return.
- Always act with the utmost economy and awareness that the money belongs to the policyholders.
- Act in their capacities as both individual and collective trustees of the insured public.
- Accommodate the community's different life insurance demands as they emerge from the shifting social and economic landscape.
- Involve all employees of the Corporation to the greatest extent possible in promoting the needs of the insured public by rendering courteous, effective service.
- By performing their tasks with a commitment to achieving the corporate objective, all agents and workers of the corporation should feel a sense of ownership, pride, and job satisfaction.
Functions Of LIC: About LIC Of India
Along with the information about LIC Of India, check the functions of LIC. The following are the main LIC responsibilities.
- Encourage saving by requesting people's contributions in exchange for an insurance policy.
- By putting money into government securities, you can safeguard the people's capital.
- Provide insurance coverage at competitive prices.
- Offer a range of loans at affordable interest rates, including direct loans to industries, mortgage loans, and financing for numerous national initiatives.
Mission And Vision Of LIC: About Life Insurance Company
Check the mission and vision of LIC along with the information about LIC Of India in this article.
"Ensure and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
Role Of LIC In Indian Economy: Information About LIC Of India
Along with the information about LIC Of India, check the roles of LIC in Indian economy given below.
The largest national life insurance and investment company in India is known as LIC. The primary objective of LIC is to raise money from individuals through a variety of life insurance policies, which it subsequently invests in the international financial markets and a range of government assets. According to one of the LIC regulations, at least 75% of these proceeds must be invested in federal and state government securities.
To make investments in the corporation's finances as the corporation sees fit and to take any necessary or practical action to ensure the safety or realization of any funding. This includes accepting and managing any assets provided as security for the funding until a suitable opportunity for its disposition.
To purchase, hold onto, and delay any property for the purpose of its business.
- If it is in the best interest of the company, it may be advantageous to transfer all or a portion of the life insurance business that is conducted outside of India to another person or people.
To increase or lend money in exchange for the security of any movable or immovable items or for any other reason.
To continue operating every other business, whether directly or through a subsidiary, in which the business had previously been operated by a subsidiary of an insurer whose managed business had been transferred to and vested inside the Corporation by this act.
To continue with every other business venture that may seem to the Corporation to be able to be carried out easily in the course of its business and calculated immediately or indirectly to make the business of the Corporation worthwhile.
Doing everything may be incidental or advantageous to the proper exercise of any corporate power.
The Corporation will conduct itself as ethically as possible in the release of any of its features.
About LIC Of India Zonal Office
LIC Of India Zonal Office: Here we have added the list of LIC Of India zonal offices for the reference of the candidates.
- Madhya Pradesh
- Arunachal Pradesh
- West Bengal
- Andaman & Nicobar
East Central Zone
- Chandigarh UT
- Himachal Pradesh
- Jammu & Kashmir
North Central Zone
- Uttar Pradesh
South Central Zone
- Andhra Pradesh
- Damman & Diu - UT
Board Of Directors Of LIC: About LIC Company
Here we have added the details about LIC Of India board of directors.
About LIC Of India Board Of Directors
Shri. Siddhartha Mohanty
Shri. Suchindra Mishra
Government Nominee Director
Smt. Mini Ipe
Shri. M. Jagannath
Shri. Tablesh Pandey
Dr. Ranjan Sharma
Shri. Vinod Kumar Verma
Prof. Anil Kumar
Smt. Anjuly Chib Duggal
Shri. Gurumoorthy Mahalingam
Shri. Raj Kamal
Shri. Vankipuram Srinivasa Parthasarathy
Shri. Vijay Kumar Muthu Raju Paravasa Raju
Shri. Sanjeev Nautiyal
Basic Policies Of LIC: Information About LIC Of India
Term insurance, cash value insurance, straight life insurance, and limited payment life insurance are the foundational plans offered by the Life Insurance Corporation of India (LIC). Below are the specifics of each of these policies:
- Term insurance: This insurance functions as a kind of insurance protection contract, much like home, auto, or health insurance. Because it does not involve a savings plan, it protects the person against any danger of financial loss in the event of death. The owner of this insurance policy purchases a certain amount of coverage and pays a yearly premium determined by their age. Because the insurance has a set duration, if it is not renewed, coverage will end. These policies, where the premium payment amount is fixed, are offered for terms of five, ten, or fifteen years. If the insured does not reach 65 years of age, it is also possible to obtain life insurance with a 65-year-old condition; however, in this case, the premium would rise annually. There is also decreasing term life insurance available, in which the insurance's coverage gets less over time while the yearly payment stays the same. Term insurances offer the most protection for the amount paid.
Cash value insurance: In a policy of this type, the amount of actual insurance reduces over time while the policy's savings component grows. This kind of insurance is paid for by the insured's premium payments and the profits from the policy's saving component. These insurance plans come in two varieties: a restricted payment policy that covers the insured for the duration of their lives and a straight life insurance policy.
Straight life insurance: coverage is permanent. Although the total coverage of the policy, which includes the protection and savings parts, does not change, the quantity of protection under this type of insurance reduces as the amount of savings increases. These policies have a greater premium than term insurance, which is determined by the person's age at the time of purchase. The cost of this policy's premium never changes. The sum that is paid out when the insured person passes away is referred to as the face value of the policy. Life insurance with a restricted payment period requires the insured to pay the full value of the policy within a set period, typically 20 to 30 years or by the age of 65. If the insured does not withdraw the money at any point during the term, the policy stays in effect for the duration of the insured's life.
Types of Life Insurance Policies Offered By LIC: About LIC Company
Here we have added some of the important Insurance policies offered by LIC. LIC provides its policyholders with several programs. Here is a list of some of the insurance programs that LIC offers.
1. LIC’s Bima Jyoti
2. LIC’s Bima Ratna
3. LIC’s Dhan Sanchay
4. LIC’s New Endowment Plan
5. LIC’s New Jeevan Anand
6. LIC’s Single Premium Endowment Plan
7. LIC’s Jeevan Lakshya
8. LIC’s Jeevan Labh
9. LIC’s Aadhaar Stambh
10. LIC’s Aadhaar Shila
11. LICs Jeevan Umang
12. LIC’s Jeevan Tarun
13. LIC’s Jeevan Shiromani
14. LIC’s Bima Shree
15. LIC’s Jeevan Amar
16. LIC Saral Jeevan Bima
Interesting Facts About LIC
- LIC is India's oldest, biggest, and most successful life insurance provider.
- When it was opened in 1959, the LIC Building was the highest structure in India.
- LIC has had a 59-year presence in the life insurance industry, or nearly six decades.
- LIC operates internationally in seven nations.
FAQs - About LIC Of India
Q. What is the purpose of LIC of India?
To reach all eligible citizens and give them enough financial protection against death at a fair price, extensively distribute life insurance, paying special attention to rural areas and the socially and economically underprivileged classes.
Q. What is LIC policy in India?
Q. What is the importance of LIC?
After collecting money from people through their various life insurance plans, LIC's primary function is to invest in international financial markets and other government assets.
Q. What do you mean by premium?
The premium is the sum that the insured pays regularly to the insurer to cover his risk. The risk is transferred from the insured to the insurer under an insurance arrangement. The insurer levies a fee known as the premium in exchange for taking on this risk.
Q. What is policy term?
The policy term, or length of coverage provided by term insurance, is determined. If an unfortunate incident occurs during this time, your nominee will be given the amount guaranteed by your insurance policy.
Q. What is maturity benefit?
When you survive the policy's duration, your life insurance provider will give you maturity benefits, which are the sum assured plus bonuses. As a result, maturity advantages transform standard life insurance policies into tools for saving money. Term insurance, however, provides just protective coverage with no maturity advantages.
The number of years that a life insurance policy is in effect is known as the policy term. A variety of insurance plans with broad coverage that lasts 20 to 40 years or even the entire life of the life assured are available from the Life Insurance Corporation of India.
The term "period of insurance" refers to the time frame starting on the effective date specified in the current schedule and terminating either on the expiry date specified in the current schedule or the cancellation date, whichever comes first.
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