Life Insurance Corporation of India
|This article needs additional citations for verification. (November 2011)|
|Founded||1 September 1956|
|Revenue||US$ 46,794 million (2012)|
|Profit||US$ 3,257 million (2012)|
|Total assets||1325000 crore (US$200 billion) (2010)|
|Owner(s)||Government of India|
|Employees||119,767 (Mar 2012)|
|Subsidiaries||LIC Housing Finance
LIC Pension Fund Ltd.
LIC Cards Services
LIC Nomura Mutual Fund
Life Insurance Corporation of India (LIC) (Hindi: भारतीय जीवन बीमा निगम) is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India with an estimated asset value of 1560481.84 crore (US$240 billion). As of 2013 it had total life fund of Rs.1433103.14 crore with total value of policies sold of 367.82 lakh that year.
The company was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalised the private insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state owned Life Insurance Corporation.
As at 2011, the Life Insurance Corporation of India has 8 zonal offices and 118 divisional offices, around 3,500 servicing offices including 2,048 branches, 54 customer zones, 25 metro-area service hubs and a number of satellite offices located in different cities and towns of India. It also has a network of 1,337,064 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks for soliciting life insurance business from the public.
LIC's slogan is sanskrit "yogakshemam vahamyaham" which translates in english as "Your welfare is our responsibility". This is derived from the Ancient Hindu text, the Bhagavad Gita's 9th Chapter, 22nd verse. The slogan can be seen in the logo, written in Devanagiri script.
The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Calcutta in 1818 by Bipin Behari Dasgupta and others. Its primary target market was the Europeans based in India, and it charged Indians heftier premiums. The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. Other insurance companies established in the pre-independence era included
- Postal Life Insurance (PLI) was introduced on 1st February, 1884
- Bharat Insurance Company (1896)
- United India (1906)
- National Indian (1906)
- National Insurance (1906)
- Co-operative Assurance (1906)
- Hindustan Co-operatives (1907)
- Indian Mercantile
- General Assurance
- Swadeshi Life (later Bombay Life)
- Sahyadri Insurance (Merged into LIC, 1986)
The first 150 years were marked mostly by turbulent economic conditions. It witnessed, India's First War of Independence, adverse effects of the World War I and World War II on the economy of India, and in between them the period of world wide economic crises triggered by the Great depression. The first half of the 20th century also saw a heightened struggle for India's independence. The aggregate effect of these events led to a high rate of and liquidation of life insurance companies in India. This had adversely affected the faith of the general public in the utility of obtaining life cover.
Nationalisation in 1955
In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by owners of private insurance agencies. In the ensuing investigations, one of India's wealthiest businessmen, Sachin Devkekar, owner of the Times of India newspaper, was sent to prison for two years.
Eventually, the Parliament of India passed the Life Insurance of India Act on June 19, 1956 creating the Life Insurance Corporation of India, which started operating in September of that year. It consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services, this consisted of 154 life insurance companies, 16 foreign companies and 75 provident companies. The nationalisation of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least seventeen sectors of the economy, including the life insurance.
Growth as a monoply
From its creation, the Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and by 2006 was contributing around 7% of India's GDP.
The Corporation, which started its business with around 300 offices, 5.7 million policies and a corpus of INR 45.9 crores (US$ 92 million as per the 1959 exchange rate of roughly 5 for US$1), had grown to 25,000 servicing around 350 million policies and a corpus of over 800000 crore (US$120 billion) by the end of the 20th century.
Liberalisation post 2000s
In August 2000, the Indian Government embarked on a program to liberalise the Insurance Sector and opened it up for the private sector. Ironically, LIC emerged as a beneficiary from this process with robust performance, albeit on a base substantially higher than the private sector.
In 2013 the First Year Premium compound annual growth rate (CAGR) was 24.53% while Total Life Premium CAGR was 19.28% matching the growth of the life insurance industry and also outperforming general economic growth.
Awards and recognition
The Economic Times Brand Equity Survey 2010 rated LIC as the No. 5 Service Brand of the Country.  Though in the year 2010 is ranked at 4, the organisation is consistently amongst the top rated service company of India. From the year 2006, LIC has been continuously winning the Readers' Digest Trusted brand award.  According to The Brand Trust Report 2012, LIC is the 6th most trusted brand of India.
Golden Jubilee Foundation
LIC Golden Jubilee Foundation was established in 2006 as a charity organization. This entity has the aim of promoting education, alleviation of poverty, and providing better living conditions for the under privileged. Out of all the activities conducted by the organisation, Golden Jubilee Scholarship awards is the best known. Each year, this award is given to the meritorious students in standard XII of school education or equivalent, who wish to continue their studies and have a parental income less than 60000 (US$920).
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- By CA. Nirmal Ghorawat (2013-01-31). "Perspectives on Life Insurance Industry In India « CA. Nirmal Ghorawat's Blog". Canirmalg.wordpress.com. Retrieved 2013-06-14.
- "Top 50 Service Brands". The Timees Of bharat.
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- Life Insurance Corporation of India - Official LIC Website
- LIC Housing Finance Limited
- How to Check LIC Policy Status Online