Life Insurance Corporation

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Life Insurance Corporation of India
TypeStatutory Corporation established by an
Act of Parliament-
LIC Act 1956
IndustryInsurance and Financial services
Founded1 September 1956 (65 years ago) (1956-09-01)
HeadquartersMumbai, India
Key people
  • M R Kumar
  • B C Patnaik
    (Managing Director)
    Smt. Ipe Mini
    (Managing Director)
    Siddharth Mohanty
    (Managing Director)
  • Rajkumar
    (Managing Director)
RevenueIncrease 724,743 crore (US$91 billion) (2022)[1]
Increase 13,975 crore (US$1.8 billion) (2022)[1]
Increase 4,124 crore (US$520 million) (2022)[1]
Total assetsIncrease 4,254,058 crore (US$530 billion) (2022)[1]
Total equityIncrease 11,338 crore (US$1.4 billion) (2022)[1]
OwnerGovernment of India (96.5%)[2]
Number of employees
114,000 (2020)[1]
  • LIC Housing Finance
  • LIC International Ltd
  • LIC Cards Services Ltd
  • LIC Mutual Fund Ltd
  • LIC Pension Fund Ltd
  • IDBI Bank

Life Insurance Corporation of India (LIC) is an Indian statutory insurance and investment corporation headquartered in the city of Mumbai, India. It is under the ownership of Government of India.

The Life insurance Corporation of India was established on 1 September 1956, when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state-owned Life Insurance Corporation of India.[3][4]

LIC reported 290 million policy holders as of 2019, a total life fund of ₹28.3 trillion and a total value of sold policies in the year 2018–19 of ₹21.4 million. The company also reported to have settled 26 million claims in 2018–19.


LIC Building at Chennai, was the tallest building in India when it was inaugurated in 1959

Founding organisations[edit]

The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Kolkata in 1818. Its primary target market was the Europeans based in India, and it charged Indians heftier premiums.[5] Surendranath Tagore had founded Hindustan Insurance Society, which later became Life Insurance Corporation.[6]

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 1 February 1884
  • Bharat Insurance Company (1896)
  • United India (1906)
  • National Indian (1906)
  • National Insurance (1906)
  • Co-operative Assurance (1906)
  • Hindustan Co-operatives (1907)
  • The New India Assurance Co Ltd (1919)
  • 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 including India's First War of Independence, World War I and World War II. The aggregate effect of these events led to a high rate of and liquidation of life insurance companies in India and adversely affected the faith of the general public in the value of obtaining life cover.

Nationalization in 1956[edit]

In 1955, parliamentarian Feroze Gandhi 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.[7]

Initial public offering[edit]

Finance Minister Nirmala Sitharaman announced a proposal to conduct an initial public offering for LIC in the 2021 Union Budget.[8] The IPO is expected to occur in 2022. The Government of India will remain the majority shareholder after the public listing. Ten percent of shares are proposed to be allotted to existing LIC policyholders.[9] In year 2021, government of India had proposed to significantly enhance the authorised capital of Life Insurance Corporation of India (LIC), to 250 billion (US$3.1 billion) to facilitate its public listing scheduled for the next fiscal year which will begin on 1 April.[10]

Due to the scale of the offering and LIC's ownership structure, the deal has been referred to as "India's Aramco moment" in reference to the comparable importance and scale of the 2019 IPO of Saudi Aramco.[11]

LIC announced it would open its IPO to the public on May 4 2022 and the process would be concluded on May 9. Through this IPO, the Government of India, the sole owner of LIC, is now aiming to raise ₹21,000 crore, as opposed to raising between ₹65,000 crore to ₹70,000 crore by diluting 5% equity earlier, indicating more than 50% compromise on valuation as well.[12]As per the IPO price band for 3.5% stakes for Rs. 21,000 crore, the valuation comes to around Rs 6 lakh crore.


The Central Office of LIC is based out of Mumbai. LIC has a total of 8 Zonal Offices namely Delhi, Chennai, Mumbai, Hyderabad, Kanpur, Kolkata, Bhopal & Patna.

LIC Zonal Office, 'Night View From Connaught Place Park'

Liberalisation post 2000s[edit]

In August 2000, the Indian Government embarked on a program to liberalise the insurance sector and opened it up to the private sector. LIC benefited from this process and in 2013 reported 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 outperforming general economic growth.[13]

Awards and recognitions[edit]

  • The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service Brand of India.[14]
  • Voted India's Most Trusted brand in the BFSI category according to the Brand Trust Report for 4 continuous years – 2011–2014 according to the Brand Trust Report.[15]

Charity initiative[edit]

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 200,000 (US$2,500).[16]


Year Revenue (In crores)[17] Profits/Loss (In crores)[18] Total Assets (In crores)
FY 2019 Increase 571,508 Increase 2,627 Increase 3,427,249
FY 2020 Increase 628,043 Increase 2,710 Increase 3,499,834
FY 2021 Increase 693,904 Increase 2,974 Increase 3,829,524


LIC invests in sectors such as banks, cement, chemicals and fertilizers, electricity and transmission, electrical and electronics, engineering, construction and infrastructure, fast-moving consumer goods, finance and investments, healthcare, hotels, information technology, metals and mining, motor vehicles, and ancillaries, oil and natural resources, retail, textiles, transportation, and logistics.

See also[edit]


  1. ^ a b c d e f "Life Insurance Corporation Ltd. Financial Statements".
  2. ^ "How LIC's IPO, India's biggest, ended in a downbeat debut". Live Mint. Retrieved 17 May 2022.
  3. ^ Anushka. "LIC – Life Insurance Corporation Of India". My LIC India. Retrieved 18 February 2020.
  4. ^[bare URL PDF]
  5. ^ "History". LIC. Archived from the original on 16 December 2013. Retrieved 15 December 2013.
  6. ^ "Lunch on lotus leaves". Retrieved 19 December 2018.
  7. ^ Bhushan, Sasi. "Excerpts: Feroze Gandhi: A Political Biography by Shashi Bhushan". Retrieved 10 March 2021.
  8. ^ "LIC IPO: Good news for LIC insurance policy holders! Modi government confirms this big development". Zee Business. 10 February 2021. Retrieved 7 March 2021.
  9. ^ "Government proposes to hike LIC authorised capital to Rs 25,000 crore". The Economic Times. Retrieved 7 March 2021.
  10. ^ "India: Govt plans to increase authorised capital of LIC by 2.5x to prepare for IPO". Asia Insurance Review. 8 March 2021. Retrieved 22 April 2021.
  11. ^ Ghosh, Suvashree; Beniwal, Vrishti; Kalesh, Baiju (17 January 2022). "Inside the All-Out Campaign to Prepare India's Biggest-Ever IPO". Bloomberg. Retrieved 18 January 2022.
  12. ^ "LIC IPO size cut by one-third, valuation by half". Retrieved 26 April 2022.
  13. ^ CA. Nirmal Ghorawat (31 January 2013). "Perspectives on Life Insurance Industry in India « CA. Nirmal Ghorawat's Blog". Retrieved 14 June 2013.
  14. ^ "Most Trusted Brands 2012: Top 50 Service Brands". Economic Times. 7 November 2015. Retrieved 15 December 2013.
  15. ^ "The Economics Times".
  16. ^ "LIC Scholarship". 22 December 2021.
  17. ^ "Life Insurance Corporation of India financial results and price chart - Screener". Retrieved 24 May 2022.
  18. ^ "Life Insurance Corporation of India financial results and price chart - Screener". Retrieved 24 May 2022.

External links[edit]