PROFILE OF LIC
Life Insurance in India since Vedic times, arrived here from England in its modern from only in the year 1818, to insure Europeans and support their windows entered ‘Bombay Mutual Life Assurance Society” in 1870 the First India Insurance Company, with just seven rupees for initial expenses. Later, Lala Harikishanlal launched “Bharat Insurance Company” at Lahore In 1896.
In early days of 1956 nationalization of Life Insurance was taking concrete shape Life insurance was nationalized in the public interest as a public utility and as a social service in the words of the Finance Minister Mr.C.D.Deshmukh.
“Yogakshema” building was inaugurated by Pandit Jawaharlal Nehru in 1963, by opening the gates with a silver key “Yogakshema” LIC corporate office is not the only Landmark building at LIC. The corporation also happens to be one of the largest property owner in India second only.
Historical Background:
The Life Insurance Corporation of India (LIC) (Hindi: भारतीय जीवन बीमा निगम) is the largest life insurance company in India, and also the country's largest investor.; it is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of 8 Trillion Rupees (or about $170 Billion dollars). It was founded in 1956.
The Life Insurance Corporation of India (LIC), a public sector enterprise, is the largest insurance company in India, selling insurance products and related services.
In March 2001, LIC had a total asset base of Rs 1936.2 billion and a total premium income of Rs 342.07 billion. By April 2002, the total sum assured under 23.2 million policies stood at Rs 1925.7 billion. LIC had a variety of insurance plans to cater to various categories of people and their diverse needs.
The company offered life insurance and group insurance. It also provided social security schemes and pension schemes. Each of its business products offered a variety of different plans to suit different customers and situations. Investment in LIC was considered by a majority of its customers to be reliable and secure.
Housing loans were granted through its subsidiary and LIC sold its market savings and investment products through its mutual fund subsidiary, LIC Mutual Fund Ltd. To serve its 140 million policyholders (2001 end), the insurance giant had 1.25 lakh employees and 6.51 lakh agents across the country.
The company, which was based in Mumbai, had seven zonal offices, 100 divisional offices, and 2,048 branch offices that spanned the country. LIC's penetration in rural areas was very high; 18% of its total business came from rural areas.
Since LIC enjoyed monopoly status for over four decades, it emerged as one of the key public fundraisers in India. However, things began changing in the mid-1990s, when the Government of India decided to privatize the insurance sector.
Subsidiaries:
In the late 1980s, LIC established a few subsidiaries with a view to expanding its services. These were LIC Housing Finance Limited, LIC Mutual Fund, Life Insurance Corporation (International) E.C. and LIC (Nepal).
Associates
LIC HFL Financial Services LTD.
LIC Housing Finance LTD.
LICHLF Care Homes LTD.
LIC Mutual Fund AMC LTD.
LIC Cards Services LTD.
LIC Pension Fund LTD.
Current Scenario:
LIC existence is of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2008.
The organization now comprises 2048 branches, 109 divisional offices and 8 zonal offices, and employs over 1,002,149 agents. The corporate Office of LIC is in Mumbai. It also operates in 12 other countries, primarily to cater to the needs of Non Resident Indians.
With the change in the India's economic philosophy from the early 1990s, and the subsequent relaxation of state control over several sectors of the economy, the monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities, Indian as well as transnational Life Insurance brands. However, it still manages to be the largest player in the Indian market, with the lion's share of 55%.
The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of the Country. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200 million (fourth in terms of population of the countries of the world).
LIC owns the following subsidiaries:
Life Insurance Corporation of India International: This is a joint venture offshore company promoted by LIC which commenced operations in July, 1989 with the objectives of offering US$ denominated policies to cater to the insurance needs of NRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. LIC International operates in all GCC countries.
LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of Industries, Nepal.
LIC Lanka: A joint venture company formed in 2003 with the Bartlett Group of Companies, Sri Lanka.
LIC Housing Finance: Incorporated in 19 June 1989, its main objective is to provide long term finance for construction or purchase of houses or apartments. It has a Dubai office.
LICHFL Care Homes: A wholly owned subsidiary of LIC Housing Finance, it builds & operates "Assisted Community Living Centers" for senior citizens.
Nature of Business carried:
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilization’s partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:
That of dying prematurely leaving a dependent family to fend for it.
That of living till old age without visible means of support.
Types of Insurance
Life Insurance - Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he or she lives beyond a certain age.
Health Insurance - Insurance against expenses incurred through illness of the insured.
Liability Insurance - This insures property such as automobiles, property and professional/business mishaps.
Vision
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
Mission
"Explore 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."
Area of operation
Corporate Office- Mumbai.
Zonal offices-8
Divisional offices-100
Branch offices-2048
Agents 10,021,149
Ownership Pattern Competitors :
Aviva Life Insurance
Bajaj Allianz Life Insurance
Birla Sun-Life Insurance
HDFC Standard Life Insurance
ING Vysya Life Insurance
Max New York Life Insurance
MetLife Insurance
Om Kotak Mahindra Life Insurance
Reliance Life Insurance
Sahara India Life Insurance
SBI Life Insurance
TATA AIG Life Insurance
General Insurance Companies
Agriculture Insurance
Amsure Insurance
ANZ Insurance
Bajaj Allianz General Insurance
Cholamandalam General Insurance
Employee State Insurance
Export Credit Guarantee Corporation
ICICI Lombard General Insurance
National Insurance
Oriental Insurance
Peerless Smart Financial
Royal Sundaram Alliance
TATA AIG General Insurance
Bharti AXA Life Insurance.
Life Insurance in India since Vedic times, arrived here from England in its modern from only in the year 1818, to insure Europeans and support their windows entered ‘Bombay Mutual Life Assurance Society” in 1870 the First India Insurance Company, with just seven rupees for initial expenses. Later, Lala Harikishanlal launched “Bharat Insurance Company” at Lahore In 1896.
In early days of 1956 nationalization of Life Insurance was taking concrete shape Life insurance was nationalized in the public interest as a public utility and as a social service in the words of the Finance Minister Mr.C.D.Deshmukh.
“Yogakshema” building was inaugurated by Pandit Jawaharlal Nehru in 1963, by opening the gates with a silver key “Yogakshema” LIC corporate office is not the only Landmark building at LIC. The corporation also happens to be one of the largest property owner in India second only.
Historical Background:
The Life Insurance Corporation of India (LIC) (Hindi: भारतीय जीवन बीमा निगम) is the largest life insurance company in India, and also the country's largest investor.; it is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of 8 Trillion Rupees (or about $170 Billion dollars). It was founded in 1956.
The Life Insurance Corporation of India (LIC), a public sector enterprise, is the largest insurance company in India, selling insurance products and related services.
In March 2001, LIC had a total asset base of Rs 1936.2 billion and a total premium income of Rs 342.07 billion. By April 2002, the total sum assured under 23.2 million policies stood at Rs 1925.7 billion. LIC had a variety of insurance plans to cater to various categories of people and their diverse needs.
The company offered life insurance and group insurance. It also provided social security schemes and pension schemes. Each of its business products offered a variety of different plans to suit different customers and situations. Investment in LIC was considered by a majority of its customers to be reliable and secure.
Housing loans were granted through its subsidiary and LIC sold its market savings and investment products through its mutual fund subsidiary, LIC Mutual Fund Ltd. To serve its 140 million policyholders (2001 end), the insurance giant had 1.25 lakh employees and 6.51 lakh agents across the country.
The company, which was based in Mumbai, had seven zonal offices, 100 divisional offices, and 2,048 branch offices that spanned the country. LIC's penetration in rural areas was very high; 18% of its total business came from rural areas.
Since LIC enjoyed monopoly status for over four decades, it emerged as one of the key public fundraisers in India. However, things began changing in the mid-1990s, when the Government of India decided to privatize the insurance sector.
Subsidiaries:
In the late 1980s, LIC established a few subsidiaries with a view to expanding its services. These were LIC Housing Finance Limited, LIC Mutual Fund, Life Insurance Corporation (International) E.C. and LIC (Nepal).
Associates
LIC HFL Financial Services LTD.
LIC Housing Finance LTD.
LICHLF Care Homes LTD.
LIC Mutual Fund AMC LTD.
LIC Cards Services LTD.
LIC Pension Fund LTD.
Current Scenario:
LIC existence is of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2008.
The organization now comprises 2048 branches, 109 divisional offices and 8 zonal offices, and employs over 1,002,149 agents. The corporate Office of LIC is in Mumbai. It also operates in 12 other countries, primarily to cater to the needs of Non Resident Indians.
With the change in the India's economic philosophy from the early 1990s, and the subsequent relaxation of state control over several sectors of the economy, the monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities, Indian as well as transnational Life Insurance brands. However, it still manages to be the largest player in the Indian market, with the lion's share of 55%.
The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of the Country. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200 million (fourth in terms of population of the countries of the world).
LIC owns the following subsidiaries:
Life Insurance Corporation of India International: This is a joint venture offshore company promoted by LIC which commenced operations in July, 1989 with the objectives of offering US$ denominated policies to cater to the insurance needs of NRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. LIC International operates in all GCC countries.
LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of Industries, Nepal.
LIC Lanka: A joint venture company formed in 2003 with the Bartlett Group of Companies, Sri Lanka.
LIC Housing Finance: Incorporated in 19 June 1989, its main objective is to provide long term finance for construction or purchase of houses or apartments. It has a Dubai office.
LICHFL Care Homes: A wholly owned subsidiary of LIC Housing Finance, it builds & operates "Assisted Community Living Centers" for senior citizens.
Nature of Business carried:
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilization’s partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:
That of dying prematurely leaving a dependent family to fend for it.
That of living till old age without visible means of support.
Types of Insurance
Life Insurance - Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he or she lives beyond a certain age.
Health Insurance - Insurance against expenses incurred through illness of the insured.
Liability Insurance - This insures property such as automobiles, property and professional/business mishaps.
Vision
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
Mission
"Explore 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."
Area of operation
Corporate Office- Mumbai.
Zonal offices-8
Divisional offices-100
Branch offices-2048
Agents 10,021,149
Ownership Pattern Competitors :
Aviva Life Insurance
Bajaj Allianz Life Insurance
Birla Sun-Life Insurance
HDFC Standard Life Insurance
ING Vysya Life Insurance
Max New York Life Insurance
MetLife Insurance
Om Kotak Mahindra Life Insurance
Reliance Life Insurance
Sahara India Life Insurance
SBI Life Insurance
TATA AIG Life Insurance
General Insurance Companies
Agriculture Insurance
Amsure Insurance
ANZ Insurance
Bajaj Allianz General Insurance
Cholamandalam General Insurance
Employee State Insurance
Export Credit Guarantee Corporation
ICICI Lombard General Insurance
National Insurance
Oriental Insurance
Peerless Smart Financial
Royal Sundaram Alliance
TATA AIG General Insurance
Bharti AXA Life Insurance.
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