LIC COMPANY PROFILE

The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves
against loss and disaster existed in primitive men also. They too sought to
avert the evil consequences of fire and flood and loss of life and were willing
to make some sort of sacrifice in order to achieve security. Though the
concept of insurance is largely a development of the recent past, particularly
after the industrial era – past few centuries – yet its beginnings date back
almost 6000 years.

Life Insurance in its modern form came to India from England in the year
1818. Oriental Life Insurance Company started by Europeans in Calcutta was
the first life insurance company on Indian Soil. All the insurance companies
established during that period were brought up with the purpose of looking
after the needs of European community and Indian natives were not being
insured by these companies. However, later with the efforts of eminent
people like Babu Muttylal Seal, the foreign life insurance companies started
insuring Indian lives. But Indian lives were being treated as sub-standard
lives and heavy extra premiums were being charged on them. Bombay
Mutual Life Assurance Society heralded the birth of first Indian life insurance
company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to carry the message of insurance and social
security through insurance to various sectors of society. Bharat Insurance
Company (1896) was also one of such companies inspired by nationalism.
The Swadeshi movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National
Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance Company
took its birth in one of the rooms of the Jorasanko, house of the great poet
Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance
and Swadeshi Life (later Bombay Life) were some of the companies
established during the same period. Prior to 1912 India had no legislation to
regulate insurance business. In the year 1912, the Life Insurance Companies
Act, and the Provident Fund Act were passed. The Life Insurance Companies
Act, 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act
discriminated between foreign and Indian companies on many accounts,
putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore,
it rose to 176 companies with total business-in-force as Rs.298 crore in
1938. During the mushrooming of insurance companies many financially
unsound concerns were also floated which failed miserably. The Insurance
Act 1938 was the first legislation governing not only life insurance but also
non-life insurance to provide strict state control over insurance business.
The demand for nationalization of life insurance industry was made
repeatedly in the past but it gathered momentum in 1944 when a bill to
amend the Life Insurance Act 1938 was introduced in the Legislative
Assembly. However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance companies,
16 non-Indian companies and 75 provident were operating in India at the
time of nationalization. Nationalization was accomplished in two stages;
initially the management of the companies was taken over by means of an
Ordinance, and later, the ownership too by means of a comprehensive bill.
The Parliament of India passed the Life Insurance Corporation Act on the
19th of June 1956, and the Life Insurance Corporation of India was created
on 1st September, 1956, with the objective of spreading life insurance much
more widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial cover at
a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart
from its corporate office in the year 1956. Since life insurance contracts are
long term contracts and during the currency of the policy it requires a
variety of services need was felt in the later years to expand the operations
and place a branch office at each district headquarter. Re-organization of LIC
took place and large numbers of new branch offices were opened. As a result
of re-organisation servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about 200.00
crores of New Business in 1957 the corporation crossed 1000.00 crores only
in the year 1969-70, and it took another 10 years for LIC to cross 2000.00
crore mark of new business. But with re-organisation happening in the early
eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on
new policies.

Today LIC functions with 2048 fully computerized branch offices, 109
divisional offices, 8 zonal offices, 992 satallite offices and the Corporate
office. LIC’s Wide Area Network covers 109 divisional offices and connects all
the branches through a Metro Area Network. LIC has tied up with some
Banks and Service providers to offer on-line premium collection facility in
selected cities. LIC’s ECS and ATM premium payment facility is an addition
to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres
have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate
anywhere servicing and many other conveniences in the future.

LIC continues to be the dominant life insurer even in the liberalized scenario
of Indian insurance and is moving fast on a new growth trajectory
surpassing its own past records. LIC has issued over one crore policies
during the current year. It has crossed the milestone of issuing 1,01,32,955
new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67%
over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance
business. The same motives which inspired our forefathers to bring
insurance into existence in this country inspire us at LIC to take this
message of protection to light the lamps of security in as many homes as
possible and to help the people in providing security to their families.

Some of the important milestones in the life insurance business in

India are:

1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life
insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over
by the central government and nationalised. LIC formed by an Act of
Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from
the Government of India.
The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business

in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business
practices.

1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972

nationalised the
general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the
National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.

The Life Insurance Corporation of India (LIC) (Hindi: भारतीय जीवन बीमा ननगम) is the
largest state-owned 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 13.25 trillion (US$251.75
billion).[1] It was founded in 1956 with the merger of 243 insurance companies and
provident societies.[2]
Headquartered in Mumbai, financial and commercial capital of India,[3] the Life
Insurance Corporation of India currently has 8 zonal Offices and 113 divisional offices
located in different parts of India, around 3500 servicing offices including 2048
branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of Satellite
Offices located in different cities and towns of India and has a network of 13,37,064
individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks
(as on 31.3.2011) for soliciting life insurance business from the public.
The slogan of LIC is "Yogakshemam Vahamyaham" - Your welfare is our responsibility.

Contents
 [hide]

 1 History
 2 Nationalization
 3 Current status
 4 Awards and recognition
 5 Golden Jubilee Foundation
 6 References
 7 External links
[edit]History

The Oriental Life Insurance Company, the first corporate entity in India offering life
insurance coverage, was established in Calcutta in 1818 by Bipin Behari Dasgupta and
others. Europeans in India were its primary target market, 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

 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)
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 bankruptcies 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.
[edit]Nationalization

In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by owners of
private insurance companies. In the ensuing investigations, one of India's wealthiest
businessmen, Ram Kishan Dalmia, 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 1956-06-19, and the Life Insurance Corporation of India was created on
1956-09-01, by consolidating the life insurance business of 245 private life insurers and
other entities offering life insurance services. Nationalization 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.
[edit]Current status

LIC building, at Connaught Place, New Delhi, designed by Charles Correa, 1986.

Over its existence 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 2006.
The Corporation, which started its business with around 300 offices, 5.7 million policies
and a corpus of INR 459 million (US$ 92 million as per the 1959 exchange rate of
roughly Rs. 5 for a US $ [4], has grown to 25000 servicing around 350 million policies
and a corpus of over 8 trillion (US$152 billion). [5]
[edit]Awards and recognition

The Economic Times Brand Equity Survey 2010 rated LIC as the No. 4 Service Brand
of the Country[6]. Though in the year 2010 is ranked at 4, the organization is consistently
among the top rated service company of the India[7]. From the year 2006, LIC is
continuously winning the Readers' Digest Trusted brand award[8].
According to The Brand Trust Report[9] 2011, LIC is the 8th most trusted brand of India.
[edit]Golden Jubilee Foundation

LIC Golden Jubilee Foundation is started in 2006 as a charity organization. This entity
have the aim of promoting education, alleviation of poverty, and better living conditions
for the under privileged. Out of all the activities conducted by the organization, Golden
Jubilee Scholarship awards is the most famous. Each year, this award is given to the
meritorious students in of class XII equivalent who want to continue the studies and
whose parental income is less than 60,000 Rupees.[10]
LIC OF INDIA

Life insurance is a protection in the form of coverage that is provided to various individuals
or group of people. It is way of investment and a security for your family as it acts as a
protection cover in case of unpleasant incidents. Not only the security or investment, it also
deals with various economic or educational needs of the policy holder.

The life insurance corporation of India, a government project came up with the objective of
giving out life insurance policies to the maximum people with a view of spreading
information about the policy in the all the corners of the country including the rural areas.
The company was founded on 1st September, 1956 with distinguished goals. And as per the
growing fame and success of this company it’s obvious that the goals and objectives were
well achieved.

The main purpose of the life insurance is to provide cover to the individual in affordable
rates. There are many add on benefits also like tax benefits and the investment plans which
make sure you are satisfied with the amount you pay. This way, it has successfully
managed to establish its company and create 8 zonal offices, 109 divisional offices, 2048
branch offices, which is a great achievement in itself. Over the past 55 years, LIC has made
enormous growth with good profit as well as providing security to the people as per their
needs.
The life insurance corporation has a large number of policies for individuals, students, old
age people, retire people, but there is a need to study the rules or conditions is each policy
so as to know the exact suitable policy as per you need. So it’s necessary that you go and
buy the policy through an insurance agent, as they are professionals and can provide you
better judgement about the required subject.
The different existing policies are unit linked plans, endowment policies, health plans,
pension plans, joint plans, etc which are standardized as per your requirements. The best
thing is to be well informed and choose the policy as per your needs and affordability.

LIC PLANS

As individuals it is inherent to differ. Each individual's insurance needs and requirements are
different from that of the others. LIC's Insurance Plans are policies that talk to you individually
and give you the most suitable options that can fit your requirement.

Jeevan Arogya
Bima Account 1
Bima Account 2

Endowment Plus

Jeevan Anurag Komal Jeevan

CDA Endowment Vesting At 21 Marriage Endowment Or
CDA Endowment Vesting At 18 Educational Annuity Plan
Jeevan Kishore Jeevan Chhaya
Child Career Plan Child Future Plan

Jeevan Aadhar
Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment
Jeevan Mitra(Double Cover Endowment Plan)
Jeevan Mitra(Triple Cover Endowment Plan)
Jeevan Anand
New Janaraksha Plan
Jeevan Amrit

Jeevan Shree-I
Jeevan Pramukh

The Money Back Policy-20 Years

The Money Back Policy-25 Years
Jeevan Surabhi-15 Years
Jeevan Surabhi-20 Years
Jeevan Surabhi-25 Years
Bima Bachat
 Jeevan Bharati - I

The Whole Life Policy

The Whole Life Policy- Limited Payment
The Whole Life Policy- Single Premium
Jeevan Anand
Jeevan Tarang

Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy
Anmol Jeevan-I
Amulya Jeevan-I

Jeevan Saathi

Pension Plans are Individual Plans that gaze into your future and foresee financial stability
during your old age. These policies are most suited for senior citizens and those planning a
secure future, so that you never give up on the best things in life.

Pension Plus
Jeevan Nidhi
Jeevan Akshay-VI
New Jeevan Dhara-I
New Jeevan Suraksha-I
Unit plans are investment plans for those who realise the worth of hard-earned money. These
plans help you see your savings yield rich benefits and help you save tax even if you don't have
consistent income.

Pension Plus
Endowment Plus

Special plan
LIC’s Special Plans are not plans but opportunities that knock on your door once in a lifetime.
These plans are a perfect blend of insurance, investment and a lifetime of happiness!

New Bima Gold Health Protection Plus

Bima Nivesh 2005 Jeevan Madhur

Jeevan Saral Jeevan Mangal

Group scheme

Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for
employers, associations, societies etc. and allows you to enjoy group benefits at really low costs.

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of EDLI
Group Gr-atuity Scheme
Group Super Annuation Scheme
Group Savings Linked Insurance Scheme
Group Leave Encashment Scheme
Group Mortgage Redemption Assurance Scheme
Group Critical Illness Rider

JanaShree Bima Yojana (JBY)

Shiksha Sahayog Yojana
Aam Admi Bima Yojana
Withdrawn plans

Jeevan Nischay Market Plus I

Wealth Plus Profit Plus

Jeevan Aastha Money Plus-I
Jeevan Varsha Child Fortune Plus
Fortune Plus Jeevan Saathi Plus
Health Plus Samridhi Plus