Full Form of LIC
LIC Stands for Life Insurance Corporation of India.
LIC was established in 1956. It is a government-owned insurance and investment company based under the Life Insurance Act of India, wherein over 245 insurance companies and provident societies were merged and nationalized and placed under the administration of the Government. Its headquarters is in Mumbai, India.
Their objective is:
- Spread awareness about insurance and provide financial cover against death at a decent price
- To provide insurance to everyone who is eligible
- Meet the community's different life insurance demands as the social and economic environment changes.
- Promote a sense of participation, pride, and job satisfaction among all Corporation agents and employees through the performance of their jobs with the dedication to the fulfillment of Corporate goals.
- Conduct business keeping in mind that the money belongs to the policyholders.
- To serve in both their individual and collective capacities as trustees for the insured public.
The mission is to offer people financial security through products and services at a better return than other market investment participants, assisting them in maintaining a certain quality of living and providing economic development.
Recently, LIC opened its IPO to the public on May 4, 2022, making it the biggest ever IPO in the country, with a 21,000 crore IPO size. LIC reported 290 million policyholders as of 2019, a total life fund of ₹28.3 trillion.
History of LIC:
LIC was established in 1956. It is a government-owned insurance and investment company based under the Life Insurance Act of India, wherein over 245 insurance companies and provident societies were merged and nationalized. Nationalization took place in two stages: first, the administration of the firms was taken over by an Ordinance, and then the ownership was taken over through a comprehensive bill.
At the time of the company's incorporation, the Indian government provided a capital contribution of Rs 5 crore. It is wholly owned by the government. The government took this step because of the 956 industrial policy wherein the State was given control in 17+ significant economic sectors, like life insurance.
It has 74 customer zones, 113 divisional offices, 2,048 branch offices, and 1,546 satellite offices in addition to eight zonal offices. LIC's slogan is 'Yogakshemam Vahamyaham,' which translates as 'your welfare is our responsibility,' and is based on the 22nd verse of the Bhagavad Gita's 9th chapter.
The Function of LIC:
- They collect money in exchange for an insurance policy.
- They invest the collected money into government securities
- They also provide loans
- They also invest in various corporations through bonds and securities
The primary function of LIC is to invest in global financial markets and various government assets after collecting monies from individuals via their various life insurance contracts. According to one of the LIC guidelines, at least 75% of the cash collected must be invested in Central and State Government securities.
LIC is now India's largest life insurance company. It has eight zonal offices, 113 divisional offices, and over two thousand branches. It also has over 13 lakh LIC agents in the country to market its insurance business.