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LIC Full Form and History
LIC is an Indian state-owned insurance company. It was founded in 1956 and is headquartered in Mumbai. LIC is the largest insurance company in India in terms of assets and market share. It offers a variety of life insurance products, including term life, endowment, and whole life policies. LIC also offers health insurance, pension plans, and investment products. The company has more than 260 million customers and more than 17,000 branches and subsidiaries across India.
LIC Role in Indian Economy
The Life Insurance Corporation of India (LIC) plays a significant role in the Indian economy. Established in 1956, LIC is one of the largest and oldest insurance companies in India. Its role extends beyond providing insurance coverage to individuals and families; it has a substantial impact on the country’s economic development. Here are some key aspects of LIC’s role in the Indian economy:
- Mobilization of Savings: LIC promotes savings among the public by offering various insurance products. It encourages people to save regularly, which leads to the accumulation of substantial funds that can be utilized for various developmental activities.
- Investment in Infrastructure: A significant portion of the funds collected by LIC is invested in infrastructure projects such as roads, bridges, and power plants. These investments are crucial for the country’s economic growth and development.
- Capital Market Development: LIC is a major institutional investor in the Indian stock market. Its investments help stabilize the market and provide liquidity, which is essential for the growth of the capital market.
- Social Security: LIC provides life insurance coverage to millions of people, offering financial security to families in case of the untimely death of the breadwinner. This social security aspect is vital for maintaining social stability.
- Employment Generation: As one of the largest financial institutions in India, LIC provides employment opportunities to thousands of individuals, directly and indirectly, contributing to job creation in the country.
- Rural Development: LIC has a wide reach in rural areas, offering insurance products tailored to the needs of rural populations. This helps in financial inclusion and the economic upliftment of rural communities.
- Supporting Government Initiatives: LIC often invests in government securities and bonds, providing financial support for various government initiatives and schemes aimed at economic development.
Some of LIC Product Line
The Life Insurance Corporation of India (LIC) provides a wide array of products tailored to meet diverse customer needs. Some of LIC’s key product categories include:
- Life Insurance Plans: These plans offer financial protection to the policyholder’s family in the event of the policyholder’s premature death. They encompass term insurance, whole life plans, and endowment plans.
- Health Insurance Plans: LIC offers health insurance products that cover medical expenses arising from illness or injury. These plans may include hospitalization benefits and critical illness coverage.
- Pension Plans: These plans are crafted to provide a regular income to individuals post-retirement, ensuring financial stability during their golden years. LIC offers a variety of pension schemes with distinct features and advantages.
- Unit Linked Insurance Plans (ULIPs): ULIPs combine insurance and investment components. A portion of the premium goes towards insurance coverage, while the remainder is invested in market-linked instruments.
- Child Plans: These plans are designed to secure a child’s future financial needs, such as education and marriage. They often include features like premium waivers and guaranteed payouts at specific stages.
- Money Back Plans: These plans offer periodic payouts to the policyholder during the policy term, along with a lump sum at the term’s end. They are suitable for individuals seeking regular income alongside insurance coverage.
- Savings Plans: LIC offers various savings plans that provide insurance coverage while facilitating systematic savings.
- Micro Insurance Plans: These plans cater to the economically disadvantaged sections of society, offering them affordable insurance coverage with minimal premium rates.
Functions of LIC (Life Insurance Corporation of India):
- Providing life insurance coverage to individuals.
- Promoting life insurance awareness and financial literacy.
- Offering various life insurance products tailored to different needs.
- Collecting premiums and managing policyholder funds.
- Settling claims efficiently and fairly.
Mission of LIC
- Promoting life insurance for economic development.
- Ensuring financial protection and security for policyholders.
- Contributing to national savings and investment.
- Offering affordable life insurance options to all segments of society.
- Providing employment opportunities and fostering professionalism in the insurance sector.
Some More Facts About the LIC
- The LIC is a government-owned company that offers life insurance policies to the people of India.
- The LIC is the largest life insurance company in India.
- The LIC has more than 190 million customers.
- The LIC has more than Rs. 18 trillion in assets.
- The LIC is the world’s largest insurance company.
Why Must You Trust LIC?
There are a few key reasons why you should trust LIC. The first is that LIC is a trusted, reliable insurance company that has been in operation for over 150 years. LIC is also regulated by the government, so you can be assured that your money is safe with them. Finally, LIC offers a wide range of products and services, so you can find the perfect policy to meet your needs.
What Must One Do to Work as a LIC Agent?
In order to work as a LIC agent, one must be registered with the company. They must also complete an agent training program and pass an exam.
Can I Trust LIC With My Personal Information While Making Investments?
Yes, you can trust LIC with your personal information while making investments. LIC is a public sector undertaking of the Government of India and is regulated by the Securities and Exchange Board of India (SEBI). LIC is also listed on the National Stock Exchange of India and the Bombay Stock Exchange. As such, LIC is required to adhere to the highest standards of corporate governance.
What are the Eligibility Criteria for Buying Policies?
There is no universal answer to this question as eligibility criteria can vary from insurer to insurer. However, in general, most insurers will require that you be a resident of the country where you are purchasing the policy, be of a certain age (usually 18 or older), and meet certain health requirements. Some insurers may also require that you have a certain level of income or hold a certain job title.
What is the Golden Jubilee Foundation of LIC?
The Golden Jubilee Foundation of LIC is a trust which was constituted in 1967 by the Life Insurance Corporation of India to commemorate its 50th year of operations. The foundation is engaged in social welfare activities such as education, health care, and poverty alleviation.
What are the subsidiaries of LIC?
There are numerous subsidiaries of LIC. Some of the most notable ones include LIC Housing Finance Limited, LIC Mutual Fund, LIC Pension Fund, and LIC of India.
List of full forms available at IL website:
FAQs on LIC Full Form
Who is the first CEO of LIC of India?
The first CEO of LIC of India was Mr. H. R. Deshmukh, who played a key role in establishing and shaping the organization in its early years.
Who is MD and CEO of LIC?
As of my last update, the MD and CEO of LIC are subject to change, so it's best to check LIC's official website or recent announcements for the current MD and CEO's name.
Is LIC a government company or private?
LIC is a government-owned corporation. It is a public sector enterprise owned by the Government of India, operating in the insurance industry.
Who is the owner of LIC?
The owner of LIC is the Government of India. It is a state-owned insurance and investment corporation, making it a government entity.
What is LIC benefit?
LIC benefits include financial security for policyholders and their families, investment opportunities, tax savings, and support for various life goals such as retirement planning, children's education, and health coverage.
