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{{short description|Indian state owned life insurance company}}
{{short description|Indian state owned life insurance company}}
{{Advert|date=May 2022}}
{{Use dmy dates|date=May 2017}}
{{Use dmy dates|date=May 2017}}
{{Use Indian English|date=June 2016}}
{{Use Indian English|date=June 2016}}
{{Infobox company
{{Infobox company
| name = Life Insurance Corporation
| name = Life Insurance Corporation of India
| logo = File:Life Insurance Corporation of India (logo).svg
| logo = File:Life Insurance Corporation of India (logo).svg
| logo_size = 250px
| logo_size = 250px
| logo_caption = ''Yogakshemam Vahamyaham''
| logo_caption = ''Yogakshemam Vahamyaham''
| type = [[Government-owned corporation|Statutory Corporation]] established by an <br /> [[Act of Parliament]]- <br />LIC Act 1956<br />
| type = [[Government-owned corporation|Statutory Corporation]] established by an <br /> [[Act of Parliament]]- <br />LIC Act 1956<br />
| key_people = {{ubl|M R Kumar <br />(Chairman)|Mukesh Gupta<br />(Managing Director)<br />Smt. Ipe Mini<br />(Managing Director)|Siddharth Mohanty<br />(Managing Director)|Rajkumar<br />(Managing Director)}}
| traded_as = {{Unbulleted list|{{BSE|543526}}|{{NSE|LICI}}}}
| key_people = {{ubl|M R Kumar <br />{{small|(Chairperson)}}|B C Patniak<br />{{small|(Managing Director)}}<br />Smt. Ipe Mini<br />{{small|(Managing Director)}}<br />Siddharth Mohanty<br />{{small|(Managing Director)}}|Rajkumar<br />{{small|(Managing Director)}}}}
| industry = [[Insurance]] and [[Financial services]]
| industry = [[Insurance]] and [[Financial services]]
| products = {{ubl|[[Life insurance]] |[[Health insurance]] |[[Investment management]] |[[Mutual fund]]}}
| products = {{ubl|[[Life insurance]] |[[Health insurance]] |[[Investment management]] |[[Mutual fund]]}}
| revenue = {{Increase}} {{INRConvert|56078439|l}} (2019)<ref name=6-K>{{cite web|url=https://licindia.in/getattachment/Bottom-Links/annual-report/LIC-AR-2018-19-Final-web.pdf.aspx|title=Life Insurance Corporation Ltd. Financial Statements |website=licindia.in}}</ref>
| revenue = {{Increase}} {{INRConvert|724743|c}} (2022)<ref name=6-K>{{cite web|url=https://moneycontrol.com/financials/lifeinsurancecorporationofindia/consolidated-profit-lossVI/LIC09#LIC09|title=Life Insurance Corporation Ltd. Financial Statements |website=moneycontrol.com}}</ref>
| operating_income = {{Increase}} {{INRConvert|270348|l}} (2019)<ref name=6-K/>
| operating_income = {{Increase}} {{INRConvert|13975|c}} (2022)<ref name=6-K/>
| net_income = {{Increase}} {{INRConvert|268849|l}} (2019)<ref name=6-K/>
| net_income = {{Increase}} {{INRConvert|4124|c}} (2022)<ref name=6-K/>
| assets = {{Increase}} {{INRConvert|380400000|l}} (2021)<ref name=6-K/>
| assets = {{Increase}} {{INRConvert|4254058|c}} (2022)<ref name=6-K/>
| equity =  
| equity = {{increase}} {{INRConvert|11338|c}} (2022)<ref name=6-K/>
| owner = [[Government of India]] (100%)
| owner = {{nowrap|[[Government of India]] (96.5%)<ref>{{cite web|url=https://www.livemint.com/market/stock-market-news/how-lic-s-ipo-india-s-biggest-ended-in-a-downbeat-debut-11652787205502.html|title=How LIC's IPO, India's biggest, ended in a downbeat debut|publisher=Live Mint|access-date=17 May 2022}}
| parent = [[Ministry of Finance (India)|Ministry of Finance]] , [[Government of India]]
</ref>}}
| num_employees = 114,000 (2020)<ref name=6-K/>
| num_employees = 114,000 (2020)<ref name=6-K/>
| subsid = {{ubl|[[LIC Housing Finance]]|LIC International Ltd|LIC Cards Services Ltd|LIC Mutual Fund Ltd|LIC Pension Fund Ltd | IDBI Bank }}
| subsid = {{ubl|[[LIC Housing Finance]]|LIC International Ltd|LIC Cards Services Ltd|LIC Mutual Fund Ltd|LIC Pension Fund Ltd | IDBI Bank }}
Line 26: Line 28:
}}
}}


'''Life Insurance Corporation of India''' (abbreviated as '''LIC''') is an Indian [[Government of India|statutory insurance and investment corporation]]. It is under the [[ownership]] of [[Ministry of Finance (India)|Ministry of Finance]] , [[Government of India]] .
'''Life Insurance Corporation of India''' ('''LIC''') is an Indian [[Government of India|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.<ref>{{Cite web|url=https://www.mylicindia.com/lic-life-insurance-corporation-of-india/|title=LIC – Life Insurance Corporation Of India|last=Anushka|website=My LIC India|language=en-US|access-date=2020-02-18}}</ref><ref name="licindia.in">https://www.licindia.in/getattachment/Bottom-Links/annual-report/LIC-Annual-Report-2015-16.pdf.aspx</ref>
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.<ref>{{Cite web|url=https://www.mylicindia.com/lic-life-insurance-corporation-of-india/|title=LIC – Life Insurance Corporation Of India|last=Anushka|website=My LIC India|language=en-US|access-date=2020-02-18}}</ref><ref name="licindia.in">https://www.licindia.in/getattachment/Bottom-Links/annual-report/LIC-Annual-Report-2015-16.pdf.aspx {{Bare URL PDF|date=March 2022}}</ref>


As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3 trillion. The total value of sold policies in the year 2018–19 is ₹21.4 million. Life Insurance Corporation of India settled 26 million claims in 2018–19. It has 290 million policy holders.
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.


==History==
==History==
[[File:LIC Chennai.JPG|thumbnail|[[LIC Building]] at [[Chennai]], was the tallest building in India when it was inaugurated in 1959|326x326px]]
[[File:LIC Chennai.JPG|thumbnail|[[LIC Building]] at [[Chennai]], was the tallest building in India when it was inaugurated in 1959|326x326px]]
===Founding organisations===
===Founding organisations===
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.<ref name="History">{{cite web|url=http://www.licindia.in/history.htm |title=History |publisher=LIC |access-date=15 December 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131216111317/http://www.licindia.in/history.htm |archive-date=16 December 2013 |df=dmy }}</ref> [[Surendranath Tagore]] had founded Hindustan Insurance Society, which later became Life Insurance Corporation.<ref>{{cite web|url=https://www.telegraphindia.com/states/west-bengal/lunch-on-lotus-leaves/cid/1265929|title=Lunch on lotus leaves|website=www.telegraphindia.com|access-date=19 December 2018}}</ref> Check [https://www.gitmobiles.com/this-is-the-special-policy-of-lic/ Special Policy] Of LIC.
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.<ref name="History">{{cite web|url=http://www.licindia.in/history.htm |title=History |publisher=LIC |access-date=15 December 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131216111317/http://www.licindia.in/history.htm |archive-date=16 December 2013 |df=dmy }}</ref> [[Surendranath Tagore]] had founded Hindustan Insurance Society, which later became Life Insurance Corporation.<ref>{{cite web|url=https://www.telegraphindia.com/states/west-bengal/lunch-on-lotus-leaves/cid/1265929|title=Lunch on lotus leaves|website=www.telegraphindia.com|access-date=19 December 2018}}</ref>


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
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
Line 51: Line 54:
* Sahyadri Insurance (Merged into LIC, 1986)
* Sahyadri Insurance (Merged into LIC, 1986)


The first 150 years were marked mostly by turbulent economic conditions. It witnessed [[Indian rebellion of 1857|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 worldwide economic crises triggered by the [[Great depression]]. The first half of the 20th century saw a heightened struggle for [[India's independence movement|India's independence]]. The aggregate effect of these events led to a high rate of and [[liquidation]] of life insurance companies in India. This had adversely affected the faith of the general in the utility of obtaining life cover.
The first 150 years were marked mostly by turbulent economic conditions including [[Indian rebellion of 1857|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===
===Nationalization in 1956===
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.<ref name="Sasi Bhushan">{{cite web |last1=Bhushan |first1=Sasi |title=Excerpts: Feroze Gandhi: A Political Biography by Shashi Bhushan |url=https://www.cse.iitk.ac.in/users/amit/books/bhushan-1977-feroze-gandhi-political.html |website=www.cse.iitk.ac.in |access-date=10 March 2021}}</ref>
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.<ref name="Sasi Bhushan">{{cite web |last1=Bhushan |first1=Sasi |title=Excerpts: Feroze Gandhi: A Political Biography by Shashi Bhushan |url=https://www.cse.iitk.ac.in/users/amit/books/bhushan-1977-feroze-gandhi-political.html |website=www.cse.iitk.ac.in |access-date=10 March 2021}}</ref>


The [[Parliament of India]] passed the Life Insurance of India Act on 19 June 1956 creating the Life Insurance Corporation of India, which started operating in September of that year. It consolidated the business of 245 private life insurers and other entities offering life insurance services; this consisted of 154 life insurance companies, 16 foreign companies and 75 provident companies. The 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 17 sectors of the economy, including life insurance.{{fact|date=June 2021}}
===Initial public offering===
Finance Minister [[Nirmala Sitharaman]] announced a proposal to conduct an [[initial public offering]] for LIC in the [[2021 Union budget of India|2021 Union Budget]].<ref>{{cite web |title=LIC IPO: Good news for LIC insurance policy holders! Modi government confirms this big development |url=https://www.zeebiz.com/market-news/news-lic-ipo-good-news-for-lic-insurance-policy-holders-modi-government-confirms-this-big-development-149083 |website=Zee Business |access-date=7 March 2021 |date=10 February 2021}}</ref> 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.<ref>{{cite news |title=Government proposes to hike LIC authorised capital to Rs 25,000 crore |url=https://economictimes.indiatimes.com/markets/ipos/fpos/government-proposes-to-hike-lic-authorised-capital-to-rs-25000-crore/articleshow/81375724.cms |website=The Economic Times |access-date=7 March 2021}}</ref> In year 2021, government of India had proposed to significantly enhance the authorised capital of  Life Insurance Corporation of India (LIC), to {{INRConvert|250|b}} to facilitate its public listing scheduled for the next fiscal year which will begin on 1 April.<ref>{{cite news |title=India: Govt plans to increase authorised capital of LIC by 2.5x to prepare for IPO |url=https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/75834/Type/eDaily/India-Govt-plans-to-increase-authorised-capital-of-LIC-by-2-5x-to-prepare-for-IPO |access-date=22 April 2021 |publisher=Asia Insurance Review |date=8 March 2021}}</ref>
 
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 [[Saudi Aramco#2019 Initial public offering (IPO)|2019 IPO of Saudi Aramco]].<ref>{{cite news |last1=Ghosh |first1=Suvashree |last2=Beniwal |first2=Vrishti |last3=Kalesh |first3=Baiju |title=Inside the All-Out Campaign to Prepare India's Biggest-Ever IPO |url=https://www.bloomberg.com/news/articles/2022-01-17/inside-the-all-out-campaign-to-prepare-india-s-biggest-ever-ipo?sref=CIpmV6x8 |access-date=18 January 2022 |work=Bloomberg |date=17 January 2022}}</ref>


===IPO===
LIC announced it would open its IPO to the public on May 4 2022 and the process would be concluded on May 9.<ref>{{Cite web |date=2022-04-26 |title=LIC IPO Date, Price, Allotment, GMP, Review, Details Updated |url=https://theviralbyte.com/lic-ipo-details/ |access-date=2022-04-26 |website=theviralbyte.com |language=en-US}}</ref> 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.<ref>{{Cite web |title=LIC IPO size cut by one-third, valuation by half |url=https://www.fortuneindia.com/investing/lic-ipo-size-cut-by-one-third-valuation-by-half/107911 |access-date=2022-04-26 |website=www.fortuneindia.com |language=en}}</ref>As per the IPO price band for 3.5% stakes for Rs. 21,000 crore, the valuation comes to around Rs 6 lakh crore.
Finance Minister [[Nirmala Sitharaman]] announced a proposal to conduct an [[initial public offering]] for LIC in the [[2021 Union budget of India|2021 Union Budget]].<ref>{{cite web |title=LIC IPO: Good news for LIC insurance policy holders! Modi government confirms this big development |url=https://www.zeebiz.com/market-news/news-lic-ipo-good-news-for-lic-insurance-policy-holders-modi-government-confirms-this-big-development-149083 |website=Zee Business |access-date=7 March 2021 |date=10 February 2021}}</ref> The IPO is expected to be held in FY22. 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.<ref>{{cite web |title=Government proposes to hike LIC authorised capital to Rs 25,000 crore |url=https://economictimes.indiatimes.com/markets/ipos/fpos/government-proposes-to-hike-lic-authorised-capital-to-rs-25000-crore/articleshow/81375724.cms |website=The Economic Times |access-date=7 March 2021}}</ref> In year 2021, government of India had proposed to significantly enhance the authorised capital of  Life Insurance Corporation of India (LIC), to INR 250bn ($3.4bn) to facilitate its public listing scheduled for the next fiscal year which will begin on 1 April.<ref>{{cite news |title=India: Govt plans to increase authorised capital of LIC by 2.5x to prepare for IPO |url=https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/75834/Type/eDaily/India-Govt-plans-to-increase-authorised-capital-of-LIC-by-2-5x-to-prepare-for-IPO |access-date=22 April 2021 |publisher=Asia Insurance Review |date=8 March 2021}}</ref>


==Structure==
==Structure==
The LIC's executive board consists of Chairman, currently M R Kumar, and Managing Directors, Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar<ref>{{cite news|url= https://www.moneycontrol.com/news/business/companies/mr-kumar-appointed-lic-chairman-vipin-anand-tc-sushil-kumar-named-managing-directors-3644101.html/amp |title=board structure |work=moneycontrol |access-date=14 February 2019}}</ref><ref>{{cite web|url= https://www.licindia.in/Top-Links/About-Us/Board-Of-Directors |title=bod}}</ref>
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]].[[File:LIC Zonal Office.jpg|thumb|right|LIC Zonal Office, 'Night View From Connaught Place Park']]
 
The Central Office of LIC is based out of Mumbai which sits The Chairman, all four Managing Directors, and all Executive Directors (Department Heads). LIC has a total of 8 Zonal Offices namely [[Delhi]], [[Chennai]], [[Mumbai]], [[Hyderabad]], [[Kanpur]], [[Kolkata]], [[Bhopal]] & [[Patna]].[[File:LIC Zonal Office.jpg|thumb|right|LIC Zonal Office, 'Night View From Connaught Place Park']]
 
== LIC's Contribution to the five year plans over the years ==
 
{| class="wikitable"
|-
! Plan !! Year !! Investment
|-
| 2 || 1956–1961 || ₹184 Cr
|-
| 3 || 1961–1966 || ₹285 Cr
|-
| 4 || 1969–1974 || ₹1,530 Cr
|-
| 5 || 1974–1979 || ₹2,942 Cr
|-
| 6 || 1980–1985 || ₹7,140 Cr
|-
| 7 || 1985–1990 || ₹12,969 Cr
|-
| 8 || 1992–1997 || ₹56,097 Cr
|-
| 9 || 1997–2002 || ₹1,70,929 Cr
|-
| 10 ||2002–2007 || ₹3,94,779 Cr
|-
| 11 ||2007–2012 || ₹7,04,720 Cr
|-
| 12 ||2012–2017 || ₹14,23,055 Cr
|-
| 13 ||2017–2022 || ₹28,01,483 Cr
|-
|}
 
===Growth as a monopoly===
From its creation, the Life Insurance Corporation of India, which commanded a [[monopoly]] of soliciting and selling life insurance in India, created huge surpluses and by 2006 was contributing around 7% of India's [[Gross Domestic Product|GDP]].{{Citation needed|date=March 2012}}
 
The corporation, which started its business with around 300 offices, 5.7 million policies and a [[Capital (economics)|corpus]] of ₹45.9 crores (US$92 million as per the 1959 exchange rate of roughly {{INR}}5 for US$1),<ref>{{cite web|url=http://data.un.org/Data.aspx?d=CDB&f=srID:6080 |title=UNdata &#124; record view &#124; Exchange rate, US$ per national currency, period average (IMF) |publisher=Data.un.org |date=22 May 2008 |access-date=30 August 2010}} {{Dead link|date=October 2010|bot=H3llBot}}</ref> had grown to 25,000 servicing around 350 million policies and a [[Capital (economics)|corpus]] of over {{INRConvert|800000|c}} by the end of the 20th century.


===Liberalisation post 2000s===
===Liberalisation post 2000s===
In August 2000, the [[Indian Government]] embarked on a program to liberalise the insurance sector and opened it up for the private sector. LIC emerged as a beneficiary from this process with robust performance, albeit on a base substantially higher than the private sector.
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.<ref>{{cite web|author=CA. Nirmal Ghorawat |url=http://canirmalg.wordpress.com/2013/01/31/few-perspectives-on-life-insurance-in-india/ |title=Perspectives on Life Insurance Industry in India « CA. Nirmal Ghorawat's Blog |publisher=Canirmalg.wordpress.com |date=31 January 2013 |access-date=14 June 2013}}</ref>
 
In 2013, 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.<ref>{{cite web|author=CA. Nirmal Ghorawat |url=http://canirmalg.wordpress.com/2013/01/31/few-perspectives-on-life-insurance-in-india/ |title=Perspectives on Life Insurance Industry in India « CA. Nirmal Ghorawat's Blog |publisher=Canirmalg.wordpress.com |date=31 January 2013 |access-date=14 June 2013}}</ref>
 
==Operations==
Today LIC functions with 2048 fully computerized branch offices, 8 zonal offices, around 113 divisional offices, 2,048 branches and 1408 satellite offices and the Central Office;<ref name=AR201112>{{cite web|url=http://www.licindia.in/Annual_Report_2012.pdf |title=Annual Report 2011–2012 |publisher=LIC |access-date=10 December 2013 |url-status=dead |archive-url=https://web.archive.org/web/20140628044340/http://licindia.in/Annual_Report_2012.pdf |archive-date=28 June 2014 |df=dmy }}</ref> it also has 73<ref name="ReferenceA">https://www.licindia.in/getattachment/Bottom-Links/annual-report/LIC-AR-2018-19-Final-web.pdf.aspx</ref> customer zones and 25 metro-area service hubs located in different cities and towns of India. It also has a network of 1,537,064 individual agents, 342 Corporate Agents, 109 Referral Agents, 114 Brokers and 42 Banks for soliciting life insurance business from the public.
 
The LIC has 22 departments each headed by an Executive Director namely Marketing, Bankassurance (B&AC), Corporate Communication, Personnel, CRM, Direct Marketing, E&OS, F&A, IT/BPR, Inspection, Investment, SBU/Estates, Investment Operations, P&GS, Actuarial, Chairman Sectt, F&A, Micro Insurance, RTI, HRD, Engineering, and Vigilance.<ref name="ReferenceA"/>
 
The LIC has 8 Zonal Offices headed by a Zonal Manager(I/C) (Executive Director Cadre) who is one of the key decision-makers of the corporation after the Board
{| class="wikitable"
|+
|North Zone
|New Delhi
|-
|Central Zone
|Bhopal
|-
!East Zone
!Kolkata
|-
!West Zone
!Mumbai
|-
|South Zone
|Chennai
|-
|East Central Zone
|Patna
|-
|North Central Zone
|Kanpur
|-
|South Central Zone
|Hyderabad
|}
The LIC follows a horizontal line of command & vertical line of command, while each department is headed by an Executive Director, the Zonal offices are headed by a Zonal Manager who oversees all the departments & divisions of the Zone – making him de facto CEO of the Zone. The zonal departmental heads are Regional Managers. Divisions are headed by Sr. Divisional Manager(I/C) who oversees all the departments & branches of the division. There are 3 layers of Horizontal Management namely Senior Divisional Manager(I/C), Zonal Manager(I/C) & the Chairman/MD. There are also 3 layers of vertical management namely Managers of Divisions, Regional Managers of Zonal Office & the Executive Directors of Central office. Horizontal Management is considered key managers of the corporation.
 
{| class="wikitable"
|+ The Cadre list & Possible designations of Class 1 officers (Increasing order)
|-
! Cadre/Rank Name !! Posting Designations
|-
| Chairman || Chairman
|-
| Managing Director || Managing Director
|-
| Zonal Manager(Special) || Zonal Manager(I/C), Executive Director, CEO of Subsidiary
|-
| Zonal Manager(Ordinary)(3 Year Cadre) || Regional Manager, Chief, Director, CEO of Subsidiary
|-
| Sr Divisional Manager || Deputy Zonal Manager, SDM(I/C), Principal, Faculty Member, Regional Manager, Secretary
|-
| Divisional Manager || Chief Manager, DM, Secretary, Dy Secretary, Marketing Manager, Principal, Faculty Member
|-
| Assistant Divisional Manager || Sr. Branch Manager (I/C), Sr. Branch Manager(Sales), Manager(Admin), Manager, Dy Secretary, Faculty Member
|-
| Administrative Officer || Branch Manager(I/C), BM(SALES), AO
|-
| Assistant Administrative Officer || ABM(Sales), AAO, PA, Deputy Manager,
|}
 
Now LIC also has the 1899 branches of [[IDBI]] bank at its disposal thus it can carry out its insurance business through these branches of the bank.
 
==Slogan==
LIC's slogan योगक्षेमम् वहाम्यहम (''yogakshemam vahamyaham)'' is in [[Sanskrit]] which loosely translates into English as "Your welfare is our responsibility". This is derived from the 22nd verse of the [[Bhagavad Gita]]'s 9th chapter.<ref>{{cite web|url=http://vedabase.net/bg/9/22/en |title=Bhagavad-gita As It Is Chapter 9 Verse 22 |publisher=Vedabase.net |access-date=15 December 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131023045529/http://vedabase.net/bg/9/22/en |archive-date=23 October 2013 |df=dmy }}</ref> The slogan can be seen in the logo, written in [[Devanagari]] script.
This line means "I carry what they lack, and I preserve what they have" (refers to [[Krishna]] speaking to [[Arjuna]]), when taken in context of the entire verse.


==Awards and recognitions==
==Awards and recognitions==
* The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service Brand of India.<ref>{{cite news|url=http://economictimes.indiatimes.com/features/brand-equity/most-trusted-brands-2012-top-50-service-brands/articleshow/17101285.cms |newspaper=Economic Times |title=Most Trusted Brands 2012: Top 50 Service Brands|date=7 November 2015 |access-date=15 December 2013}}</ref>
* The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service Brand of India.<ref>{{cite news|url=http://economictimes.indiatimes.com/features/brand-equity/most-trusted-brands-2012-top-50-service-brands/articleshow/17101285.cms |newspaper=Economic Times |title=Most Trusted Brands 2012: Top 50 Service Brands|date=7 November 2015 |access-date=15 December 2013}}</ref>
* From the year 2006, LIC has been continuously winning the Readers' Digest Trusted brand award.
* 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 [[The Brand Trust Report|Brand Trust Report]].<ref>{{Cite news|url = http://articles.economictimes.indiatimes.com/2012-01-23/news/30655455_1_brand-trust-report-trust-research-advisory-n-chandramouli|title = The Economics Times}}</ref>
* 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 [[The Brand Trust Report|Brand Trust Report]].<ref>{{Cite news|url = http://articles.economictimes.indiatimes.com/2012-01-23/news/30655455_1_brand-trust-report-trust-research-advisory-n-chandramouli|title = The Economics Times}}</ref>


==Employees and agents==
==Charity initiative==
As on 31 March 2020, LIC had 1,14,498 employees, out of which 25,602 were women.
'''Golden Jubilee Foundation'''<br />
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 {{INRConvert|200000}}.<ref>{{cite web|url=https://www.kcgmckarnal.org/lic-scholarship/ |title=LIC Scholarship|date=22 December 2021}}</ref>
 
==Financial==
{| class="wikitable"
{| class="wikitable"
!Year
!Revenue (In crores)<ref>{{Cite web |title=Life Insurance Corporation of India financial results and price chart - Screener |url=https://www.screener.in/company/LICI/consolidated/#profit-loss |access-date=2022-05-24 |website=www.screener.in}}</ref>
!Profits/Loss (In crores)<ref>{{Cite web |title=Life Insurance Corporation of India financial results and price chart - Screener |url=https://www.screener.in/company/LICI/consolidated/#profit-loss |access-date=2022-05-24 |website=www.screener.in}}</ref>
!Total Assets (In crores)
|-
|-
! Category of employees!! Total Number!! No. of Women
|FY 2019
|-
|{{Increase}} 571,508
| Class-I Officers || {{0|00}}32,433 || {{0|000}}7202
|{{Increase}} {{color|Green|2,627}}
|{{Increase}} 3,427,249
|-
|-
| Class-II Development Officers|| {{0|00}}24,388 || {{0|000}}1,458
|FY 2020
|{{Increase}} 628,043
|{{Increase}} {{color|Green|2,710}}
|{{Increase}} 3,499,834
|-
|-
| Class III/IV employees || {{0|00}}57,677 || {{0|00}}16,942
|FY 2021
|-
|{{Increase}} 693,904
| Total ||  {{0|0}}1,14,498 || {{0|00}}25,602
|{{Increase}} {{color|Green|2,974}}
|{{Increase}} 3,829,524
|}
|}
=== Agency strength ===
The total number of agents on roll is 12,08,826 (of which 10,80,809 were active agents) as of March 2020 as against 11,79,229 as of March 2019.
==Initiatives==
'''Golden Jubilee Foundation'''<br />
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 {{INRConvert|100000}}.<ref>{{cite web|url=http://www.licindia.in/GJF_scholarship.htm |title=Golden Jubilee Scholarship Scheme |publisher=LIC |access-date=15 December 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131215095442/http://www.licindia.in/GJF_scholarship.htm |archive-date=15 December 2013 |df=dmy }}</ref>


==Holdings==
==Holdings==
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.
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.
Among the Nifty companies, LIC's holding in terms of value in 2012 was estimated to be the highest in ITC (₹27,326 crores), followed by RIL (₹21,659 crores), ONGC (₹17,764 crores), SBI (₹17,058 crores), L&T (₹16,800 crores), and ICICI Bank (₹10,006 crores).<ref>{{cite web|url=https://www.thehindubusinessline.com/markets/stock-markets/lic-cuts-stake-in-27-nifty-firms-sells-shares-worth-rs-8000-crore/article20572603.ece1|title=LIC cuts stake in 27 Nifty firms; sells shares worth Rs 8,000 crore|last=PTI|website=@businessline|access-date=19 December 2018}}</ref> The share price drop in ITC on 18 July 2017 had caused LIC a major loss of around 7000 crores during the financial year.
LIC also holds a 51% stake in IDBI Bank, making it the only insurer in India to own a bank, since regulations prohibit insurers from holding more than 15% stake in any company, LIC will have to decide a timeline for paring its stake in [[IDBI Bank|IDBI bank]]; also LIC may have to pare its stake in [[LIC Housing Finance|LIC Housing Finance Ltd]] as a company cannot be the promoter of two finance companies carrying out same housing finance business in India.<ref>{{Cite web|url=https://www.nseindia.com/live_market/dynaContent/live_watch/equities_stock_watch.htm|title=NSE – National Stock Exchange of India Ltd.|website=www.nseindia.com|language=en|access-date=2018-08-24}}</ref>


==See also==
==See also==
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== External links ==
== External links ==
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{{Indian PSU}}
{{Indian PSU}}
{{Major insurance companies}}{{Financial services in India}}
{{Major insurance companies}}{{Financial services in India}}
{{DEFAULTSORT:Life Insurance Corporation Of India}}
{{DEFAULTSORT:Life Insurance Corporation Of India}}
[[Category:Financial services companies based in Mumbai]]
[[Category:Financial services companies based in Mumbai]]

Revision as of 15:32, 25 June 2022


Life Insurance Corporation of India
Traded as
IndustryInsurance and Financial services
Founded1 September 1956 (69 years ago) (1956-09-01)
HeadquartersMumbai, India
Key people
  • M R Kumar
    (Chairperson)
  • B C Patniak
    (Managing Director)
    Smt. Ipe Mini
    (Managing Director)
    Siddharth Mohanty
    (Managing Director)
  • Rajkumar
    (Managing Director)
Products
RevenueIncrease ₹724,743 crore (US$100 billion) (2022)[1]
Increase ₹13,975 crore (US$2.0 billion) (2022)[1]
Increase ₹4,124 crore (US$580 million) (2022)[1]
Total assetsIncrease ₹4,254,058 crore (US$600 billion) (2022)[1]
Total equityIncrease ₹11,338 crore (US$1.6 billion) (2022)[1]
OwnerGovernment of India (96.5%)[2]
Number of employees
114,000 (2020)[1]
Subsidiaries
  • LIC Housing Finance
  • LIC International Ltd
  • LIC Cards Services Ltd
  • LIC Mutual Fund Ltd
  • LIC Pension Fund Ltd
  • IDBI Bank
Websitewww.licindia.in

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.

History

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

Founding organisations

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

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

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$3.5 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.[12] 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.[13]As per the IPO price band for 3.5% stakes for Rs. 21,000 crore, the valuation comes to around Rs 6 lakh crore.

Structure

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

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.[14]

Awards and recognitions

  • The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service Brand of India.[15]
  • 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.[16]

Charity initiative

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$2,800).[17]

Financial

Year Revenue (In crores)[18] Profits/Loss (In crores)[19] 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

Holdings

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

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 "Life Insurance Corporation Ltd. Financial Statements". moneycontrol.com.
  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. ↑ https://www.licindia.in/getattachment/Bottom-Links/annual-report/LIC-Annual-Report-2015-16.pdf.aspx Template:Bare URL PDF
  5. ↑ "History". LIC. Archived from the original on 16 December 2013. Retrieved 15 December 2013.
  6. ↑ "Lunch on lotus leaves". www.telegraphindia.com. Retrieved 19 December 2018.
  7. ↑ Bhushan, Sasi. "Excerpts: Feroze Gandhi: A Political Biography by Shashi Bhushan". www.cse.iitk.ac.in. 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 Date, Price, Allotment, GMP, Review, Details Updated". theviralbyte.com. 26 April 2022. Retrieved 26 April 2022.
  13. ↑ "LIC IPO size cut by one-third, valuation by half". www.fortuneindia.com. Retrieved 26 April 2022.
  14. ↑ CA. Nirmal Ghorawat (31 January 2013). "Perspectives on Life Insurance Industry in India « CA. Nirmal Ghorawat's Blog". Canirmalg.wordpress.com. Retrieved 14 June 2013.
  15. ↑ "Most Trusted Brands 2012: Top 50 Service Brands". Economic Times. 7 November 2015. Retrieved 15 December 2013.
  16. ↑ "The Economics Times".
  17. ↑ "LIC Scholarship". 22 December 2021.
  18. ↑ "Life Insurance Corporation of India financial results and price chart - Screener". www.screener.in. Retrieved 24 May 2022.
  19. ↑ "Life Insurance Corporation of India financial results and price chart - Screener". www.screener.in. Retrieved 24 May 2022.

External links

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