Sales of life insurance policies are a vital source of revenue for any life insurance company and their primary motivation for doing business. Because today's business operations are so intertwined, claim settlement services significantly influence life insurance policy sales. People can use life insurance plans to cover a variety of hazards throughout life.
The insurance industry grew rapidly in the first two decades of the twentieth century. In 1938, it increased from 44 firms with a total business-in-force of Rs.22 crore to 176 companies with a total business-in-force of Rs.298 crore.
The call for the life insurance sector to be nationalised had been voiced before, but it gained traction in 1944 when a measure to modify the Life Insurance Act 1938 was filed in the Legislative Assembly. However, it was not until 1956 that life insurance was nationalised in India when the Life Insurance Corporation was passed by the Indian Parliament on June 19.
Origin of LIC
The Life Insurance Corporation of India was established on September 1, 1956, by the Ministry of Finance of the Government of India, with the goal of making life insurance more widely available, particularly in rural areas, with the goal of reaching all insurable persons in the country and providing adequate financial cover at a reasonable cost.
The primary goal of LIC is to promote life insurance across the country, particularly in rural regions and among the socially and economically disadvantaged, to reach all insurable individuals and provide them with appropriate financial protection against death at a fair cost.
Maximise people's savings mobilisation by making insurance-linked savings sufficiently appealing. Another goal is to function as trustees for the insured public in their individual and collective capacities, meeting the community's diverse life insurance demands as the social and economic environment changes.
LIC intends to involve all employees to the best of their abilities to advance the insured public's interests by delivering prompt and courteous service.
Growth of LIC
In 1956, LIC had 5 zone offices, 33 divisional offices, and 212 branch offices in addition to its corporate office. Because life insurance contracts are long-term contracts that require a range of services during the policy's life, LIC felt the necessity to extend operations and open a branch office at each district headquarters in subsequent years.
The LIC was reorganised, and it created a considerable number of new branch offices. It shifted servicing tasks to branches due to the reorganisation, and departments were declared accounting units. It had a significant impact on the company's success. You can observe that from about INR 200 crores in new business in 1957, the company only exceeded INR 1000 crores in 1969-70, and it took another ten years for LIC to reach the INR 2000 crore barrier. However, after reorganisation in the early 1980s, LIC had already surpassed INR 7000 crores in Sum Assured on new policies by 1985-86.
LIC's at Present
LIC has practically monopolised the solicitation and sale of life insurance plans in India, having existed as a massive insurance business for almost 60 years. LIC has expanded its operations outside of India to 14 countries to meet the insurance needs of Non-Resident Indians.
With an asset value of INR 2,529,390 crores, LIC is now India's largest life insurance business, controlled by the government. LIC's headquarters are in Mumbai.
It currently operates eight zonal offices and 113 divisional offices around the nation. It has 2,048 branches across India in various towns and cities.
In addition, LIC maintains a network of over 15 million agents that sell life insurance to the general population. The LIC had a total life fund of $28.3 trillion as of 2019. In the 2018–19 fiscal year, the total value of sold insurance was $21.4 million. In 2018–19, LIC resolved 26 million claims. With 290 million policyholders, it is the largest insurance company in the world.
The Life Insurance Corporation of India (LIC of India) is one of India's largest financial organisations, providing comprehensive financial solutions for all aspects of life. It has a customer base of around 23 crores, making it the largest insurance company globally. After Indian Railways, it is the second-largest real estate owner in the country. The LIC advertises through newspapers, radio, television, billboards, and other media.
LIC's Products and Services
The Life Insurance Corporation of India (LIC) offers a variety of life insurance plans. As a government-owned Life Insurance Firm, LIC's policies are in high demand and appeal to a broad spectrum of consumers.
LIC For endowment, LIC offers the Jeevan Pragati, LIC Jeevan Labh, LIC Single Premium Endowment Plan, LIC's New Endowment Plan, New Jeevan Anand, LIC's Jeevan Rakshak, LIC's Limited Premium Endowment Plan, LIC's Jeevan Lakshya, LIC's Aadhaar Shila, and LIC's Aadhar Stambh.
LIC Jeevan Umang specialises in life insurance.
LIC's Bima Shree, LIC's Jeevan Shiromani, LIC's New Money Back Plan- 20 years, LIC's New Money Back Plan-25 years, LIC New Bima Bachat, LIC's Jeevan Tarun are some of the money-back plans available. Money-back plans include LIC's Anmol Jeevan II and LIC's e-term Plan.
Their pension schemes include the Pradhan Mantri Vaya Vandana Yojana, LIC New Jeevan Nidhi, and LIC's Jeevan Akshay.
LIC Services for its Employees
Agents are being offered home loans.
The LIC of India's Agents Housing Scheme provides house loans to the company's agents. It has a separate subsidiary, LIC-HFL, from which many housing plans are moved for fairer distribution.
Employees are given meal coupons.
In September 2010, the Life Insurance Corporation of India (LIC of India) introduced a one-of-a-kind benefit for all workers. The number of meal vouchers is determined by each team member's position in the hierarchy.
Team member participation in sports is encouraged.
Employees of the LIC of India are encouraged to participate in various sporting activities to improve their physical fitness and overall personality. Employees have also spoken on behalf of the company at different national and international levels. It has recruited numerous workers from its Sports Recruitment Quota to maintain competitive excellence in sports and to compete on an equal footing with other businesses.
Training its employees
LIC has begun to provide training to its staff at all levels of the organisation. It has established a distinct Human Resources Development / Organizational Development (HRD/OD) Department to develop and enhance capabilities, commitment and foster a learning and performance-focused culture.
LIC's Marketing Strategy
LIC Life Insurance's marketing approach is pretty basic. Its primary goal is to educate consumers about the company's different policies and brands. Personal selling, exhibits, demonstrations at events, advertising, and innovative schemes have all been used by LIC to achieve this goal.
As presents and incentives, policyholders are given bags, diaries, and calendars. As promotional activities, advertisements are displayed on TVs, newspapers, and billboards.
A mobile advertising van circulates across rural regions, raising awareness of the firm. LIC-Life Insurance has a website and a webpage where it provides thorough information on each potential inquiry to satisfy customers.
LIC is continually working to strengthen "Brand LIC" and strengthen the brand's link with growing market segments. It has done so by maintaining a regular media presence in national and regional outlets.
It has also sponsored several national and international programmes and a variety of activities such as newspaper campaigns and continuous coverage of goods in several publications.
Who is the founder of LIC?
LIC has been founded by Government of India in 1956.
What are the Subsidiary companies of LIC?
LIC subsidiary companies are:
- LIC Pension Fund Limited
- LIC Cards Service Limited
- IDBI Bank Limited
What is the number of employees in LIC?
There are 1,14,000 employees (2020) working for LIC, and over 10 Lakh LIC agents.