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Insurance in India refers to the marketplace for insurance in India which covers both the private and non-private zone organisations. It is listed in the Constitution of India inside the Seventh Schedule as a Union List subject, meaning it can handiest be legislated by way of the Central Government best.

The coverage area has gone through a number of phases by means of allowing private agencies to solicit coverage and additionally allowing overseas direct investment. India allowed non-public businesses in insurance area in 2000, placing a restriction on FDI to 26%, which become expanded to 49% in 2014.[1] Since the privatisation in 2001, the largest existence-insurance agency in India, Life Insurance Corporation of India has seen its marketplace percentage slowly slipping to non-public giants like HDFC Life, ICICI Prudential Life Insurance and SBI Life Insurance Company.


Insurance in this current shape has its history dating again to 1818[citation needed], when Oriental Life Insurance Company[2] was commenced by way of Anita Bhavsar in Kolkata to cater to the wishes of European community. The pre-independence generation in India noticed discrimination among the lives of foreigners (English) and Indians with higher charges being charged for the latter.[citation needed] In 1870, Bombay Mutual Life Assurance Society have become the first Indian insurer.[citation needed]

At the sunrise of the twentieth century, many insurance corporations have been based. In the yr 1912, the Life Insurance Companies Act and the Provident Fund Act have been passed to regulate the coverage commercial enterprise. The Life Insurance Companies Act, 1912 made it necessary that the premium-fee tables and periodical valuations of organizations should be certified by using an actuary. However, the disparity still existed as discrimination between Indian and foreign agencies. The oldest existing insurance corporation in India is the National Insurance Company, which become founded in 1906, and continues to be in business.

The Government of India issued an Ordinance on 19 January 1956 nationalising the Life Insurance quarter and Life Insurance Corporation got here into existence in the same 12 months. The Life Insurance Corporation (LIC) absorbed 154 Indian, sixteen non-Indian insurers and also 75 provident societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act turned into handed by the Indian Parliament, and consequently, General Insurance business turned into nationalized with effect from 1 January 1973. 107 insurers had been amalgamated and grouped into four businessesparticularly National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was included as a enterprise in 1971 and it commenced enterprise on 1 January 1973.

The LIC had monopoly till the overdue 90s when the Insurance region became reopened to the non-public area. Before that, the industry consisted of most effective nation insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC). GIC had 4 subsidiary businesses. With impact from December 2000, those subsidiaries have been de-linked from the parent organisation and were installation as independent insurance organizations: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company.

Life Insurance Corporation of India (abbreviated as LIC) is an Indian kingdom-owned coverage organization and investment agency owned through the Government of India.
The Life Insurance Corporation of India was based in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalised the insurance enterprise in India. Over 245 coverage organizations and provident societies had been merged to create the kingdom-owned Life Insurance Corporation of India.

As of 2019, Life Insurance Corporation of India had overall lifestyles fund of ₹28.3 trillion.The general cost of sold guidelines inside the year 2018-19 is ₹21.four million. Life Insurance Corporation of India settled 26 million claims in 2018-19. It has 290 million coverage holders.
Founding organisations

The Oriental Life Insurance Company, the first employer in India imparting lifestyles coverage insuranceturned into hooked up in Kolkata in 1818. Its primary target market changed into the Europeans primarily based in India, and it charged Indians heftier premiums. Surendranath Tagore had founded Hindusthan Insurance Society, which later have become Life Insurance Corporation.

The Bombay Mutual Life Assurance Society, shaped in 1870, became the primary native coverage provider. Other coverage groups established within the pre-independence technology included
Postal Life Insurance (PLI) turned into delivered 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)
Indian Mercantile
General Assurance
Swadeshi Life (later Bombay Life)
Sahyadri Insurance (Merged into LIC, 1986)

The first 150 years had been marked usually with the aid of turbulent monetary situations. It witnessed India's First War of Independence, adverse outcomes of the World War I and World War II at the economy of India, and in between them the length of worldwide financial crises brought about by the Great depression. The first 1/2 of the 20 th century noticed a heightened battle for India's independence. The aggregate effect of these activities led to a high fee of and liquidation of existence coverage corporations in India. This had adversely affected the religion of the general in the utility of obtaining lifestyles cover.
Nationalisation in 1956

LIC Zonal Office, at Connaught Place, New Delhi, designed through Charles Correa, 1991.

LIC Building at Chennai, changed into the tallest building in India when it became inaugurated in 1959

In 1955, parliamentarian Feroze Gandhi raised the problem of coverage fraud by proprietors of non-public insurance agencies. In the ensuing investigations, considered one of India's wealthiest businessmen, Ramkrishna Dalmia, owner of the Times of India newspaper, turned into despatched to jail for two years.

The Parliament of India passed the Life Insurance of India Act on 19 June 1956 developing the Life Insurance Corporation of India, which began working in September of that 12 months. It consolidated the commercial enterprise of 245 non-public lifestyles insurers and different entities providing lifestyles insurance services; this consisted of 154 life coverage organizationssixteen foreign agencies and 75 provident businesses. The nationalisation of the existence insurance business in India became a result of the Industrial Policy Resolution of 1956, which had created a coverage framework for extending state control over at least 17 sectors of the financial system, including lifestyles insurance.
The LIC's govt board includes Chairman, presently M R Kumar, and Managing Directors, Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar

LIC's Contribution to the 5 year plans over the years
2 1956-1961 ₹184 Cr
3 1961-1966 ₹285 Cr
four 1969-1974 ₹1,530 Cr
five 1974-1979 ₹2,942 Cr
6 1980-1985 ₹7,one hundred forty Cr
7 1985-1990 ₹12,969 Cr
8 1992-1997 ₹56,097 Cr
9 1997-2002 ₹1,70,929 Cr
10 2002-2007 ₹three,94,779 Cr
11 2007-2012 ₹7,04,720 Cr
12 2012-2017 ₹14,23,half Cr
thirteen 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 promoting existence insurance in India, created large surpluses and by means of 2006 changed into contributing round 7% of India's GDP.[citation needed]

The organisation, which started its enterprise with around 300 offices5.7 million policies and a corpus of INR 45.nine crores (US$ninety two million as in line with the 1959 exchange charge of roughly ₹five for US$1), had grown to 25,000 servicing around 350 million rules and a corpus of over ₹800,000 crore (US$one hundred ten billion) via the cease of the 20th century.
Liberalisation submit 2000s

In August 2000, the Indian Government embarked on a application to liberalise the insurance quarter and opened it up for the personal area. LIC emerged as a beneficiary from this procedure with strong performance, albeit on a base substantially better than the non-public zone.

In 2013 the first 12 months premium compound annual growth rate (CAGR) become 24.53% whilst total lifestyles top rate CAGR was 19.28% matching the increase of the lifestyles insurance industry and outperforming general monetary increase.


Today LIC functions with 2048 absolutely automatic branch workplaces8 zonal officesaround 113 divisional workplaces, 2,048 branches and 1408 satellite workplaces and the Central Office; it additionally has 54 customer zones and 25 metro-location provider hubs positioned in different cities and towns of India. It additionally has a network of 1,537,064 man or woman retailers, 342 Corporate Agents, 109 Referral Agents, 114 Brokers and forty two Banks for soliciting life insurance commercial enterprise from the public.

Now LIC additionally has the 1899 branches of IDBI bank at its disposal for this reason it can perform its coverage business through these branches of the bank.

LIC's slogan yogakshemam vahaamyaham is in Sanskrit which loosely interprets into English as "Your welfare is our responsibility". This is derived from ancient Hindu text, the Bhagavad Gita's 9th chapter, 22nd . The slogan can be seen inside the logo, written in Devanagari script. This line means "I bring what they lack, and I maintain what they have" (refers to Krishna speakme to Arjuna), when taken in context of the entire verse.
Awards and recognitions
The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service Brand of India.
From the yr 2006, LIC has been continuously triumphing the Readers' Digest Trusted brand award.
Voted India's Most Trusted logo in the BFSI category consistent with the Brand Trust Report for four non-stop years - 2011-2014 according to the Brand Trust Report.
Employees and agents

As on 31 March 2018, LIC had 111,979 employees, out of which 24,510 were women .
Category of employeesTotal NumberNo. Of Women
Class-I Officers 32,803 7,041
Class-II Development Officers 22,830 1,148
Class III/IV employees 56,346 sixteen,321
Total 111,979 24,510

Agency strength

The overall variety of Agents on our Roll is 11,48,811 as at 31.03.2018 as towards 11,31,181 as on 31.03.2017. The range of Active Agents is 10,71,945 as at 31.03.2018 compared to 10,46,484 as on 31.03.2017.
IDBI Bank Employees

Now IDBI financial institution Employees have also joined the work pressure of LIC. However, they are no longer dealt with as equal as LIC employees.[citation needed]

Golden Jubilee Foundation
LIC Golden Jubilee Foundation became installed in 2006 as a charity organization. This entity has the intention of promoting trainingrelief of poverty, and providing higher living situations for the below privileged. Out of all the activities conducted by way of the organisation, Golden Jubilee Scholarship awards is the pleasant known. Each 12 months, this award is given to the meritorious students in trendy XII of school training or equivalent, who desire to preserve their studies and feature a parental income much less than ₹100,000 (US$1,400).

LIC holds stocks worth about ₹2.33 lakh crore in all the Nifty businesses placed together, but it reduced its conserving in a total of 27 Nifty companies at some point of the quarter.[citation needed]

The cumulative price of LIC keeping in these 27 companies fell with the aid of little over ₹8,000 crore during the quarter indicates the analysis of modifications of their shareholding patterns.[citation needed]

Individually, LIC is predicted to have sold stocks worth ₹500-1,000 crore in each of Mahindra & Mahindra, HDFC Bank, ICICI Bank, Tata Motors, L&T, HDFC, Wipro, SBI, Maruti Suzuki, Dr Reddys and Bajaj Auto.[citation needed]

The coverage behemoth additionally trimmed holdings in Ambuja Cements, Cipla, TCS, Lupin and Asian Paints. A marginal decline become also witnessed in its stakes in groups which includes IDFC, Hindustan Unilever, Grasim, ACC, BPCL, Bank of Baroda, Punjab National Bank, Sun Pharma and Tata Power.[citation needed]

On the other hand, LIC further ramped up its stake in a total of 14 Nifty ingredients with purchase of stocks well worth an estimated ₹four,000 crore.[citation needed]

The major corporations where LIC has raised its stake encompass Infosys, RIL, Coal India Ltd and Cairn India. Other such organizations are ITC, Power Grid Corp, NTPC, Siemens, Bharti Airtel and Hero MotoCorp.[citation needed]

The nation-run insurer additionally marginally hiked its publicity in Ultratech, Gail India, Ranbaxy, Kotak Mahindra Bank and HCL Technologies, even as its shareholding remained nearly unchanged in organizations like ONGC, Tata Steel, BHEL and Reliance Infra.[citation needed]

Among the Nifty agencies, LIC’s conserving in terms of price in 2012 were envisioned to be the highest in ITC (₹27,326 crore), followed by means of RIL (₹21,659 crore), ONGC (₹17,764 crore), SBI (₹17,058 crore), L&T (₹sixteen,800 crore), and ICICI Bank (₹10,006 crore).

The proportion fee drop in ITC on 18 July 2017 had triggered LIC a prime loss of around 7000 Crores.

LIC now additionally holds 51% stake in IDBI financial institution hence making it the best insurer in India to very own a financial institutionsince guidelines limit insurers from protecting extra than 15% stake in any enterprise, LIC will must determine a timeline for paring its stake in IDBI financial institutionadditionally LIC will ought to pare its stake in LIC Housing Finance Ltd as a organisation cannot be promoter of 2 finance agencies carrying out identical housing finance commercial enterprise so either LIC has to sell its stake in LIC housing or near down housing enterprise of IDBI bank.

LIC Housing Finance Limited (LIC HFL) is certainly one of the largest Housing Finance Mortgage mortgage agencies in India having its Registered and Corporate workplace at Mumbai. LIFE INSURANCE CORPORATION OF INDIA holds founder, promoter & controller repute.
LIC HFL is associate/subsidiary organisation of LIC of India.

LIC HFL Company for the reason that 1989. The main objective of the Company is to provide long time finance to individuals for purchase or creation of residence or flat for residential motive / repair and upkeep of existing flat / homes. The Company additionally provides finance on existing belongings for commercial enterprise / non-public needs and also gives loans to experts for buy / production of Clinics / Nursing Homes / Diagnostic Centres / Office Space and also for purchase of equipments. The Company also offers long term finance to people engaged in the commercial enterprise of production of houses or residences for residential motive and to be sold by using them.
LIC of India additionally holds promoter and controller fame in IDBI Bank Ltd from January 2019.

The company changed into integrated on June 19, 1989, below the Companies Act, 1956. It is promoted with the aid of Life Insurance Corporation of India and went public in the year 1994. The maiden worldwide depository receipt (GDR) problem changed into released in 2004.The Authorized Capital of the Company is Rs.1500 Million (Rs.150 Crores) and its paid-up Capital is Rs.1009.9 Million ( Rs.100.ninety nine Crores). The Company is registered with National Housing Bank and indexed at the National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE) and its shares are traded best in Demat format. The GDR's are listed at the Luxembourg Stock Exchange.

In FY-2019, It has nine regional workplaces, 23 again-offices and 273 advertising and marketing Offices throughout India. It additionally has 2 overseas places of work in Kuwait and Dubai to cater to the Non-Resident Indians within the Persian Gulf countries masking Bahrain, Dubai, Kuwait, Qatar and Saudi Arabia. Its insurance of more than 450 centres. Company also has greater than 12000 marketing intermediaries or agents to guide through the mortgage processes. It additionally has online domestic mortgage approvals facility via its website www.Lichousing.Com
Listings and Shareholding

Listing: The equity shares of LIC HFL are indexed on Bombay Stock Exchange and the National Stock Exchange of India. Its Global depository receipts are indexed on the Luxembourg Stock Exchange.

Shareholding: On 31 March 2016, 40.31% of the fairness stocks of the organization had been owned by way of LIC. The Foreign Institutional Investors (FII) held approx. 32% of the stocks. Around 158,000 individual public shareholders own approx. 9% of its stocks. The remaining 18% stocks are owned by using others.
Shareholders (as on 31 March 2016)Shareholding
Promoter 40.31%
Foreign Institutional Investors (FII) 32.45%
Mutual Funds 10.12%
Individual shareholders 09.32%
Bodies Corporate 03.47%
Insurance agencies 02.08%
GDRs 00.sixteen%
Others 02.09%


The agency had 1345 employees as on 31 March 2013, out of which 444 have been women (31%) and 4 have been personnel with disabilities.
In its Annual record for FY 2012-13, the enterprise said that Loan belongings in keeping with employee as at 31 March 2013 had been Rs. 53.sixty three crores and internet profit according to employee become Rs. 70.51 lakhs. In the same economic yr, it incurred INR 98.15 crores on worker gain expenses.

Now In Financial Year 2019, LIC HFL employer has overall 2103 employees. & net profit according to worker is 94.62 lakhs rupees/worker.


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