LIC Full Form and Definition
LIC stands for Life Insurance Corporation of India. It started its operations as a corporate firm in September 1956 after the Life Insurance of India Act was passed by India’s Parliament in June 1956. The LIC Act came into effect from July 1956. It helped in the nationalization of the private insurance industry in India. LIC of India was formed by merging 154 life insurance companies, 16 foreign companies and 75 provident companies. It is one of the largest financial institutions in India. It has an asset value of over 2,529,390 crores. The headquarters of LIC is in Mumbai, Maharashtra.
The main slogan of LIC is- “Yogakshemam Vahamyaham” meaning “Your welfare is our responsibility”. It is in Sanskrit and is obtained from the 22nd verse of the Bhagavad Gita’s 9th chapter. The chairman of Life Insurance of India is Mr M.R Kumar.
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Role of LIC in Indian Economy
LIC is known as India's largest government-owned life insurance and investment corporation. The main role of LIC is to invest in global financial markets and different government securities after gathering funds from people through their various life insurance policies. At least 75% of these gathered funds are to be invested in Central and State Government securities, as stated by one of the LIC rules.
Functions of LIC
The major functions of LIC are as follows:-
Collect people’s savings in exchange for an insurance policy and promote savings in the country.
Protect the capital of the people by investing funds into government securities.
Issue insurance policies at affordable rates
Provide various loans like direct loans to industries, housing loans, loans to various national projects at reasonable interest rates.
Objectives of LIC
LIC aims to spread awareness about the importance of life insurance among people living in rural areas and people who are a part of socially and economically backward classes.
It aims to meet several life insurance needs of the community people who are subjected to change with the changing social and economic environment.
It aims to conduct business economically while taking into consideration that the money belongs to the policyholders.
It aims in maximization of the mobility of people’s savings through attractive insurance-linked savings.
It aims in providing utmost job satisfaction to all the agents and employees of the corporation and promotes building a co-operative work environment to deliver efficient service with courtesy to its insured public.
It aims to deploy the funds to the best advantage of the investors and the community as well.
Types of LIC Life Insurance Plans
LIC provides numerous schemes to its policyholders. It offers different schemes for different categories and segments of the Indian economy. It is the largest insurance policy company in terms of the number of policies it has issued to date. Some of the policies are as follows:-
Did you know?
The first company in India that provided insurance coverage was The Oriental Life Insurance Company, established in 1818, in Kolkata. Surendranath Tagore founded the Hindustan Insurance Society which later became Life Insurance Company.
1. LIC was Established in Which Year?
Ans: (b) September 1956
2. Where is LIC Headquartered in?
Ans: (c) Mumbai