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Life Insurance Corporation of India

Life Insurance Corporation of India


Life Insurance Corporation of India
Type Industry Founded State-owned Financial services 1 September 1956

Headquarters Mumbai, India Key people Products Total assets Owner(s) Employees Subsidiaries D. K. Mehrotra, (Chairman) Life and health insurance, investment management, mutual fund 13.25 trillion (US$239.83 billion) (2010) Government of India 115,966 (2010) LIC Housing Finance LIC Cards Services LIC Nomura Mutual Fund www.licindia.in [1]

Website

Life Insurance Corporation of India (LIC) (Hindi: ) is the largest insurance group and investment company in India. Its a state-owned where Government of India has 100% stake. LIC also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of 13.25 trillion (US$239.83 billion).[2] It was founded in 1956 with the merger of 243 insurance companies and provident societies. Headquartered in Mumbai, financial and commercial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 113 divisional offices located in different parts of India, around 3500 servicing offices including 2048 branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of Satellite Offices located in different cities and towns of India and has a network of 13,37,064 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks (as on 31.3.2011) for soliciting life insurance business from the public. The slogan of LIC is "Yogakshemam Vahamyaham" which translates from Sanskrit to "Your welfare is our responsibility". The slogan is derived from the Ancient Hindu text, the Bhagavad Gita[3]'s 9th Chapter, 22nd verse [4] . The literal translation from Sanskrit to English is "I carry what you require". The slogan can be seen in the logo and is written in Devanagiri script below the hands holding the lamp.

History
The Oriental Life Insurance Company, the first corporate entity in India offering life insurance coverage, was established in Calcutta in 1818 by Bipin Behari Dasgupta and others. Europeans in India were its primary target market, and it charged Indians heftier premiums. 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 Bharat Insurance Company (1896) United India (1906) National Indian (1906) National Insurance (1906) Co-operative Assurance (1906)

Life Insurance Corporation of India Hindustan Co-operatives (1907) Indian Mercantile General Assurance Swadeshi Life (later Bombay Life)

The first 150 years were marked mostly by turbulent economic conditions. It witnessed, 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 world wide economic crises triggered by the Great depression. The first half of the 20th century also saw a heightened struggle for India's independence. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in India. This had adversely affected the faith of the general public in the utility of obtaining life cover.

Nationalization
In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by owners of private insurance companies. In the ensuing investigations, one of India's wealthiest businessmen, Ram Kishan Dalmia, owner of the Times of India newspaper, was sent to prison for two years. Eventually, the Parliament of India passed the Life Insurance of India Act on 1956-06-19, and the Life Insurance Corporation of India was created on 1956-09-01, by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. 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 seventeen sectors of the economy, including the life insurance.

Current status
Over its existence of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2006. The Corporation, which started its business with around 300 offices, 5.7 million policies and a corpus of INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs. 5 for a US $ [5], has grown to 25000 servicing around 350 million policies and a corpus of LIC Zonal Office, at Connaught Place, New over 8 trillion (US$144.8 billion).The Economic Times Brand Equity Delhi, designed by Charles Correa, 1986. Survey 2010 rated LIC as the No. 4 Service Brand of the Country[6]. Though in the year 2010 is ranked at 4, the organization is consistently among the top rated service company of the India[7]. RANK-COMPANY 1-VODAFONE, 2-BSNL, 3-SBI(STATE BANK OF INDIA), 4-LIC(LIFE INSURANCE CORPORATION). From the year 2006, LIC is continuously winning the Readers' Digest Trusted brand award[8]. According to The Brand Trust Report[9] 2011, LIC is the 8th most trusted brand of India

Life Insurance Corporation of India

Awards and recognition


The Economic Times Brand Equity Survey 2010 rated LIC as the No. 4 Service Brand of the Country[6]. Though in the year 2010 is ranked at 4, the organization is consistently among the top rated service company of the India[7]. From the year 2006, LIC is continuously winning the Readers' Digest Trusted brand award. According to The Brand Trust Report 2011, LIC is the 8th most trusted brand of India.

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 organization, 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 60,000 Rupees.[8]

References
[1] http:/ / www. licindia. in/ [2] "The Telegraph - Calcutta (Kolkata) | Business | LIC seeks to pack greater funds punch" (http:/ / www. telegraphindia. com/ 1100308/ jsp/ business/ story_12190577. jsp). Calcutta, India: Telegraphindia.com. 2010-03-08. . Retrieved 2010-08-30. [3] http:/ / en. wikipedia. org/ wiki/ Bhagavad_Gita [4] http:/ / vedabase. net/ bg/ 9/ 22/ en [5] "UNdata | record view | Exchange rate, US$ per national currency, period average (IMF)" (http:/ / data. un. org/ Data. aspx?d=CDB& f=srID:6080). Data.un.org. 2008-05-22. . Retrieved 2010-08-30. [6] "Top 50 Service Brands" (http:/ / economictimes. indiatimes. com/ articleshow/ 6468721. cms). The Times Of India. . [7] "LIC heads list of India's top service brands - The Economic Times" (http:/ / economictimes. indiatimes. com/ features/ brand-equity/ lic-heads-list-of-indias-top-service-brands/ articleshow/ 3118929. cms). The Times Of India. 11 June 2008. . [8] http:/ / www. licindia. in/ GJF_scholarship. htm

External links
Life Insurance Corporation of India (http://www.licindia.in/) - Official LIC Website

Article Sources and Contributors

Article Sources and Contributors


Life Insurance Corporation of India Source: http://en.wikipedia.org/w/index.php?oldid=510934919 Contributors: 11karthik, Abaliwala, Abdaal, Aecis, Akram1978, Ameyptv, Anna Lincoln, Anshumandixit123, Ansumang, Arthena, Bentogoa, Bhadani, Bimajee, BrightStarSky, Chintu1992, Chris the speller, Ckatz, DVdm, Deepak, Ekabhishek, Ethansmith, Favonian, Georgekrobinson, Gogo Dodo, Hereforknowledge, Hu12, Ihcoyc, IndianGeneralist, Inks.LWC, Jojalozzo, Jovianeye, Kadal27, Kkm010, Ksquarekumar, KuwarOnline, Kuwaronlin, Kvinodreddy2277, L888Y5, LIC Habeeb, Lahiru k, Licpolicy, Londonpommie, Luvleylici, MATRIX, MER-C, MKar, Madhava 1947, Mandarax, Michael Devore, Mokshjuneja, Mukerjee, Mvramesh99, Nagy, Ndkartik, Paalappoo, Pamri, Paripurnachari, PhilKnight, Phoenix Hacker, Preity1480, RTC, Rajesh.patchala, Rameshng, Rich Farmbrough, Rjwilmsi, Rohan.bhatt, Rsrikanth05, Sdsouza, Seaphoto, Shovon76, Shreshth91, Shyamsunder, Silles Sellis, Sjakkalle, Smaug123, Spskindia, Sundar, Sushma301, T@nn, TSVN, Tarun1979, Tempplaneur, Tnxman307, Utcursch, Vedantvarma, Victor D, Visava, Vjai222, Vkborah, WoodElf, Zzuuzz, m Ftsn, 220 anonymous edits

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Image:Indian Rupee symbol.svg Source: http://en.wikipedia.org/w/index.php?title=File:Indian_Rupee_symbol.svg License: Public Domain Contributors: Orionist File:LICDELHI.jpg Source: http://en.wikipedia.org/w/index.php?title=File:LICDELHI.jpg License: Creative Commons Attribution-Sharealike 2.0 Contributors: MattHartzell

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