Life Insurance Corporation

LIC stands for Life Insurance Corporation of India. The Life Insurance Corporation of India (LIC) is a government-owned insurance and investment firm in India. The Life Insurance Corporation of India (LIC) was founded on September 1, 1956, when the Indian Parliament passed the Life Insurance of India Act, which nationalised the Indian insurance business. The state-owned Life Insurance Corporation of India was formed by merging over 245 insurance companies and provident societies.

Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta, and Raj Kumar make up the LIC’s executive board, which is now chaired by M R Kumar.

The Chairman, the four Managing Directors, and all Executive Directors work out of the LIC Central Office in Mumbai (Department Heads). Delhi, Chennai, Mumbai, Hyderabad, Kanpur, Kolkata, Bhopal, and Patna are among the eight Zonal Offices of the Life Insurance Corporation of India (LIC). 

Life Insurance Corporation of India (LIC) has appointed BC Patnaik as its Managing Director. By the Government of India announcement dated July 5, 2021, he was appointed as Managing Director. Patnaik was Secretary-General of the Council for Insurance Ombudsman (CIO) Mumbai before taking over as Managing Director of LIC. As a Direct Recruit Officer, he joined LIC of India in March 1986.

The Executive Chairman and four Managing Directors currently make up the LIC top management. The LIC’s Chairman holds the rank of Secretary in the Indian government.

In the pattern of the public sector banking industry, the Life Insurance Corporation of India (LIC), which is preparing to make a massive initial public offering (IPO), will now have a Managing Director and Chief Executive Officer rather than an Executive Chairman.

By revising the Life Insurance Corporation of India (Employees) Pension (Amendment) Rules, the Department of Financial Services under the Finance Ministry has made the amendments. In addition, the LIC Act of 1956 has been revised to include a few new rules.

While the government appoints the MD and CEO of public sector banks, the government will nominate a non-executive Chairman to lead the board of directors.

LIC’s top management currently includes the Executive Chairman and four Managing Directors. The LIC’s Chairman is a government of India Secretary. With the prospective MD and CEO now having executive powers, LIC is expected to appoint a non-executive Chairman to preside over board meetings.

In addition, the government has changed the Life Insurance Corporation of India (Special Allowance for In-House Development of Actuarial Capability) Rules, 2002, to allow LIC to hire a full-time actuary. The designated actuary must be a member of the Institute of Actuaries of India or the Institute of Actuaries of London and must be nominated by the CEO or a committee he appoints.

Benefits of Life Insurance Corporation of India- 

The following benefits are offered by the Life Insurance Corporation of India to its customers:

1. Products’ Variety – The Life Insurance Corporation offers a variety of terms, endowment, money back, and whole life insurance plans. Life Insurance Corporation offers a variety of products that can be customised to fit your needs and budget. LIC is the most reputable insurance company, and it works hard to meet every individual’s insurance needs at a reasonable cost.
2. High Claim Settlement Ratio – The claim settlement ratio for Life Insurance Corporation in FY 2019-20 was 96.69 per cent. The ability of insurance firms to settle claims quickly indicates their trustworthiness. The Claim Settlement Ratio shows how many claims were successfully settled over the course of a year. When you choose an insurance company with a high claim settlement ratio, you can be confident that the claim will be approved fairly even if you are in a pinch.
3. Award-Winning Services – The Life Insurance Corporation has won numerous accolades. The Economic Times Brand Equity Service named LIC the “Most Trusted Service Brand of India” in 2012. Since 2006, LIC has received the Reader’s Digest Trusted Brand award on a yearly basis. From 2011 through 2014, Life Insurance Corporation was voted “India’s Most Trusted Brand” for four years in a row. In India, LIC is a well-known life insurance company.
4. High-Quality Customer Support – The Life Insurance Corporation is one of the largest and oldest suppliers of cheap life insurance policies and plans in the United States. Customers are important to the company, and they are treated well. Their toll-free number is available 24 hours a day, seven days a week. This enables the customer to have constant contact with the insurance company.
5. Simple and Easy Purchasing Process – LIC life insurance is simple to buy and apply for. For a consultation or to purchase a life insurance plan, you can go to a LIC branch office. You can also obtain SMS information on the life insurance plan you want to buy. To make it easier for present and new consumers, online customer support has been simplified.

Conclusion:

The Life Insurance Corporation of India (LIC of India) is a well-known life insurance corporation based in Mumbai. With an asset value of over 2,529,390 crores, LIC is the largest life insurance business in India. The Life Insurance of India Act, which nationalised the private insurance business in India, was approved by the Indian government on September 1, 1956, resulting in the formation of the LIC of India. The Life Insurance Corporation of India’s purpose is to improve people’s quality of life by delivering competitive financial products and services.