Objective & Function of Life Insurance Corporation of India (LIC)

LIFE INSURANCE CORPORATION OF INDIA

Established: 1 September 1956 (Nationalization in 1956)
Headquarters: Mumbai
Chairman: click here
Founder: Government of India
Owner: Government of India
Role: Insurance
Website: www.licindia.in

Key Points: LIC – Life Insurance Corporation of India

  1. It is the largest insurance company in India.
  2. The Parliament of India passed the Life Insurance of India Act on 19 June 1956 creating the Life Insurance Corporation of India, which started operating in September of that year.
  3. Life Insurance Corporation of India (LIC) is celebrating its Foundation Day 1st  September
  4. The LIC gets a large amount of insurance premium and has been investing in almost all sectors of the economy, viz, public sector, the private sector, co-operative sector, Joint Sector and now it is one of the biggest term-lending institutions in the country. LIC was established to spread the message of Life Insurance in the country and mobilize people’s savings for nation-building activities.

The important objectives of LIC are as follows: LIC

  1. To mobilize maximum savings of the people by making insured savings more attractive.
  2. To extend the sphere of life insurance and to cover every person eligible for insurance under the insurance umbrella.
  3. To act as trustees of the insured public in their individual and collective capacities.
  4. Promote all employees and agents of the LIC, in the sense of participation and job satisfaction through discharge of their duties with dedication towards the achievement of LIC objectives.
  5. To ensure economic use of resources collected from policyholders.
  6. To conduct business with the utmost economy and with the full realization that the money belongs to the policyholders.
  7. Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.
  8. Maximize mobilization of people’s savings by making insurance-linked savings adequately attractive.
  9. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.
  10. Conduct business with utmost economy and with the full realization that the money belongs to the policyholders.
  11. Act as trustees of the insured public in their individual and collective capacities.
  12. Meet the various life insurance needs of the community that would arise in the changing social and economic environment.
  13. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.
  14. Promote among all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards the achievement of Corporate Objective.

The function of Life Insurance Corporation of India: LIC

  1. to carry on capital redemption business, annuity certain business or reinsurance business in so far as such reinsurance business relating to life insurance business;
  2. to invest the funds of the Corporation in such manner as the Corporation may think fit and to take all such steps as may be necessary or expedient for the protection or realization of any investment; including the taking over of and administering any property offered as security for the investment until a suitable opportunity arises for its disposal;
  3. .to acquire, hold and dispose of any property for the purpose of its business;
  4. to transfer the whole or any part of the life insurance business carried on outside India to any other person or persons, if in the interest of the Corporation it is expedient so to do;
  5. .to advance or lend money upon the security of any movable or immovable property or otherwise;
  6. to borrow or raise any money in such manner and upon such security, as the Corporation may think fit;
  7. to carry on either by itself or through any subsidiary any other business in any case where such other business was being carried on by a subsidiary of an insurer whose controlled business has been transferred to and vested in the Corporation by this act;
  8. to carry on any other business which may seem to the Corporation to be capable of being conveniently carried on in connection with its business and calculated directly or indirectly to render profitable the business of the Corporation; and
  9. to do all such things as may be incidental or conducive to the proper exercise of any of the powers of the Corporation.

Subsidiaries:

  1. LIC Nepal
  2. LIC Cards Services
  3. LIC International
  4. Life Insurance Corporation (Lanka) Ltd
  5. LIC Pension Fund Ltd
  6. LIC Singapore
  7. LIC Lanka
  8. Life Insurance Corporation of India, Asset Management Arm
  9. Life Insurance Corporation International B.S.C.
  10. The Life Insurance Corporation of India Provident Fund
  11. LIC Nomura Mutual Fund
  12. Life Insurance Corporation of India

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