Life Insurance Corporation - LIC
Summary
- The Life Insurance Corporation of India was created on 1st September, 1956
- LIC had 5 zonal offices, 33 divisional offices and 212 branch offices
- The total number of Agents on our Roll is 12,08,826 as on March 2020
Company Overview
The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.1
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.
Foreign Joint Venture Co
- Life Insurance Corporation (International) B.S.C. (c), Bahrain
- Life Insurance Corporation (Nepal) Ltd
- Life Insurance Corporation (Lanka) Ltd
- Kenindia Assurance Company. Ltd
- Saudi Indian Company for Co-operative Insurance
- Life Insurance Corporation (LIC) of Bangladesh Limited
Foreign Wholly Owned Subsidiary
- Life Insurance Corporation (Singapore) Pte. Ltd
Products
- Insurance Plan
- Pension Plan
- Unit Linked Plans
- Micro Insurance Plans
- Withdrawn Plans
- Health Plans
Group Schemes
- Pension & Group Schemes
- Gratuity Plus NAV
Financial Highlights
During the year 2019-20, the Corporation under Individual New Business, has procured 2,18,96,220 Policies with a First Year Premium Income of ₹ 51,227.83 Crore. The achievement to budget in NOP was 87.58 % and in FYPI 90.67 %. ₹ 13,202.35 crore premium earned under 1,68,779 policies of Pradhan Mantri Vaya Vandana Yojana. In Agency recruitment, the Corporation registered a net addition of 29,597 agents.2
During the Financial Year 2019-20, the Bancassurance and Alternate Channel (B&AC) completed 2,45,475 policies and garnered ₹ 1,534.88 Crore of First Year Premium Income (FYPI). The Percentage share of B&AC First Premium Income to Total First Premium Income (Individual Assurance) was 3.73% during the year
Currently, the channel has tie-ups with 10 Public Sector Banks, 6 Private Banks, 16 Regional Rural Banks, 43 Cooperative Banks and 1 Foreign Bank. We also have 69 Other Corporate Agents & 115 Insurance Marketing Firms (IMFs) on roll. During the year, 4 new Banks, 7 Other Corporate Agents & 38 Insurance Marketing Firms (IMFs) were appointed.
Bank partners contributed 87.36% of Policies and 94.77% of FYPI of the total Bancassurance and Alternate Channel business by completing 2,14,447 policies and ₹ 1,449.98 Crore of FYPI. Other Corporate Agents completed 24,555 policies with ₹ 40.65 Crore of FYPI. Brokers completed 1,418 policies with ₹ 27.60 Crore FYPI. IMFs completed 5055 policies with ₹ 16.65 Crore of FYPI. IDBI bank was the Top bank on both policy and premium count with 66751 Policies and 699.03 Crore TFPI with 242 Bank Branches procured ₹ 1 Crore and above TFPI, while 387 Bank Branches, procured TFPI between ₹ 50 Lacs to ₹ 99 Lacs, during the year
The total number of Agents on our Roll is 12,08,826 as at 31.03.2020 as against 11,79,229 as on 31.03.2019. The number of Active Agents is 10,80,809 as at 31.03.2020 as compared to 10,69,816 as on 31.03.2019.
LIC IPO
Government appoints Kotak Mahindra, JP Morgan, Goldman Sachs, others as intermediaries.3
September 09, 2021; The central government on September 8, appointed intermediarie-Kotak Mahindra Capital Company, Goldman Sachs India Securities, JP Morgan India, ICICI Securities, and others for listing and partial disinvestment its equity shareholding in Life Insurance Corporation of India(LIC) via initial public offering.
LIC has appointed Kotak Mahindra Capital Company, Goldman Sachs India Securities, JP Morgan India, ICICI Securities, JM Financial, Citigroup Global Markets India, Nomura Financial Advisory and Securities (India), Axis Capital, DSP Merrill Lynch, and SBI Capital Markets as book running lead managers, says a circular on DIPAM website.
Hyderabad-based KFintech has been appointed as registrar and share transfer agent. Meanwhile, Mumbai-based Concept Communications has been chosen as advertising agency.
Earlier on September 2, the government for the second time sought bids for legal advisors for the listing of Life Insurance Corporation (LIC), which is expected to be the largest public offering in the Indian history.
The Department of Investment and Public Asset Management (DIPAM) said the last date for the bids is September 16. DIPAM Secretary Tuhin Kanta Pandey recently said he expects the LIC listing to take place in the current fiscal year (2021-22).
During the Budget speech for FY22, the government announced an ambitious divestment target of Rs 1.75 lakh crore. Most of this amount is expected to be mopped up through the LIC IPO and privatisation of a number of companies including Air and Bharat Petroleum Corporation (BPCL).
