Profile of Life Insurance Corporation of India
The Life Insurance Corporation of India (LIC) is the largest state-owned life insurance company in India and also the country’s largest investor. It is fully owned by the Government of India. It was founded on Sept 1, 1956 with the merger of more than 200 insurance companies and provident societies.
It has its headquarter in Mumbai, the Life Insurance Corporation of India currently has 8 zonal Offices and 109 divisional offices located in different parts of India, 2048 branches located in different cities and towns of India along with Satellite Offices attached to 50 Branches and has a network of around 1.4 million agents for soliciting life insurance business. 115966 employees were working in the Corporation on March 31, 2010.
At present, 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, 5.6 million policies and a corpus of Rs. 459 million has grown to 25000 servicing around 180 million policies and a corpus of Rs. 8 trillion. The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of the Country. The slogan of LIC is “Zindagi ke saath bhi, Zindagi ke baad bhi” in Hindi. In English it means “with life also, after life also”.
Objectives of the Unit
The broad objectives of LIC include;
(i) Its business is spread widely and in particular to the rural areas and to the socially and economically backward classes with a view to reach all insurable persons in the country and provide them adequate financial cover against death at a reasonable cost;
(ii) LIC maximizes mobilization of people's savings by making insurance linked savings adequately attractive;
(iii) It bears in mind, the primary obligation to its policy holders whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds are used 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;
(iv) It Conducts business with utmost economy and with the full realization of the moneys belong to the policyholders ;
(v) It acts as trustee of the insured public in their individual and collective capacities;
(vi) It meets the various life insurance needs of the community that would arise in the changing social and economic environment;
(vii) It involves 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; (viii) It promotes among all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.
Organizational Setup and Pattern of Management
As regards management of the Corporation, It consists of one Chairman, three Managing Directors and nine Directors as on March 31, 20101. The Corporation carries on its function with the help of executive committee, investment committee and Building Advisory committee very efficiently.
As on 31st March 2010, there were 8 Zonal offices located at Mumbai, Delhi, Kolkatta, Chennai, Hyderabad, Kanpur, Bhopal & Patna. There were 109 Divisional Offices, 2,048 Offices and 1,004 Satellite Offices. Divisional Offices monitor and control the operations. Branch Offices procure business and are responsible for all customer interface transactions. Satellite Offices also procure business and are responsible for immediate customer services required.