Full Form of LIC, History, Objectives

LIC is related to the insurance sector which is stands for Life Insurance Corporation of India. As per the Indian Constitution, insurance sector is a part of Union List.

Insurance is a term generally used in economic sector to indicate less risk. It is a very popular term in the economic sector where an insurance company provide insurance of a person’s life, help in case of loss of assets, property etc. People need to purchase various insurance policies at a fixed premium.

LIC Full Form

LIC is working under the supervision of Government of India. This organization came into existence according to the Life Insurance Act of India with the motto “Yogakshemam Vahamyaham” meaning “your welfare is our responsibility”.

The main motto of this organization is to offer citizens security on economics along with comparatively higher returns than other financial organization working in this sector. With the insurance policies of LIC, people lived a qualitative life and help to self-dependent financially.

The headquarter of LIC is situated in Mumbai. There are 8 zonal offices, 113 divisional offices and branch offices more than 2000. There are employees over 14 lakhs LIC agents for the promotion of insurance industry across the country. At the current scenario of India, LIC is the largest life insurance company.

History of LIC

  • The Oriental Life Insurance Company was the first insurance company during pre-independent era establishment in 1818 in Kolkata that offer people of India life insurance services. At that time, Indian was forced to pay premium more and was focused for the European population.
  • In 1912, Indian Life Insurance Companies Act was come into existence for the regulation of insurance sector.
  • Prior to that, Hindustan Insurance Society was started by Surendranath Tagore. After that, many organizations offer insurance to the people before 1956.
  • In the year of 1956, Government of India decided to nationalize this industry as the number of fraud cases increased day by day.
  • Around 245 insurance companies and provident fund (Indian as well as foreign) was merged to establish LIC on 1 September 1956.
  • There are many other organizations before independence are Postal Life Insurance (PLI) started on 1 February 1884, Bharat Insurance Company (1896), United India (1906), National Indian (1906), National Insurance (1906), Co-operative Assurance (1906), Hindustan Co-operatives (1907), The New India Assurance Co Ltd (1919), Indian Mercantile, General Assurance, Swadeshi Life (later Bombay Life), Sahyadri Insurance (Merged into LIC, 1986).
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Main Objectives of LIC

  • It covers major part of India and focused on the rural areas. It made available the life insurance for huge number of people. It also considers the people who belongs to socially and economically weaker section and assist them with financial assistance for death with higher return.
  • With this services, make funds available to the investors for the development of nation.
  • With the collected funds, business is being run carefully as this is the asset of policyholders.
  • This is also act as the trustee of the investors.
  • The collected funds also help to meet requirement to develop the market.
  • Motivates the workers of this organization to work whole-heartedly for investors who pays premium for insurance.

Products Provided by LIC

There are various policies offered by the LIC are launched as per their types of insurance policies, savings and investment. Here, we have mentioned some popular products launched by LIC are:

  • LIC life progress
  • LIC Jeevan Benefit Plan
  • LIC Insurance Diamond Plan
  • LIC Jeevan Shikhar Plan
  • LIC Jeevan Anand
  • LIC Pension plan

Steps for Implications

  • The finance Minister of India announce that its sovereign guarantee will not be affected possessed by the policyholders.
  • There will be less interference of federal and LIC will be more responsible introduction of strong protocol of government. This is a good indication for financial sectors.
  • It brings more transparency, participation of public through listing of LIC.

LIC of India is the only public sector organization in the field of life insurer that has around market share of around 70% and is the leader of the market. The Government of India has declared for the disinvestment of some stakes in LIC through Initial Pay Offer (IPO).

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It is a good idea to invest in a LIC policy for future. When you came to know the full form of LIC and the meaning of this corporation, then it will easier for you to invest in it. This corporation is of great trust in the field of insurance for many reasons. We have try to fulfil your quarries through this article.

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Frequently Asked Questions

Q1. What is the full form of LIC?

Ans: The full form of LIC is Life Insurance Corporation of India.

Q2. Is job in LIC considered as government?

Ans: Yes, it is a government job and recruitment is conducted through entrance examination named LIC Assistant Administrative Office.

Q3. What are the products provided by LIC?

Ans: some popular products offered by LIC are LIC life progress, LIC Jeevan Benefit Plan, LIC Insurance Diamond Plan, LIC Jeevan Shikhar Plan, LIC Jeevan Anand, LIC Pension plan.

Q4. When was the LIC nationalized?

Ans: The LIC was nationalized in 1956 with the enactment of Industrial Policy Resolution.

Q5. Are there any eligibility criteria to buy insurance policies?

Ans: According to the policy, eligibility criteria for insurance policies may vary.

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