INTRODUCTION OF LIFE INSURANCE CORPORATION OF INDIA.
The Life Insurance Corporation of India (LIC) is the largest life insurance company in India and also the country's largest investor. It is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It was founded in 1956. Headquartered in Mumbai, which is considered the financial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India, at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches, and has a network of around one million and 200 thousand agents for soliciting life insurance business from the public. The corporation is an autonomous and has necessary to run on sound principles. The corporation has been carrying out the role assigned to it and justifying confidence of public by offering adequate security at reasonable cost, dependable service, economic management and favorable returns to the nation at large. In the year 1956, LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office. Re-organization of LIC took place and large number of new branch offices was opened. As a result of re-organization, servicing functions were transferred to the branches, and branches made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200 crores of new business in 1957 the corporation crossed 1000 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had crossed 7000 crore sum assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC’s wide are network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some banks and service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policy holders, LIC has launched SATELLITE SAMPARK OFFICES. The Satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records; LIC of India traversed its long and illustrious journey and now has a vision to emerge as a world class customer centric organization.
Objectives of LIC:
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, is the main objective of LIC. Some other objectives of LIC are as follows: Maximize mobilization of people’s savings by making insurance linked savings adequately attractive. 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. Conduct business with utmost economy and with the full realization that the moneys belong to the policy holders. Act as...
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