Life Insurance

Life insurance business in India was being transacted by private companies until 1956. As a result of the long felt need and in the interest of insuring public, the life insurance business was nationalized in 1956. The nationalization resulted in the establishment of Life Insurance Corporation of India (LIC) by an act of the Parliament. The Corporation was formed and began to function on September 1st, 1956 by taking over 170 companies and 75 provident societies. The entire initial capital of Rs.5 crore was contributed by the government of India. The objective of nationalization was described by the then finance minister, Dr. Deshmukh as “to see that the gospel of insurance is spread as far and wide as possible so that we reach beyond the more advanced urban areas well into the hither to neglected rural areas”.

Headquartered in Mumbai, which is considered the financial capital of India, Life Insurance Corporation of India currently has 8 Zonal Offices, 101Divisional Offices, 2048 Branch Offices located in different cities and towns in India. The Corporation has a network of above one million agents for soliciting life insurance business from the public.

It is the largest life insurance agency in the world. The LIC also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. The Corporation is associated with joint ventures abroad in the field of insurance, namely, Ken-India Assurance Company Limited, Nairobi, United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance Corporation (International) E.C. Bahrain.

As a result of the insurance sector reforms process initiated in India, the monopoly of the Corporation came to an end in 2000. The long 44 years of monopoly shows many ups and downs in the business of LIC. The Corporation has been rated as No.1 Company in net worth and net profits and No. 2 in total income in India.