WHY LIC ?

• LIC has the SOVEREIGN GUARANTEE of GOVT. OF INDIA under Section 37 of LIC Act, 1956.

• ( Section 37 of LIC Act, 1956: The sums assured by all policies issued by the Corporation including any interest declared in respect thereof ……… shall be guaranteed as to payment in cash by the Central Government. )

SOVEREIGN GUARANTEE

Largest Financial Institution

Total Life Fund as on 31.03.2014

16,07,024.98 Crores

Total Assets as on 31.03.2014

17,69,191.60 Crores

VAST EXPERIENCE

LIC is successfully managing Group Gratuity / Group Leave

Encashment / Group Superannuation schemes in

more than 75% of Public / Private institutions

MARKET SHARE (GROUP BUSINESS)

Life Insurers MARKET SHARE (%)

LIC 75.39%Private Insurers

(Total of 23 Companies ) 24.61%

TOTAL 100%Source: IRDA Annual Report 2013-14

Consistent Interest Rates(Interest rates declared were net of expenses)

Fund 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Upto 25 lakhs 9.00 9.00 9.00 9.00 9.00 8.75 9.00

25 lakhsto 1 Crore 9.15 9.15 9.15 9.15 9.15 8.75 9.00

1 to 5 Crores 9.25 9.25 9.25 9.25 9.25 8.75 9.005 to 10 Crores 9.30 9.30 9.30 9.30 9.30 8.75 9.00

• LIC was formed in 1956 by an Act of Parliament by amalgamation of 245 Private Insurance Companies.

• Today, LIC is the largest insurer in the world covering more than 37 Cr. lives, thus equivalent to the 4th largest nation in the world in itself !

• LIC is a Public sector undertaking which is competing with almost two dozen private life insurance companies for more than a decade and still maintaining a market share which is nearly three times the market share of all the private companies put together.

Insurer 2012-13 2013-14LIC 8.00 8.56Private Sector 18.93 19.10TOTAL 10.99 11.15

Note: Operating expense ratio is the ratio of operating expenses to the premium underwritten by the life insurers.

OPERATING EXPENSES

Source: IRDA Annual Report 2013-14

Assets Under Management as on 31.03.2014 Life Insurer AUM (in Cr) % to totalBajaj Allianz 38,612 1.97%Canara HSBC 8,360 0.43%

ICICI Pru 79,399 4.06%

India First 6,160 0.31%SBI Life 58,195 2.97%

TATA AIA 17,405 0.89%

Private Total 3,83,169 19.57%

LIC 15,74,296 80.43%Industry Total 19,57,465 100%

Source: IRDA Annual Report 2013-14

Life InsurersClaims Paid Claims Repudiated

No. of Lives Benefit Amount No. of Lives Benefit Amount

Bajaj Allianz 81735 98.27% 290.98 89.42% 1034 1.24% 20.35 6.25%Canara HSBC 342 96.34% 3.14 88.40% 13 3.66% 0.41 11.60%

ICICI Pru 2703 97.09% 64.20 87.52% 59 2.12% 3.83 5.23%

India First 2371 86.60% 31.91 66.21% 311 11.36% 14.16 29.38%

SBI Life 12122 97.15% 267.38 93.60% 227 1.82% 11.74 4.11%

TATA AIA 1225 88.70% 31.87 85.78% 74 5.36% 2.24 6.04%

Private Total 143530 90.45% 1222.25 91.28% 1921 1.21% 62.18 4.64%

LIC 266367 99.65% 1882.83 99.58% 1 0.05

Industry Total 409897 96.22% 3105.08 96.13% 1922 0.45% 62.23 1.93%

GROUP DEATH CLAIMS FOR THE YEAR 2013-14

Source: IRDA Annual Report 2013-14Benefit Amount is in Crores

Source: IRDA Annual Report 2013-14

Insurer

Outstanding as on

31st March, 2013

Grievances Reported

during 2013-14

Resolved during2013-14

Outstanding as on

31st March, 2014

LIC 544 85284 85828 0PRIVATE (23) 680 289336 288836 1180

TOTAL (24) 1224 374620 374664 1180

STATUS OF GRIEVANCES : LIFE INSURERS DURING 2013-14

Source: IRDA Annual Report 2013-14

LIC’s Investments in Five Year Plan periodsLIC’s Investments in Five Year Plan periodsPlanPlan YearYear Investments (Cr.)Investments (Cr.)

II 1956-1961 184

III 1961-1966 285

IV 1969-1974 1,530

V 1974-1979 2,942

VI 1980-1985 7,140

VII 1985-1990 12,969

VIII 1992-1997 56,097

IX 1997-2002 1,70,929

X 2002-2007 3,94,779

XI 2007-2012 7,04,151

XII 2012 - 2017 4,51,460