LIFE INSURANCE CORPORATIONAND

IMPACT OF BILL PASSED IN RAJYA SABHA ON LIC

INTRODUCTION

Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India with an estimated asset value of 1560482crore(US$240 billion).As of 2014 it had total life fund of Rs.1433103.14crore with total value of policies sold of 367.82lakh that year.The company was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalized the private insurance industry in India.

LIFE INSURANCE CORPRATIONNATIONALISATION IN 1955 Eventually, the Parliament of India passed the Life Insurance of India Act on June 19,

1956 creating the Life Insurance Corporation of India, which started Operating in India. The Nationalisation of the life insurance business in India was a result of

the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least seventeen sectors of the economy, including life insurance.

LIBERALISATION IN 2000 In August 2000, the Indian Government embarked on a program to liberalise the

Insurance Sector and opened it up for the private sector. Ironically, LIC emerged as a beneficiary from this process with robust performance, albeit on a base substantially higher than the private sector.

In 2013 the First Year Premium compound annual growth rate (CAGR) was 24.53% while Total Life Premium CAGR was 19.28% matching the growth of the life insurance industry and also outperforming general economic growth.

KEY FACTORS ABOUT LIC

• TYPE OF INDUSTRY• OWNER• HEADQUARTERS• KEY PEOPLE• PROFITS• REVENUE• NO. OF EMPLOYEES• TOTAL ASSETS

SUBSIDIARIES

THE LIFE INSURANCE CORPORATION HAS EXPANDED THEIR ARMS IN DIFFERENT FIELD:

LIC Nomura Mutual Fund LIC Housing Finance LIC Pension Fund Ltd. LIC International LIC Cards Services

OPERATIONS OF LIC IN INDIA.

• ZONAL OFFICES• DIVISONAL OFFICES• OVERALL BRANCHES• SATELLITTE AND CORPORATE OFFICES• CUSTOMERS ZONES• INDIVIDUAL ZONES

IMPACT OF INSURANCE BILL PASSED IN RAJYA SABHA

• FOREIGN DIRECT INVESTMENT CAPITAL• REPLACED THE ORIDINANCE ISSUED BY GOVT.OF

INDIA• INSURANCE REPOSITARY SYSTEM• NEW CHANNELS• CHANCES OF NEW INVESTMENTS• CHANCES OF NEW PLAYERS IN THE MARKET• INCREASE IN THE GROWTH RATE OF CAGR• MORE AWARENESS WITH NEW POLICIES