LIC celebrates 53 years of serving record 26 crore customers
LIC celebrates 53 years of serving record 26 crores customers

LIC is termed as the world's largest insurance company with 25.78 crore customers, 2,048 branches, 807 satellite offices, 1,14, 916 employees and at least than 13 lakh agents.

The then President A. P. J. Abdul Kalam, second from right, and the Finance Minister P.Chidambaram stand for the playing of the national anthem during The Life Insurance Corporation (LIC) Golden Jubilee celebration ceremony in New Delhi on 28 September 2006, a file picture. On that day Kalam launched a new policy 'Jeevan Madhur", a Micro Insurance product of LIC that targets to benefit economically underprivileged segments of society and will cover individuals in 18-60 year age group.

Despite global recession, insurance major Life Insurance Corporation of India's (LIC) total fund rose to over Rs. 8,07,317.43 crore in 2009 from Rs 380.61 crore in 1956, when it was nationalised. "In the financial year 2008-09, the LIC has insured 3.58 crore persons to earn 3.90 lakh crore premium income," a top official said on the occasion of LIC's 53rd anniversary.

It was revealed that despite private players' presence in the market, LIC has maintained a market share of 64.86 per cent in premium income and 70.52 per cent in number of policies.

LIC is termed as the world's largest insurance company with 25.78 crore customers, 2,048 branches, 807 satellite offices, 1,14, 916 employees and at least than 13 lakh agents.

Several initiatives started by LIC helped it win coveted NASSCOM Award, 2008 in the Best IT User category. This year LIC won Golden Peacock Award-2008 for Health Plus Product, NDTV Profit Business leadership Award, 2008, CNBC Awaaz Consumer Award, 2008, Readers' Digest Trusted Brand Award, 2009 - in Platinum Category, NASSCOM Award - Best IT User, 2008 , SKOCH Challenger Award, 2008 (for Jeevan Madhur), Business Superbrand India ,2009, Asia Brand Congress-Brand Leadership Award, 2008, Customer & Brand Loyalty Award, 2009.

The year 1956 brought along a defining moment in India's social engineering attempts and marked the beginning of a new phase in the history of life insurance in India.

Since then LIC has spearheaded the financial and infrastructure development of the nation. The performance of LIC has been exemplary and it has been growing from strength to strength be it customer base, agency network, branch office network, and the like. LIC has played a significant role in spreading life insurance among the masses and mobilization of people's money for people's welfare.

It started with a Life fund of Rs.380.61 crores in September 1956 which has grown leaps and bounds to Rs.8, 07,317.43 crores as on March this year.

If the total business at the end of the first year on December 1957 was 7, 94,585 policies and sum assured was Rs.281.90 crores, in over 50 years LIC has grown by leaps and bounds to a whopping 3.58 crores policies and a huge sum assured of Rs.3,90,053 crores during the fiscal of 2008-09.

On September 1, 1956, LIC had assets amounting to Rs.348.68 crores and now it has risen to Rs.8,73,551.35 crores LIC celebrated 53rd Anniversary Week which concluded on September 7.

In the light of turmoil in the global economy, LIC revised their strategy and outlook towards the market. In spite of challenging economic environment, LIC's totalpremium income for the fiscal 2008-09 was Rs.1,57,186 crores.

Pension & Group Schemes procured Rs.12,507 crores of New Business Premium Income under 15,851 schemes and 2.07 crores of lives.

As LIC's investment in government and social sector stood at Rs. 5,29,525 crores while in the infrastructure sectorit was to the tune of Rs. 1,00,789 crores.

The then Prime Minister Manmohan Singh is flanked by the then Finance Minister P. Chidambaram and the then Uttar Pradesh Chief Minister Mulayam Singh Yadav, during celebrations of the golden jubilee of the Life Insurance Corporation of India on September 1, 2005 in Lucknow. Singh said fears about reforms, including Foreign Direct Investment in retail, were overstated and merely reflected lack of self-confidence, even as he exhorted Indians to start thinking "big", during a speech he delivered there.

LIC has always been a customer centric organization and has brought out far reaching innovations in the field of Premium payment and Policy information by making it convenient for policyholders through IT initiatives like:

1) Online Payment of premium: a 24x7 convenience : The policyholder can log on to our corporate web site: 'www.licindia.in' and can make online payment of premium throughnet banking account. In addition to payment of premium policyholders can view status report, premium calendar, download online receipt, download premium payment statement,update address and also post a complaint.

2) Electronic Clearing Service (ECS) No need to worry about the due dates: With ECS policyholder can have his premium deductions made from his bank account periodically by submitting a mandate form to LIC Branch Office.

3) Selected LIC Agents/ Development Officers are empowered to accept premium payment in cash as well as cheques and issue a receipt.

LIC collected Rs. 1996.02 crores of premium under 65.83 lakh transactions under the above alternate channels of premium payments. In current year also LIC collected premium of Rs.1580.33 crores under 59.21 lakh transactions till August 31.

In the year 2008-09 LIC settled over 149 lakh claims for an amount of Rs.37, 893 crores in individual life business.

Out of total maturity claims settled over 97% were settled on or before the date of maturity and over 93% of the total Non Early Death Claims were settled within 20 days of intimation.

Outstanding claims ratio under Death was 2.21% and that under maturity as low as 0.26%.

To fortify LIC's position, new distribution channels like Chief Life Insurance Advisors (CLIA) and Direct Marketing have been added to enhance the existing relationship with the policyholders and new customers.

Source: LIC of India

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