The Mission
LIC was set up with a business mission of spreading life insurance, maximising mobilisation of peoples’ savings, conducting business with utmost economy and meeting various life insurance needs of the community. The marketing activities of the organisation have reflected this as a constant theme.

 

Bhavishya Jeevan (For Professionals with limited span of high income)  Jeevan Griha(For obtaining Housing Loan) Asha Deep II (For covering risk of four major diseases) Jeevan Shree (Key-man Insurance) New Jana Raksha (For irregular and low income group) Jeevan Aadhar (For Handicapped Dependants) Jeevan Asha II (For promoting health care) Bima Nivesh (Short-term Investment with Life Cover)

Spreading Life Insurance.
Endowed with the twin objectives of spreading the gospel of life insurance and mobilising peoples’ savings for nation building purposes, LIC has constantly endeavoured to serve the policyholders and the nation.

LIC is now a multi-dimensional organisation offering individual life insurance, group insurance, pension and gratuity schemes, housing loans end mutual fund schemes. It has 1,22,553 people working in its various offices spread all over the country. It has over 19,474 Development Officers and over 6.5 lakh agents lighting the lamp of life insurance security even in the remote corners of the country. LIC has its Central Office in Mumbai, 7 Zonal Offices, 100 Divisional Offices and a network of 2048 Branch Offices. The infrastructure of the offices is being continuously strengthened by providing technology support.

From Classes to Masses
Through Group Insurance Schemes, LIC provides life insurance cover, with the support of the enlightened employers, to the members of the group concerned to make the schemes more affordable to the employees. The total group insurance portfolio of LIC as on 31st March, 1999 was Rs. 77,918.63 crore covering Rs. 234.852 lakh lives under group insurance schemes and 7.54 lakh people have been covered for Rs.815.96 crore of annuities per annum under group superannuation schemes.

Security for Weaker Sections.
Provision of security to the poor is now considered a social responsibility and not merely a relief. Since 1970s LIC is supplementing the state level efforts by introducing schemes tailor-made for the under-privileged. LIC also operates the Social Security Fund set-up by the Government of India through which it subsidises the group insurance schemes for the weaker sections of the society. At present, there are 24 approved occupations covered under the scheme like handloom weavers, rickshaw pullers, bidi workers, teachers, fishermen etc. and as on 31.3.2000, 49.50 lakh lives are offered a cover of Rs. 5,000/- per month (Rs. 10,000/- in case of death by accident). A free life insurance cover of Rs.2,000/- is given to 1.2 crore landless agricultural labourers under Landless Agricultural Labourers Group Insurance Scheme (LALGI). LIC also offers a free insurance cover of Rs. 5,000/- on death (Rs.10,000/- in case of death by accident) to 1.23 crore Integrated Rural Development Programme (IRDP) beneficiaries.

Besides, LIC is also administering the Rural Group Life Insurance Scheme (RGLIS), targeted at the rural poor and launched in the past on 15th August, 1995. During 1999-2000, 2,337 lives were covered under its General Scheme and 1,23,511 lives under the Subsidised Scheme. LIC has also been given the responsibility to administer a new Group Insurance Scheme for the women of hilly areas.

Mobilisation of Savings
LIC has over 917.26 crore policyholders in India. The business in force is in the region of Rs. 4,59,201.04 crore as on 31.3.1999. The Life Fund of LIC as on 31st March 2000 stood at Rs.1,54,043.73 crore. In the year 1999-2000 alone LIC has insured 169.89 lakh people for a Sum Assured of Rs.91,489.69 crore. The premium and other income of the Corporation for the year 1999-2000 was to the tune of Rs.45,174.15 crore and the total assets of the Corporation amounted to Rs.1,60,935.76 crore as on 31.3.2000.

The increase in sale of new policies, the impressive growth of Life Fund and the steadily increasing premium income bear testimony to LIC’s relentless pursuit in mobilising the people’s savings and channelising the same for the overall development of the nation. The Corporation’s growing contribution for the rejuvenation of the national economy has been one of the shared values.

Rural Thrust
India has a large population in the rural areas. Hence consolidation of RURAL BUSINESS has been a major area of LIC’s marketing thrust. During the year 1998-99, it is over 54% of the total portfolio in terms of new poLICies and 47% in terms of New Business Sum Assured. This speaks highly of the depth of its penetration in the rural markets.

Product Innovation
In tune with changing insurance needs, LIC has been devising innovative products. It has been constantly adapting itself to the changing customer needs and regularly enlarging its product range.

Today LIC can boast of a basketful of plans capable of catering to the diverse life insurance needs. They range from plans for the children, plans for the youth, plans for couples to plans for the senior citizens. The schemes cover the security needs of the family in case of death, needs of the family for lump sum amounts at periodic intervals, needs like children’s education, marriage and start-in-life, housing loans and the need for assured income in the evening of life after superannuation. In fact, there is a suitable life insurance plan from LIC for every conceivable insurance need.

LIC’s prominent plans include Whole Life Limited Payment Plans, Endowment Plans, Money Back Plans, Jeevan Mitra, Jeevan Sathi, Jeevan Kishore, Jeevan Sukanya, Jeevan Griha, etc.

Being responsive to the changing customer needs, LIC introduced several new products in the recent past designed exclusively for specific markets:

• Bhavishya Jeevan (For Professionals with limited span of high income)
• Jeevan Griha (For obtaining Housing Loan)
• Asha Deep II (For covering risk of four major diseases)
• Jeevan Shree (Key-man Insurance)
• New Jana Raksha (For irregular and low income group)
• Jeevan Aadhar (For Handicapped Dependants)
• Jeevan Asha II (For promoting health care)
• Bima Nivesh (Short-term Investment with Life Cover)

As an organisation tuned to the changes in the market, LIC has diversified and today has become an UMBRELLA ORGANISATION with forays into areas like Mutual Funds, Housing, Technical Services Wing, etc.

LIC Mutual Fund
LIC Mutual Fund and the Jeevan Bima Sahyog Asset Management Company Limited set-up recently to manage the schemes launched by LIC Mutual Fund, operate in the Indian savings market by mobilising the household savings through innovative schemes to suit the needs of a cross-section of investors. The basic aim of LIC MF is to assist investors, particularly the small investors in the rural and semi-urban areas to reap the benefit of capital market investment. The funds are invested in capital and money markets ensuring greater income and capital gains to the investors without compromising safety and liquidity. The total amount mobilised by the Fund as on 31.3.1999 was Rs.2,480 crore from 15.00 lakh applicants.

LIC Housing Finance Limited
LIC has emerged as a leading organisation in India for providing housing loans. LIC’s subsidiary company LIC Housing Finance Limited (LIC HFL) is swiftly expanding its activities and has a network of 67 Area Offices and 6 Regional Offices spread all over the country. During 1998-99, LIC HFL has sanctioned 41,525 loans for an amount of Rs.1034.49 crore.

LIC (International) EC
LIC (International) EC was established in December 1989 at Bahrain to cater to the needs of expatriate Indians in the Gulf region and to provide insurance services to holders of Indian register policies of LIC who are currently residing in the Gulf. It has been showing immense potential over the years with centres at Riyadh, Jeddah, Al-Khobar, Buraidah, Al Hassa, Abha, Al Jouf, Al Hail and Al-Jubail.

A Technical Services Wing (TSW)
 has been formed with a view to offer Actuarial Consultancy in the field of life underwriting, product development, mortality investigation, valuation, pension, gratuity funding, superannuation funding and many other technical aspects.

Beyond the Frontiers
LIC has its foreign offices at London (UK), Mauritius and Fiji besides the office of LIC (International) EC at Bahrain with centres at Riyadh, Jeddah and Dammam. LIC also has equity participation in Ken-India insurance company of Kenya.

Towards Attaining Customer Delight
LIC has always judged itself in terms of providing enhanced customer satisfaction through efficient and prompt service. It constantly innovates to provide customer delight to its policyholders. Claim settlement ratio is an important yardstick of a life insurance company’s efficiency. LIC’s track record in this area has been extremely impressive with outstanding claims steadily going down. LIC settled 59.82 lakh claims amounting to Rs.7582.17 crore in 1998-99. The outstanding claims were as low as 2.96% by number and 4.39% by amount in 1998-99. LIC has also settled 72% of its maturity claims on or before the date of maturity and 84% of its non-early death claims within 60 days of intimation. Declaration of ever-increasing bonuses every year reflects its deep sense of commitment to the policyholders.

Our People-Our Strength
The quest for excellence begins and ends with people. The Corporation has introduced an integrated Human Resource Development system to prepare its employees and field force to meet the challenges of changing environment and ever-increasing expectations of the policyholders. The emphasis is on supervision through support and process control, scientific approach to problem solving, data based decision-making and counselling. The Management Development Centre (MDC) at Mumbai, 7 Zonal Training Centres and 25 Sales Training Centres spread all over the country offer good opportunities to employees and agents to learn and think about prevailing practices, question them and share new ideas.

People’s Money for People’s Welfare

On the eve of LIC’s birth in 1956, Jawaharlal Nehru, the then Prime Minister of India, said, “Life Insurance becomes one of the major state undertakings in India. Its objectives will be to serve the individual as well as the state.....”

Thus, LIC has a deep commitment for the socio-economic welfare of the people. This the Corporation achieves by investing people’s savings for people’s welfare and policyholders’ benefit. As at 31.3.2000, LIC invested an amount of 1,44,158.73 crore in various schemes aimed at improving the life and living of the people. The important investments included Central and State Government Securities and investments for such social purposes like housing, water supply and sewerage, power generation, road transport development, setting up of industrial estates in the Corporate Sector etc. The Corporation has also been in the forefront in discharging its social obligations and as a Corporate citizen helps in improving the quality of life of the community by arranging blood donation camps, promoting environmental programmes, providing Mobile Health Vans to selected Government and Non-Government organisations etc.

The Logo and Emblem of Life Insurance Corporation of India is ubiquitous and quite popular all over the country. The Emblem depicts two hands protecting a lighted lamp with the inscription “Yogakshemam Vahamyaham” which means “Your Welfare is our Responsibility”. The motto is quite clear. The LIC aims to spread the gospel of Life Insurance and take care of the welfare of the policyholders and the people in general.