What is the full form of LIC?
The full form of LIC is Life Insurance Corporation of India. LIC is a government-owned insurance and investment company arising from the Life Insurance Act of India, which put the insurance industry under the control of the government by nationalization, thereby establishing LIC in 1956. According to the LIC ‘s website, the aim is to provide citizens with a higher return on economic security through services and products than most other investment players on the market, thereby helping them build a particular quality of life and providing economic development.
Main Objective of LIC
- LIC assist in reaching the country’s rural areas to provide the most significant number of people with reasonable defence against death
- Channelization of the revenue from economic growth and desirable growth potential
- The funds collected by such schemes are spent in the best interests of policyholders and in sectors of national significance to comply with the country ‘s objectives
- Act as Insured Trustee
- Meet the industry’s changing needs together with the development of the market
- Make the best of workers in terms of competence to the advantage of policyholders’ interest.
History of LIC
- The first company in Pre-independent India to offer life insurance services was the Oriental Life Insurance Company, which concentrated more on the European population here and forced Indian to pay more premiums.
- Post that, Surendranath Tagore started the Hindustan Insurance Society. Until 1956, several other companies sprang up in this area, but in 1956, the Parliament approved the act of nationalization of the industry due to growing fraud in the industry.
- The Industrial Policy Resolution entered into effect in 1956 in the time frame, which nationalized 17 services, one of which was the insurance industry. The insurance sector’s 254 private players combined into the Hindustan Insurance Society as a result of nationalization and created LIC of India.
List of LIC product line
It provides different product lines, including life insurance policies, savings, and investment products. Below are some of famous LIC products or plans introduced in 2016-2017 are
- LIC Bima Diamond Plan
- LIC Jeevan Labh Plan
- LIC Jeevan Pragati
- LIC Jeevan Shikhar Plan.