Life Insurance Corporation

Life Insurance Corporation of India (abbreviated as LIC) is an Indian state-owned insurance group and investment corporation owned by the Government of India.
The Life insurance Corporation of India was founded on September 1, 1956, when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state-owned Life Insurance Corporation of India.[2][1]

Life Insurance Corporation
Statutory Corporation established by an
Act of Parliament-
LIC Act 1956
IndustryFinancial services
Founded1 September 1956 (64 years ago) (1956-09-01)
HeadquartersMumbai, India
Key people
  • M. R. Kumar
  • T. C. Suseel Kumar
    (Managing Director)
  • Vipin Anand
    (Managing Director)
  • Mukesh Gupta
    (Managing Director)
  • Rajkumar
    (Managing Director)
RevenueIncrease337,000 crore (US$47 billion) (2019)
Increase32,241 crore (US$4.5 billion)
Increase29,956 crore (US$4.2 billion) (2019)
Total assetsIncrease3,111,847 crore (US$440 billion)(2019)
OwnerGovernment of India (100%)
Number of employees
111,979 (Mar 2019)[1]

As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3 trillion. The total value of sold policies in the year 2018-19 is ₹21.4 million. Life Insurance Corporation of India settled 26 million claims in 2018–19. It has 290 million policy holders.


LIC Zonal Office, 'Night View From Connaught Place Park'

Founding organisationsEdit

The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Kolkata in 1818. Its primary target market was the Europeans based in India, and it charged Indians heftier premiums.[3] Surendranath Tagore had founded Hindustan Insurance Society, which later became Life Insurance Corporation.[4]

The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. Other insurance companies established in the pre-independence era included

  • Postal Life Insurance (PLI) was introduced on 1 February 1884
  • Bharat Insurance Company (1896)
  • United India (1906)
  • National Indian (1906)
  • National Insurance (1906)
  • Co-operative Assurance (1906)
  • Hindustan Co-operatives (1907)
  • Indian Mercantile
  • General Assurance
  • Swadeshi Life (later Bombay Life)
  • Sahyadri Insurance (Merged into LIC, 1986)

The first 150 years were marked mostly by turbulent economic conditions. It witnessed India's First War of Independence, adverse effects of the World War I and World War II on the economy of India, and in between them the period of worldwide economic crises triggered by the Great depression. The first half of the 20th century saw a heightened struggle for India's independence. The aggregate effect of these events led to a high rate of and liquidation of life insurance companies in India. This had adversely affected the faith of the general in the utility of obtaining life cover.

Nationalization in 1956Edit

LIC Zonal Office, at Connaught Place, New Delhi, designed by Charles Correa, 1991.
LIC Building at Chennai, was the tallest building in India when it was inaugurated in 1959

In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private insurance agencies. In the ensuing investigations, one of India's wealthiest businessmen, Ramkrishna Dalmia, owner of the Times of India newspaper, was sent to prison for two years.

The Parliament of India passed the Life Insurance of India Act on 19 June 1956 creating the Life Insurance Corporation of India, which started operating in September of that year. It consolidated the business of 245 private life insurers and other entities offering life insurance services; this consisted of 154 life insurance companies, 16 foreign companies and 75 provident companies. The nationalization 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 17 sectors of the economy, including life insurance.


The LIC's executive board consists of Chairman, currently M R Kumar, and Managing Directors, Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar[5][6]

The Central Office of LIC is based out of Mumbai which sits The Chairman, all four Managing Directors, and all Executive Directors (Department Heads). LIC has a total of 8 Zonal Offices namely Delhi, Mumbai, Hyderabad, Chennai, Kanpur, Kolkata, Bhopal & Patna.

LIC's Contribution to the five year plans over the yearsEdit

Plan Year Investment
2 1956-1961 ₹184 Cr
3 1961-1966 ₹285 Cr
4 1969-1974 ₹1,530 Cr
5 1974-1979 ₹2,942 Cr
6 1980-1985 ₹7,140 Cr
7 1985-1990 ₹12,969 Cr
8 1992-1997 ₹56,097 Cr
9 1997-2002 ₹1,70,929 Cr
10 2002-2007 ₹3,94,779 Cr
11 2007-2012 ₹7,04,720 Cr
12 2012-2017 ₹14,23,055 Cr
13 2017-2022 ₹28,01,483 Cr

Growth as a monopolyEdit

From its creation, the Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses and by 2006 was contributing around 7% of India's GDP.[citation needed]

The corporation, which started its business with around 300 offices, 5.7 million policies and a corpus of ₹45.9 crores (US$92 million as per the 1959 exchange rate of roughly 5 for US$1),[7] had grown to 25,000 servicing around 350 million policies and a corpus of over 800,000 crore (US$110 billion) by the end of the 20th century.

Liberalisation post 2000sEdit

In August 2000, the Indian Government embarked on a program to liberalise the insurance sector and opened it up for the private sector. 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 outperforming general economic growth.[8]


Today LIC functions with 2048 fully computerized branch offices, 8 zonal offices, around 113 divisional offices, 2,048 branches and 1408 satellite offices and the Central Office;[9] it also has 73[10] customer zones and 25 metro-area service hubs located in different cities and towns of India. It also has a network of 1,537,064 individual agents, 342 Corporate Agents, 109 Referral Agents, 114 Brokers and 42 Banks for soliciting life insurance business from the public.

The LIC has 22 departments each headed by an Executive Director namely Marketing, Bankassurance (B&AC), Corporate Communication, Personnel, CRM, Direct Marketing, E&OS, F&A, IT/BPR, Inspection, Investment, SBU/Estates, Investment Operations, P&GS, Actuarial, Chairman Sectt, F&A, Micro Insurance, RTI, HRD, Engineering, and Vigilance. [11]

The LIC has 8 Zonal Offices headed by a Zonal Manager(I/C) (Executive Director Cadre) who is one of the key decision-makers of the corporation after the Board

North Zone New Delhi
Central Zone Bhopal
East Zone Kolkata
West Zone Mumbai
South Zone Chennai
East Central Zone Patna
North Central Zone Kanpur
South Central Zone Hyderabad

The LIC follows a horizontal line of command & vertical line of command, while each department is headed by an Executive Director, the Zonal offices are headed by a Zonal Manager who oversees all the departments & divisions of the Zone - Making him De-facto CEO of the Zone. The zonal departmental heads are Regional Managers. Divisions are headed by Sr. Divisional Manager(I/C) who oversees all the departments & branches of the division. There are 3 layers of Horizontal Management namely Senior Divisional Manager(I/C), Zonal Manager(I/C) & the Chairman/MD. There are also 3 layers of vertical management namely Managers of Divisions, Regional Managers of Zonal Office & the Executive Directors of Central office. Horizontal Management is considered key managers of the corporation.

The Cadre list & Possible designations of Class 1 officers (Increasing order)
Cadre/Rank Name Posting Designations
Chairman Chairman
Managing Director Managing Director
Zonal Manager(Special) Zonal Manager(I/C), Executive Director, CEO of Subsidiary
Zonal Manager(Ordinary)(3 Year Cadre) Regional Manager, Chief, Director, CEO of Subsidiary
Sr Divisional Manager Deputy Zonal Manager, SDM(I/C), Principal, Faculty Member, Regional Manager, Secretary
Divisional Manager Chief Manager, DM, Secretary, Dy Secretary, Marketing Manager, Principal, Faculty Member
Assistant Divisional Manager Sr. Branch Manager (I/C), Sr. Branch Manager(Sales), Manager(Admin), Manager, Dy Secretary, Faculty Member
Administrative Officer Branch Manager(I/C), BM(SALES), AO
Assistant Administrative Officer ABM(Sales), AAO, PA, Deputy Manager,

Now LIC also has the 1899 branches of IDBI bank at its disposal thus it can carry out its insurance business through these branches of the bank.


LIC's slogan योगक्षेमम् वहाम्यहम (yogakshemam vahamyaham) is in Sanskrit which loosely translates into English as "Your welfare is our responsibility". This is derived from the 22nd verse of the Bhagavad Gita's 9th chapter.[12] The slogan can be seen in the logo, written in Devanagari script. This line means "I carry what they lack, and I preserve what they have" (refers to Krishna speaking to Arjuna), when taken in context of the entire verse.

Awards and recognitionsEdit

  • The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service Brand of India.[13]
  • From the year 2006, LIC has been continuously winning the Readers' Digest Trusted brand award.
  • Voted India's Most Trusted brand in the BFSI category according to the Brand Trust Report for 4 continuous years – 2011-2014 according to the Brand Trust Report.[14]

Employees and agentsEdit

As on 31 March 2018, LIC had 111,979 employees, out of which 24,510 were women.

Category of employees Total Number No. of Women
Class-I Officers 0032,803 0007,041
Class-II Development Officers 0022,830 0001,148
Class III/IV employees 0064,346 0016,321
Total 0114000 0024,510

Agency strengthEdit

The total number of agents on roll is 11,48,811 (of which 10,71,945 were active agents) as on March, 2018 as against 11,31,181 as on March, 2017.


Golden Jubilee Foundation
LIC Golden Jubilee Foundation was established in 2006 as a charity organization. This entity has the aim of promoting education, alleviation of poverty, and providing better living conditions for the under privileged. Out of all the activities conducted by the organisation, Golden Jubilee Scholarship awards is the best known. Each year, this award is given to the meritorious students in standard XII of school education or equivalent, who wish to continue their studies and have a parental income less than 100,000 (US$1,400).[15]


LIC invests in sectors such as banks, cement, chemicals and fertilizers, electricity and transmission, electrical and electronics, engineering, construction and infrastructure, fast-moving consumer goods, finance and investments, healthcare, hotels, information technology, metals and mining, motor vehicles and ancillaries, oil and natural resources, retail, textiles, transportation and logistics.

Among the Nifty companies, LIC's holding in terms of value in 2012 were estimated to be the highest in ITC (₹27,326 crore), followed by RIL (₹21,659 crore), ONGC (₹17,764 crore), SBI (₹17,058 crore), L&T (₹16,800 crore), and ICICI Bank (₹10,006 crore).[16] The share price drop in ITC on 18 July 2017 had caused LIC a major loss of around 7000 crores during the financial year.

LIC also holds 51% stake in IDBI Bank, making it the only insurer in India to own a bank, since regulations prohibit insurers from holding more than 15% stake in any company, LIC will have to decide a timeline for paring its stake in IDBI bank; also LIC may have to pare its stake in LIC Housing Finance Ltd as a company cannot be the promoter of two finance companies carrying out same housing finance business in India.[17]

See alsoEdit


  1. ^ a b
  2. ^ Anushka. "LIC – Life Insurance Corporation Of India". My LIC India. Retrieved 18 February 2020.
  3. ^ "History". LIC. Archived from the original on 16 December 2013. Retrieved 15 December 2013.
  4. ^ "Lunch on lotus leaves". Retrieved 19 December 2018.
  5. ^ "board structure". moneycontrol. Retrieved 14 February 2019.
  6. ^ "bod".
  7. ^ "UNdata | record view | Exchange rate, US$ per national currency, period average (IMF)". 22 May 2008. Retrieved 30 August 2010.[dead link]
  8. ^ CA. Nirmal Ghorawat (31 January 2013). "Perspectives on Life Insurance Industry in India « CA. Nirmal Ghorawat's Blog". Retrieved 14 June 2013.
  9. ^ "Annual Report 2011–2012" (PDF). LIC. Archived from the original (PDF) on 28 June 2014. Retrieved 10 December 2013.
  10. ^
  11. ^
  12. ^ "Bhagavad-gita As It Is Chapter 9 Verse 22". Archived from the original on 23 October 2013. Retrieved 15 December 2013.
  13. ^ "Most Trusted Brands 2012: Top 50 Service Brands". Economic Times. 7 November 2015. Retrieved 15 December 2013.
  14. ^ "The Economics Times".
  15. ^ "Golden Jubilee Scholarship Scheme". LIC. Archived from the original on 15 December 2013. Retrieved 15 December 2013.
  16. ^ PTI. "LIC cuts stake in 27 Nifty firms; sells shares worth Rs 8,000 crore". @businessline. Retrieved 19 December 2018.
  17. ^ "NSE – National Stock Exchange of India Ltd". Retrieved 24 August 2018.

External linksEdit