History:

INTRODUCTION OF LIC:
The Life Insurance Corporation of India (LIC), a public sector enterprise, is the largest insurance company in India, selling insurance products and related services. Each of its business products offered a variety of different plans to suit different customers and situations, also provided social security schemes and pension schemes. Investment in LIC was considered by a majority of its customers to be reliable and secure. The concept of life insurance came to India when two British insurance companies were established in the country - the Oriental Life Insurance Company (in Calcutta in 1818 By Bipin Behari Dasgupta and others) and Bombay Life Assurance Company (in Bombay in 1823).

IMPORTANT MILESTONES:
1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life Insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. This legislation was lead to met requirement of insurance policy act like

 Statutory requirement of equity capital for companies carrying on life insurance business. A ceiling on share holdings in such companies. Stricter control on investments. Submission of periodical returns relating to investments and other such information to the controller. Malpractices and Mismanagement had crept into the management of several of these companies. More than 50 private insurance companies had been liquidated or swindled the policyholders. There were complaints of different types of malpractices by many insurance companies like falsification and denial of claims, and inter-locking of funds. To protect the public, the government nationalized the insurance industry. On January 19, 1956, the management of the life insurance business of 245 Indian and Foreign insurers and provident insurance societies then operating in India were taken Over by the central government. By 1956, there were 154 Life Insurance Companies in India.

FORMATION OF LIC:
The Parliament of India passed th e Life Insurance Corporation Act on the 19th of June 1956, and the Life

Insurance Corporation of India was created on 1st September, 1956, with a capital contribution of Rs. 5 crore from the Government of India. With the objective of spreading life insuran ce much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

LIC OWNS THE FOLLOWING SUBSIDIARIES:

1. Life Insurance Corporation of India International: This is a joint venture offshore company promoted by LIC which commenced operations in July, 1989 with the objectives of offering US$ denominated policies to cater to the insurance needs of NRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. 2. LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of Industries, Nepal. 3. LIC Housing Finance: In corporated in 19 June 1989, its main objective is to provide long term finance for construction or purchase of houses or apartments. It has a Dubai office. 4. LIC Lanka: A joint venture company formed in 2003 with the Bartleet Group of Companies, Sri Lanka. 5. LICHFL Care Homes: A wholly owned subsidiary of LIC Housing Finance, it builds and operates "Assisted Community Living Centres" for senior citizens.

CURRENT STATUS:
Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The enforcement of New Economic Reforms in 1991 coupled with the formation of Insurance Regulatory and Development Authority Act (IRDA) of 2000 (which started issuing licenses to private life insurers ) has di luted the monopolistic attitude commanded by LIC. The only insurance company belonging to the public sector now has to compete with several other corporate entities of its kind which often are heavyweight Indian as well as Multinational Life Insurance Br ands in themselves. The Malhotra committee's recommendations in 1994 brought about a sea change in the industry.

PROGRESS OF LIC:
Headquartered in Mumbai, which is considered the financial capital of India, the Life Insurance Corporation of India curren tly has: a) 8 zonal Offices and b) 101 divisional offices located in different parts of India c) 2048 branches located in different cities and towns of India. d) Contributed around 7 % of India's GDP in 2006.

e) It also funds close to 24.6% of the Indian Government's expenses. f) It has assets estimated of 5 Trillion Rupees. g) 1.2 million agents and Employs over 1,12,184. h) In the financial year 2006 -07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200 million (fourth in terms of population of the countries of the world) i) It also operates in 12 other countries. j) The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of the Country . The monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities However, it still manages to be the largest player in the Indian market, with the lion's share of 55%.

Vision and Mission :

Mission: "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Vision:

"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

Achievements and Awards :

Awards Received in 2010-11

CNBC Awaz Consumer Award

ET Brand Equity Award for Top Brand in Insurance Category

Outlook Money Award for Best Life Insurer

AIMA High Performance Award

Readers Digest Trusted Brand

Golden Peacock Award for Corporate Governance

Power Brand Award

Global Youth Marketing Award for Most preferred Life Insurance Company

Shoppers & Consumers Insight Award

MY FM Stars of Industry Award for Excellence in Life Insurance

World Brand Congress Award for World HRD Congress Award for Brand Excellence Innovative HR practices

ABCI Award for House Magazine Yogakshema

INDY's Gold Award for House Magazine Yogakshem