Life Insurance CorporationIndia
The Indian Parliament passed the Life Insurance Corporation Act on June 19, 1956. The Life Insurance Corporation of India was formed on September 1, 1956.The main objective of LIC was to spread the importance of life insurance products across the country and particularly in the rural areas. It was designed with a view to provide adequate financial cover to the people at a reasonable cost.
Apart from its corporate office, LIC had 5 zonal offices, 33 divisional offices and 212 branch offices across the country in the year 1956. Initially since all life insurance products are long term contracts, the need for variety of other products was felt in order to expand the operations. In response to the need for more products and services, re-organization of LIC took place and a large numbers of new branch offices were opened.As a result of re-organization, servicing functions were transferred to the branches,and the branches were made accounting units. It started with about Rs.200.00 crores of new business in 1957 and the corporation crossed Rs.1000 crores in the year 1969-70. But with another re-organization in the early eighties, LIC crossed Rs.7000 crore Sum Assured on new policies. Today,LIC operates with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC has a wide area network covering 100 divisional offices and connects all the branches through a metro area network. LIC has tie ups with some of the Banks and Service providers to offer on-line premium collection facility in selected cities with a vision to provide easy access to its policyholders. As a result, LIC launched its satellite offices.They are small and closer to the customer. These satellite offices are digitalized and facilitate servicing and other conveniences in the near future.
LIC has been an achiever and has been adding milestones one after the other. It has set up an amazing performance record in various aspects of life insurance business. And the new entrants use its records as a benchmark.