Life Insurance Corporation of India
| Life Insurance Corporation of India | |
|---|---|
| legal form | State company |
| founding | June 19, 1956 |
| Seat |
Mumbai , India
|
| Number of employees | 111,979 (2018) |
| sales | 47 billion US dollars (2019) |
| Website | licindia.in |
The Life Insurance Corporation of India (LIC) is a state-owned Indian insurance group and investment company owned by the Indian government, which is also active in other sectors through various subsidiaries. It was established on September 1, 1956 when the Indian Parliament passed the Life Insurance of India Act, which nationalized the insurance industry in India. Over 245 insurance companies and pension funds have been merged to form the new Life Insurance Corporation of India.
The LIC is by far the largest insurance company in India. With total assets of 449 billion US dollars , it was ranked 20th among the largest insurers in the world in 2018.
history
Oriental Life Insurance Company, the first company in India to offer life insurance, was founded in Calcutta in 1818 . Its main target market was the Europeans resident in India, and it charged higher premiums from the Indians. In 1955, parliamentarian Feroze Gandhi raised the issue of insurance fraud by the owners of private insurance agencies. In the ensuing investigation, one of India's richest businessmen, Ramkrishna Dalmia , owner of The Times of India newspaper , was sentenced to prison.
The Indian Parliament passed the Life Insurance of India Act on June 19, 1956 and established the Life Insurance Corporation of India, which began operating in September of the same year. It consolidated the business of 245 private life insurers and other companies that provided life insurance services; there were 154 life insurance companies, 16 foreign companies and 75 pension companies. The nationalization of the life insurance business in India was a result of the industrial policy resolution of 1956, which created a political framework for extending state control over at least 17 industries, including life insurance.
In August 2000 the Indian government launched a program to liberalize the insurance sector and opened it up to the private sector. Since then, the LIC has ceased to be a monopoly, but continues to dominate the market.
subsidiary company
- IDBI Bank
- LIC Housing Finance
- LIC Pension Fund
- LIC International
- LIC Cards Services
- LIC Mutual Fund
Individual evidence
- ^ World's Largest Insurers. In: AM Best. Accessed February 28, 2020 .
- ^ Life Insurance Corporation of India. December 16, 2013, accessed February 28, 2020 .
- ^ Life Insurance Corporation Act, 1956 . June 18, 1956 ( nic.in [accessed February 28, 2020]).
- ^ Perspectives on Life Insurance Industry In India. In: CA. Nirmal Ghorawat's blog. January 31, 2013, accessed February 28, 2020 .
- ↑ Ashwin Manikandan: LIC dominance of India's life insurance market nears three-fourth mark . In: The Economic Times . October 14, 2019 ( indiatimes.com [accessed February 28, 2020]).