INTRODUCTION - INSURANCE
The Insurance Act of 1938,was the first governing body of all forms of insurance to hold. Therefore, That’s strict state control over insurance business. Life insurance in India had become completely nationalize on the 19th January,1956. Through, the Life Insurance Corporation Act. All the 245 insurance houses that were operating then in the country merged into single entity. In addition, Which came to known as the Life Insurance Corporation of India.
INSURANCE INDUSTRY IN INDIA
THE INSURANCE INDUSTRY refers to the market for insurance in India. Which includes both the public and private sector organizations. In other words, both the sectors work efficiently and productively. It’s mentioned in the Constitution of India in the Seventh Schedule. A Union List subject, which means that it can only legislated by the Central Government body.
On 16th of September 2013, IRDA launched “insurance repository” services in India. It is a different concept and the first to initiated in India. This system enables policy holders to sale and keep insurance policies in the electronic form.
THE CHANGES INSURANCE INDUSTRY HAS GONE THROUGH –
The insurance sector has seen a number of phases by allowing private sector. The organization request insurance and also allowing FDI(foreign direct investment). FDI has changed the financial picture of the country.
Since the privatization in 2001. The biggest li government-owned. The date of establishment was September1,1956. On passing of the Life Insurance of India Act by parliament of India. That removed the private insurance industry. It is a statutory corporation is an independent corporate body created by the parliament. Or state legislature with defined functions, powers, duties, immunities
LIC (LIFE INSURANCE CORPORATION) –
It is also known as public corporation.Merging of approx. 240-250 insurance companies took place that resulted in the formation of this corporation. It has its headquarters in Mumbai,India. Moreover, The main people in the functioning of this corporation are –
M.R.Kumar ,T.C. Suseel Kumar, VipinAnand, Mukesh Gupta, Rajkumar. The various products offered by the corporation are. Similalry, life insurance, health insurance, investment management, banking, mutual funds. 1,11,979 are the number of workers employed by this corporation. By the end of the year 2019, Life Insurance Corporation of India had total life finance of ₹28.3 trillion.
The LIC’s board implementation committee includes Chairman,presently M R Kumar, Managing Directors : Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar. The main office of LIC located away from Mumbai which is good for the Chairman. All the Managing Directors, and all Executive Directors (Heads of the department). LIC has a total of 8 Zonal Offices which include Delhi, Mumbai, Hyderabad, Chennai, Kanpur, Kolkata, Bhopal & Patna.
Initial Management –
The Oriental Life Insurance Company, the first company in India. It’s offering life insurance coverage, aimed at catering to the needs of the Europeans based in India. And it took higher charges from Indians as they were not the primary customers. Life Insurance Corporation (LIC) formed from Hindustan Insurance Society whose founder was SurendranathTagore. The Bombay Mutual Life Assurance Society was the first Indian-based insurance provider. It’s established in 1870.
- The names of other insurance companies established in the pre -independence era included –
a) Postal Life Insurance (PLI)
b) Bharat Insurance Company
c) United India
d) National Indian
e) National Insurance
f) Co-operative Assurance
g) Hindustan Co-operatives
h) Indian Mercantile
i) General Assurance
j) Swadeshi Life (later Bombay Life)
LIC’s Contribution has mentioned below –
- During the period of 1956 to 1961 , it had invested 184 crore Rupees.
- 1961 to 1966 , it had invested 285 crore Rupees.
- 1969-1974 , it had invested 1530 crore rupees. During the period of 1974-1979, it had invested 2,942 crore Rupees.
- 1980 to 1985, it had invested rupees 7,140 crore.
- 1985-1990 , it had invested Rupees 12,969 crore Rupees.
- 1985-1990 , it had invested 56,097 crore Rupees.
- 1992-1997, it had invested 56,097 crore rupees.
- 1997-2002, it had invested 1,70,929Crore Rupees.
- 2002-2007 , it had invested 3,94,779.
- 2007-2012,it had invested 7,04,720 crore rupees
- 2012-2017, it had invested 14,23,055 crore Rupees.
- 2017-2022 , it had invested
- 28,01,483crore rupees.
From the time it established, the Life Insurance Corporation of India. The top corporation that had the power to solicit and sell life insurance in India. It had created huge surpluses and by 2006 was contributing around 7% of India’s GDP.
The corporation, started its business with approx. 300 offices, huge number (5.7 million) of policies. It had also started a corpus of 45.9 crores.
VARIOUS TIMES LIC WAS GIVEN RECOGNITION –
A number of times LIC given was recognition and awarded on various occasions –
- The Economic Times Brand Equity Survey 2012 gave LIC the number 6 position. In the title of Most Trusted Service Brand of India.
- After the year of 2006, LIC has been consistently getting the Readers’ Digest Trusted brand award.
- Chosen as India’s Most Trusted brand for four years continuously in the BFSI category from the year 2011-2014.
HEIRARCHY IN LIC –
A horizontal line of command & vertical line of command followed by LIC. Each department has a head – an Executive Director. The Zonal offices headed by 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 Manager. Divisions headed by Sr. Divisional Manager who supervises. All the departments & branches of the division. There are 3 divisions of horizontal management. Which includes Senior Divisional Manager, Zonal Manager& the Chairman/MD. Horizontal Management considered an important aspect of management.
EXTENT OF IMPACT OF LIC –
The LIC operates with 2048 fully functional, technologically sound branch offices. It also has eight zonal offices. LIC has also got around 113 divisional offices. Therefore, also boasts of having 2,048 branches alongwith1,408 satellite offices. Plus the Central Office, 73 customer zones. In addition, 25 metro-area service hubs which placed in different cities and towns of India.
It boasts of a network of 1,537,064 individual agents. similarly,has got 342 Corporate Agents, 109 Referral Agents,114 Brokers. It has also got 42 banks for soliciting life insurance business from the public.
LIC has 22 departments. Each of them headed by an Executive Director. Which includes Marketing, Bank assurance (B&AC), Corporate Communication, Personnel, CRM. Also, 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 and many more.
The LIC is also known to have 8 Zonal Offices headed by a Zonal Manager(I/C) (Executive Director Cadre). Which includes the multiple zones : North, South, Central ,East and so on. However, It’s headquarters are located in Delhi. The Central Zone is head quartered at Bhopal. The East Zone is head quartered at Kolkata. Therefore, The West Zone is head quartered at Mumbai. Similarly, The South Zone is head quartered at Chennai. The East Central Zone is head quartered at Patna . And the North Central Zone is head quartered at Kanpur .In addition, the South Central Zone is head quartered at Hyderabad. Therefore, The Zonal Manager is one of the main decision-makers of the organization.
LIC’s slogan is yogakshemam vahamyaham. Similarly, these words are in Sanskrit language that give LIC a Sanskrit touch. It can be loosely translated into English and its meaning comes out to be – “Your welfare is our responsibility”. It’s derived from old Hindu text. LIC’s slogan also taken from the Bhagavad Gita. Therefore, it can found in Bhagavad Gita’s 9th chapter, 22nd. The slogan can found and located in the logo, written in Devanagari script. The line means”I carry what they lack. And I preserve what they have” (refers to Krishna speaking to Arjuna), when seen in the context of the entire verse.
LIC Golden Jubilee Foundation –
LIC Golden Jubilee Foundation opened in 2006 as a Charity corporation. In addition, this corporation has the objective of promoting education, removal of poverty. However, And provision of better living conditions for the poor and poverty-stricken population. Out of all the activities initiated and introduced by the organization. The Golden Jubilee Scholarship Awards is the best known and considered . Every year, the meritorious students awarded. They are in standard XII of school education/equivalent. Therefore, It includes all those who wish to continue their studies but have a parental income of less than ₹100,000.