LIC was formed in 1956 through the combination of 225 private companies. Its concern aim is complement with societal objectives.Its chief aims was to distribute life insurance to every corner of India, to every citizen of india.It besides focus on rural countries particularly to socially and economically backward categories and supply them life and wellness insurance screen at low monetary value.
Other aim is to promote people to salvage for the future.For it LIC supply more insurance linked nest eggs strategies which make it more unafraid and more attractive.People besides like these merchandises because they find it profitable in two ways
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As an investing solution
Insurance i.e. life screen
The financess created by LIC are used in the cardinal investing countries of state like agribusiness, wellness, instruction and other societal public assistances. The insurance concern is conducted with the feeling that LIC is a trusting venture to see public life.
Even today after 50 old ages of its constitution its societal aim does n’t alter much. Although there are few alterations observed in recent clip like outlooks of clients and the concern environment on which insurance sector does run. This is because of globalisation, which opened the door of insurance sector in India for private participants.
Chairman- TS VIJAYAN
Paid up capital=100 chromium
Entire policies and assets = & gt ; 3.4 trillion
No 1 service trade name in the industry.
Branch office – 2048
Divisional office – 100
Zonal office- 8
It operates in 12 countries.Over 1 million agents are employed in LIC
SUBSIDIARIES COMPANIES OF LIC
LIC own the undermentioned subsidiaries-
1.Life Insurance and Corporation of India International-
This is joint venture company promoted by LIC which starts its operation in July 1989 with the aims of offering US dollar determinated insurance policies to Non Residential Indians ( NRIs )
2.LIC NEPAL – Incorporated in 2001
3.LIC LANKA- Formed in 2003
4.LIC Housing finance- Formed in 19 June 1989. Its chief aim is to supply long term finance for building or purchase of houses or apartments.It has a office in Dubai besides.
5.LICHEL Care Homes-A entirely owned subordinate of LIC lodging finance.It physiques and operate assisted community populating for senior citizens.
Besides all these, LIC has entered into the planetary market.For illustration it has started concern in Fiji, Mauritius, and United Kingdom.LIC is associated with joint ventures abroad in the field of insurance viz. Ken INDIA INSURANCE company limited, Nairobi, United Oriental Assurance Company Limited, Kualalampur and Life Insurance corporation, Baharin.
Types of Insurance LIC sells:
It chiefly sells following insurance
Different merchandises in the basket of LIC:
Janshree Bima Yojana
Grouping linked Insurance strategy
Joint Life POLICY
MONEY BACK POLICY
Moneyback with net income
LIC and its rivals: –
Since origin till 1990 ‘s LIC enjoyed its monopoly over insurance sector. But on late 1990 when Indian economic system came under globalisation or liberalisation, the door of insurance sector opened for private participants. Because of the potency of Indian market, tonss of private participants of India every bit good as of other states entered into the Indian market. Let us look at the major participants who entered the insurance sector and eating up the insurance market.
Name of the company Nature of keeping
1 ) Allianz Bajaj Life Insurance Co. Private
2 ) Aviva Life Insurance Private
3 ) Birla Sun Life Insurance Co. Private
4 ) HDFC Standard Life Insurance Co. Private
5 ) ICICI Prudential Life Insurance Co. Private
6 ) MAX Newyork Life Insurance Private
7 ) OM Kotak Mahindra Life Insurance Private
8 ) Reliance Insurance Private
9 ) TATA AIG Life Insurance Private
10 ) Met Life Insurance Co. Private
Comparative Survey: –
The size of life insurance market increases with the addition in the scheme of economic system and addition in per capital income. This consequence in favourable growing in entire premium for both LIC ( 17.19 % ) and Private insurances ( 82.50 % ) in 2007-08. Private insurance companies have improved their market portion from 18.10 % in 06-07 to 25.61 % in 2007-08 in the entire premium collected during the twelvemonth and comparing tabular array is given below –
INSURER 2006-07 2007-08
LIC 65.89 47.77
Private Sector 34.11 52.33
LIC 86.94 86.99
Private Sector 13.04 13.01
First Year Premium
LIC 74.32 64.02
Private Sector 25.68 35.98
LIC 89.02 83.42
Private Sector 10.98 16.58
LIC 81.90 74.39
Private Sector 18.10 25.61
As one can see that the market portion of LIC has eaten up by private sector but still now LIC continues to be a market leader of Indian client.
Factors that give competitory advantage to the company 0ver rivals: –
The first and first factor that gives competitory advantage to LIC is being Nationalistic. Since its nationalized and established earlier in the Indian market people has blind religion on it.
Imported factors are as follows: –
Distribution- Since distribution is a cardinal determiner for the success of any insurance company. So being a nationalized company acquire advantage to perforate every corner of the state. There is no boundary, no bound of provinces, authorities regulations and and other factors.
2 ) Assortment of products- The merchandises of LIC are varied and concentrate on the demand of Indian clients. Therefore even in little small town there is a LIC policy holder. But private participants do n’t acquire it easy to perforate to each and every portion of the state.
3 ) Trust and faith- Being Govt. ruled subordinate and existent since 1956, people of India have existent religion and are confident in maintaining their valuable salvaging with LIC.
4 ) Large work force of agent- As it is in operation since 1956 it has big and scattered homo resource which is really of import to aim big population. But the private participants do n’t hold big figure of agents.
Therefore by maintaining all the factors in head we can state that despite of the globalisation of Indian market and tough competition, LIC has retained its No. 1 place in Insurance sector. Its closest challengers are far behind it in footings of market portions every bit good as good will in the populace. Though all the private participants are seeking together to turn and eating up market of LIC but still LIC stands like a stone in the market.
It is besides true that LIC has to follow few alterations harmonizing to the current market state of affairs for prolonging its place.
Therefore G.krishanamurty one time justly said about LIC that
“ LIC is non merely a company, it is the bosom of our state, it is the love and religion of our people. So LIC will stay every bit long as India and universe will stay. ”
** All the informations used in this instance survey are secondary and taken from different beginnings.