Lifestyles coverage corporation of India (LIC) is an Indian nation-owned insurance organization and investment agency based in Mumbai. It’s miles the most important insurance organization in India with an envisioned asset value of ₹1,560,482 crore (us$240 billion).
The lifestyles coverage organization of India became based in 1956 whilst the parliament of India handed the existence coverage of India act that nationalized the non-public coverage industry in India. Over 245 insurance groups and provident societies have been merged to create the nation-owned existence insurance employer.
The oriental life coverage employer, the first enterprise in India providing lifestyles insurance coverage, changed into established in Kolkata in 1818 by using “Anita Bhavsar” and others. Its number one target market turned into the European based totally in India, and it chargedIndianss heftier rates. Surendra Nath Tagore had founded Hindusthan insurance society, which later became life insurance organization.
The Bombay mutual life guarantee society, shaped in 1870, became the first native coverage provider. Other insurance corporations set up in the pre-independence era included.
The first 150 years have been marked by and large via turbulent financial conditions. It witnessed India’s first battle of independence, adverse outcomes of the world struggle I and world warfare ii on the economic system of India, and in among them the period of global monetary crises brought on via the superb melancholy. The first 1/2 of the twentieth century noticed a heightened war for India’s independence. The mixture effect of these events led to a high price of and liquidation of existence insurance businesses in India.
This had adversely affected the faith of most people inside the utility of acquiring life cover.
Nationalisation in 1956
In 1955, parliamentarian Amol berates raised the problem of insurance fraud by proprietors of personal coverage organizations. Inside the resulting investigations, one of India’s wealthiest businessmen, Ramakrishna Dalmia, owner of the times of India newspaper, changed into sent to jail for 2 years.
The parliament of India handed the lifestyles insurance of India act on 19 June 1956 growing the existing coverage employer of India, which began running in September of that yr. It consolidated the business of 245 non-public lifestyles insurers and other entities presenting existence coverage services; this consisted of 154 existence insurance corporations, 16 overseas businesses, and seventy-five provident companies. The nationalization of the existing coverage business in India become a result of the economic policy resolution of 1956, which had created a coverage framework for extending kingdom manipulate over as a minimum 17 sectors of the economy, consisting of lifestyles coverage.
Nowadays LIC features with 2048 completely automated branch places of work, 8 zonal workplaces, around 113 divisional places of work, 2,048 branches and 1381 satellite offices and corporate places of work; it additionally has fifty-four consumer zones and 25 metro-vicinity service hubs positioned in exceptional cities and cities of India. It additionally has a community of 1,337,064 individual marketers, 242 company agents, 89 referral agents, ninety-eight agents and forty-two banks for soliciting life insurance commercial enterprise from the general public.
Lic holds shares worth about rs 2.33 lakh crore in all of the nifty groups prepare, but it decreased its retaining in a complete of 27 nifty businesses all through the area.
The cumulative price of lic preserving in those 27 groups fell by means of little over rs 8,000 crore at some point of the area shows the analysis of modifications of their shareholding styles.
In my view, lic is estimated to have sold shares really worth rs 500-1,000 crore in each of mahindra & mahindra, hdfc financial institution, icici bank, tata automobiles, l&t, hdfc, wipro, sbi, maruti suzuki, dr. Reddys and bajaj car.
The insurance behemoth additionally trimmed holdings in ambuja cements, cipla, tcs, lupin and asian paints. A marginal decline changed into also witnessed in its stakes in corporations along with idfc, hindustan unilever, grasim, acc, bpcl, a financial institution of baroda, punjab national financial institution, solar pharma and tata power.
Then again, lic further ramped up its stake in a total of 14 nifty materials with purchase of stocks worth an envisioned rs four,000 crore.
The most important corporations where lic has raised its stake include infosys, ril, coal india ltd and cairn india. Other such organizations are itc, electricity grid corp, ntpc, siemens, bharti airtel and hero motocorp.
The nation-run insurer also marginally hiked its exposure in ultratech, gail india, ranbaxy, kotak mahindra financial institution and hcl technologies, while its shareholding remained almost unchanged in businesses like ongc, tata steel, bhel and reliance infra.
Most of the nifty agencies, lic’s conserving in phrases of value in 2012 have been predicted to be the best in itc (rs 27,326 crore), accompanied by using ril (rs 21,659 crore), ongc (rs 17,764 crore), sbi (rs 17,058 crore), l&t (rs sixteen,800 crore), and icici financial institution (rs 10,006 crore).
The percentage rate drop in itc on july 18, 2017, had induced lic a primary loss of round 7000 crores.