• One of the World’s Largest Life Insurance Company • voted No. 1 Most Trusted Service Brand voted No. 1 Most Trusted Service Brand for 2008-09 by Brand Equity - Economic for 2008-09 by Brand Equity - Economic Times for sixth year in succession Times for sixth year in succession Welcome to the presentation Welcome to the presentation on on LIC of India LIC of India
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• One of the World’s Largest Life Insurance Company• voted No. 1 Most Trusted Service Brandvoted No. 1 Most Trusted Service Brand
for 2008-09 by Brand Equity - Economic for 2008-09 by Brand Equity - Economic Times for sixth year in successionTimes for sixth year in succession
Welcome to the presentation on Welcome to the presentation on LIC of IndiaLIC of India
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1956-Nationalisation of the life Insurance sector. Life Insurance CorporationLife Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers and 75 provident societies— 245 Indian and foreign insurers in all.
LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.
1993-The Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector
1999- Following the recommendations of the Malhotra Committee report, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry.
2000 -The IRDA was incorporated as a statutory body.
Macro Economic Trends
• GDP grew at the rate of 6.7% for the year 2008-09 .
• 2009-10- GDP growth estimated at 7.2 %.
• Household Savings.-
2006-07 2007-08 2008-09
34.2 % 37.7 % 37.9 %
. Household savings in financial assets-More than 11 %
Percentage Distribution of Financial Saving of the Household Sector (Gross)
• Favourable macro economic environment and positive trend in growth of Household savings have significantly influenced growth of Life Insurance business during the recent years. The Insurance Industry has registered total FYP of Rs.69284.00 crores in 2008-09 as compared to Rs.78552.70 crores in the year 2007-08.
• LIC has been able to maintain a significant share in Life Insurance market in spite of intense competition and expanded market base. LIC as the largest insurer in Life Insurance Market maintained 58.06% share in premium and 70.52% in Individual policies in the financial year ending March 2009. While in Group Insurance the share of LIC was 71.95% and in Policies 85.24% by the end of March 2009.
Insurance Penetration
• Low Insurance penetration- 2.8 % of GDP
• World Average- 6-9 %
• Highest in South Africa-15 %
• Still 75 % of Indian Population not covered by Insurance
• So,there is a huge market for Life Insurance---expected to grow at 20-30% for next 10-15 years.
Our Mission and Vision
MissionEnsure & enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.
Vision
A trans-nationally competitive financial conglomerate of significance to societies & PRIDE OF INDIA
Our Values
Our Culture
Citizens’ CharterOur Commitment to the Community
•Provide insurance cover and financial security to every insurable person.
•Conduct all aspects of our business keeping in view its interest and national priorities.
•Provide them prompt, efficient and courteous service.
•Act as trustees of their funds and invest the funds to their best advantage.
•Conduct our business with utmost economy and on sound business principles.
• All 2048 branches of LIC are computerized.
• LIC’s WAN covers 109 Divisions.• Branches are connected by MAN.• Online Premium Payments.• A new Zonal office and 9 new
Divisions opened this year.• 807 Satellite Sampark offices opened
to bring LIC to your doorstep• IVRS facility available in 59 Urban
centers.• Kiosks installed in 150 Select Centers.• Info Center working in 8 centers.
• Our website www.licindia.in offers Enterprise Portal for customers.
• Online Premium Payments through 8 banks and three payment gateways, billjunction.com, billdesk.com & timesmoney.com
• Premium payment through ATMs of Corporation Bank, UTI Bank
• Premium payment through ECS in select centres
• IVRS facility available in 59 Urban centers.
• Kiosks installed in 150 Select Centers.
• Info Center working in 8 centers.
International Operations
• LIC has three off-shore offices at Fiji, Mauritius, and U.K.
• Five Joint Venture Companies functioning at Saudi Arabia, Nepal, Sri Lanka,Bahrain,Kenya
• Representative Office opened at Singapore.
• Planning to enter Australian life insurance market.
Policies to be guaranteed by Central Government
The sums assured by all policies issued by the Corporation including any bonuses declared in respect thereof and, subject to the provisions contained in section 14 the amounts assured by all policies issued by any insurer the liabilities under which have vested in the Corporation under this act, and all bonuses declared in respect thereof, whether before or after the appointed day, shall be guaranteed as to payment in cash by the Central Government.
- Section 37 of LIC ACT, 1956
INDIA’S largest Financial Institutional Investor both in equity market and term loans
An Institutional Builder promoting NSE, NCDEX, LIC Mutual fund, Stock Holding Corporation of India, National Insurance Academy, Insurance
Institute of India
LIC’s e-portal (website) has won Webby’s Consumers voted best website award
Our Proud Position - contd
CHILD CAREER PLAN
(Plan 184) CHILD FUTURE PLAN
(Plan 185) JEEVAN AMRIT
(Plan 186)• Market Plus-1(Plan
191)• Money Plus-1(Plan
no.193)
PROFIT PLUS
(Plan 188) CHILD FORTUNE
PLUS (Plan194) JEEVAN AKSHAY 6
(Plan 189)• Jeevan Nischay(Plan
no.199)• Wealth Plus(Plan
no.801)
Financial Highlights during FY 2008-2009
• Total Premium Income : Rs. 157186.55 crore
• Total Income : Rs. 200280.65crore• Payments to Policyholders : Rs 53250 crore
• Sub – Total ( B) 73746 82022 100789 Sub – Total ( B) 73746 82022 100789
• TOTAL (A+B)TOTAL (A+B) 410529 469199 530159410529 469199 530159
Pension & Group Business & Pension & Group Business & Social Security SchemesSocial Security Schemes
in 2008-09in 2008-09
Pension & Group Schemes
Growth Social Security Schemes
No. of New lives
(in lakhs)
207-06 35 % 110.64
Premium Income (Rs. in crore)
12517.32 35 % 175.05
Solvency Margin
• IRDA made it mandatory for all the life insurance companies.
• Solvency Margin-Solvency margin, in simple terms, means the excess of assets an insurance company is required to maintain over its liabilities. Like capital adequacy ratio in banks, solvency margin is part of the prudential norms. To satisfy the solvency margins, insurers have to build up reserve as their business grows.
• For example, if a company collects Rs 20 as premium and provides an insurance cover for Rs 100, the risk element is Rs 80. The solvency margin is calculated on Rs 80.
• Life insurance companies are expected to maintain a 150% solvency margin.
• LIC was the first one to protest the IRDA norms, but it subsequently made provision as per IRDA norms.
AC Nielsen ORG-MARG Survey 2004 to 2009
(For the 6th consecutive year)
Awaaz Consumer Award 2007, 2008 & 2009 given by CNBC_TV
Golden Peacock Global Award 2005,2006 and 2007,2008,2009
Asia Insurance Merit 2008 & 2009 in Corporate Social Responsibility
Awards won by LIC
No.1 in Net Worth
No.1 in Net Profit
Reader Digest’s Trusted Brand Award 2006 & 2007,2008,2009
Business World’s Most Respected Co. Award 2007,2008 & 2009.
Our Glory
No.2 in Total Income
Selected Super Brands India Awards 2006-07 & 2007-08 & 2008-09