Life Insurance Corporation of India?(LIC) is currently one of the leading life insurance firms in India. The company was setup in the year 1956 to provide life insurance solutions in different parts of the country, especially in rural India. Till the year 2000, LIC was the only life insurer in the country since the IRDA banned the entry of private players into the industry. Despite the entry of various private players after 2000, LIC still continues to be the dominant company in the industry with the highest market share. LIC has a wide range of insurance plans on offer to meet the needs of its diverse consumer base. Some of the?life insurance products?offered by LIC include endowment plans, whole life plans, money back plans, term assurance plans, pension plans, unit plans, micro insurance plans, and group insurance plans.
|Percentage of Grievances Solved||100%|
|Claim Settlement Ratio||98.04%|
|Group Death Claims||99.80%|
|Percentage of Claims Rejected||0.02%|
|Solvency Ratio||1.58(for the quarter ended March 2018)|
|Term Insurance Plans||Endowment Plans||ULIP||Whole Life Plans||Micro Insurance Plans||Pension Plans||Money Back Plans||Group Plans||Social Security Scheme|
|LIC’s Anmol Jeevan II Plan||LIC’s Jeevan Pragati Plan||LIC’s New Endowment Plus Plan||LIC’s Jeevan Umang Plan||LIC’s New Jeevan Mangal Plan||Pradhan Mantri Vaya Vandana Yojana||LIC’s Bima Shree||LIC’s Group Credit Life Insurance Plan||Aam Aadmi Bima Yojana|
|LIC’s Amulya Jeevan II Plan||LIC’s Jeevan Labh Plan||LIC’s Bhagya Lakshmi Plan||Jeevan Akshay - VI Plan||LIC’s Jeevan Shiromani||LIC’s Single Premium Group Insurance Plan|
|LIC’s e-Term Plan||LIC’s Single Premium Endowment Plan||LIC’s New Jeevan Nidhi Plan||LIC’s New Money Back Plan – 20 Years||LIC’s New Group Leave Encashment Plan|
|LIC’s New Term Assurance Rider||LIC’s New Endowment Plan||LIC’s Jeevan Shanti Plan||LIC’s New Money Back Plan – 25 Years||LIC’s New Group Superannuation Cash Accumulation Plan|
|LIC’s New Jeevan Anand Plan||LIC’s New Bima Bachat Plan||LIC’s New One Year Renewable Group Term Assurance Plan I|
|LIC’s Jeevan Rakshak Plan||LIC’s New Children’s Money Back Plan||LIC’s New One Year Renewable Group Term Assurance Plan II|
|LIC’s Limited Premium Endowment Plan||LIC’s Jeevan Tarun Plan||LIC’s New Group Gratuity Cash Accumulation Plan|
|LIC’s Jeevan Lakshya Plan|
|LIC’s Aadhaar Shila|
|LIC’s Aadhaar Stambh|
Life Insurance Corporation of India (LIC) is a market leader in the life insurance sector. The company was setup in order to provide financial security to Indian citizens by offering them competitive insurance solutions. Another important aim of the company was to promote insurance products in rural parts of the country, in order to make life insurance accessible to all. LIC also offers a varied portfolio of insurance products, including retail life insurance policies, health insurance products, group schemes, etc. A few benefits of choosing LIC as your life insurance provider are:
A term insurance policy is the most basic type of insurance cover that a customer can purchase. These insurance products provide a life cover for a specific period of time, i.e., 10 years, 20 years, 30 years, etc. If the policyholder meets with an untimely death during the policy tenure, the insurer is liable to pay the nominee a death benefit, provided the policy was in full force until the date of death. The cover will cease as soon as the death benefit is paid. Term assurance plans offered by Life Insurance Corporation of India are listed in the table below:
|Plan name||Key Features|
|LIC’s Anmol Jeevan II Plan||
|LIC’s Amulya Jeevan II Plan||
|LIC’s e-Term Plan||
|LIC’s New Term Assurance Rider||
An endowment policy provides policyholders the dual benefit of a comprehensive life insurance cover and a savings option. Thus, as per this plan, the insurer will pay out a lump sum benefit at maturity of the policy. This will enable the policyholder to plan for milestones in the future.
|Plan Name||Key Features|
|LIC’s Jeevan Utkarsh Plan||
|LIC’s Jeevan Pragati Plan||
|LIC’s Jeevan Labh Plan||
|LIC’s Single Premium Endowment Plan||
|LIC’s New Endowment Plan||
|LIC’s New Jeevan Anand Plan||
|LIC’s Jeevan Rakshak Plan||
|LIC’s Limited Premium Endowment Plan||
|LIC’s Jeevan Lakshya Plan||
|LIC’s Aadhaar Shila||
|LIC’s Aadhaar Stambh||
A ULIP or a Unit Linked Insurance Plan is an insurance policy that in addition to offering a life cover also allows individuals to invest in certain investment funds with varying risk profiles. You will have to choose a fund only after considering your needs and your appetite for risk, since the investment risk will have to borne solely by you. The unit linked plan offered by LIC is mentioned below:
|Plan Name||Key Features|
|LIC’s New Endowment Plus Plan||
Whole life insurance is a type of insurance product that is guaranteed to stay active for the duration of the life assured’s lifetime, provided all due premiums are paid before the end of the grace period. While the premiums payable for a whole life insurance policy may be higher than that of a term life policy due to the policy’s extended tenure, it is still a good option for people who want a risk cover for an extended period of time. Whole life insurance policies offered by LIC are listed below.
|Plan Name||Key Features|
|LIC’s Jeevan Umang Plan||
Micro insurance policies are those insurance products that especially cater to low-income and BPL sections of society. This line of insurance was created by the Insurance Regulatory and Development Authority of India (IRDAI) to protect the interest of the economically weaker sections of our country. Thus, a life insurance or general policy that has a sum assured of Rs.50,000 or less can be labelled a micro insurance policy. LIC offers the following micro insurance policies:
|Plan Name||Key Features|
|LIC’s New Jeevan Mangal Plan||
|LIC’s Bhagya Lakshmi Plan||
The pension/retirement plans offered by LIC are ideal for senior citizens over the age of 60 years or for individuals wishing to secure their future. These plans provide a payout which can be beneficial for individuals looking to increase their level of financial security during their later years. The pension plans provided by LIC are listed in the table below:
|Plan Name||Key Features|
|Pradhan Mantri Vaya Vandana Yojana||
|Jeevan Akshay - VI Plan||
|LIC’s New Jeevan Nidhi Plan||
|LIC’s Jeevan Shanti Plan||
Money-back plans guarantee the policyholder a payout, also known as Survival Benefit, at certain intervals of the policy tenure, as specified by the insurer. Money-back plans are beneficial since the regular monetary payouts will help policyholders plan for significant milestones in the future, such as a child’s wedding/higher education, renovation of his/her house, a trip abroad, etc. The money-back insurance policies offered by LIC are listed in the table below:
|Plan Name||Key Features|
|LIC’s Bima Shree||
|LIC’s Jeevan Shiromani||
|LIC’s New Money Back Plan – 20 Years||
|LIC’s New Money Back Plan – 25 Years||
|LIC’s New Bima Bachat Plan||
|LIC’s New Children’s Money Back Plan||
|LIC’s Jeevan Tarun Plan||
Group life insurance policies provide a life cover solely to a members of a select group, such as the members of an organisation, associations, etc. These policies, more or less, offer a similar set of benefits to all members of the group. Group life insurance schemes offered by LIC are listed in the table below.
|Plan Name||Key Features|
|LIC’s Group Credit Life Insurance Plan||
|LIC’s Single Premium Group Insurance Plan||
|LIC’s New Group Leave Encashment Plan||
|LIC’s New Group Superannuation Cash Accumulation Plan||
|LIC’s New One Year Renewable Group Term Assurance Plan I||
|LIC’s New One Year Renewable Group Term Assurance Plan II||
|LIC’s New Group Gratuity Cash Accumulation Plan||
These insurance products are approved and launched by the Government of India in order to provide benefits to certain sections of society. The Aam Aadmi Bima Yojana was launched on 1 January 2013 and is offered by LIC.
|Plan Name||Key Features|
|Aam Aadmi Bima Yojana||
Claim Settlement Ratio of LIC Life Insurance
As India’s largest life insurance service provider, LIC offers a diverse range of products that match the requirements of its customers. Since the company is one of the established firms in India, the claim settlement process is quick and hassle-free. For the fiscal year 2017-18, its claim settlement ratio is as follows:
|No. of claims received||No. of claims approved||Claim settlement ratio|
Claim settlement ratio trend over the years:
In order to purchase an insurance policy from LIC, you will have to submit the following documents:
As a policyholder, you can choose to check your LIC policy status through online or offline channels.
The Life Insurance Corporation of India (LIC) is the largest company in the life insurance segment in India. The company offers life insurance in a diverse range of product categories including term insurance, ULIPs, endowment plans, money-back plans, retirement plans, child plans, etc. Cost is one of the major factors that people consider before signing up for a policy. Most people choose the sum assured amount based on the premium amount they can afford in a year. For this purpose, they have to estimate the premium amount they have to shell out for a specific life insurance policy.
LIC’s official website offers a premium calculator for its customers. This can be accessed easily through the following steps:
The premium amount for a specific policy is based on various factors such as age, health condition, policy term, sum assured amount, etc. To ensure that there are no hidden costs, the premium amount displayed by the calculator is typically inclusive of all the taxes.
|The battle between LIC and private players|
Life Insurance Corporation (LIC) of India has been one of the major players in the Indian insurance industry. LIC was born in the year 1956 and till the year 2000 they had almost complete control of the insurance industry with no other company giving them any major competition.
Things, however, changed post-2000, when the Indian government lifted entry restrictions and allowed private companies to sell insurance products. Today, you can come across a plethora of insurance companies who offer a wide range of insurance products to you. However, one of the major confusions that you may face would be choosing an insurance company to purchase insurance from. There are certain factors that can help you decide whether you must purchase your insurance policy from LIC or a private life insurance company.
LIC Vs. Private insurance companies
There are certain factors which have differentiated LIC from private insurance companies. Though both LIC and various private insurance companies offer various types of insurance plans, there are certain pointers which can help you understand how LIC and private insurance companies have fared till now and how have they changed the insurance sector.
These are some of the factors which tell us how both LIC and private insurance companies have fared in recent times. These factors, however, should not be the only yardsticks based on which you must purchase a product for yourself. For example, LIC, despite not being the first company to introduce products like ULIPs, endowment plans, or health insurance plans, cannot be ignored when you are purchasing any one of these plans for yourself. If you are looking to purchase a ULIP, you must compare ULIP plans offered by both, LIC and private insurers, and based on the features should you decide which scheme is suitable. Similarly, LIC depends on its insurance agents to sell a large number of their products as compared to private insurers which depend on online sales in order to make money. The methods used by both LIC and private players are suitable in their own ways and are based on preference. For example, you might prefer to purchase your insurance product via an agent, however, you must be open to the idea of buying your insurance product online as well.
The factors mentioned above provide a better picture of how LIC and private insurance companies have fared in the past. This, in turn, can help you make a better decision not only the insurer you must choose but also the insurance product that would be most suitable for you.
|How to find my LIC policy number?|
If you have misplaced your policy documents and forgot your login credentials, it might be a little tricky to find your LIC policy number. While there is an online method to find policy details, it is available only for matured policies that remain unclaimed with the LIC for more than six months. The two options available for you to find the policy number are given as follows:
Not all life insurance policies come with an option to avail a loan. You will need to go through your policy document/brochure for more information on the same. Alternatively, you can also speak to an LIC representative or insurance advisor and find out if you are eligible to take a loan against your insurance policy.
In most cases, you can surrender your insurance policy at any time, provided at least a minimum of 3 years’ premiums have been paid. However, you must note that not all life insurance policies can be surrendered for a Surrender Benefit. If you are eligible to claim a Surrender Benefit, as per your policy’s terms and conditions, you can surrender the policy and claim the Surrender Value, which is a monetary benefit that will be paid to you, should you choose to discontinue your policy.
As of now, there are no discounts available for paying the premium amount online. However, there are several benefits in paying your premium online when compared to paying the premium through traditional, offline channels. On the LIC website, you can choose to pay your premium through ‘LIC Pay Direct’ without registering or through e-Services if you are a registered user via net banking or credit/debit card.
The premium payment modes will be mentioned in the policy brochure. You will have to opt for a suitable mode of premium payment while purchasing the insurance policy. While certain policies are single premium policies, wherein you will have to pay the premium as a one-time instalment, certain other policies will allow you to choose a yearly, half-yearly, quarterly, or monthly mode of payment. No matter what mode you choose, you will have to ensure that the due premium is paid within the end of the grace period, to keep the policy from lapsing.
Yes, nominating a minor child is permissible. However, if you choose to nominate someone under the age of 18 years, you will have to also a designate an appointee. The appointee will have to be over 18 years of age, and you will have to furnish all the necessary details about the appointee to the insurer.
Your claim could be denied for any one of the following reasons:
In order to ensure that your claim does not get rejected, you should provide the correct information while purchasing the policy, make a nomination, and pay all your due premiums on time, before the completion of the grace period. At the time of making the claim, all the necessary documents will have to be submitted to the insurer in order to prevent delay in processing the claim. The life assured or the nominee will also have to ensure that the insurer is intimated of the claim without delay.
Yes, you can claim tax benefits for premiums paid and the benefits received, due to your life insurance policy, as per Section 80C and Section 10(10D) of the Income Tax, 1961. However, you will have to consult with a tax consultant/advisor from time to time since tax laws can be amended without notice.
Yes, it is mandatory to inform the insurer if you change your place of residence during the policy tenure. Without this, the insurer will not be able to send you important notices, such as discharge vouchers for benefits payable to you, premium payable notices, etc.
If you are absolutely certain that your policy is lost, you will need to apply for a duplicate policy. In order to do so, you will have to first contact the insurer and let them know of the loss. Next, you will need to post an ad in the newspaper reporting the loss, and send a copy of this newspaper to the LIC branch a month after posting the ad. Post this, LIC will issue a duplicate policy. You may have to pay certain charges for the duplicate policy.
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In what is a success story of some sort, the North Lakhimpur branch of Life Insurance Corporation has completed 45 years since it first opened its door to the public. Celebrating the milestone, Branch manager Naba Jyoti Pegu addressed the gathering and highlighted the long history of the North Lakhimpur branch of Life Insurance Corporation and expressed the need for agents present in the gathering to spread the awareness of the need for life insurance in each household in the area. The branch manager went on to highlight the benefits of Life Insurance Policy new scheme called Jeevan Shanti.
22 March 2019
Life Insurance Corporation (LIC) of India after acquiring 51% stake in the IDBI Bank will have 5 of its representatives on the board of the bank followed by two representatives who will represent the government.
In order to ensure that there is continuity at the top, the insurance company will not make any changes to the management until a new CEO and MD is appointed.
IDBI’s new board will consist of LIC’s Chairman, a whole time CEO and Managing Director nominated by LIC, two whole time deputy managing directors appointed by LIC, an Official Nominee Director of LIC, and two nominee directors of the Government of India. Apart from that, there will be 8 non-rotational independent directors which will be appointed by the shareholders in the upcoming general meeting.
21 January 2019
The public-sector bank, IDBI Bank, announced that the current largest life insurer, LIC, has made an open offer to acquire 26% of the stake in the bank. The price of each share, under the open offer, is Rs.61.73. LIC plans to obtain a 51% controlling stake in IDBI.
LIC has made it clear that it will clear all transactions with regard to the open offer within 10 working days starting from the day the tendering period ends. The company will provide payouts to the equity shareholders of the bank who accept the offer for acquisition and whose share certificates and other documents are found valid. As per the SEBI regulations, it is mandatory to make an open offer as it gives an opportunity to shareholders to monetise the stake they hold in the company. LIC has said that IDBI Bank received a letter from the government confirming that the government will not participate in the open offer.
21 December 2018
The Life Insurance Corporation of India (LIC) has acquired stakes in various small organisations such as Gateway Distriparks, Granules India, Tata Coffee, Swan Energy, Future Lifestyle, Rajesh Exports, and Omaxe India. This was done at a time when liquidity had dried up, making small counters to exit from HNI investors. Many market watchers had observed that the largest fund of the country had invested in companies like Opto Circuits, Mandhana Industries, Gitanjali Gems, Electrosteel casting, and Amtek Auto just before they crashed. The total investment amount of LIC in Indian equity is equal to Rs.6 lakh crore. The company has pumped in close to Rs.2,000 crore in the recent investments. LIC also increased its shareholding in Indiabulls Housing Finance and Dewan Housing Finance by 11% and 3.4% respectively just before the stocks crashed in the month of September. Experts are wary of the company’s investments in companies following a downward trend.
19 December 2018
The country’s most trusted life insurer, Life Insurance Corporation of India (LIC), unveiled its new building at Nimapara. The company has numerous branches across the country making its products and services easily accessible. One such branch was in Nimapara that had been operating in a rented building since the year 1988. On Monday, the Zonal Manager of LIC, C Vikas Rao inaugurated the new building in the Indira Gandhi Women’s College. The inauguration was attended by many such as the East Central Zone Chief Engineer, RK Suman, Marketing Manager, Anant Bhushan Rath, and Senior Division Officer, Laxmi Prasad Das. The entire programme was coordinated by Chief Manager Bimal Chandra Padhi, Biswajit Das, Choudhury Umakanta Nanda, Sisir Ranjan Biswal, Dwarikanath Muduli, and Purna Chandra Ransingh.
27 November 2018
India’s largest digital payment company Paytm has entered into a partnership with the country’s largest life insurer LIC to help customers make premium payments easily. This information was revealed by One97 Communications Ltd., which owns Paytm. With this partnership, Paytm now provides premium payment service for about 30 insurance companies operating in the country.
Some of the top companies serviced by Paytm include ICICI Prudential, SBI Life, Reliance Life, Max Life, Tata AIA Life, Aditya Birla Sun Life, etc. The company’s COO Kiran Vasireddy stated that Paytm wants its customers to have a seamless payment experience when they buy insurance policies. In India, most insurance premiums are paid through offline modes.
The company also stated that it will educate its customers on how to use the digital payment system and access the range of benefits offered by the payments platform.
22 November 2018
Life Insurance Corporation (LIC) of India has directed all the third-party agencies (TPA)to collect the pathology reports of the policyholders which are also countersigned by a pathology professional who holds a postgraduate degree in pathology. The reason behind this move is to streamline the system of insurance policy.
LIC has also asked all the TPAs to sensitise the licensed diagnostic centres empanelled by these agencies and implement the directives issued by the insurer with immediate effect.
Various TPA listed pathological laboratories are known to engage doctors who do not have a PG degree in pathology and countersign medical reports of policyholders which have rattled LIC.
9 November 2018
LIC has earned a new business premium of Rs.2,300 crore on its Jeevan Shanti Plan within a short span since when the policy was launched. The LIC Jeevan Shanti Plan is an annuity plan that was recently launched by LIC. Mr. T.C. Suseel Kumar, the South Central Zonal Manager of LIC, said that the policy was well received in the market. He added that the popularity of the product comes from the fact that it offers annuity to individuals in the age group between 30 years and 100 years. The South Central Zone of LIC contributed Rs.275 crore as new business premium within 40 days since the policy was launched.
29 October 2018
India’s largest life insurer Life Insurance Corporation of India (LIC) has reportedly sought permission from the Insurance Regulatory and Development Authority of India (IRDAI) to hold on to Rs.5,000 crore worth nonconvertible debentures from Tata Sons. Economic Times reported this news citing two anonymous sources.
LIC has purchased the debentures a few years before Tata Sons became a private company in September 2017. LIC continues to earn annual interest from these securities. Since investments in private companies are not considered to be secured, the insurance regulator does not approve this type of investments.
In a statement to IRDAI, LIC noted that these securities were acquired over a long period of time and it must be given permission to hold on these securities. Ever since Tata Sons became a private company, IRDAI is expected to ask insurers to reduce their debt holdings in the company.
12 October 2018
The Life Insurance Corporation (LIC), on Wednesday, launched a group scheme for the benefit of the Bar Association of the Supreme Court of India. The group policy so announced will not require the policyholders to go through any kind of medical check-up. The chairman of LIC, V.K.Sharma, believes that the direction they receive from the judiciary is very honest and they will do everything to the best of their abilities to serve the members of the Supreme Court Bar Association well. Chief Justice Dipak Mishra stated that the LIC functions on an arithmetic formula and is hence a genuine assurance to its customers that the claims will be honoured.
28 September 2018