the life insurance corporation of india

8/6/2019 The Life Insurance Corporation of India

http://slidepdf.com/reader/full/the-life-insurance-corporation-of-india 1/25

BANKING AND FINANCIAL

INSTITUTIONS

LIFE INSURANCE

CORPORATION OF INDIA

SUBMITTED TO: SUBMITTED BY:

Mr. Rajneesh Mishra Manisha sharma 05

Lecturer ASB Surbhi sharma 20

Simranpreet singh 37

Isha Sachdeva 03



1.OVERVIEW

The Life Insurance Corporation of India (LIC ) is the largest state-owned

life insurance company in India, and also the country's largest investor. It is

fully owned by the Government of India. It also funds close to 24.6% of the

Indian Government's expenses. It has assets estimated of 9.31 trillion

(US$206.68 billion). It was founded in 1956 with the merger of more than

200 insurance companies and provident societies.

Headquartered in Mumbai, financial and commercial capital of India, the

Life Insurance Corporation of India currently has 8 zonal Offices and 101

divisional offices located in different parts of India, at least 2048 branches

located in different cities and towns of India along with satellite Offices

attached to about some 50 Branches, and has a network of around 1.2

million agents for soliciting life insurance business from the public.

“Every day we wake up to the fact that more than 250 million lives are part

of our family called LIC.

We are humbled by the magnitude of the responsibility we carry and realise

the lives that are associated with us are very valuable indeed.

Though this journey started over five decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions

of lives every day for the past 52 years has been a process called TRUST.”



2. History

The Oriental Life Insurance Company, the first corporate entity in India

offering life insurance coverage, was established in Calcutta in 1818 by

Bipin Bernard Dasgupta and others. Europeans in India were its primary

target market, and it charged Indians heftier premiums. The Bombay Mutual

Life Assurance Society, formed in 1870, was the first native insurance

provider. Other insurance companies established in the pre-independence era

included• Bharat Insurance Company (1896)

• United India (1906)

• National Indian (1906)

• National Insurance (1906)

•

Co-operative Assurance (1906)• Hindustan Co-operatives (1907)

• Indian Mercantile

• General Assurance

• Swadeshi Life (later Bombay Life)

India’s first 150 years were marked mostly by turbulent economic

conditions. It witnessed, First War of Independence , adverse effects of the

World War I and World War II on the economy of India , and in between

them the period of world wide economic crises triggered by the Great

http://en.wikipedia.org/wiki/Indian_rebellion_of_1857




http://en.wikipedia.org/wiki/World_War_I

http://en.wikipedia.org/wiki/World_War_II

http://en.wikipedia.org/wiki/Economy_of_India

http://en.wikipedia.org/wiki/Great_depression



http://en.wikipedia.org/wiki/World_War_I

http://en.wikipedia.org/wiki/World_War_II

http://en.wikipedia.org/wiki/Economy_of_India




depression . The first half of the 20th century also saw a heightened struggle

for India's independence . The aggregate effect of these events led to a high

rate of bankruptcies and liquidation of life insurance companies in India.

This had adversely affected the faith of the general public in the utility of obtaining life cover.

The Life Insurance Act and the Provident Fund Act were passed in 1912,

providing the first regulatory mechanisms in the Life Insurance industry.

The Indian Insurance Companies Act of 1928 authorized the government to

obtain statistical information from companies operating in both life and non-

life insurance areas. The subsequent Insurance Act of 1938 brought stricter state control over an industry that had seen several financially unsound

ventures fail. A bill was also introduced in the Legislative Assembly in 1944

to nationalize the insurance industry.

Some of the important milestones in the life insurance business in India

are:

1818: Oriental Life Insurance Company, the first life insurance company on

Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance

company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute

to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life

insurance businesses.


http://en.wikipedia.org/wiki/India's_independence_movement

http://en.wikipedia.org/wiki/Bankruptcy

http://en.wikipedia.org/wiki/Liquidation


http://en.wikipedia.org/wiki/India's_independence_movement

http://en.wikipedia.org/wiki/Bankruptcy

http://en.wikipedia.org/wiki/Liquidation



1938: Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over

by the central government and nationalised. LIC formed by an Act of

Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore

from the Government of India.

The General insurance business in India, on the other hand, can trace its

roots to the Triton Insurance Company Ltd., the first general insurance

company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in

India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to

transact all classes of general insurance business.1957: General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business

practices.

1968: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972

nationalised the general insurance business in India with effect from 1st

January 1973.



107 insurers amalgamated and grouped into four companies viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd. and the United India Insurance Company

Ltd. GIC incorporated as a company.

Nationalization

In 1955, parliamentarian Amol Barate raised the matter of insurance fraud

by owners of private insurance companies. In the ensuing investigations, one

of India's wealthiest businessmen, Ram Kishan Dalmia , owner of the Times

of India newspaper, was sent to prison for two years.

Eventually, the Parliament of India passed the Life Insurance of India Act on

1956-06-19, and the Life Insurance Corporation of India was created on

1956-09-01, by consolidating the life insurance business of 245 private lifeinsurers and other entities offering life insurance services. Nationalization of

the life insurance business in India was a result of the Industrial Policy

Resolution of 1956 , which had created a policy framework for extending

state control over at least seventeen sectors of the economy, including the

life insurance.

http://en.wikipedia.org/w/index.php?title=Amol_Barate&action=edit&redlink=1

http://en.wikipedia.org/wiki/Ram_Kishan_Dalmia

http://en.wikipedia.org/wiki/Times_of_India


http://en.wikipedia.org/wiki/Parliament_of_India

http://en.wikipedia.org/w/index.php?title=Industrial_Policy_Resolution_of_1956&action=edit&redlink=1


http://en.wikipedia.org/w/index.php?title=Amol_Barate&action=edit&redlink=1

http://en.wikipedia.org/wiki/Ram_Kishan_Dalmia



http://en.wikipedia.org/wiki/Parliament_of_India





3. SPREAD IN THE COUNTRY

Over its existence of around 50 years, Life Insurance Corporation of India,which commanded a monopoly of soliciting and selling life insurance in

India, created huge surpluses, and contributed around 7 % of India's GDP in

2006.

The Corporation, which started its business with around 300 offices, 5.6

million policies and a corpus of INR 459 million (US$ 92 million as per the

1959 exchange rate of roughly Rs. 5 for a US $ , has grown to 25000servicing around 180 million policies and a corpus of over 8 trillion

(US$177.6 billion).

The recent Economic Times Brand Equity Survey rated LIC as the No. 1

Service Brand of the Country. The slogan of LIC is "Zindagi ke saath bhi,

Zindagi ke baad bhi"in hindi. In english it means "with life also,after life

also. According to The Brand Trust Report 2011, LIC is the 8th most trusted

brand of India



4 . OBJECTIVES

Spread Life Insurance widely and in particular to the rural areas and to the

socially and economically backward classes with a view to reaching all

insurable persons in the country and providing them adequate financial

cover against death at a reasonable cost.

* Maximize mobilization of people's savings by making insurance-linked

savings adequately attractive.

* Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the

interest of the community as a whole; the funds to be deployed to the best

advantage of the investors as well as the community as a whole, keeping in

view national priorities and obligations of attractive return.

* Conduct business with utmost economy and with the full realization that

the moneys belong to the policyholders.

*Act as trustees of the insured public in their individual and collective

capacities.

*Meet the various life insurance needs of the community that would arise inthe changing social and economic environment.



* Involve all people working in the Corporation to the best of their

capability in furthering the interests of the insured public by providing

efficient service with courtesy.

*Promote amongst all agents and employees of the Corporation a sense of

participation, pride and job satisfaction through discharge of their duties

with dedication towards achievement of Corporate Objective.



5. BRIEF OVERVIEW OF SCHEMES OF LIC

LIC – GROUP PLAN | GROUP GRATUITY SCHEME | LIC |

OVERVIEW | ADVANTAGES | BENEFITS – TAX BENEFIT |

FEATURES – SPECIAL FEATURES

Key to a successful business is keeping your employees motivated. Happy

and secured employees work better, which in turn reduces the employer’s

tension. Group Insurance is an insurance which covers a group of people

(like employees of a common employer or professionals in a commongroup).

LIC brings you LIC’s GRATUITY PLUS PLAN, a unit linked plan for

management of Gratuity Funds. This plan is different from the traditional

Cash Accumulation Plan as the returns under the Plan are linked to the

performance of the chosen fund. GRATUITY PLUS PLAN is suitable for companies who desire to entrust Gratuity Fund management to an insurer

and wish to have the flexibility of choice of investments.

ADVANTAGES

1. Choice of 4 funds to meet various risk appetites.

2. Flexibility in structuring the Gratuity Costs based on performance of

Fund.

3. Facility of Switching between various funds. One switch every year is

free of cost.

http://www.bimadeals.com/

http://www.bimadeals.com/life-insurance-india/lic-life-insurance.php

http://www.bimadeals.com/

http://www.bimadeals.com/life-insurance-india/lic-life-insurance.php



4. It provides for life insurance cover at a very minimal cost. Cover can

be equal to the gratuity payable for anticipated service. Alternatively,

the company can also choose for each member a uniform level of

cover equal to a minimum of one months salary or more .

5. There is no bid offer spread under this scheme.

6. Scheme can be surrendered at any time. There is no surrender penalty

imposed.

7. Hassle Free Administration of Scheme

8. Assistance for execution of legal documents and installation of

scheme.

BENEFITS

1. Gratuity Benefits to Members whenever payable as per Rules of the

Scheme shall be paid to the Policy Holder by debiting the requisite no

of units to the Policy Holder’s Unit Account at NAV applicable at thattime.

2. In case of death of member, life insurance cover as opted for by

Policyholder will also be paid by the Corporation.

3. The policy can be surrendered at any time. The benefit available on

surrender of the policy will be the value of total number of units held

in the Policy Holder’s Unit Account at the time of surrender.

http://www.bimadeals.com/life-insurance-india/life-insurance.php

http://www.bimadeals.com/life-insurance-india/life-insurance.php



At all times the Policyholder’s unit account should be sufficient to cover the

relevant charges and benefits payable at such point of time, subject to a

minimum balance of Rs. Five lacs in the Policyholder’s Unit Account. In

case the Policyholder’s Unit Account falls below this limit, the policy shallcompulsorily be terminated and the balance amount in the policy holder’s

Unit Account will be refunded to the policy holder.

TAX BENEFITS:

The provisions relating to the approved Superannuation Scheme are set out

in Part ‘B’ of the Fourth Scheme of the Income-Tax Act, 1961 and Part XIII

of the Income Tax Rules, 1962. The income tax concession will be available

only if the scheme is approved by the CIT.

1. The annual contribution is treated as a deductible business expense in

term of Section 36(1) (IV) of the I.T. Act.

2. In terms of a Notification issued by the Central Board of Direct

Taxes .80% of the contribution (s) towards the past service liability

are treated as deductible business expenses spread over in the

subsequent years of payment.

3. The employee’s contribution, in the case of the Contributions scheme

qualifies for exemption under Section 80C of the Income-Tax Act.

Jeevan Anurag



Benefits

LIC’s Jeevan ANURAG is a with profits plan specifically designed to take

care of the educational needs of children. The plan can be taken by a parent

on his or her own life. Benefits under the plan are payable at prespecifieddurations irrespective of whether the Life Assured survives to the end of the

policy term or dies during the term of the policy. In addition, this plan also

provides for an immediate payment of Basic Sum Assured amount on death

of the Life Assured during the term of the policy.

Assured BenefitPayment of 20% of the Basic Sum Assured at the start of every year during

last 3 policy years before maturity. At maturity, 40% of the Basic Sum

Assured along with reversionary bonuses declared from time to time on full

Sum Assured for the full term and the Terminal bonus, if any shall be

payable. For example, if term of the policy is 20 years, 20% of the Sum

assured will be payable at the end of the 17th,18th, 19th year and 40% of theSum Assured along with the reversionary bonuses and the terminal bonus, if

any, at the end of the 20th year.

Death Benefit

Payment of an amount equal to Sum Assured under the basic plan

immediately on the death of the life assured.



6. DETAILS OF WHOLE LIFE SCHEME AND

ENDOWMENT SCHEME

Summary:

Jeevan Anand is the combination of Endowment Assurance and Whole Life

plan.

The risk cover will continue even after the maturity, that means Zindagi Ke

Saath Bhi Zindagi Ke Bad Bhi… Jeevan Anand plan no. 149 provides

financial protection against death throughout the lifetime of the life assuredwith the provision of payment of a lump sum at the end of the selected term

in case of his survival.

For Example: Mr. Pankaj, age 25 years, takes Jeevan Anand policy for 25

years for Sum Assured Rs. 1 lakh. Now on Maturity Pankaj will receive Rs.

2,12,500/- (Rs. 1 lakh sum assured Plus Rs.1,12,500/- is the estimated bonusat Rs.45/- per thousand per year.)

In case, Mr. Pankaj, dies ( After premium paying term is over) at the age of

60 years, his nominee will get additional Rs. 1 lakh equal to sum assured

amount. Since Mr. Pankaj has already received the bonus, LIC will not pay

second time bonus.

In case, Mr. Pankaj dies during the Premium Paying Term, his nominee will

get Rs.1 Lakh (sum Assured) + Accrued bonus till Mr. Pankaj’s death.



Key Features:

1. Jeevan Anand is the combination of Whole Life and Endowment

Assurance plan.

2. Even after the Premium Paying Term (PPT) is over, risk cover continues

till the death of the policy holder.

3. Accident Benefit is available during the Premium paying term adn

thereafter upto age 70.

4. Limited premium payments.

5. Double accidental cover upto age 70.

6. Tax Savings

Modes of Premium Payment:

You can pay premium yearly, half-yearly, quarterly, monthly or through

salary deductions as opted by you throughout the selected term of the policy

or till earlier death.

Jeevan Anand Plan Premiums are limited. You only pay till the selected

term of years or until death if it occurs during the term period. This policy

not only makes provisions for the family of the life assured in the event of

early death but also assures a lump sum at a desired age. The lump sum can

be reinvested to provide an annuity during the remainder of policy holders

life or in any other way considered suitable at that time.

Premium Stoppage:

If payment of premiums ceases after at least 3 years premiums have been

paid, a free paid-up policy for a reduced sum assured will be automatically

secured provided the reduced sum assured, exclusive of any attached bonus,



is not less than Rs. 250/-. The reduced sum assured will become payable on

the event as stipulated in the policy.

Bonuses:

Jeevan Anand is a with-profit insurance plan and participates in the profits

of the Corporation’s life insurance business. You will get the profit in the

form of Bonuses. Simple Reversionary Bonuses are declared per thousand

Sum Assured annually at the end of each financial year. Once the bonus is

declared, they form part of the guaranteed benefits of the plan. Bonuses will

be added during the selected term or till death, if it occurs earlier. Final

(Additional) Bonus may also be payable provided the policy has run for

certain minimum period.

Maturity Benefit:

Sum Assured along with all vested bonuses payable at the end of the term to

the policy holder.(Endowment term)

Death Benefit:

Sum Assured along with vested bonuses are payable on death during the

premium paying term. An amount equal to the Sum Assured is payable if

death occurs after the premium paying term. Simple Reversionary Bonus

accrues during the premium paying term and is payable at the end of the

premium paying term or on earlier death along with final additional bonus, if

any. No Bonus is paid on death after the premium paying term.

Accident Benefit:

Double Accident Benefit is available during the premium paying term and

thereafter up to age 70. Maximum Accident Cover available under this plan



will be Rs 5 lakh (this limit excludes accident benefit taken under other

plans).

In case of permanent disability of the life assured due to accident this

additional Sum assured is payable in instalments.

Eligibility Conditions and Restrictions:

a:) Minimum Entry Age: 18 Years completed

b:) Maximum Entry Age: 65 Years

c:) Max. PPT Mat. Age: 75 years

d:) Min. Premium term: 5 yrs

e:) Max Premium term: 57 yrs

f:) Minimum Sum Assured: Rs. 1,00,000/-

g:) Maximum Sum Assured: No Limit

h:) Risk cover: Sum Assured + Bonus

i:) Loan on policy: Avaialable

j:) Housing loan : Avaialable

Surrender Value:

Buying a life insurance contract is a long-term commitment. However,

surrender values are available on the plan on earlier termination of the

contract.

Guaranteed Surrender Value:

The policy may be surrendered after it has been in force for 3 years or more.

The guaranteed surrender value is 30% of the basic premiums paid



excluding the first year’s premium. Any extra premium(s) paid and

premium(s) towards Accident Benefit are also excluded.

LIC’s policy on surrenders:

In practice, the Corporation will pay a Special Surrender Value – which is

either equal to or more than the Guaranteed Surrender Value. The benefit

payable on surrender reflects the discounted value of the reduced claim

amount that would be payable on death or at maturity. This value will

depend on the duration for which premiums have been paid and the policy

duration at the date of surrender. In some circumstances, in case of earlytermination of the policy, the surrender value payable may be less than the

total premium paid.

Who should buy Jeevan Anand policy?

Since Jeevan Anand is an endowment assurance plus whole life policy, this

plan is apt for people of of all ages and social groups who wish to protect

their families from a financial setback that may occur owing to their demise.

The amount assured if not paid by reason of his death earlier will payable at

the end of the endowment term where it can be invested in an annuity

provision for the rest of the policyholder’s life or in any other way he may

think most suitable at that time



7. REASONS WHY LIC IS A MARKET

LEADER IN LIFE INSURANCE SECTOR

Positions:

1. Largest insurance Company in the world in Customer Base (23 crore

customers)

2. No.1 insurance company in the world in terms of agency (about 1.1

Million agents)

3. LIC is No.1 insurer in the world in Volume & Sold around 3.75

Cr.Policies in 2007-2008.

4. 2nd Biggest Real Estate Owner next to Indian Railways.

5. LIC is one of the Highest income tax playing Organization. For

Financial Year 2007-08, LIC has paid advance Tax Rs.2627. 14 Cr. &

Service Tax Rs.1292. 15 Cr.

6. Has Highest insurance Professionals ( Club Member agents )

7. Only 4 countries in the world have more population that LIC`s policy

holders.

Award - Recognition

8. Adjudged "The most trusted service Brand" in India, by "Economic

Times and AC NEILSEN ORG MARG" for the year 2007 for the 5th

consecutive year.

9. "Golden Peacock" award for Excellence in "corporate Governance"



10.LIC adjudged as "Best life insurance Company of the year" at the

"2nd"NDTV Profit Business Leadership Awards-2007.

11.LIC adjudged the "Most Preferred Life insurance Company of the

year" at the "CNBC AWAAZ" consumer award 2007 for 3rd time in

succession.

12.Awarded Reader Digest's "Trusted Brand"2006,2007&2008 (Voted

by Consumers)

13. "Outlook Money NDTV Profit Award 2007"

14. "Web 18-Genius of the web Award" Conferred for the best website in

insurance Category

15. "SKOCH Challengers Award 2008" for "Jeevan Madhur".

16. "Loyalty Awards 2008"- insurance Sector.

17. Double crown for LIC in corporate Olympics 2008, Most Sporting

Corporate Championship Award Winner-2008

Honouring of the Commitment - Settlement of Claims

18.No.1 insurance Company in the world in terms of claims paid.

19.LIC Settles 2.21 claims per second, LIC settled 139 lakhs claims

during the year 2007-2008.

20.Prompt settlement of claims (97% maturity claim settled on or beforedue date)

21.One of the Lowest outstanding Claim Ratio in the world ( Maturity+S

B Claim-0.07%)



Advanced Technology-For better Customer Service

22.Computerized and networked 2048 branch offices and 159 satellite

offices throughout the country.

23.Use of High Tech-WAN,LAN,IVRS & EDMS

24.LIC is second largest PC user in the country.

25.EDMS to make LIC a paperless office- Enabling Policy servicing &

payments through all branchs in the country.

26. Premium Payment Facility extended through networked 2048

branches, ECS, ATM's through internet, online portals, collecting

bank (Axis Bank), AP online, through SMS, through selected agents,

Now LIC Premium can also be paid through.

"Suvidha info Serve KIOSKS" all over India.

27.Policy Holder's Portal allow on line access to policy status and other

details.

28.Info centre set up in 12 cities for customers to interact easily. Dial-

1251 for details.

29.45 interactive Voice Response System (IVRS) centers all over the

country to provide information on policy servicing. Facility is

available 24 7, Facility can be availed on following phone Nos. 1251

OR 020-25514248.



Social Strength

30.LIC - an institution builder promoting many financial and insurance

institutes like NSE, NCDEX, LIC Mutual Fund, Stock Holding

Corporation of India, National insurance Academy, insurance institute

of India etc.

31.LIC has foreign operations in Mauritius, Fiji and London and has joint

venture operating in Sri lanka, Nepal, Bahrain & Saudi Arabia. New

offices will be hortly oprned in Australia, USA&Canada.

32.LIC is known as "Pension Provider" of the country.33.1st Pension company in India is floated by LIC as "LIC Pension Fund

Ltd" on 21st Nov 2007.

34.First to create waves in micro insurance sector by insuring people

below the poverty line. In year 2007-2008, 8.54 lac policies sold

through "Jeevan Madhur"Plan.

35.Widest range of plans (about 48) for every need of the customer of 0

to 79 years of age.

36.Biggest Portfolio of Group insurance schemes available.

37."Jeevan Saral" one of the product of LIC got "Best innovation product

" award from I.R.D.A.

38.LIC has covered lick Risk of 1.13 crore citizens through "AAM

ADMI BIMA YOJANA" & " JANASHREE BIMA YOJANA".

39.Very Unique Salary saving Portfolio.

40.Highest Number of Corporate Clients in Group insurance Scheme.



41.Expending Distribution Channel through Bancassurances, Corporate

Agencies, Broker ship & Chief Life insurarance Advisor (CLIA).

42. New East - Central Zonal Office opened at patina to caterto the needs

of states of Bihar, Jharkhand and Orissa. 5 new Divisional offices

were also opened in 2007-08. Pune D.O.was splited in 2 divisions, viz

Pune Division (i) and Pune Division (ii).

43. "Golden Jubilee Foundations" established for undertaking charitable

activities like education, health, relief of poverty etc.

People's Money for People's Welfare

44.LIC invested more than 11,630 crores, in infrastructure sector is

Rs.56,691

crores

45.In socially oriented sector like water, drainage & housing etc, LIC has

invested Rs.5,635 crores during 2007-08 & total investment in thissector is Rs.32,321 crores.

46.Total investment in Social Sector Rs.89,000 Crs.

47.Different incentive schemes for villages, Schools and Banks under

Bima Gram, Bima School and Bima Banks.

48.Total investment in Nation Building Activities is 5,76,000 Crs.



Financial Strengths

49.LIC's investment income in 2007-08 was Rs.40,655 crores. Out of

Total income of Rs, 1,76,559.28 Crs.

50.Total Assets of the corporation as on 31.3.07 were Rs. 6,74,514.78

Crs.

51.Largest institutional investor in Share Market. On an average Rs.100

crore invested every day. During theyear 2007 LIC earned the profit

Rs.10,000 Crs. from the Sale of Equity.

52. Largest Financial institutional investor both Equity market & TermHouse.

KEY ACHIEVEMENTS

During the 2008/09 financial year, LIC sold more than 35.9 million policies

generating a first year premium income of Rs. 52,953.92 crore (US$ 11

billion) despite the global slowdown (Source: IRDA). During this period, the

corporation settled 577,000 death claims and 1.44 million maturity

claims.To its resounding credit, the Corporation was able to settle 97% of all

maturity claims on or before the due date signing out Rs. 29,105.85 crore

(US$ 6.10 billion) in settlement. Additionally, the corporation paid Rs.

5606.90 crore (US$ 1.20 billion) in death claims. Current figures show the

outstanding claims ratio under the death category at no more than 2.20% and

in the maturity segment at an exemplary low of 0.26%. LIC has a proudrecord of innovative products that find instant acceptance and success. For

example, the Corporation’s Jeevan Aastha scheme, a close-ended, single-

premium plan sold about 1.84 million policies collecting Rs.10,664 crore

(US$ 2.20 billion) in premiums in 45 days of launch in the year 2009. It is a



remarkable achievement that not only has LIC continued to maintain the

trust of consumers during the economic downturn but has also been

felicitated with several awards. It was bestowed the Readers’ Digest Trusted

Brand Platinum Award, in both 2008 and 2009, the CNBC AwaazConsumer Award in 2009 and the Customer and Brand Loyalty Award in

2009. In the same year, LIC emerged as the Top Brand in the Insurance

Category in the survey conducted by ACNielsen for Brand Equity. In fact,

Brand Equity rated LIC as the Most Trusted Service Brand, five years in a

row. In the recent past, too, its brand leadership has been on evidence. In

2008, for instance amongst several awards, LIC was felicitated with the

NDTV-Profit Business Leadership award as also the Asia Brand Congress-

Brand Leadership Award. Even in the field of technology, LIC’s innovations

and practices were recognized when it won the NASSCOM Award for the

Best IT User

the life insurance corporation of india

Documents