Life Insurance Corporation of India was established on September 1, 1956 to spread the message of life insurance in the country and mobilise people’s savings for nation building activities.
LIC has its central offices at Mumbai, Kolkata, Delhi, Chennai, 109 divisional offices in important cities. 2048 branch offices and 1004 satellite offices as on March 31. 2010.
At present LIC is operating internationally through Branch Offices in Fiji. Mauritius and UK and through Joint Venture Companies in Bahrain, Nepal, Sri Lanka. Kenya and Saudi Arabia.
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A large part of the funds of LIC is deployed as loans to assist the development of social overheads like housing, rural electrification, water supply and sewerage schemes.
Besides normal investment operations by way of sale and purchase of securities in stock markets and investment in government securities, the corporation has been at titivating with other all-India institutions in extending direct assistance to industries in the form of loan and direct subscription to shares and debentures of industrial concerns. The corporation has also helped small and medium industries by granting loans for setting up of industrial estates.
Under social security schemes various programmes are being administered by LIC. A Social Security Fund (SSF) administered by the LIC was set up in 1988-89, to meet the insurance requirements of weaker and vulnerable sections of the society.
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The scheme covers the people in the age group of 18-60 years for a sum of Rs. 5000 on death due to natural cause, and Rs. 25,000 on death caused by accident. While SSF subsidizes 50% of the premium, the beneficiary has to pay the remaining 50%.
The Integrated Rural Development Programme (IRDP) beneficiaries between the age group of 18 – 60 years are covered under a Group Life Insurance scheme being operated by LIC for which the entire premium is paid by the central government. An amount of Rs. 6,000 is payable to the beneficiary in case of natural death and Rs. 12,000 in case of accidental death.
The Janashree Bima Yojana (JBY) was launched on August 10, 2000. The scheme replaced Social Security Group Insurance Scheme (SSGIS) and Rural Group Life Insurance Scheme (RGLIS). Shiksha Sahayog Yojana was launched on 31st December 2001, with the object to lessen the burden of parents in meeting the educational expenses of their children.
It provides scholarship to students of parents living below or marginally above poverty line and who are covered under Janashree Bima Yojana and are studying in 9th to 12th standard. Krishi Shramik Samajik Suraksha Yojana for the agricultural workers, commenced on 1 July, 2001, provides Life Insurance protection, periodical lumpsum survival benefit and pension to those who were between the ages of 18-50 years.
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As on 31st March, 2006, 29,074 agricultural workers have been covered. However, during 2005-06, the total new business of LIC under individual assurances was Rs. 2, 87.530.24 crore under 315.73 lakh policies. Aam Admi Bima Yojana a new social security scheme for rural landless household was launched on October 2, 2007.
The head of the family or one earning member in the family of rural landless household is covered under the scheme. Under this scheme, a scholarship of Rs. 100 per month is given to maximum two children studying between IX to XII standard.
