Some Interesting facts about Life Insurance Corporation of India
1. Life Insurance Corporation of India was incorporated in 1956 by an Insurance Act, 1956.
2. Life Insurance Corporation was formed by amalgamating 243 small and large companies. These companies were scattered and carrying out their business. In fact, it was the nationalization of these countries.
3. As Life Insurance is directly regulated by the government body, IRDA-Insurance Regulatory and Development Authority of India. IRDA was set up in 1999. IRDA protects the interest of policyholders. It sets promotes, monitors and enforce high standards of fair dealing and integrity. It works towards speedy settlement of claims . This authority has the power to take action in case it found the standards are inadequate or ineffective. . In addition to it, IRDA brings about optimum amount of self-regulation in day to day working of the industry consistent with the requirement of prudential regulation. In fact, IRDA also regulates private insurance companies. All the Insurance Companies are registered with IRDA and it renews, modifies, withdraws and suspense or cancel the registration, if it finds certain norms have been violated by the insurance companies. It hear the grievances against the insurance companies. IRDA forms the code of conduct for surveyors. IRDA is the highest regulating authority.
4. Life Insurance Corporation has become the most trusted company and enjoys more than sixty two years of confidence of people. As it is state-owned company, so there is no fear of money the policy holder invested.
5. Life Insurance Company has eight zonal and 113 divisional offices, 2048 branches, 1381 satellite office. LIC has employees strength of 114773 and 54 customer zones.
5. According to latest data, Life Insurance has registered a 13.46 per cent rise in first year premium income. It has collected all time high income of Rs.134,551.68 crores in Financial year 2018. It is said to to be 13.46 per cent from 1,23,451.42 crores in Financial year 2017. The corporation is able to retain its maret leadership with market share of 69.40 per cent. Life Insurance Corporation has secured 81.38 per cent market share in terms of pension scheme.
6. Life Insurance Corporation provides handsome commission to its agents. In the first year commission is given @ 35% of the premium. For the three years at a stretch the agents get a good part of the premium.
7. According to data LIC spends 15% premium as management expenses.
8. LIC has good commission policy for its agents. For the first year it gives around 35 % commission of the premium to its agents. With the passing years it goes down.