Life Insurance Corporation
The Life Insurance Corporation Act 1956 provides for the nationalization of life insurance business in India by transferring all such business to a Corporation established for the purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidental thereto. From its establishment, Life Insurance Corporation has crossed the major milestones and have faith unprecedented performance record in various aspects of life insurance business. Life Insurance Corporation which has entered into its 57th year has emerged as the world’s largest Insurance Company in terms of number of policies covered. The Life Insurance Company’s (LIC) total coverage of policies including individual, group and social schemes has crossed the 11 crore.
What is Life Insurance -
Life Insurance provides for your family or some other named beneficiaries on your death. Life Insurance guarantees a specific promised sum of money to a designated beneficiary upon the death of the insured, or the insurance if he survives the term of the policy. Life being the most important asset of an individual, Life Insurance enjoys the maximum scope.
There are two general types of life insurance-
(1) Term Insurance and
(2) Whole-life Insurance.
Term Insurance - Term insurance provides coverage only during the term of the policy and pays off only on the insured's death.
Whole-life Insurance - Whole-Life Insurance provides saving as well as insurance and can let the insured collect before death.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of insurer; common examples are claims relating to suicide, fraud, war, riot etc
Objectives of Life Insurance Corporation -
Life Insurance Corporation of India was established on 1st September 1956 with the following objectives -
1) Spread life insurance widely and in particular to the rural areas, 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.
2) The maximization of mobilization of people’s savings for nation building activities.
3) Provide complete security and promote efficient service to the policy-holders at economic
4) Conduct business with utmost economy and with the full realization that the money belongs
to the policyholders.
5) Act as trustees of the insured public in their individual and collective capacities.
7) Meet the various life insurance needs of the community that would arise in the changing
social and economic environment.
8) Promote amongst all agent and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards the achievement of Corporate objectives.
7. Involve all people working in the corporation to the best of their capability in furthering the
interest of the insured public by providing efficient service with courtesy.
Power and Functions of The Life Insurance Corporation of India
Duties, Powers and Functions of Insurance Regulatory and Development Authority (IRDA)