AN ASSIGNMENT ON
LIFE INSURANCE CORPORATION OF
SUBMITTED TO SUBMITTED BY
KRISHNAN SIR NISHA ELIZABETH THOMAS
CO-ORDINATOR A BATCH, ROLL: 061
MBA 07 MBA 07
DCSMAT, VAGAMAN DCSMAT, VAGAMAN
LIFE INSURANCE CORPORATION OF INDIA
Life Insurance is a contract the pledges payment of an amount to the
person assured (or his nominee) on the happening of the event insured
The contract is valid for payment of the insured amount during:
& The date of maturity
& Specified dates at periodic intervals
& Unfortunate death, if it occurs earlier.
Life Insurance, in short, is concerned with two hazards that stand
across the life-path of every person:-
1. That of dying prematurely leaving a dependent family to
fend for itself.
2. That of living till old age without visible means of
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
1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interests of the
1956: 245 Indian and foreign insurers and provident societies are
taken over by the central government and nationalized. LIC formed by
an Act of parliament viz LIC act 1956 with the 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.
LIFE INSURANCE Vs OTHER SAVINGS
1. Contract of Insurance
3. Aid to Thrift
5. Tax Relief
6. Money when you Need it
WHO CAN BUY A POLICY
Any person who has attained majority and is eligible to enter into a
valid contract can insure himself or herself and those in whom he or
she has insurable interest
LIC HAS GOT VARIOUS SCHEMES LIKE:
& Insurance for women
& Medical And Non-medical Schemes
& With Profit And Without Profit Plan
& Keyman Insurance
OBJECTIVES OF LIC
1. 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
2. Maximize mobilization of people’s savings by making
insurance-linked savings adequately attractive.
3. 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.
4. Conduct business with utmost economy and with the full
realization that the moneys belong to the policy holders.
5. Act as trustees of the insured public in their individual and
6. Meet the various life Insurance needs of the community that
would arise in the changing social and economic environment.
7. 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
8. 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 corporation objective.
“Explore and enhance the quality of life of people through
financial security by providing products and services of aspired
attributes with competitive returns and by rendering resources for
A trans-nationally competitive financial conglomerate of
significance to societies and pride of India.
BOARD OF DIRECTORS
MEMBERS ON THE BOARD OF THE CORPORATION
& Shri. T.S VIJAYAN(CHAIRMAN)
& Shri. D.K MEHROTRA
& Shri. THOMAS MATHEW T
& Shri. A.K DASGUPTA
& Shri. VINOD RAI, SECRETARY
& Shri. YOGESH LOHIYA
& Shri. AMITAY KOTHARI
& Shri. SUNIL KANT MUNJAL
& Dr. ARVIND VIRMANI
& Dr. AJAYA GOVIND
& Smt. PUSHPA GIRIMAJI
& Dr. SWATI PIRAMAL
& Dr. GAUTAM BARUA
FROM THE AMOUNT EARNED BY THE INSURANCE COMPANY 95%
WILL BE ISSUED TO POLICYHOLDERS AND REMAINING 5% TO
LIC IS IN A BOOMING STAGE. IT STARTED ITS BUSINESS WITH AN
INITIAL CAPITAL OF 5 CRORE AND IT HAS RAISED CURRENTLY
TO 6 LAKHS CRORE.
THE AMOUNT INVESTED BY POLICY HOLDERS WILL BE
TRANSFERRED TO LIFEFUND BY THE INSURANCE COMPANY.
MAJOR PORTION FROM LIC UTILIZING FOR NATIONAL BUILDING
LIC IS THE BIGGEST FINANCIAL INSTITUTION OF INDIA.
LIC IS THE 2ND BIGGEST REAL ESTATE OWNERS OF
GOVERNMENT OF INDIA.
LIC IS THE 2ND LARGEST IT USER IN INDIA
WITH THE LIBERALISATION, PRIVATALISATION
AND GLOBALISATION, ALMOST ALL THE SECTOR OPENED UP
INCLUDING INSURANCE. WHERE EVER THE COMPETIT- ION
STARTED, THE PUBLIC SECTOR COMPANIES ARE LOSING THEIR
BUSINESS TO PRIVATE COUNTER PARTS. BUT IN LIFE INSURANCE
THE MOMMOTH LIC OF INDIA IS DOING A SPECTACULAR
BUSINESS AND SHOWING A GROWTH RATE OF MORE THAN AN
INDUSTRY AVERAGE. BECAUSE OF LIC’S, THIS MUCH GROWTH IN
LAST YEAR INDIA’S SHARE IN WORLD INSURANCE MARKET IS
SOME TERMS COMMONLY ASSOCIATED WITH
An event or occurrence causing damage or injury to an entity and is
unforeseen and unintended.
Legal principle that specifies an insured should not collect more than
the actual cash value of a loss but should be restored to approximately
the same financial position as existed before the loss.
WITH PROFIT POLICY
Policies entitled to bonus, which is paid at the time of claim death or
maturity one with profit policy.
WITHOUT PROFIT POLICY
These policies are not entitled to participate in bonuses.
KEYMAN INSURANCE POLICY
A life Insurance policy taken by a person on the life of another person
who is or was his employee / connected to his business in any manner
CONVERTIBLE WHOLE LIFE POLICY
A mix of “whole life policy” and endowment policy, it provides for
very low insurance premiums with maximum risk cover while the life
assured is just beginning his working career and the possibility of
converting the policy to an endowment policy after five years of
Provides for payment of an additional benefit equal to the sum assured
in installments on permanent total disability and waiver of subsequent
premiums payable under the policy.
Stipulated minimum and maximum ages below and above which the
company will not accept applications or may not renew policies.
An insurance company representative licensed by the state, who
solicits, negotiates or effects contracts of insurance and provides
service to the policyholder for the insurer.
The scope of protection provided under a contract of insurance, any of
several risks covered by a policy.
DAY OF GRACE
Policyholders are expected to apply premium on due dates a period is
15-30 days is allowed as grace to make payment of premium; such
period is days of grace.
The person (s) or entity (ies) named in the policy as the recipient of
insurance proceeds upon the death of the insured.
A policy which primarily provides coverage of benefits to a business
as contrasted to an individual. It is issued to indemnify a business for
the loss of services of a key employee or a partner who becomes
A contract of health insurance that may be cancelled during the policy
term by the insurer or insured.
1. A Provision under which an insured who carries less than the
stipulated percentage of insurance to value, will receive a
loss payment that is limited to the same ratio which the
amount of insurance bears to the amount required.
2.A policy provision frequently found in medical insurance,
by which the insured person and the insurer share the covered
losses under a policy in a specified ratio i.e. 80 per cent and 20
per cent by the insured.
These plans provide for a “pension” (or a mix of a lumpsum
amount and a pension) to be paid to the policyholder or his spouse.
In the event of death of both of them during the policyholder, a
lumpsum amount is provided for the next of kin
Supplied by the insurance company, usually filled in by the agent
and medical examiner (if applicable) on the basis of information
received from the applicant. It is signed by the applicant and is part
of the insurance policy if it is issued.
Assignment means legal transference. A method by which the
policyholder can person his interest to another person. An
assignment can be made by an endorsement on the policy document
or as a separate deed. Assignment can be of two types:
A life insurance policy providing insurance on all or several family
members in one contract, generally whole life insurance on the
principal breadwinner and small amounts of term insurance on the
other spouse and children, including those born after the policy is
Coverage of losses caused by fire and lightning, plus resultant damage
caused by smoke and water. Flood insurance coverage against loss
resulting from the flood peril, available at low cost under a programme
developed by the central government.