About LIC

MEMBERS OF THE BOARD

1. Mr. D.K Meherotra- Chairman
2. Mr. T.S Vijayan M.D-
3. Mr. Thomas Mathew T. - M.D
4. Mr. A.K Dasgupta - M.D
5. Mr. Ashok Chawla- Member of the Board
6. Mr. R. Gopalan - Member of the Board
7. Mr. Yogesh Lohia - Member of the Board
8. Mr. D.L Rawal - Member of the Board
9. Mr. Monish R. Kidwai - Member of the Board
10. Dr. Sooranad Rajashekhran - Member of the Board
11. Lt. Gen. Arvind Mahajan - Member of the Board
12. Mr. Anup P. Garg - Member of the Board

LIC’s STRENGTH:

• Total Work force- More than 1 lakh
• Agency force of 14 lakh.
• 27 crore Policy holders.
• 3000 offices in India.
• Overseas operation in Fiji, Mauritius, UK, Singapore, Bahrain,Nepal,Srilanka and Kenya.
• Revenue earned in 2009-10- 2.98 lakh crore.
• Total Life Find 9.99 lakh crore.

• LIC’s contribution - 3.2% to India’s total GDP.
• Total investment- 10.95 lakh crore.
• Contribution to Five Years Plans - 10.32 lakh crore.
• LIC is the Single largest Secondary market Investor by investing  15% of its funds invested in share.
• Largest Pension Player in the country.

ROLE OF LIC IN NATIONAL ECONOMY:

 LIC has been a nation builder since it’s formation in 1956.Accumulating people’s money and investing it for development of the society -“people’s money for people’s welfare” was the prime objective of why the Corporation came into being.

LIC’s contributions:

• 3.2% of India’s total GDP (Total Insurance Penetration is 4.17%)
• Total investment 10.95 lakh crore in 2009-10
• Total investment in five years plans 10.32 lakh cr.
• As on 31.03.2010 LIC is only largest Single Investor in equity by investing, only 15% of it’s investable  fund.

INVESTMENT OF CORPORATION’S FUND:

Investment of LIC’s fund is governed by Section 27A of Insurance Act,1938. Guidelines and instructions are often changed from time to time by the Govt. keeping in view the best interest of the nation. Now investment is also regulated by the IRDA- the Insurance Regulatory arm of the Reserve Bank of India.

Investment Pattern for Life Business:

• Govt. Securities -  25%
• Govt. Securities or other approved Securities including above- Not less than 50%
• Infrastructure and Social Sector- Not less than 15%
• Others beside unapproved investments "in no case to exceed 15% of the fund” - Not Exceeding 35% ( To be governed by exposer norms)

Investment Pattern for Pension,Annuity and other Group Business :

• Investment in Govt Securities -Not less than 20%
• Investment in Govt. Securities and other approved securities including above - Not less than 40%
• Balance to be invested as per Schedule I to be governed by prudential norms – Not exceeding 60%

Investment Pattern for Linked Business:

• Largely pattern of investment decided by the policy holders in categories of assets which are easily marketable and realisable(like Bond,Secured,Growth and Balance fund)
• Total investment in unapproved category shall not  exceed 25% of fund.

TOTAL  INVESTMENT AS ON 31.03.2010 : 10,95,841.34 crores

• 10,06,091.93 crore in Securities (91.81%).
• Govt.Securities 8,04,087 crore and balance in other Approved Securities.
• 85,256.46 crore in loans(7.78%).
• Others 4,492.95 crore (0.41%).

LIC’S SOCIAL RESPONSIBILITY:

• LIC paid 252.71 crore for 94.464 Claims under Social Security Scheme 2009-10.
• 93.05 crore paid as Scholarships to needy students.
• 2.99 crore Lives given insurance under Social Security Scheme (SSS).

 Glimpses of LIC's Performance:

MARKET SHARES OF THE FRONT RUNNERS IN LIFE INSURANCE

A Comparative Analysis

***FP= First Premium,NOP= No. of Policies

• NEW BUSINESS DURING THE YEAR 2009-10:

	NOP* (in lacs)	FPR** (in crores)
COMPOSITE	388.39	42960.44
MARKET SHARE	100%	84.86%

*NOP- No. of policies  **FPR- First Revenue Income

• PENSION & GROUP BUSINESS & SOCIAL SECURITY SCHEMES (Achievement from 1.4.2009 to 31.8.2010):

	Pension & Group Schemes	Growth Rate (%)	Social Security Schemes
NEW LIVES (in lacs)	237.57	15%	149.76
PREMIUM INCOME(in crores)	20831.94	67%	228.70