P R O F I L E 2011


On 1st  of September 1956, The Life Insurance Corporation  of India (LIC) embarked upon its momentous journey in true spirit of serving the people and nation as a whole. Since  then  it has  spearheaded  the  financial  and infrastructure  development  of  the nation. The performance of LIC has been exemplary and it has been growing from strength to strength be it customer base, agency network, branch office network, and the like. LIC has played a significant role in spreading life insurance among the masses and mobilization of peoples money for peoples welfare. Even after the entry of private insurers for almost a decade now, LIC continues to be the frontrunner in the industry in terms of market share.

 

 

Some highlights of our performance are as follows:

 

 

NEW BUSINESS DURING THE YEAR 2010-11

(Composite)

 

 

Policies

(in lakh)

First       Year      Premium

Income  (Rs. in crore)

COMPOSITE

370.38

86444.72

MARKET SHARE

76.92 %

68.70%

 

 

 

PENSION & GROUP BUSINESS & SOCIAL SECURITY SCHEMES

 

ACHIEVEMENT FROM 1.4.2010 TO 31.03.2011


 

Pension

&     Group Schemes (lives)

Social Security

Schemes

New lives (in Lacs)

356.60

132.75

Premium Income  (Rs. In crore)

 

 

34241.08

 

 

138.04

 

 

BUSINESS IN FORCE AS ON 31.3. 2011

 

 

Policies (in crore)

Sum Assured

(Rs.  in crore)

Individual Assurances

28.59

2568461

Group  Insurance(lives)

9.79

551718.13


Mktg. - Bancassurance & Alternate Channels

Achievement from 01-04-2010 to 31-03-2011

 

 

 

 

 

Volume

Percentage        share       to

Total New Business

Policies

694,781

1.88 %

      
     
      First Premium Income 

(Rs. in crore)

1281.30

2.91 %

 

Mktg.-Chief Life Insurance Advisor (CLIA) Channel

Achievement from 01-04-2010 to 31-03-2011

 

 


Volume


Percentage   share to   


Total

New Business


Policies


23,31,005


6.84%

First  Premium  Income

(Rs.  in crore)

2788.95

6.34%

 

Micro Insurance

Achievement from 01-04-2010 to 31-03-2011

 

Year

Volume

Growth

%

Percentage  share   to  Total

New Business

Policies

29,51,235

48.67 %

7.97%

FPI (Lakhs)

4389.91

21.41 %

------

 

Direct Marketing

Achievement from 01-04-2010 to 31-03-2011

 

 

 

Volume

Percentage share  to Total

New Business

Policies

50962

0.14%

First Premium Income  (Rs.

in Crore)

144.04

0.28%

 


Other Parameters 1/04/2010 TO 31/03/2011


 

Rs. In crore


 

 

1.

 

Total Income

 

299272.63

 

2.

 

Total Premium Income

 

203358.05

 

3.

 

Total Policy Payments

 

112346.52

 

4.

 

Total Life Fund

 

1151200.58

 

5.

 

Total Assets

 

1317416.10


PEOPLE'S MONEY FOR PEOPLE'S WELFARE

 

True to the spirit of nationalization, the Corporation has deployed its funds to the best advantage of LIC policyholders  as well as for the community as a whole. National priorities and the obligation of reasonable returns to the policy holders are the main criteria of our investments.

 

The investment of the Corporation's funds is governed by Section 27A of the Insurance  Act, 1938,   subsequent  guidelines  / instructions  issued there under from  time  to  time  by  the   Government  of  India,  and  the  IRDA  by  way  of regulations.

 

INVESTMENT IN GOVT. & SOCIAL SECTOR (Rs. in crore)

 

Type of Investment

As on

31.03.09

31.03.10

31.03.11

01. Central Govt.  Securities

318673

360319

407934

02. State Govt. & Other Govt.

Guaranteed Marketable  Securities

 

 

 

110697

 

 

 

141292

 

 

 

176213

Sub Total ( A)

429370

501611

584147

03.  Housing & Infrastructure Investment

a) Housing

34185

40232

43297

b) Power

48090

77585

80165

 

c) Irrigation / Water Supply &  Sewerage

 

6022

 

5241

 

4265

d) Road, Port & Bridges, Railways

7218

8066

9819

e) Others ( Incl. Telecom)

5274

17073

27457

Sub Total ( B)

100789

148197

165003

TOTAL (A+B)

530159

649808

749150

 

Our Contribution towards Various Five Year Plans

 

Plan

Year

Contributions (Rs. in crore)

II

1956-1961

184

III

1961-1966

285

IV

1969-1974

1530

V

1974-1979

2942

VI

1980-1985

7140

VII

1985-1990

12969

VIII

1992-1997

56097

IX

1997-2002

170929

X

2002-2007

394779

XI

2007-2011

528390


 

AWARDS WON

 

We enlist the awards received by LIC during 2010-11:

 

1.  CNBC  Awaaz     Consumer  Award-  Most  Preferred  Brand  of  Life  Insurance

Policies

2.  Readers Digest  Trusted Brand Platinum category

3.  Most Trusted Brand in Insurance Category by ET Brand Equity

4.  Outlook Money  - Best Life Insurer Award

5.  AIMA- R K Swamy - High Performance Brand

6.  Golden Peacock Award   for Excellence in Corporate Governance

7.  Global Award for Brand Excellence in the Finance and Banking Category   by

World Brand Congress

8.  Power Brand Award- India’s Most Powerful Brand chosen by consumers

9.  Most  Preferred  Brand  of  Life Insurances  by Dainik  Purvoday  NE  Consumer

Awards 2010

10. Most Preferred Life Insurance Co. by Global Youth Marketing

11. MYFM Stars of Industry Award for Excellence in Life Insurance

12. Shoppers  and  Consumer  Insights  Award  for  Excellence  in  Educating  the

Consumers for Consumer driven campaign Why Go Anywhere Else?

13. World HRD Congress   for  Innovative HR Practices

14. INDY’s Gold Award for Best House Magazine

15. ABCI Award for best photofeature & best illustrations in Yogakshema’ House

Magazine

 

 

 

 OUR PRODUCTS

 

1. We have more than 53 different products catering to the differing needs of all segments   of  the  society.   These   are   basic   insurance   plans   (whole   life, endowment  and  money  back),Term  Assurance  Plans,  Unit                                                                         linked  plans, Pension Plans,  Health plan, Variable Insurance Products etc.

 

1.   Our new product launches:

 

During  2010-11,  five new products  were introduced.  Details  of which  are as below:

 

UNIT LINKED INSURANCE PLANS (ULIP)

 

1.  LICs Pension Plus (Table No. 803) A deferred pension plan without life cover, which provides a minimum guarantee on the gross premiums paid. The minimum  guaranteed  rate of 4.5% p.a. is applicable  to all premiums

received up to 31st March 2011, including any Top-up premiums paid.


2.  LICs Endowment Plus (Table No. 802) An Endowment Plan which offers investment and insurance during the term of the policy.

 

3.  LICs Samridhi Plus (Table No. 804) A close-ended plan with a policy term of 10 years that offers payment of Fund Value at the end of the policy term based on the highest Net Asset Value (NAV) over the first 100 months of the policy or the NAV as applicable at the end of the policy term, whichever is higher. The Plan was available for sale up to 24.05.2011.

 

VARIABLE  INSURANCE PRODUCTS (VIP)

 

IRDA  has  issued  guidelines  on  Variable  Insurance  Products,  which  are offered on non linked platform. These products have greater flexibility and transparency as compared to non-linked conventional products.

 

Under such plans, each policy has a corresponding policy account whose balance shall depict the accrual to the policyholder. The policy account is credited with premium net of all charges and earns a minimum guaranteed return declared at the time of launch of the product. An additional investment return may also be declared at periodic intervals.

 

Death  benefit:  Guaranteed  sum  assured  plus  the  balance  in  the  policy account.

 

Maturity benefit: Balance in the policy account.

 

LIC has launched two Variable insurance products during the year-

 

4.  LICs  Bima  Account   I (Table  No. 805)   A Variable  Insurance  Product under non-medical scheme only in which annual premiums up to Rs. 14000/- can be paid. Under this plan policyholders account will earn guaranteed interest  at  6%  p.a.  (if  in  force)  and  5%  p.a.  (if  paid  up).  There  may  be additional  interest  for in force  policies  depending  on Corporation’s experience.

 

5.  LICs Bima Account II (Table No. 806) - A without profit Variable Insurance Product with a minimum annual premium of Rs. 15000/-. Under this plan policyholder’s  account will earn guaranteed interest at 6% p.a. (if in force) and 5% p.a. (if paid up). There may be additional interest for in force policies depending on Corporation’s experience.


CLAIM SETTLEMENT PERFORMANCE (2010-2011)

 

1.  Total claims settledOver 183 lakh claims, amounting over

Rs.  52160 crores.

2.  96.21% of Total Maturity Claims settled on or before the date of maturity.

3.  95.78% of Non-early Death claims settled within 15 days of intimation.

4.  Outstanding Claims Ratio(Maturity + Survival Benefit): 0.37%

5.  Outstanding Claims Ratio(Death Claims)             :   1.47%

 

 

CUSTOMER CENTRIC INITIATIVES:

 

PREMIUM PAYMENT THROUGH ALTERNATE  CHANNELS

 

LIC has different segments of customers who may like to pay their premium as per their  convenience  using  different  mode  of payment.  Some  like to come to the LIC Branches where as some wish to pay premium online. LIC has  made  available  different  avenues  for  premium  payment  to  cater  to different needs.

 

Payment  channels where  policy is required to be registered in the data base at LIC and receipt sent by post:

 

1.  Electronic Clearance System  (ECS): This facility is presently available at 59 centers. Through ECS premium can be collected for ULIP and HI policies also.

 

2.  Electronic Bill  Presentation and  Payment   (EBPP):  Premium  can  be  paid through various Banks like City Bank, HDFC, ICICI, Federal Bank, Corporation Bank, Axis Bank, LIC Credit Cards and through Service Providers Bill Desk and Tech  Process  which  cover  almost  all  other  banks  throughout  the  country. Premium can be paid through Credit Card also availing this facility.

 

3.  ATM: Available with two banks Corporation Bank and Axis Bank.

Through EBPP & ATM Premium can be collected for in force policies only which are NOT with MLY /SSS mode or under ULIP or HI plan.

 

Online Payment  Channels where valid Receipt is issued instantly:

4. Portal Payment  Gateway:  Online  premium  payment  on LIC Website, www.licindia.in with the help of Net Banking Facility of 40 major Banks. Premium can also be paid for ULIP policies excluding HI plan.

 

5.  Premium Collection through Banks:   Authorized banks:

i.     Axis Bank

ii.  Corporation bank

Premium  can be paid at any of the Branch  or Extn. Counter  of the above banks in cash or cheques drawn on the respective bank.

 

6.  Premium Collection Through Franchisees : Following  service providers  are authorized to collect premium in cash only for in-force, non-ulip policies:

i.           APOnline : Available only in Andhra Pradesh.

ii.          MPOnline : Available online in Madhya Pradesh. iii.     Suvidhaa Infoserve Pvt Ltd.: Across the country. iv.          Easy Bill: Available across the Country.


v.         Bill Desk: Bill Desk is site aggregator for different vendors. At present has tie up with ITZ Cash cards (only retail payment) and Payworld.

 

7.  Premium collection  by  Agent:  Selected  agents are authorized  to collect the premium in cash as well as through Cheque. Premium for ULIP policies also can be collected by them since 01/04/2009.

 

8.  Premium  Collection   SBA:   Development   officers   selected   as   SBA   are authorized to collect premium since 01/06/2009, conditions are similar to agents’ collection.

 

Few other payment channels are in pipeline

PCMC, which is a wing of CO (CRM) is the Back Office for alternate channels.

 

IVRS

 

IVRS is available  in 58 major cities and in 31 centers  IVRS is integrated  with Info Centers. The Info Centers can be contacted from MTNL and BSNL phones by dialing IVRS Universal Access Number 1251 exercising the relevant option to talk to the Info Center Executives (ICEs). From other than MTNL and BSNL telephones, Info centers can be contacted  by dialing the direct telephone  numbers  also. The location of the IVRS centers is given below.

 

IVRS Centers:

Asansol, Meerut, Allahabad, Mysore, Aurangabad, Nashik, Bareilly, Pondicherry, Coimbatore,  Rajkot,  Dharwad,  Ranchi,  Gorakhpur,  Salem,  Gwalior,  Shillong, Hazaribagh, Shimla, Jammu, Surat, Jodhpur, Thanjavur, Kolhapur, Vadodara, Kota, Varanasi and Kozhikode.

 

The services of the  IVRS are available 24x7. The Info  Centers  are open  from  8 a.m. to 8 p.m. from  Monday  to Friday and from  10 a.m. to 6 p.m. on Saturdays.

 

 

 

Customer Zones

CZees were introduced with the Main objective to make experience” the brand and offering one-step resolution for the service needs of the customer. Now we have 54

CZees.

 

Customer Zones Direct Telephone Numbers:

Agra:0562-252-7755, Ahmedabad: 079-2745-6848, Amritsar:  0183-2564-561, Bengaluru: 080-2665-9230, Bhopal: 0755-255-0242, Chandigarh: 0172-267-8107, Chennai:  044-2530-  0030,  Cuttack:  0671-230-7085,  Delhi:  011-2376-2681,  Goa:

0832-249-0100,  Guwahati:  0361-  260-0564,  Hyderabad:  040-2343-7997,  Indore:

1251, Jabalpur: 0761-240-7283, Jaipur: 0141- 271-2606, Jalandhar: 0181-248-0918, Jamshedpur: 0657-232-0600, Kanpur: 0512-230-7443, Kolkata: 033-2254-5454, Lucknow: 0522-262-7470, Ludhiana: 0161-242-4074, Madurai: 0452-237-0361, Mumbai: 022-2676-6221, Nagpur:  0712-225-0306, Patna: 1251, Pune: 020-2551-

4248,  Raipur: 0771-221-0010,  Thiruvananthapuram:  0471-233-5222,  Vijayawada:

0866-248-4803, Visakhapatnam:  0891-252-3473


MASH Centres

 

To make use of technology to centralize bulk printing jobs so as to leave Branches with more time to attend to walk in customers and to deal with new business processing. At present we have 25 MASH centers are operational across the country. Baring a few small states like Goa, HP, NE states.  All states are having at least one MASH centers to their credit. The MASH centers are usually located at capital cities or big cities.

 

Current Functions

Survival Benefit Intimations and Payments

Despatch of notices, status reports, revival and other campaign letters. Despatch of ULIP statements.

 

 

 

DIVISIONAL OFFICES

 

As on 31.3.2011, LIC has 111 Divisional offices spread all over the country.

 

 

SATELLITE OFFICES:

 

For improvement in overall efficiency and effectiveness in the cost and marketing, LIC has opened 1123 Satellite Offices. These satellite offices, which are attached to the respective parent branches, are basically an extension of the large parent branches for rendering quick services to policy holders. Processing of new proposals and collection of renewal premium are the main functions of these offices, at present.

 

Current functions

 

Cash --Acceptance of FP through Green Channel, Renewal Premium, Proposal

Deposit

 

New Business-- Proposal Registration, New Business Completion, Issue of FPR

PS-- Change of address

 

There are Satellite Offices designated for Alternate Channel (CLIA and B&AC) Currently only officers are posted in SOs.

 

Claims Review Committee:

 

The Corporation settles a large number of death claims every year. Only in case of fraudulent suppression of material information is the claim repudiated. The number

of death claims repudiated is very small. Even in these cases, an opportunity is given to the claimant to make a representation for consideration by the Review Committees at the Zonal Office and the Central Office. As a result of such review, depending

on the merits of each case, appropriate decisions are taken. The Claims Review Committees  at the Central and Zonal Offices have among other members a retired High Court / District Court Judge.


Grievance Redressal Machinery:

 

Policyholders' Grievance Redressal Cells exist in all the Offices of the Corporation, headed by Senior Officers who can be approached by policyholders for redressal of their grievances, on any day but particularly on every Monday between 2.30 p.m. and 4.30 p.m. without prior appointment.

 

Central Office -             Executive Director (CRM)    for conventional policies Chief (HI)        --  for health insurance policies Chief (P&GS)             --  for Group Insurance policies Secretary (MI)                      --  for Micro Insurance policies.

 

All Zonal Offices -         Regional Manager (CRM)  for conventional policies

Regional Manager (P&GS)for Group insurance policies. All Divisional Offices -   Manager (CRM)

All Branch Offices -       Chief Manager / Sr./ Branch Manager

 

 

 

 

INFORMATION TECHNOLOGY IN LIC

 

LIC has been a pioneer in using information technology for enhancing the quality of its service to customers.

 

 

Being  the  largest  insurer  in  India,  LIC  has  always  explored  all  the  avenues  that technology offers to provide the best of services to its valued customers and other stakeholders.

 

Today, LIC customers can pay their premium not only in any one of its offices, but also through LIC’s Premium Payment Gateway on our website through partner Banks like Corporation Bank, Axis Bank or  through associate agencies like APOnline, MPOnlie, etc.

 

 

LIC reaches out to its customers through IVRS, Call Centres, Customer Zones, SMS, e-mail, website and now even the Social Networking sites. LIC has also undertaken many other customer-centric initiatives like Enterprise Document Management System, Portal for Customers, Agents, Development officers and Employees, etc.

 

 

All our offices and Training Centres have been connected to a Wide Area Network for more than 10 years now.  Recently, we have connected our Central Office and Zonal Offices  through  high  definition  video-conferencing  facility  and  are  currently  in  the process of extending this facility to our premier Training Centres. In order to safeguard its IT infrastructure from external threats, LIC has also installed the latest IT Security products in its setup.

 

 

To keep pace with changes in the business environment and the technology platforms, we have started the migration of our core application from a single tier to three tier


architecture.   The project called e-FEAP aims at Code and Data migration and consolidation of data at the Divisional level.  Planned for completion in 2011-12, the e- FEAP will help LIC to delivery quality service to its Policyholders and marketing force.

 

 

 

Chief Life Insurance Advisor Channel

 

In order to increase market presence, more number of agents should be in the field. Understanding this well, the Corporation decided to utilize the capabilities of existing senior agents for organizational  growth by incentivising  them for identifying,  training and mentoring new agents. Retired employees and Financial Service Executives (FSE) are also allowed to become Chief Life Insurance Advisors  under certain conditions. More than 1, 48, 500 agents were being supervised by the CLIAs as on 31.03.2011.

 

Micro Insurance

 

The financial year 2010-2011 has seen a phenomenal growth in the Micro Insurance (MI) initiative undertaken by LIC. The splendid performance of the MI business vertical reiterates the LIC’s commitment: “To take life insurance to the nook and corner of the country. In a short span of time, the MI business channel has provided valuable insurance  cover  to  7.4  million  policy  holders  who  belong  to  the  most  vulnerable segment of the society as a part of Financial Inclusion.

 

Direct Marketing

 

LIC started a new channel Direct Marketing which began operations on 01.08.2009. The channel was started with the objective of reaching out to untapped markets like youth and HNI and provide new buying experience to customers through technology driven systems and processes. In the first full year of its operations the channel could procure  a  New  Business  of  Rs.  144  crores  with  50962  policies.  The  channel  is operating through 98 units across the country and more units are being opened shortly. Now, buying an LIC policy is just a click away for a prospective buyer. A visit to LIC’s website & registration of details thereon makes it possible for him to get the desired professional advice/ desired service within a few hours. The channel is on its way to starting new initiatives of online sale of policies and opening of tele marketing centers.

 

 

 

LIC of India International Operations

 

The Life Insurance Corporation of India has three of its Branch Offices functioning at Fiji, U.K. and Mauritius. Also, there are five Joint Venture Companies functioning at Bahrain, Nepal, Sri Lanka, Kenya and Saudi Arabia, out of which, the latter two are composite companies transacting both life and non-life business. A Representative Office was opened at Singapore in November, 2008.

 

Our Foreign Units collectively  procured  a First Premium  Income (FPI) of Rs. 302 crores in the 12 month period of each unit ended during 2010-2011, thereby registering a growth of 45.24%

 

The Total Premium Income of our Units was Rs. 963 crores during the same period in

2010-2011


OUR SOCIAL RESPONSIBILITY

 

LIC offers life insurance protection under group policies to various groups such as employer-employee,  co-operatives, weaker  sections  of society  etc. and  insurance coverage to people below poverty line at subsidized rates under social security group schemes  like  Janashree  Bima  Yojana’  & Aam  Aadmi  Bima  Yojana’  .The  scheme

Shiksha Sahayog Yojana’ is a free add-on scholarship benefit that is available for the children of the members who are covered under Janashree Bima Yojana.

 

Janashree Bima Yojana

 

This scheme was launched on 10.8.2000. The object of this scheme is to provide life insurance protection to the rural and urban poor persons living below poverty line and marginally above poverty line.

 

Persons, normally the head of the family, between age 18 and 59 years who follow any of the specified  45 vocations  / occupations  can be covered  under Janashree  Bima Yojana.

 

The benefits under the scheme include natural death cover of Rs. 30,000/-, accidental death cover / permanent disability benefit (due to accident) of Rs. 75,000/- and partial permanent disability (due to accident) of Rs. 37,500/-.

 

Shiksha Sahayog  Yojana

 

This scheme was launched on 31.12.2001 for the benefit of children of members of

Janashree Bima Yojana.

 

 

A free add-on scholarship benefit is available for the children of the members who are covered under Janashree Bima Yojana. Scholarship of Rs.600/- per half-year (payable on 1st January and 1st July every year) is given to students studying in Classes IX to XII (including ITI courses). Scholarship is restricted to two children per family.

 

 

 

Aam Aadmi Bima Yojana

 

This is a new Social Security Scheme for rural landless household and was launched on 2nd October, 2007 at the hands of the then Honble Finance Minister at Shimla. The head of the family or one earning member in the family of rural landless household is covered under the scheme. The premium of Rs. 200/- per person per annum would be shared equally by the Central Government and the State Government.

 

The benefits under the scheme include natural death cover of Rs. 30,000/-, accidental death cover / permanent disability benefit (due to accident) of Rs. 75,000/- and partial permanent disability (due to accident) of Rs. 37,500/-.

 

Under this Scheme, a free add-on scholarship benefit is available for the children of the members 

who are covered under Aam Aadmi  Bima Yojana. Scholarship of Rs. 600/- per half-year  (payable  on 1st  January  and 1st  July every year) is given to students studying in Classes IX to XII (including ITI courses). Scholarship is restricted to two children per family.


Jeevan    Madhur    - LIC has a   micro-insurance   cum   savings   plan   with   profits wherein premiums  can be paid  in  weekly, fortnightly, monthly, quarterly, half-yearly or yearly intervals.  The sum assured varies from Rs. 5000/- to Rs. 30,000/-.

 

Jeevan  Mangal - It is a Micro Insurance, term assurance plan with return of premiums on maturity. On death during the term of the policy the Sum Assured under the basic plan is payable, provided the policy is kept in force. The premium can be as low as

Rs 15/- per week.

 

Golden Jubilee Foundation - LIC, as a part of its Corporate Social Responsibility, formed a Trust - LIC Golden Jubilee Foundation’ in the year 2006, with the objective of promoting education,  health, relief of poverty or distress  and advancement  of other objects of general public utility. As on date LIC has put in a Corpus of Rs. 90 Crores towards   LIC  Golden   Jubilee  Foundation   and  interest   is  distributed   for  various Charitable Purposes. So far it has sanctioned projects worth of   Rs. 22.35 crore.

 

LIC Golden Jubilee Scholarship Scheme provides scholarship to economically weaker sections of the society to pursue higher education at the rate of Rs. 100000/- per year for 10 students per Division till they complete their graduation/ professional course. Approximately 2650 students have benefited from the Scheme so far.

 

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