What is LIC Full Form?
The full form of LIC is Life Insurance Corporation of India.
Life Insurance Corporation
Life Insurance Corporation of India (abbreviated as LIC) is a Government of India owned insurance and investment corporation.
The Life Insurance Corporation of India was established on 1 September 1956, when the Parliament of India passed the Life Insurance Act of India which nationalized the insurance industry in India. More than 245 insurance companies and provident societies were merged to form the state-owned Life Insurance Corporation of India.
As of 2019, the Life Insurance Corporation of India had a total life fund of ₹28.3 trillion. The total value of the policies sold in the year 2018-19 is ₹21.4 million. Life Insurance Corporation of India settled 26 million claims in 2018-19. It has 290 million policy holders.
History [LIC Full Form]
The first company to offer life insurance coverage in India was established in 1818 in Kolkata. Its primary target market was Europeans based in India, and it charged a heavy premium from Indians. Surendranath Tagore founded the Hindustan Insurance Society, which later became the Life Insurance Corporation.
The Bombay Mutual Life Assurance Society, formed in 1870, was the first domestic insurance provider. Other insurance companies established in the pre-independence era include.
In 1955, MP Feroze Gandhi raised the issue of insurance fraud by the owners of private insurance agencies. In the ensuing investigation, Sachin Devkekar, owner of the Times of India newspaper, one of India’s richest businessmen, was jailed for two years.
The Parliament of India passed the Life Insurance Act of India on 19 June 1956, creating the Life Insurance Corporation of India, which began operations in September of the same year. It consolidated the businesses of 245 private life insurance companies and other entities offering life insurance services; This included 154 life insurance companies, 16 foreign companies and 75 future companies. The nationalization of the life insurance business in India was the result of the Industrial Policy Resolution of 1956, which created a policy framework to expand state control to at least 17 sectors of the economy, including life insurance.
Finance Minister Nirmala Sitharaman announced the proposal to make an initial public offering for LIC in the Union Budget for 2021.
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