Profile – 2006-2007
The Life Insurance Corporation of India has been a nation-builder since its formation in 1956. The performance of LIC has been exemplary and has been growing from strength to strength be it customer base, agency network, branch office network, new business premium and the like and has significant role in spreading life insurance widely across the country. True to the objectives of nationalisation, the LIC has mobilised the funds invested by the people for life insurance for the benefit of the community at large. Today in the current scenario, our vision is to emerge as a world class customer centric organisation.
Some highlights of our performance are as follows:
NEW BUSINESS DURING THE YEAR 1/4/2006 TO 31/3/2007
( Individual Assurances )
Policies
(in lakh) Sum Assured (in crore) First Premium Income(in crore)
COMPOSITE 382.09 3,03,115.54 39,541.58
Growth Rate
21.02 %
5.42 %
118.64 %
PENSION & GROUP BUSINESS & SOCIAL SECURITY SCHEMES
ACHIEVEMENT FROM 1.4.2006 TO 31.03.2007
Pension & Group Schemes Growth Rate Social Security Schemes Growth Rate
No. of New lives 84.02 lac 64 % 57.48 lac -9 %
Premium Income (Rs. In crore) 11282.58 188 % 94.34 61%
BUSINESS IN FORCE AS ON 31.3.2007
Policies (in crore) Sum Assured
(Rs. in crore)
Individual Assurances 21.26 15,90,877
Group Insurance(lives) 4.19 3,24,716
Other Parameters 1/4/06 TO 31/03/07
(Rs. In Crores)
1. Total Income: Rs.1,74,424.76
2. Total Premium Income: Rs.1,27,782.26
3. Amount of claims paid: Rs. 36,537.22
4. Total Life Fund: Rs.5,60,806 (As on 31.3.07)
5. Total Assets: Rs.6,51,883 (As on 31.3.07)
PEOPLE'S MONEY FOR PEOPLE'S WELFARE
The Life Insurance Corporation of India has been a nation- builder since its formation in 1956. True to the objectives of nationalization, the LIC has mobilised the funds invested by the people in life insurance for the benefit of the community at large.
The Corporation has deployed the funds to the best advantage of the policyholders as well as the community as a whole, true to the spirit of nationalisation. National priorities and obligation of reasonable returns to the policy holders are the main criteria of our investments.
The total funds, so invested for the benefit of the community at large accumulated to Rs. 6,13,266.58 crore as on 31st March, 2007. The investment of the Corporation's funds is governed by Section 27A of the Insurance Act, 1938, subsequent guidelines / instructions issued thereunder by the Government of India from time to time, and the IRDA by way of regulations. As per the prescribed investment pattern approved by
IRDA, the controlled funds are invested as follows:-
Not less than 50% is invested in Govt. Securities or other approved Investments.
Not less than 15% is invested in infrastructural and social sector Investments.
Not exceeding 35% in others to be governed by exposure prudential norms.
Awards Won
We enlist some of the recent awards received by LIC:
1. Outlook Money NDTV Profit –“ Best Life Insurer Award “ was conferred upon LIC
2. LIC has also won the “Golden Peacock Award” for Excellence in Corporate Governance
3. “Web 18-Genius of the Web Award” was also conferred on us for the best website in Insurance Category.
4. Adjudged “Number One Service Brand” in India by Economic Times and AC Neilsen ORG Marg for the year 2007 for the fourth consecutive year.
5. Award for “Customer and Brand Loyalty” in the Insurance Sector
6. LIC adjudged as “ Best Life Insurance Company of the Year “-at the Second NDTV Profit Business Leadership Awards-2007
7. LIC adjudged the “ Most Preferred Life Insurance Company of the Year” at the CNBC Awaaz Consumer Awards 2007 third time in succession.
8. Awarded Reader Digest’s “Trusted Brand” 2006 (voted by consumers) as well as 2007
9. Largest Financial Institutional Investor – both in equity market and term loans.
10. LIC - An Institution Builder promoting many financial and insurance institutes like NSE, NCDEX, LIC Mutual Fund, Stock Holding Corporation of India, National Insurance Academy, Insurance Institute of India etc.
11. LIC is the second largest PC user in the country.
OUR PRODUCTS
1. We have in our basket of schemes more than 40 different plans catering to the changing needs of different segments of the society – basic insurance plans ( whole life, endowment and money back), Term Assurance Plans, Pension Plans, Capital market linked Plans etc.
2. Our New product launches
1. New Bima Gold
2. Gratuity Plus
3. Jeevan Madhur (Micro Insurance)
4. Market Plus
5. Child Career Plan & Child Future Plan.
6. Jeevan Amrit
7. Fortune Plus
8. Profit Plus
CLAIM SETTLEMENT PERFORMANCE (2006-2007)
1. Total Claims Settled – Over 132 lakh claims.
2. LIC settles over 45600 claims every working day i.e.2.21 claims per second.
3. 96.99% of Maturity Claims are settled on or before the date of maturity.
4. 92.06% of Non-early Death Claims are settled within 20 days of intimation.
5. O/s Claims Ratio – (Maturity + SB) is 0.07 %, Death Claims is 2.03 %
Customer Centric Initiatives
Claims Review Committee :
The Corporation settles a large number of death claims every year. Only in case of fraudulent suppression of material information will the liability be repudiated. The number of death claims repudiated is, however, 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.
All Branch Offices -Chief Manager / Sr./ Branch Manager
All Divisional Offices -Marketing Manager
All Zonal Offices -Regional Manager (CRM)
Central Office -Executive Director / Chief / Secretary (CRM)
The policyholder can avail of himself / herself the facility of toll-free telephone systems in Delhi and Mumbai or contact us through the LIC website www.licindia.in. LIC's website is rich in information on products / services.
Scheme of Ombudsman :
The Grievance machinery has been further expanded with the appointment of the Insurance Ombudsman by the Government of India at different Centres. Complaints of the following types come within the purview of thje Ombudsman's consideration.
* Repudiation of liability under claims.
* Delay in settlement of claims.
* Any dispute regarding premiums paid or payable in respect of the policy.
* Any dispute regarding the legal construction of the policies in relation to a claim; and
* Non-issue of insurance document to customer after receipt of premium.
ALTERNATIVE PREMIUM PAYMENT CHANNELS
1) Internet Payment :
As many as seven Banks - HDFC, ICICI, Centurian Bank of Punjab, AXIS Bank, Corporation Bank, Federal Bank and Citibank and Bill Collection Service Providers - Billjunction.com, and Billdesk.com are our Service Providers. Any policyholder who has a bank account in India can use this facility.
2)Electronic Clearing Service (ECS) :
This service is currently available in selected cities. It will be extended to other Centres where the RBI has extended their ECS facility. A policyholder having an account in any Bank which is a member of the local Clearing House can opt for ECS debit to pay premiums. The advantage in this system is that once the option is exercised, the policyholder need not visit a Branch for payingthe premium or collecting the receipts. On the day indicated by the policyholder, the premium amount will be directly debited to the Bank Account of the policyholder and the receipt will be issued by the designated Branch Office.
ECS Monthly Mode : ECS channel of premium payment for Monthly mode policies introduced from proposal stage for all plans without the 5% extra charge. The Mandate Form, duly certified by the Banker has to be submitted along with the Proposal Form for new policy. You can download the mandate form from our website www.licindia.in
3) ATMs of Corporation Bank and AXIS Bank :
Premium can be paid through the ATMs of Corporation Bank and AXIS Bank. This service is available for Corporation Bank and AXIS Bank Account Holders who are also our policyholders. Policy information will be available at the ATM during the days of grace for premium payment. On payment of premium, the policyholder will get an acknowledgement reciept from the ATM and later on, a designated Branch will send the actual receipt to the policyholder.
Online collection of premium through AXIS Bank : Renewal Premium can be paid at all AXIS Bank Branches either by using AXIS Bank cheques and/or by cash. A receipt is generated by the Bank and signed on behalf of LIC by the AXIS Bank Official and handed over to the customer.
Portal : The policyholder has to enroll his/her policies at our corporate web site: www.licindia.in and can pay premium by clicking on the Online Premium Payment tab. This facility is available only for customers having access to net banking facility of the following select banks - Bank of India, Union Bank of India, Punjab National Bank, State Bank of India, State Bank of Indore, HDFC, ICICI Bank, AXIS Bank, Citi Bank, IDBI Bank, Centurion Bank of Punjab, IndusInd Bank, ABN AMRO Bank, Kotak Bank, Bank of Baroda and two service providers billjunction.com, billdesk.com .
The premium receipt can be printed online and will also be e-mailed to the policyholder at the same time.
INFORMATION TECHNOLOGY IN LIC
Having been one of the very first and largest users of I.T. In terms of hardware and in-house developed software, LIC of India has adapted its existing technologies and new emerging technologies to meet the changing needs.
1) All the job processes of Branch Offices have been Computerised.
2) All 2048 Branch Offices are now connected through the Wide Area Network.
3) Customer-centric initiatives:
* Portal for our customers has been set up. This portal will be a single outlet for an array services. These services include policy status, bonus calculation, loan quotation, list of lapsed policies along with revival quotation, premium calendar, change of address, doctor locator, agent locator, premium payment gateway.
* A similar portal is available also for agents.
* Enterprise Document Management System to mack LIC a paperless office is to tack off shortly
INFO CENTERS
With a view to help customers interact easily from place of theirconvenience, LIC has set up INFO CENTERS in the following 8 places Delhi, Kolkata, Mumbai, Ahmedabad, Pune, Hyderabad, Bangalore and Chennai. The INFO CENTERS and IVRS have been integrated and can be accessed through a universal Access Number: 1251. The INFO CENTERS work from 8 AM to 8 PM from Monday to Friday and from 10 AM to 6 PM on Saturdays. INFO CENTERS provide information on products, policy status, policy servicing, Telephone Nos. and addresses of our Offices and any other information the customer would want.
SATELLITE OFFICES
With a vision of providing easy access to its policyholders, LIC has launched 159 SATELLITE OFFICES offices. These satellite offices, which are attached to the respective parent branches, are basically an extension of the large parent branches for services to policy holders. Processing of new proposals and collection of renewal premium are main functions of these offices.
NEW OFFICES
A new East-Central Zonal Office has been opened at Patna, catering to the needs of the states of Bihar, Jharkhand and Orissa. Five New Divisions have been formed namely – Faizabad, Shimoga, Pune II Rohtak, Kharagpur.
OUR SOCIAL RESPONSIBILITY
LIC offers life insurance protection under group policies to various groups such as employer-empoyee, co-operatives, weaker sections of society etc. and insurance coverage to people at subsidized rates under social security group schems like Janashree Bima Yojana. Aam Admi Bima Yojana - It is a Scheme for Rural Landless Households. The scheme is of the Central and State / Union Territory Governments and administered by LIC.
Jeevan Madhur - LIC has launched a micro-insurance cum savings plan with profits wherein premiums can be paid in weekly, fortnightly, monthly, quarterly, half-yearly or yearly intervals was introduced last year. The sum assured varies from Rs 5000/- to Rs 30,000/-.
Golden Jubilee Foundation was formed with a view to channelise our social responsibilities and to give a formal shape to the same a public trust named Golden Jubilee Foundation was formed with a purpose of undertaking charitable activities namely, relief of poverty or distress, education, medical relief and advancement of any other object of general public utility.
