1. Welcome to the presentation on
LIC of India
• One of the World’s Largest
Life Insurance Company
• voted No. 1 Most Trusted Service Brand
for 2008-09 by Brand Equity - Economic
Times for sixth year in succession
3. 1956-Nationalisation of the life Insurance sector.
Life Insurance Corporation came into
existence in the same year. The LIC absorbed
154 Indian, 16 non-Indian insurers and 75
provident societies— 245 Indian and foreign
insurers in all.
LIC had monopoly till the late 90s when the
Insurance sector was reopened to the
private sector.
4. 1993-The Government set up a committee under
the chairmanship of RN Malhotra, former
Governor of RBI, to propose recommendations
for reforms in the insurance sector
1999-Following the recommendations of the
Malhotra Committee report, the Insurance
Regulatory and Development Authority
(IRDA) was constituted as an autonomous
body to regulate and develop the insurance
industry.
2000 -The IRDA was incorporated as a statutory
body.
5. Macro Economic Trends
• GDP grew at the rate of 6.7% for the year
2008-09 .
• 2009-10- GDP growth estimated at 7.2 %.
• Household Savings.2006-07
2007-08
2008-09
34.2 %
37.7 %
37.9 %
. Household savings in financial assetsMore than 11 %
6. Percentage Distribution of Financial Saving of the
Household Sector (Gross)
•
Item
2006-07
2007-08 2008-09 #
Financial Saving
100.0
100.0
100.0
a)
Currency
10.2
11.4
12.5
b)
Deposits
49.1
52.2
58.5
(Banks, NBFC etc.)
c) Shares &
9.0
12.4
2.6
Debentures
d)Claims on Govt.
3.0
-4.0
-3.1
e) Insurance Funds 17.7
18.0
20.1
i)
life insurance 17.1
17.4
19.5
ii)
postal insurance 0.3
0.4
0.3
iii)
state insurance 0.3
0.2
0.3
iv)
Provident and 11.1
9.9
9.5
Pension Fund
P: Provisional, # : Preliminary Estimates. Source: RBI Annual Report 2008-09
7. Trend in Life Insurance market
• Favourable macro economic environment and positive
trend in growth of Household savings have significantly
influenced growth of Life Insurance business during the
recent years. The Insurance Industry has registered total
FYP of Rs.69284.00 crores in 2008-09 as compared to
Rs.78552.70 crores in the year 2007-08.
• LIC has been able to maintain a significant share in Life
Insurance market in spite of intense competition and
expanded market base. LIC as the largest insurer in Life
Insurance Market maintained 58.06% share in premium
and 70.52% in Individual policies in the financial year
ending March 2009. While in Group Insurance the share
of LIC was 71.95% and in Policies 85.24% by the end of
March 2009.
8. Insurance Penetration
•
•
•
•
Low Insurance penetration- 2.8 % of GDP
World Average- 6-9 %
Highest in South Africa-15 %
Still 75 % of Indian Population not covered
by Insurance
• So,there is a huge market for Life
Insurance---expected to grow at 20-30%
for next 10-15 years.
9.
10.
11. Our Mission and Vision
Mission
Ensure & 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 economic
development.
Vision
A trans-nationally competitive financial
conglomerate of significance to societies &
PRIDE OF INDIA
14. Citizens’ Charter
Our Commitment to the Community
•Provide insurance cover and financial security
to every insurable person.
•Conduct all aspects of our business keeping in
view its interest and national priorities.
•Provide them prompt, efficient and courteous
service.
•Act as trustees of their funds and invest the
funds to their best advantage.
•Conduct our business with utmost economy
and on sound business principles.
15.
16. • All 2048 branches of LIC are
computerized.
• LIC’s WAN covers 109 Divisions.
• Branches are connected by MAN.
• Online Premium Payments.
• A new Zonal office and 9 new
Divisions opened this year.
• 807 Satellite Sampark offices opened
to bring LIC to your doorstep
• IVRS facility available in 59 Urban
centers.
• Kiosks installed in 150 Select Centers.
• Info Center working in 8 centers.
17. • Our website www.licindia.in offers
Enterprise Portal for customers.
• Online Premium Payments through 8
banks and three payment gateways,
billjunction.com, billdesk.com &
timesmoney.com
• Premium payment through ATMs of
Corporation Bank, UTI Bank
• Premium payment through ECS in
select centres
• IVRS facility available in 59 Urban
centers.
• Kiosks installed in 150 Select
Centers.
• Info Center working in 8 centers.
18. International Operations
• LIC has three off-shore offices at Fiji,
Mauritius, and U.K.
• Five Joint Venture Companies functioning
at Saudi Arabia, Nepal, Sri
Lanka,Bahrain,Kenya
• Representative Office opened at
Singapore.
• Planning to enter Australian life insurance
market.
19. Policies to be guaranteed by Central
Government
The sums assured by all policies issued by the
Corporation including any bonuses declared in
respect thereof and, subject to the provisions
contained in section 14 the amounts assured by
all policies issued by any insurer the liabilities
under which have vested in the Corporation
under this act, and all bonuses declared in
respect thereof, whether before or after the
appointed day, shall be guaranteed as to
payment in cash by the Central Government.
- Section 37 of LIC ACT, 1956
20. Our Proud Position - contd
INDIA’S largest Financial Institutional Investor both in
equity market and term loans
An Institutional Builder promoting NSE, NCDEX, LIC
Mutual fund, Stock Holding Corporation of India,
National Insurance Academy, Insurance Institute of
India
LIC’s e-portal (website) has won Webby’s Consumers
voted best website award
21.
22. CHILD CAREER PLAN
(Plan 184)
CHILD FUTURE PLAN
(Plan 185)
JEEVAN AMRIT
(Plan 186)
• Market Plus-1(Plan
191)
• Money Plus-1(Plan
no.193)
PROFIT PLUS
(Plan 188)
CHILD FORTUNE
PLUS (Plan194)
JEEVAN AKSHAY 6
(Plan 189)
• Jeevan Nischay(Plan
no.199)
• Wealth Plus(Plan
no.801)
23. Financial Highlights during FY 2008-2009
•
•
•
Total Premium Income
:
Total Income
:
Payments to Policyholders :
Rs. 157186.55 crore
Rs. 200280.65crore
Rs 53250 crore
As on
Rs. (in crores)
As on
Rs. (in crores)
31.3.2007
31.3.2008
31.3.2009
6,74,514.78
7,72,753.72
8,73,551.35
31.3.2007
31.3.2008
31.3.2009
5,72,602.80
6,98,506.91
8,07,317.43
25. •
Ratio of outstanding claims: 0.07%
•
It s the largest number settled by any
life insurer in the world
•
LIC settles 1.49 Crore claims i.e 47100
claims every working day i.e. 2 claims
settled every second.
Year
Number
(in lakhs)
2007-08 144.53
2008-09 149
Amount
Rs. (in crores)
35,607.20
37893.00
26. INVESTMENT IN GOVT. & SOCIAL SECTOR (Rs. IN
CRORES)
Type of Investment As on ( Provisional
•
•
•
•
•
•
•
•
•
•
•
•
•
•
31.03.07
31.03.08
297943
89234
31.03.09
318673
110697
CENTRAL GOVT. SECURITIES 272498
STATE GOVT. & OTHER GOVT. 64285
GUARANTEED MARKETABLE
SECURITIES……………………………………………………
Sub – Total ( A)
36783
387177
429370
HOUSING & INFRASTRUCTURE
INVESTMENT
a) HOUSING
22451 24325
34185
b) POWER
37881
41120
48090
c) IRRIGATION / WATER SUPPLY 7500
6649
6022
& SEWARAGE
d) ROAD, PORT & BRIDGES
1516
1154
7218
e) OTHERS ( Incl. Railways)
4398
8774
5274
Sub – Total ( B)
73746
82022
100789
TOTAL (A+B)
410529
469199
530159
27. Pension & Group Business &
Social Security Schemes
in 2008-09
Pension &
Group Schemes
Growth
Social Security
Schemes
No. of New lives
(in lakhs)
207-06
35 %
110.64
Premium Income
(Rs. in crore)
12517.32
35 %
175.05
28.
29. Solvency Margin
• IRDA made it mandatory for all the life
insurance companies.
• Solvency Margin-Solvency margin, in
simple terms, means the excess of assets
an insurance company is required to
maintain over its liabilities. Like capital
adequacy ratio in banks, solvency margin
is part of the prudential norms. To satisfy
the solvency margins, insurers have to
build up reserve as their business grows.
30. • For example, if a company collects Rs 20
as premium and provides an insurance
cover for Rs 100, the risk element is Rs
80. The solvency margin is calculated on
Rs 80.
• Life insurance companies are expected to
maintain a 150% solvency margin.
• LIC was the first one to protest the IRDA
norms, but it subsequently made provision
as per IRDA norms.
32. Awards won by LIC
Awaaz Consumer
Award 2007, 2008 &
2009 given by
CNBC_TV
Golden Peacock
Global Award
2005,
2006 and
2007,2008,2009
Asia Insurance
Merit 2008 & 2009
in Corporate
Social
Responsibility
33. Our Glory
No.1 in Net Worth
No.1 in Net
Profit
Reader Digest’s
Trusted Brand
Award 2006 &
2007,2008,2009
No.2 in Total
Income
Business World’s
Most Respected Co.
Award 2007,2008 &
2009.
34. Our Proud Position
Selected Super Brands India Awards 2006-07 & 200708 & 2008-09
NDTV Profit Business Leadership Award 2000
