2. • LIC has the SOVEREIGN GUARANTEE of
GOVT. OF INDIA under Section 37 of LIC
Act, 1956.
• ( Section 37 of LIC Act, 1956: The sums
assured by all policies issued by the
Corporation including any interest
declared in respect thereof ……… shall
be guaranteed as to payment in cash by
the Central Government. )
SOVEREIGN GUARANTEE
4. VAST EXPERIENCE
LIC is successfully managing
Group Gratuity / Group Leave
Encashment / Group
Superannuation schemes in
more than 75% of Public /
Private institutions
5. MARKET SHARE (GROUP BUSINESS)
Life Insurers
MARKET SHARE (%)
LIC 75.39%
Private Insurers
(Total of 23 Companies ) 24.61%
TOTAL 100%
Source: IRDA Annual Report 2013-14
6. Consistent Interest Rates
(Interest rates declared were net of expenses)
Fund 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Upto 25
lakhs 9.00 9.00 9.00 9.00 9.00 8.75 9.00
25 lakhs
to 1 Crore 9.15 9.15 9.15 9.15 9.15 8.75 9.00
1 to 5
Crores 9.25 9.25 9.25 9.25 9.25 8.75 9.00
5 to 10
Crores 9.30 9.30 9.30 9.30 9.30 8.75 9.00
7. • LIC was formed in 1956 by an Act of Parliament by
amalgamation of 245 Private Insurance Companies.
• Today, LIC is the largest insurer in the world
covering more than 37 Cr. lives, thus equivalent to
the 4th
largest nation in the world in itself !
• LIC is a Public sector undertaking which is competing
with almost two dozen private life insurance
companies for more than a decade and still
maintaining a market share which is nearly three
times the market share of all the private companies
put together.
8. Insurer 2012-13 2013-14
LIC 8.00 8.56
Private Sector 18.93 19.10
TOTAL 10.99 11.15
Note: Operating expense ratio is the ratio of operating
expenses to the premium underwritten by the life insurers.
OPERATING EXPENSES
Source: IRDA Annual Report 2013-14
9. Assets Under Management as on 31.03.2014
Life Insurer AUM (in Cr) % to total
Bajaj Allianz 38,612 1.97%
Canara HSBC 8,360 0.43%
ICICI Pru 79,399 4.06%
India First 6,160 0.31%
SBI Life 58,195 2.97%
TATA AIA 17,405 0.89%
Private Total 3,83,169 19.57%
LIC 15,74,296 80.43%
Industry Total 19,57,465 100%
Source: IRDA Annual Report 2013-14
10. Life Insurers
Claims Paid Claims Repudiated
No. of Lives Benefit Amount No. of Lives Benefit Amount
Bajaj Allianz 81735 98.27% 290.98 89.42% 1034 1.24% 20.35 6.25%
Canara HSBC 342 96.34% 3.14 88.40% 13 3.66% 0.41 11.60%
ICICI Pru 2703 97.09% 64.20 87.52% 59 2.12% 3.83 5.23%
India First 2371 86.60% 31.91 66.21% 311 11.36% 14.16 29.38%
SBI Life 12122 97.15% 267.38 93.60% 227 1.82% 11.74 4.11%
TATA AIA 1225 88.70% 31.87 85.78% 74 5.36% 2.24 6.04%
Private Total 143530 90.45% 1222.25 91.28% 1921 1.21% 62.18 4.64%
LIC 266367 99.65% 1882.83 99.58% 1 0.05
Industry Total 409897 96.22% 3105.08 96.13% 1922 0.45% 62.23 1.93%
GROUP DEATH CLAIMS FOR THE YEAR 2013-14
Source: IRDA Annual Report 2013-14Benefit Amount is in Crores
12. Insurer
Outstanding
as on
31st March,
2013
Grievances
Reported
during 2013-
14
Resolved
during
2013-14
Outstanding
as on
31st March,
2014
LIC 544 85284 85828 0
PRIVATE
(23)
680 289336 288836 1180
TOTAL (24) 1224 374620 374664 1180
STATUS OF GRIEVANCES : LIFE INSURERS
DURING 2013-14
Source: IRDA Annual Report 2013-14
13. LIC’s Investments in Five Year Plan periodsLIC’s Investments in Five Year Plan periods
PlanPlan YearYear Investments (Cr.)Investments (Cr.)
II 1956-1961 184
III 1961-1966 285
IV 1969-1974 1,530
V 1974-1979 2,942
VI 1980-1985 7,140
VII 1985-1990 12,969
VIII 1992-1997 56,097
IX 1997-2002 1,70,929
X 2002-2007 3,94,779
XI 2007-2012 7,04,151
XII 2012 - 2017 4,51,460
