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Journey of LIC: When and how the country’s largest insurance company LIC was founded, after overcoming so many difficulties, it reached its position, know the answers to these questions…
After a long wait, finally the country’s largest insurance company Life Insurance Corporation of India (LICIPO of (IPO) Revealed. It is getting great response from investors. It will also be open on Saturdays. The journey of LIC whose IPO is being discussed in this country has not been easy. The policy of this insurance company opened about 66 years ago (LIC PoliciesToday, someone is connected to most of the houses in the country. The era when LIC came into existence was dominated by only private insurance companies. It was not easy for a middle class person to take a policy, but LIC not only made its door-to-door reach but also gained their trust.
When and how the country’s largest insurance company LIC was founded, after overcoming so many difficulties, it reached its place, know the answers to these questions…
The foundation of the country’s largest insurance company was laid like this
After independence, only private companies were doing insurance work in the country. Most of the households had more number of family members and only one earning member. In such a situation, in order to give financial security to that head, insurance was very important. But the then government felt that a government insurance company should be formed for their financial security.
The foundation of this initiative of the government was laid on 19 June 1956 and the Life Insurance Corporation Act was passed in the Parliament. After the passage of this Act, 245 private insurance companies already operating in the country were acquired. After this, the Life Insurance Corporation of India i.e. LIC was formed on 1 September 1956.
first day record
When LIC came into existence, it became a record on the very first day itself. In fact, when LIC was formed after the acquisition of many private insurance companies, it had 27 thousand employees. 50 lakh policies were on record. That’s why LIC’s name was included in the company with the most employees on the very first day. At present, more than 1 lakh employees are working in this company and it has about 30 crore insurance policies.
Such a policy was delivered to every class
Even though LIC company came into existence in 1956, its journey was not easy. The employees of the company had to make great efforts to connect every category. In order to explain their point of view, their policy and its benefits, the employees used to travel to every corner of the village by bicycle and bullock cart. If he could not find it anywhere, he used to go on a journey on foot. After the hard work of the employees and after a long time, people started increasing their faith in LIC. They also got its benefits.
LIC employees acted not just as agents but as family members. Advised people like family members, explained the policy according to their needs and also helped them in all possible paperwork. This also increased the confidence and also the number of policyholders. This belief persists even today.Today LIC has 12 crore policies only in rural parts of the country.
65% market share today
Today LIC has a 65 percent market share. There are about 13 lakh agents. There are more than 30 crore policies and 1.14 lakh employees. Every year LIC issues about 3 crore new policies. One more important thing, the claim settlement ratio of LIC is 98.3 percent which is the highest in the country. That’s why LIC is the first choice of the people and investors are excited about IPO.
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