Only the British were insured in India...LIC changed the story like this
LIC with the tagline of 'With life, even after life' has turned 68 years old today. Insurance means that LIC has won the trust of people by living among them and today it is the largest insurance company in the country with a 65% share.
Only the British were insured in India...LIC changed the story like this
LIC Policy: LIC with the tagline of 'With life, even after life' has turned 68 years old today. Insurance means that LIC won the trust of people by living among them and today it is the largest insurance company in the country with a 65% share. LIC has also seen the era when people did not talk about insurance. Rising in that era, LIC won the trust of people and became another name for insurance. Whenever it comes to life insurance in the country, the first name that comes to people's minds is Life Insurance Corporation of India (LIC). Today it is the largest insurance company in the country. LIC was established 68 years ago on September 1, 1956. It was established at a time when the insurance sector was going through a very difficult phase after independence and after the arrival of LIC, unprecedented changes were seen in this sector.
Only the British used to get insurance
Insurance first came to India in 1818 from England. At that time Oriental Life Insurance Company was established by Europeans in Calcutta (now Kolkata). This company used to insure only Europeans. Indians were not insured in it. Later, due to the efforts of well-known people like Babu Muttilal Seal, insurance of Indians started in foreign insurance companies, but the premiums charged were higher than those of Europeans. Later in 1870, keeping this problem in mind, the Bombay Mutual Life Assurance Society established an Indian insurance company, in which Indians were given insurance at normal rates. Gradually, the wave of nationalism increased and by 1886, many Indian insurance companies were established in the country.
How LIC started
The beginning of the twentieth century saw good growth in the insurance business. The number of companies increased to 44 and their business was about Rs 22.44 crore, later the number of these companies increased to 176 and their business increased to Rs 298 crore by 1938. This was the time when the financial condition of the insurance companies was not good. After this, the country became independent in 1947. Then the government nationalized the insurance companies merged 245 insurance companies and established LIC with a capital of Rs 5 crore through the Life Insurance Corporation Act (LIC Act).
Sometimes the agents used to arrive on bullock carts and sometimes on foot
LIC's way of working became its biggest weapon. LIC selected its agents from among the people and trained them. People trusted the words of someone from among them. In the initial days, these agents had to work very hard to make people understand the scheme. They had to go and promote it by train, bus, motorcycle, bicycle, and even bullock carts. They would walk many kilometers, but the result is that today LIC has 12 crore policies in rural areas. The purpose of establishing LIC was to provide insurance facilities to every citizen of the country, especially in rural areas, at the right price. In 1956, apart from the corporate office of LIC, there were 5 zonal offices, 33 divisional offices, and 212 branch offices.
How big is LIC
According to the official website of LIC, today the country's largest insurance company has 2048 branch offices, 113 divisional offices, 8 zonal offices, and 1381 satellite offices and corporate offices. Its market share is more than 60 percent. The total assets under management (AUM) of LIC is more than Rs 50 lakh crore.
Entry into the stock market
LIC's IPO came in May 2022. Its size was Rs 21,000 crore. It was the largest IPO ever in the history of the Indian stock market. The current market capitalization of LIC is Rs 6.73 lakh crore. In the last year, LIC's stock has given a return of 64.42 percent.