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 Welcome to the presentation on LIC of India

Established in 1956 25 crore customers across the Nation 54 54 25

-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.

-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.

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 assets-More than 11 %

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 Currency 10.2 11.4 12.5 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 life insurance 17.1 17.4 19.5 postal insurance 0.3 0.4 0.3 state insurance 0.3 0.2 0.3 Provident and 11.1 9.9 9.5 Pension Fund P: Provisional, # : Preliminary Estimates. Source: RBI Annual Report 2008-09

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.

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.

LIC synonymous with insurance in India

Providing financial security to people Helping to fulfill your dreams from all walks of life at every stage in life Supporting you in the hour of need

Our Mission and Vision Vision A trans-nationally competitive financial conglomerate of significance to societies & PRIDE OF INDIA 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.

Our Values Caring and Courtesy Initiative and Innovation Integrity and Transparency Quality and Returns Trustworthiness and Reliability Participation and Relationship

Our Culture Agility Adaptibility Collaboration Commitment Empowerment Discipline Sensitivity Excellence

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.

Reaching out....... Corporate Office at Mumbai 8 Zonal Offices 109 Divisional Offices 2048 Branch Offices 807 Satellite Sampark Offices

Keeping pace with times - Trust meets technology 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.

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.

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.

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

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

Endowment Plans * Endowment Plan (Plan 14) * Jeevan Mitra - (Plans 88 & 133) * Limited Payment Endow (Plan 48) * New Janraksha (Plan 91) * Jeevan Anand (Plan 149) * Jeevan Amrit Plans for Benefit of Children * Jeevan Kishore (Plan 102) * Komal Jeevan (Plan 159) * Marraige Endow. & Edu.Annuity (Plan 90) * Jeevan Chhaya (Plan 103) * Jeevan Anuraag (Plan 168) Joint Life Plan * Jeevan Saathi (Plan 89) Money Back Plans * 20 & 25 year Money Back (Plans 75 and 93) * Jeevan Surabhi (Plans 106,107,108) * Jeevan Tarang (Plan 178) * New Bima Gold (Plan 179) Whole Life Plans * Whole Life (Plan 2) * Limited Payment Whole Life (Plan 5) * Single Premium Whole Life (Plan 8) Capital Market Linked Plan * Market Plus (Plan 181) * Fortune Plus (Plan 187) * Profit Plus (Plan 188) Term Assurance Plans * Anmol Jeevan (Plan 164) * Temporary Assurance Cover (Plan 43) * Convertible Term Assurance Cover (Plan 58) Special Plans * New Jeevan Shree - 1(Plan 162) * Jeevan Saral (Plan 165) * Jeevan Pramukh (Plan 167) * Jeevan Bharati - Special Plan for Women (Plan 160) Pension Plans * New Jeevan Suraksha-1 (Plan 147) * New Jeevan Dhara-1 (Plan 148) * Jeevan Akshay VI (Plan 189) * Jeevan Nidhi (Plan 169) A wide range of products........ more than 40 Investment Plans * Bima Nivesh 2005 (Plan 171) * Bima Bachat (Plan 175) Plans for Handicapped * Jeevan Aadhar (Plan 114) * Jeevan Vishwas (Plan 136)

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) OUR LATEST PLAN LAUNCHES

Financial Highlights during FY 2008-2009 Total Premium Income : Rs. 157186.55 crore Total Income : Rs. 200280.65crore Payments to Policyholders : Rs 53250 crore As on Rs. (in crores) 31.3.2007 6,74,514.78 31.3.2008 7,72,753.72 31.3.2009 8,73,551.35 Assets As on Rs. (in crores) 31.3.2007 5,72,602.80 31.3.2008 6,98,506.91 31.3.2009 8,07,317.43 Life Fund Figures speak louder than words

Business Inforce Total New Business in 2008-09 No. of policies : 3.58 crores Sum-Assured : Rs. 390053 crores First Premium : Rs. 35321 crores Winning the trust of the people, year after year Individual Assurances Policies (in crores) 2007-2008 23.59 2008-2009 25.78

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 Amount ( in lakhs) Rs. (in crores) 2007-08 144.53 35,607.20 2008-09 149 37893.00 Claims settled World class Claims Performance

INVESTMENT IN GOVT. & SOCIAL SECTOR (Rs. IN CRORES) Type of Investment As on ( Provisional 31.03.07 31.03.08 31.03.09 CENTRAL GOVT. SECURITIES 272498 297943 318673 STATE GOVT. & OTHER GOVT. 64285 89234 110697 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

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

Participating in Nation Building Investment for upgrading quality of life drinking water and irrigation : Rs. 10,346 crores electricity : Rs. 15,761 crores housing : Rs. 21436 crores road transport : Rs. 1,387crores total investments as at 31.3.2009 : Rs. 5,29,525 crores contribution to 9th 5-year plan : Rs. 1,70,929 crores

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.

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.

Justifying people's trust AC Nielsen ORG-MARG Survey 2004 to 2009 (For the 6 th consecutive year) NO.1 SERVICE BRAND

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

Our Glory No.1 in Net Worth No.1 in Net Profit Reader Digest’s Trusted Brand Award 2006 & 2007,2008,2009 Business World’s Most Respected Co. Award 2007,2008 & 2009. No.2 in Total Income

Our Proud Position Selected Super Brands India Awards 2006-07 & 2007-08 & 2008-09 NDTV Profit Business Leadership Award 2000

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