Welcome

to
Presentation on
LIC & GIC
BY

B N HARSHA
  INSURANCE
Insurance is a form of contract under which one
party agrees in return for a consideration to pay an

agreed amount of money to another party to make

good the loss to something in which the insured has

a pecuniary interest as a result of some uncertain

event. It is a device by which the loss likely to be

Caused by an uncertain event is spread over a large

number of persons who are exposed to it & who

propose to insure themselves against such an event.


 LIFE INSURANCE
Life insurance is a contract under which one
person known as the insurer in return for a

premium undertakes to pay an assured amount to

another person known as the insured either on

the
event of death or on the expiry of a specified

period of time whichever is earlier.

LIFE INSURANCE CORPORATION
OF INDIA (LIC)

Establishment
LIC w a s e sta b lish e d o n S e p te m b e r 1 st

1 9 5 6 u n d e r a n A ct p a sse d b y th e
P a rlia m e n t a s a w h o lly o w n e d
C o rp o ra tio n o f G o vt o f In d ia w ith a
ca p ita lo f R s. 5 C ro re
T h e G o vt o f In d ia in 1 9 5 6 b ro u g h t

to g e th e r o ve r 2 4 0 p riva te life in su re rs &

p ro vid e n t so cie tie s u n d e r o n e
n a tio n a lize d m o n o p o ly co rp ie. ., LIC .
 LIFE INSURANCE CORPORATION OF
INDIA (LIC)


Mission

 "Explore and 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
 OBJECTIVES
 To spread life insurance & provide life insurance
prot ect ion t o t he m asses at reasonable cost .
 To m obilise people’s savings t hrough insurance linked
savings schem es.
 To invest t he funds t o serve t he best int erest s of bot h
policy-holders & t he nat ion.
 To conduct business w it h m axim um econom y
rem em bering always t hat t he m oney belongs t o t he
policy-holders.
 To innovat e and adapt t o m eet t he changing life
insurance needs of t he com m unit y.
 To prom ot e am ongst all agent s & em ployees of t he
corporat ion a sense of pride & job sat isfact ion
t hrough dedicat ed service t o achieve t he corporat e
object ive.

 Board of Directors of LIC
 Shri. T.S. Vijayan (Chairman)
 Shri. D.K. Mehrotra (Managing Director - LIC)
 Shri. Thomas Mathew T. (Managing Director - LIC)
 Shri. A.K. Dasgupta (Managing  Director - LIC)
 Shri. Ashok Chawla (Finance Secretary, Ministry of Finance,
Govt. of India)
 Shri. G.C. Chaturvedi (Additional Secretary, Department of
Financial
 Services, Ministry of Finance, Govt. of India.)
 Shri. Yogesh Lohiya (Chairman cum Managing  Director, GIC
of  India)
 Shri. T.C. Venkat Subramanian (Chairman & Managing
Director.
 Export Import Bank of India)
 Dr. Sooranad Rajashekhran
 Shri. Monis R. Kidwai

OPERATIONS
 AW ARD S
Ø Golden Peacock Award for Excellence in Corporate
Governance
Ø NDTV Profit Business Leadership Award 2008
Ø Loyalty Awards 2008 - Insurance Sector
Ø IT USER 2008  NASCOM
Ø Loyalty Awards - 2009
Ø Readers Digest Trusted Brand Award 2008 in the
Platinum category.
Ø CNBC Awaaz Consumer Awards 2008
Ø Web 18 Genius of the web awards 2007 
Ø Selected Business Super brand India 2008 ASIA
BRAND
Ø Golden Peacock Innovative Product / Service Award –
2009
Ø CONGRESS BRAND LEADERSHIP AWARD 2008
Ø SKOCH Challengers Award 2008 for Jeevan Madhur
 POLICIES & SCHEMES of LIC
► Whole Life Policy
Here the policy amount is not paid to the


insured
during his lifetime, but is paid to the nominees


on
the death of the insured.


► Endowment Policy
Here the policy amount is paid actually to the


insured
after the attainment of a specified age.

 Financial Assistance
LIC has been increasing its financial assistance in the last 33 years to the
corporate sector. In 1970-71, assistance sanctioned was Rs. 17.8 crore while it
increased to Rs. 4341.5 crore in 2002-03. In 2000-01, there was a sudden
increase in assistance provided which went to Rs. 10867.3 crore from Rs. 6825.5
crore a year earlier showing an increase of 59.2%.
Trend in Assistance sanctioned & disbursed to Corporate Sector

 Year Sanctions Growth Disbursement Growth

 (Crores) 59.2
2000-01 10867.3 rate (%) s (Crores)
7095 rate (%)
26

2001-02 6741.5 -38.0 8914.2 25.6

2002-03 4341.5 -35.6 6205.8 -30.4

2003-04 27748 539.1 15781.6 154.3

Cumulativ

e up to
82732.8 67736.1

end-

March
 Source
2004: IDBI Report, 2003-04
 Insurance Penetration & Insurance
Density
Country Insurance Penetration (IP) Insurance Density (Per capita
insurance premium)
Non- life Life% Total% Non-life % Life % Total %
 USA %
4.28 4.48 8.76 1541 1611 3152
2. Brazil 1.75 0.36 2.11 63 13 76
3. Mexico 0.85 0.86 1.72 50 51 101
4. U.K 3.07 12.71 15.78 731 3028 3759
5. Russia 1.29 1.13 2.42 22 19 41
6. Japan 2.22 8.70 10.92 808 3165 3973
7. China 0.67 1.12 1.79 6 9 15
8. Malaysia 1.59 2.13 3.72 65 86 151
9. Indonesia 0.64 0.54 1.18 5 4 9
10. India 2.83 14.04 16.86 79 393 472
GENERAL INSURANCE CORPORATION
(GIC)
The GIC was formed as a Government
Company under Sec 9 of the General

Insurance Business (Nationalisation)

Act,
1972. It was registered as a private

company
under the Companies Act, 1956.
 Subsidiaries of GIC

1.The National Insurance Company

2.The New India Assurance Company
3.The Oriental Fire & General
Insurance Company
4.The United India Fire & General Insurance
Company Ltd.
  VISION
To be a leading global reinsurance and risk solution


provider”


 MISSION
To achieve our vision by


Ø Building long-term mutually beneficial relationship with business

partners.
Ø Practicing fair business ethics and values
Ø Applying “state-of-art” technology, processes including enterprise
risk management and innovative solutions
Ø Developing and retaining highly motivated professional team of
employees
Ø Enhancing profitability and financial strength befitting the global
position
 ABOUT GIC
Ø The authorised capital of the
corporation is
 Rs. 75 crores.
Ø Shri Yogesh Lohiya is the Chairman
cum
 Managing Director of GIC.
Ø The objectives of GIC include
 “superintending, controlling and

carrying on

 SERVICES OF GIC
► Marine Insurance
► Fire Insurance
► Vehicle Insurance
► Crop Insurance
► House Insurance
► Any other insurance except life
insurance.
 Investment Pattern
v 25% of the fresh accrual of funds to be
invested in Central Govt Securities.
v 10% of the fresh accrual of funds to be
invested in State Govt securities, bond &
debentures of public sector corporations &
semi Govt bodies.
v 35% as loan to State Govts for housing &
bonds & debentures of Housing & Urban
Development Corp.
v 30% in debentures, equity shares, preference
shares & term loans.
FINANCIAL ASSISTANCE
1.Direct Assistance
The GIC finances industry in two ways:

► Granting loans.
► Underwriting & direct subscription to shares &
 debentures of the company.

2. Purpose-wise Assistance

► New projects
► Expansion & diversification
► Modernisation, rehabilitation & balancing
equipment
► Working capital requirements.
 Insurance Development &
Regulatory Authority (IRDA)
IRDA bill was passed in December
1999.The
IRDA became the statutory body in April

2000 & has been framing regulations &

registering the private sector insurance

Companies. The insurance sector was

opened
up to private players in August 2000.

Consequently many Indian & foreign

Companies have entered in the insurance

business.
 Mission of IRDA
To protect the interests of the policyholders, to
regulate, promote and ensure orderly growth of

the
insurance industry and for matters connected

therewith.

Subject to the provisions of this Act and any

other
law for the time being in force, the Authority shall

have the duty to regulate, promote and ensure

orderly growth of the insurance business and re-

insurance business.


 OBJECTIVES
Ø Issue to the applicant a certificate of registration, renew, modify,
withdraw, suspend or cancel such registration.
Ø Protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms
and conditions of contracts of insurance.
Ø Calling for information from, undertaking inspection of, conducting
enquiries and investigations including audit of the insurers,
intermediaries, insurance intermediaries and other organisations
connected with the insurance business.
Ø Regulating investment of funds by insurance companies.
Ø Specifying the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural or social
sector.
Ø Promoting and regulating professional organisations connected with the
insurance and re-insurance business