Life Insurance Corporation of India, which is commonly known as LIC, is a household name for most Indians. Having been around for years as the biggest life assurance company in the country, it has become part of many families’ financial planning over generations. This article will take a deep dive into what makes LIC so crucial within India’s insurance landscape.
What is LIC and Why Does It Matter?
LIC came into being in 1956 when the Indian government brought all insurance companies under one roof. Since then, it has become a giant in the insurance sector. LIC is more than just a company – it’s an institution that has helped millions of Indians secure their financial future.
In a bid to allow common people to own some stake in such an enormous insurer, LIC went public in 2022.
No other insurer can match LIC’s reach into all the nooks and crannies of this vast subcontinent called India. Whether you live in metropolitan cities or remote villages, there will always be somebody representing LIC nearby.
That’s how widespread they have become, which further helps them play a significant role even towards propagating life coverage awareness throughout our land.
How LIC Became India’s Top Insurer?
LIC’s story is closely tied to India’s growth as a nation. When it was created in 1956, the main goal was to make sure life insurance reached people in all parts of society, including rural areas where private companies didn’t often go.
For many years, LIC was the only life insurance company in India. Even when other companies were allowed to enter the market in 2000, LIC managed to stay at the top.
This shows how much trust people have in LIC and how well it understands what Indian customers need.
What Makes LIC Stand Out?
There are several reasons why LIC continues to be the leader in Indian insurance:
- A Huge Network: LIC has over 1.2 million agents across India. This means there’s likely an LIC agent in almost every neighborhood.
- Many Types of Policies: Whether you want a simple savings plan or a more complex investment-linked policy, LIC has something for everyone.
- Government Support: Being backed by the government gives investors extra confidence in LIC.
- Affordable Plans: Because LIC is so big, it can often offer policies at lower prices than other companies.
- Present Everywhere: LIC has offices not just in big cities but also in smaller towns that many other insurance companies don’t reach.
How Well is LIC Doing Financially?
LIC’s financial numbers show just how big it is:
As of Aug 2024, the LIC share price is Rs. 1,010+. In the financial year 2024, LIC earned Rs. 4,75,070 crore as total premium income compared to Rs. 4,74,005 crore in FY2023.
Its PAT for FY2024 was Rs. 40,676 crore against Rs. 36,397 crore in FY2023. Its AUM has also increased by 16.48% in FY2024 to Rs. 51,21,887 crore vs Rs. 43,97,205 crore in FY2023.
LIC has also sold a total of 2,03,92,973 new policies in FY2024. These numbers suggest LIC’s strong market position, which makes investing in LIC attractive for investors across India.
Source: Licindia.com
Conclusion
LIC has come a long way since it was formed in 1956. From being the only life insurance company in India to now competing with many private insurers, LIC has shown that it can adapt and grow. If you are interested in investing in LIC, open demat account online to start your investment journey.
